Social Security woes

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Jostate

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#2
Nov 6, 2010
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#3
Seems I remember reading about a plan put forth by a couple of college students that was pretty solid, I just can't seem to find it.
 
Sep 12, 2008
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#4
Raise the age. You can start at an age that many people have a third of their life to go.
Good choice..

Increase the retirement age. The age when retirees can first receive unreduced Social Security benefits has already been increased to 66 for most baby boomers and 67 for everyone born in 1960 or later. A further gradual increase to age 68 beginning in 2022 would eliminate 13 percent of the funding shortfall.
 

CocoCincinnati

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#5
I can't understand how this isn't a bigger deal to people, especially younger ones.....oh wait a minute, yes i can...this doesn't have a masked singer... THAT'S what matters to people.
 
Feb 11, 2007
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#6
Raise the age. You can start at an age that many people have a third of their life to go.
Many old SS people have put a massive amount of money they into the system. But that money is used to buy government bonds that pay very little interest. Thus SS gradually runs of money because they mismanage your money.
 

Jostate

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Many old SS people have put a massive amount of money they into the system. But that money is used to buy government bonds that pay very little interest. Thus SS gradually runs of money because they mismanage your money.
Agreed. I've never been a cheerleader for SS, it's a ponzi scheme. But my idea is one bandaid solution.
 

oks10

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I can't understand how this isn't a bigger deal to people, especially younger ones.....oh wait a minute, yes i can...this doesn't have a masked singer... THAT'S what matters to people.
It's probably more that many of us have accepted there's no way in hell SS will even still exist by the time we retire and have been loading up our 401k instead. For me, if SS manages to still be a thing it'll just be bonus.
 

Jostate

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The government are the same people who f'd up a gas can. Who expects them to manage SS well?
 

Jostate

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It's probably more that many of us have accepted there's no way in hell SS will even still exist by the time we retire and have been loading up our 401k instead. For me, if SS manages to still be a thing it'll just be bonus.
If it goes away altogether after all the money I've had extorted I'm going all sniper in the bell tower somewhere.

If this post put me on a government list I'd like to say it's about damn time.
 
Mar 11, 2006
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Many old SS people have put a massive amount of money they into the system. But that money is used to buy government bonds that pay very little interest. Thus SS gradually runs of money because they mismanage your money.
It is amazing to me that this is not a bigger issue for people. But it is not a big issue because people don’t understand potential impact.

A Social Security shortfall, at first, is not going to effect savers because their SS check is dwarfed by what they have in 401K, Roth, etc.
And a Social Security shortfall is not thought of as an issue for non-savers because they know the government will keep SS afloat.

Savers should care because what that means is that likely the government will again raise the limit on payroll taxes — which will be a significant tax increase for many. And non-savers should care because it is likely the age requirement for SS will be increased forcing them to work longer.
 
Feb 11, 2007
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#12
It is amazing to me that this is not a bigger issue for people. But it is not a big issue because people don’t understand potential impact.

A Social Security shortfall, at first, is not going to effect savers because their SS check is dwarfed by what they have in 401K, Roth, etc.
And a Social Security shortfall is not thought of as an issue for non-savers because they know the government will keep SS afloat.

Savers should care because what that means is that likely the government will again raise the limit on payroll taxes — which will be a significant tax increase for many. And non-savers should care because it is likely the age requirement for SS will be increased forcing them to work longer.
I fear for the people who don't understand how the system works. In the end they will be left with nothing
but a small social security check.
 
Mar 11, 2006
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#13
I fear for the people who don't understand how the system works. In the end they will be left with nothing
but a small social security check.
Too many people don’t understand retirement savings and/or don’t think it is important because it is so many years in the future. Or they think SS is all they will need in retirement.

Personal Finance should be a required year-long course in school.
 
Sep 12, 2008
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#14
Many old SS people have put a massive amount of money they into the system. But that money is used to buy government bonds that pay very little interest. Thus SS gradually runs of money because they mismanage your money.
Diversify investments. Part of the Social Security trust fund could be invested in equities to try to earn returns that would help to sustain the Social Security program. Investing 15 percent of trust fund assets in equities would reduce the deficit by 14 percent if a 9.4 percent rate of return was achieved. If 40 percent of the trust fund were shifted into the stock market and earned 9.4 percent annually the deficit could be reduced by a third. Of course, this also exposes the trust fund to increased liabilities in times of economic downturn.
 
Sep 12, 2008
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#15
Others...

Decrease the cost-of-living adjustment. Social Security benefits are currently automatically adjusted each year to keep up with inflation, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers. Reducing the cost-of-living adjustment by 1 percent each year would eliminate 78 percent of the deficit. Even knocking half a percent off the annual adjustment would reduce the deficit by 40 percent. An alternative way of measuring the cost-of-living could also be used.

Eliminate the taxable maximum. Workers pay into Social Security on earnings of up to $118,500 in 2016. Earned income that exceeds this amount is not subject to the payroll tax or used to calculate retirement payouts. However, if the taxable maximum were eliminated and workers paid taxes on all their earnings beginning in 2016, it would eliminate 71 percent of Social Security's deficit. This calculation assumes that high earners would have all of their earnings factored into their Social Security payments and qualify for bigger retirement payouts.
 

jobob85

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If it goes away altogether after all the money I've had extorted I'm going all sniper in the bell tower somewhere.

If this post put me on a government list I'd like to say it's about damn time.
I’ll write it off on my taxes. Not as a deduction but, as a tax credit.
 

Jostate

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Too many people don’t understand retirement savings and/or don’t think it is important because it is so many years in the future. Or they think SS is all they will need in retirement.

Personal Finance should be a required year-long course in school.
I don't think this is knowledge so much as discipline and priorities. It's like saying I need to learn how to eat better.
 

Binman4OSU

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#18
It's probably more that many of us have accepted there's no way in hell SS will even still exist by the time we retire and have been loading up our 401k instead. For me, if SS manages to still be a thing it'll just be bonus.
Wife and I are fully in this boat and expect $0 from SS. I'm putting 15% of every pay period to 401k and wife found a job with a pension
 

oks10

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#19
Wife and I are fully in this boat and expect $0 from SS. I'm putting 15% of every pay period to 401k and wife found a job with a pension
I'm currently at 12% every paycheck but only in my mid 30's. Right now my 401k is 1.5x my current salary so I feel like I'm on a pretty good pace.
 

steross

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#20
They are going to raise the retirement age and raise the taxable maximum. There really are not other widely acceptable alternatives. While investing the money in higher risk assets sounds good in this time of bull markets, the 30 years it took to overcome the crash of 1929 and just the concern of the government having even more of a vested interest in manipulating the market is concerning.

The decrease in life expectancy with the COVID, the opioid epidemic, and obesity will also help to shore up SS if it continues.