Social Security is on the brink of demise--sadly

[pjohns]

My wife and I both receive Social Security--it is a fairly important part of the mix for us, as it is with many others--so we are not at all eager to see the Social Security system implode.  To put it mildly.

Yet that is precisely what is destined to happen--and even sooner than had previously been predicted--unless something is done.  And fast.

From an article in Comcast (culled from The Motley Fool) on the subject:

Based on that newer projection, the combined Trust Fund is expected to:

•Peak two years earlier — in 2016 rather than last year’s 2018 projection.
•Have $140 billion less in 2022 than projected for that same period just last year.
•Drain an additional $105 billion in 2023 alone — just one decade from now.

The bad news from last year’s CBO projection foretold the three-year shift forward in the projected collapse date of the combined Trust Fund in the 2012 Social Security Trustee’s Report. This year’s downgrade suggests that last year’s 2033 collapse date will likely once again be revised closer — to 2032 or perhaps even sooner.

That 2032 D-Day is less than two decades away, putting it well in the expected lifespan of typical current workers — and even of some current retirees.

Here is the link to the entire article:  3 Social Security Shockers from the CBO’s Latest Report | XFINITY Finance Blog by Comcast

[Rapunzel]

This is one reason I don't understand the administration or congress agreeing to the 2% cut in SS the last few years (finally dropped this year)... especially when at the same time they were saying can't go with privatization - which I think they should have done years ago....

BTW this is one reason I am buying the rumors they want to take over the 401K's

[Oceander]

This is one reason I don't understand the administration or congress agreeing to the 2% cut in SS the last few years (finally dropped this year)... especially when at the same time they were saying can't go with privatization - which I think they should have done years ago....

BTW this is one reason I am buying the rumors they want to take over the 401K's

They aren't just rumors.  The unions have been floating rather detailed plans for doing just that for years now.  They want the funds seized to be used to fund the woefully underfunded union pension funds that union management have been soaking for years (funny how, even though the rank-and-file funds are underfunded, management's funds are overfunded).

And since that is just what Kirchner got away with in Argentina, I would very much expect 401(k)s - and IRAs and every other form of private, non-government-controlled, retirement plan - to be "managed" by the government "for the benefit of" the owners of those funds.  In exchange for all your hard-earned money, however, you'll just get some IOUs from Social Security - i.e., you'll get some extra earnings credits to be used to compute your SS benefits.  Benefits which, we can see, those of us who are under 50 will never see.