Just a heads up that government spending and entitlements are still a problem that will bankrupt and/or destabilize this country if we don’t do something about it.
New York (CNN)In 16 years, Social Security will have to cut benefits by 21% if lawmakers do nothing to cure the program’s long-term funding shortfall.
That’s what the Social Security and Medicare trustees projected in their 2018 annual report released Tuesday.The trustees estimate that by 2034 the combined trust funds for Social Security — which help fund the old age and disability programs — will run dry. At that point Social Security will be able to pay only 79% in promised benefits to retirees and disabled beneficiaries.Those projections are roughly on par with last year’s report, which estimated the combined Social Security trust funds would be tapped out by 2034 and would then only be able to pay out 77% of benefits.
For the first time since 1982 Social Security’s costs will exceed its payroll income plus interest from the $2.9 trillion trust funds. That means it now must start drawing down principal in the trust fund to continue paying promised benefits in full.
Democrats will stall reform on these bankrupt socialist ideas every which way they can.
I think Trump has courage to take this on, but weak Republicans in Senate will be roadblock.
Kevin, you must be heart-broken by the amount of debt created by Trump.
That part is “bad Trump”.
Since Obama ran up the debt and irritated me on every other issue, I still prefer guy that runs up debt, but has gotten a lot of positives done for once!
In 16 years, Social Security will have to cut benefits by 21% if lawmakers do nothing to cure the program’s long-term funding shortfall.
Ah, CNN. What they failed to mention is that in 16 years benefits will have risen 22%
Lot of positives? You mean the racism, or the ignorance?
Would somebody explain how Social Security is an “entitlement” ? I have been paying in to SS since 1963 and still am.
I want that guaranteed 22% increase in benefits mentioned earlier . That’s too sweet a deal to pass up
When you cut defense ( which the Administration suddenly does want to do to pay for the $50 Billion VA bill they cooked up and can’t pay for ) them come after Social Security.
Gee, Nordski, you’ve paid almost as long as I have.
So let’s do it this way: total up your contributions and divide the result by 20 years more lifetime. Add 3% or so for the interest earnings, because I’m a nice guy. Look at your SS check. Everything ABOVE that amount is your “entitlement”–or put another way, it’s the money Democrats are buying your vote with–and money your children are NOT getting in their paychecks.
Wait!!! We’re not done yet!!! Wanna run the numbers on your Medicare contributions, Nordski??
Hmmmmmm?
Run with it, Dad29. Tell us what you think your contribution has been, and what you and/or any spouse have taken out. Who bought your vote?
Tipping point part two, right on (my) schedule (I won’t mention that this point, much like the first tipping point of Social Security costs outstripping payroll taxes in 2009, came well earlier than official predictions). Remember, every dollar in principal and interest cashed out in this drawdown period is one that was never budgeted for.
As for the entitlement, those in and very close to retirement are the last ones who will get more than what they paid in…even before the 25% cut in benefits once the IOUs run out. The rest of us will be lucky to get the 75% of promised benefits; the Millennials will (re-)discover “Logan’s Run” first.
A few things to consider:
A) Most of the Social Security money paid out will be circulated right back into the economy – for lower income retirees it will be cash in, cash out. It won’t get socked away into savings accounts or put under mattresses – it will get spent on daily living expenses. When money moves it gets taxed.
B) For those for whom Social Security will not their entire income, as much as 85% of it is taxable income. Ironically, the employee Social Security & Medicare contributions were not made pre-tax as is the case with health insurance and 401Ks. So basically half of the Social Security payment comes from the employee side of the contributions that was taxed, but 85% of the payment is taxable income.
C) The basic Medicare premium is currently $134 per month. But as income goes up, it steps up incrementally to $188; $268; $348; and stops at $429 a month.
What I am saying is that there may be some offsets to the gloom and doom scenario – economic stimulus (A); tax revenue (B), and increased cost sharing of medical expenses (C).