Social Security strained by early retirements

Social Security strained by early retirements

apnews.myway.com

Big job losses and a spike in early retirement claims from laid-off seniors will force Social Security to pay out more in benefits than it collects in taxes the next two years, the first time that's happened since the 1980s.

The deficits - $10 billion in 2010 and $9 billion in 2011 - won't affect payments to retirees because Social Security has accumulated surpluses from previous years totaling $2.5 trillion. But they will add to the overall federal deficit.

(visit the link for the full news article)

Accumulated surplus's? Tell me another one. I guess that's why it will "add to the overall deficit", because they actually have to start paying back some of the 2.5 Trillion in IOU's stuffed in the SS fund.

This isn't that surprising to me since they started moving the dates for insolvency on MCR and SS forward a couple months ago. We knew the boomers were retiring as well, so coupled with the debt pyramid imploding it's pretty much a given. It'll be interesting (sickening) to see how they put a positive spin on this one.

apnews.myway.com
(visit the link for the full news article)

reply to post by HimWhoHathAnEar


That's why I'm real nice to at least one of my sons. That way they can take care of me when I'm old and feeble.

er. . .

Older, and feebler

reply to post by mikerussellus


Yeah, I guess that's the upside to our future, our families will be getting closer whether they like it or not.

The strengthening of the family unit albeit through great hardship should be a good thing for our country in the long run. It's where we came from and what made us great in the first place IMO.

reply to post by HimWhoHathAnEar


That kind of got me there too, how can you accumulate surplus but then is added to the deficit, is that because the government has been dipping into the SS fund for years?

Well that is very comforting.

reply to post by marg6043


Yeah, to tie in with what you were saying about the toxic asset plan and private buyers on the up to the minute market thread, do you remember when they wanted to privatize part of Social Security? That woulda been great huh, take a 50% loss on the private portion on top of the theft of all the SS funds by the gov't.

I have a feeling this is all going to catch up with us very soon. Pension Funds, Commercial Real Estate, Option ARMS, Alt-A, Trillions in Deficits, Trillions in Bail-outs, Millions of homes banks are hiding, Hundreds of Trillions in Derivatives et al.

I try to apply for job after job so I can get off social security disablity. I know the system will eventually fail. That is why I am getting a Master's in Psychology so I can teach online courses.
I would love to work full time or at least 30 hours a week at a real job. I was stubborn for years about getting on social security because I knew it might need it when I retire.
The sad thing is may not be there when I am older.
The main problem I see with ss is that there are people on it who do not need to be on it.
I have always been a hard worker but some people get on to aviod working.

Here's some more from a different article:

The federal government maintains that there is no cause for alarm even though the Congressional Budget Office says that the system will begin running permanent deficits by 2016, and will be totally depleted by 2036. The government reminds us that the Social Security Trust Fund has a surplus of 2.5 trillion, even though this “surplus” consists of IOU’s from the federal government. The actual surplus has already been confiscated and spent on a wide variety of social engineering projects, countless layers of inefficient and valueless bureaucracies, entitlements and pork barrel projects.

The severity of the Social Security crisis and other growing deficits begs a larger question: Is the US government going broke?

www.examiner.com...

I would posit that SS has gone negative for the duration and that it is already 'depleted' as the article puts it. If I went and spent my retirement money and left an IOU to myself, wouldn't my retirement fund be depleted?

This sounds similar to the shell game the FDIC is trying to play 'borrowing' money from the insured banks to insure them. I think this ponzi scheme is about to unwind in a very ugly way.

Well this morning in the news, it seems that congress is gong to pass some type of legislation to save the SS, how they are to do it? I don't know, but you bet that is going to involve more money we don't have.

Social Security is the definition of a Ponzi scam. The reason you have to pay into it each paycheck is because of the people who are withdrawing from it now. Your money doesn't go into some private account where it waits for you to retire, they give it to those who already retired and are withdrawing (or spend it on other things).

The best thing they can do for younger people these days is allow them to opt out of depositing to social security and let them have the money now. Of course, that would hurt the retirees who are depending on that income.

At least if we were allowed to create our own retirement funds in our own bank account we'd be able to know how much money we can rely on when the time comes. If you are in your 20s or 30s and you started a retirement fund now you would have a good amount of money in 40 years. I really don't think Social Security is going to be around in 40 years.

It's a ponzi scheme you have no choice but to be a part of and nothing has ever made me angrier than the amount of money the government takes from your paycheck.

Marge,

So the criminals who robbed the SS fund are going to save it with their printing press? It just keeps getting more insane.


Shadowflux,

It would seem that even if people were allowed to opt out of SS, all the other games are rigged to take their money anyway. Where can one go, the stock market (rigged), savings (inflation), business (taxes), etc? They got all the exits covered.

All the problems we have stem from letting the gov't get out from under the Constitution. Those problems will only get worse until it is reinstituted.