Social Security headed for insolvency sooner than expected (1 Viewer)

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    DaveXA

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    Something worth keeping an eye on. Covid is pushing us closer to Social Security running out of money sooner than expected. Probably not too surprising, but I'll be 62 in 12 years. Pretty disturbing trend.

    Social Security trust funds now projected to run out of money sooner than previously expected due to Covid, Treasury says

     

    GrandAdmiral

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    Something worth keeping an eye on. Covid is pushing us closer to Social Security running out of money sooner than expected. Probably not too surprising, but I'll be 62 in 12 years. Pretty disturbing trend.

    Social Security trust funds now projected to run out of money sooner than previously expected due to Covid, Treasury says

    I'm sure a good bit of conservatives are secretly (or openly) ok with this.
     
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    samiam5211

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    Covid should also make the future cost lower than projected (at least for the near future), so maybe it will work itself out.
     

    Dragon

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    Covid should also make the future cost lower than projected (at least for the near future), so maybe it will work itself out.

    Unfortunately this may not be the case. It depends on how many of those who suffer from long-covid or permanent damages due to Covid-19 who will never be able to hold a regular job again. I fear that we have only just seen the beginning and that many of the survivors will need financial support going forward.
     

    SaulGoodmanEsq

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    I guess the good news for me is that I haven't paid that much into it... although I depend on the State of Louisiana remaining solvent so that it can pay pension benefits!
     
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    DaveXA

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    I guess the good news for me is that I haven't paid that much into it... although I depend on the State of Louisiana remaining solvent so that it can pay pension benefits!
    Yeah, I'm currently working for the federal government, so I'm not gonna get a whole lot of SS benefits, but I'm working on getting my retirement up a bit with FERS and the TSP. Got about 15-20 years to build that up for retirement. But then, who knows how long I live beyond that.

    But I agree with Dragon. There are going to be a lot of long Covid sufferers, which will put a big strain on medical care resources. I'm not too optimistic on that front.
     

    samiam5211

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    Unfortunately this may not be the case. It depends on how many of those who suffer from long-covid or permanent damages due to Covid-19 who will never be able to hold a regular job again. I fear that we have only just seen the beginning and that many of the survivors will need financial support going forward.

    The obvious answer to this problem is immigration. It's the only way our population is going to get younger and healthier.
     

    Paul

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    Too many old and disabled people and few young healthy workers. Too many retiring at 62 instead of 70.

    Women do not have children anymore, so like Europe there must be massive immigration.

    Sometimes immigrants bring in their elderly parents and grandparents (chain migration) which get Medicare and benefits, not good

    The system needs new blood. Young able people willing to work people.

    Privatizing some of the SS the investments may yield more. The Swedes have done it.

    We need national Medicare for all. In that manner Medicare could make money by insuring the young and healthy instead of insuring the old, sick, and disabled. Screw private insurance.
     
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    samiam5211

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    Too many old and disabled people and few young healthy workers. Too many retiring at 62 instead of 70.

    Women do not have children anymore, so like Europe there must be massive immigration.

    Sometimes immigrants bring in their elderly parents and grandparents (chain migration) which get Medicare and benefits, not good

    The system needs new blood. Young able willing to work people.

    Privatizing some of the SS the investments may yield more. The Swedes have done it.
    Parents of immigrants wouldn't qualify for medicare unless they worked 10 quarters and had permanent resident status for at least 5 years.

    Now, back to shunning you...
     

    Paul

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    Parents of immigrants wouldn't qualify for medicare unless they worked 10 quarters and had permanent resident status for at least 5 years.

    Now, back to shunning you...

    Meanwhile those born in America must work 40 quarters to qualify.
    Because of my age I cannot immigrate to Canada. Why should the USA accept elderly immigrants that cannot contribute?
     
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    Paul

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    Eliminate the cap.
    I agree with that.
    However, if the cap is eliminated those that pay the most into the system will continue to receive the larger checks in retirement.
    I say import young workers to pay into the system. The problem is too many old people using up resources, young couples not having children, and others not wanting to work while they figure out how to milk the government for more money. At the end of the day someone has to go to work and pay SS taxes.
     

    MT15

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    Eliminating the cap will solve the entire problem. No other remedies are needed.
     
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    DaveXA

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    Eliminating the cap will solve the entire problem. No other remedies are needed.
    You think eliminating the cap on it's own would solve the whole problem? I'd like to see numbers supporting that. Or is that just an assumption you're making?
     

    MT15

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    I’ve seen that quoted before. It was a while ago.

    Edit: I can’t find anything more recent than 2017, which indicated that eliminating the cap without increasing benefits would do a great deal, but was no longer enough on its own. There would also have to be a reduction in benefits. Since I saw it longer ago than 2017, it may be that at that time eliminating the cap would have been enough, but not anymore.

    I wonder if just foregoing the cost of living increases for a year or two would be enough to make up the difference.
     

    Paul

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    I’ve seen that quoted before. It was a while ago.

    Edit: I can’t find anything more recent than 2017, which indicated that eliminating the cap without increasing benefits would do a great deal, but was no longer enough on its own. There would also have to be a reduction in benefits. Since I saw it longer ago than 2017, it may be that at that time eliminating the cap would have been enough, but not anymore.

    I wonder if just foregoing the cost of living increases for a year or two would be enough to make up the difference.
    SS is a Ponzi type scheme where the early investor does well and those that are late to the game are out of luck.

    Possible solutions include raising the cap, increasing the number of young workers, privatizing SS (as Sweden is doing), and hope that the baby boomers die soon.

    We need immigrants that can work good paying jobs and contribute to the system. The retirement age must be increased to 70.

    Bring National Medicare to make money out of the young insured people. As of now the private insurance industry makes billions by insuring the young and the healthy while Medicare has to insure the elderly, the sick, and the disabled.
     
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    DaveXA

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    I’ve seen that quoted before. It was a while ago.

    Edit: I can’t find anything more recent than 2017, which indicated that eliminating the cap without increasing benefits would do a great deal, but was no longer enough on its own. There would also have to be a reduction in benefits. Since I saw it longer ago than 2017, it may be that at that time eliminating the cap would have been enough, but not anymore.

    I wonder if just foregoing the cost of living increases for a year or two would be enough to make up the difference.

    Possibly, but whatever solution will need a comprehensive, multi-pronged approach. Raising the cap will do a lot, no doubt, but that on it's own won't come close to solving the coming solvency crisis. And it's going to come. We need a larger tax base. If that means bringing in more immigrants who can become part of our economy and shore up the tax base, I'm good with that. We will need more middle to upper class immigrants who pay more into the tax coffers though.

    I also think increasing SS withholding and increasing the SS retirement age to 69. It sucks, but that what you gotta do to make it sustainable in the intermediate term. Maybe we can tweak it back down once it become truly self-sustaining for the foreseeable future.
     

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