Social Security to See Payout Exceed Pay-In This Year

Social Security to See Payout Exceed Pay-In This Year

www.nytimes.com

The bursting of the real estate bubble and the ensuing recession have hurt jobs, home prices and now Social Security.

This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.

Stephen C. Goss, chief actuary of the Social Security Administration, said that while the Congressional projection would probably be borne out, the change would have no effect on benefits in 2010 and retirees would keep receiving their checks as usual.

The problem,

(visit the link for the full news article)

Scary graph included in the link. I'm not sure if I agree with their assessment as I haven't done the math. One blogger is arguing that we won't see total insolvency for at least 20 years. I personally think that conclusion is laughable considering Medicare/Medicad spending should also exceed it's pay-in's soon. That's going to be one heck of a straw on the camel's back.

www.nytimes.com
(visit the link for the full news article)

Many that were qualfied for SSI/SSD are now unable with there disablities to find ANY work.
Many of these people have now gone on SSI/SSD and that is a large drain on the social security system.

Also because social security retirement went from 55 years ago to 65 now there are a larger number of people becoming disabled before the reach retirement age.

And the ponzi scheme begins to fall. I wonder why that is? S&F for the article and for you opening more eyes. I wrote a thread about the ponzi schemes awhile back.

If you go to the SS website, they tell the standard propaganda twists. That the fund is secure to like 2035. What a joke.


Edit to add-the year figure they use, is in regards to the IOU's sitting in Virginia.

Here is the thing, those IOU's are just that. The money is gone, so what is there solution? To add more zeros to a ledger somewhere. Ultimately, printing more fiat money, creating more inflation, decreasing the value of the dollar, hence taxing you indirectly.

Don't you love your government?



[edit on 3/26/2010 by endisnighe]

Many believe social security is a guaranteed right. It's not.

Social security not guaranteed right

Here is a quote from that thread that I got from social security website.
The link is no longer valid.

Should I count on Social Security for all my retirement income?

A. No. Social Security was never meant to be the sole source of income in retirement. It is often said that a comfortable retirement is based on a "three-legged stool" of Social Security, pensions, and savings. American workers should be saving for their retirement on a personal basis and through employer-sponsored or other retirement plans.

reply to post by jam321

jam
I think ur taking that out of context.
Yes u will get ur SS, however SS alone
is not meant to sustain ur lifestyle.
SS was designed to be a supplemental
income and not a primary one.

My parents have this very same
problem. What income they do get
from SS is not enough to cover their
expenses without drastically changing
their lifestyle to eat beans and crackers
everyday.

They have tried to change reality through optimistic thinking before, they will do it again. Just before the 2008 financial meltdown all sorts of banks/investment firms were trying to hide their debts, losses, and bad assets. Afterwards the government tried to do the same thing by saying "now that we have given the stimulus money out everything is fine, move along, no world financial crisis to see here". Now they are dead silent as things get slowly worse and the small bubble they created to stabilize things is deflating, while EVERYONE goes broke. Social security is just another nail in the economic coffin.

The problem with the Social Security fund is that the government can not keep their hands out of the cookie jar. When Nixon left office, it was at a surplus, and building up. Then the Federal government dipped their hand into the fund, taking out money, and leaving IOU's in its place. They have been doing this for years, not thinking that they should never touch it. Now that fund is in real trouble, and the Social Security fund needs that money back to pay for all of the reciepents that is required. I know of at least 2 people who recieve such, one is not able to work, due to physical problems and the other, well lets just say she is over 65 and is entitled to such, as the government took all of that money out of her pay check for years and years. Myself, I am eligible to go on it, but do not, rather wanting to work if I could ever get hired. If they do not pay out, the federal government is going to be in real trouble from all of those who recieve such, as they will vote in mass droves, and their vote is a good portion of the populace.

reply to post by sdcigarpig

The saddest part of that being, I believe they never intended on putting that money back into it. An IOU is only worth the paper it was written on. There is no other way of putting it.....they took that money without consent from the people, to use it for things it wasn`t intended to be used for. Maybe a check of the records to see who took that money, and make it public would open a few eyes, not only the publics eyes, but a few in the government. Myself, I`m going to do some digging and see what I can come up with.

EDIT TO ADD:

I just looked it up, and found that the first time money was removed from the fund, was back in 1958, by the Democratic run Congress and put into the general fund so they could spend it. (Nice of them wasn`t it?) It was claimed at that time, there was so much money in the SS fund, that it would never run out. (Yea....right.) We can thank LBJ for that one. There is more to this, but I believe you get the drift.





[edit on 27-3-2010 by FiatLux]

Blimey its really is rough over in USA at th moment huh. They have taken money out of the soical fund so people are going to starve? and probably loose their homes? this is really messed up what do you do when your benefits do go!.

reply to post by antonia


NBC news was reporting this morning that for the first day of the history of social security, it was running in the red.

I find it disgusting that it will continue to be taken from everyone's payday even though we will never see a dime of what we payed in. I could use that money to save for retirement.

reply to post by anonymousproxy


Actually no one is going to lose their benefits, at least not at this time. The program was never meant to be a retirement program, but has turned into such. Most people living on social security checks live a humble lifestyle, but not going hungry. Every payday we pay into the program, and at 63 you can apply for a check that is supposed to supplement your other retirement income or incomes, so you pay into it all your life and get it back in small amounts. There has never been a need to borrow any funds to keep the program working, but now there are more people on it drawing checks than there are people paying into it. But no one is going to starve over it.

reply to post by space cadet


Social Security benefits have been frozen.

Now there is a negative flow.

When do you think they will raise the rate?

The system is broke. It will not be fixed by the HC tax bill. Which is all it is.

The Cap and Tax bill will not fix the system.

The other Tax bills will not fix the system.

Only spending decreases, killing the Federal Reserve and stopping the policing of the world will fix the system. Period. No more government. No more fascist regulations.

NO MORE.

There never was a Social Security "fund". That is just smoke and mirrors. Those who pay SS taxes now are simply funding the benefits of those who draw SS. Because there are less working age people than retired, we will see imbalance.

SS has been a scam from the very beginning.

It'd be nice if we could do away with it altogether a d stop lying to ourselves but even when it's bankrupt, even after the last SS check has been written does anyone honestly think the gov will just stop taking that money from us week after week?

I really wish they would stop the song and dance and just put the gun right to our heads to take our property. The little show they have going on has convinced so many people of their lies that feeling that muzzel pressed against their temple is the o ly way they'll open their eyes to the reality of the tax scam.


Posted Via ATS Mobile: m.abovetopsecret.com

North America is due for a collapse sooner or later if we keep going on the same track. This problem is a plague for US, as well as Canada. With the baby boomers retiring, how do we maintain their pay-outs?

Canadian governments are contemplating on shifting the burden to immigrants. They will be opening borders to new immigrants, with that, more crime.

The US...maybe more wars? US can't possibly house more immigrants, if you do, goodluck!

Oh I'm sure they are working on some way to make it up in a hidden tax, something we won't even notice. To keep us all from getting riled up.

Sad thing is, even if people don't notice (it particulary), the economy will. Fun times ahead i think.

[edit on 27-3-2010 by elcapitano75]

And i want to add, this just adds to my own feelings for a long time now, as the out of control monster of the FED-gov grows, the private sector dwindles, the fed grows, private dwindles....... vicious cycle... a whirlpool slow and gentle right now, but getting stronger. Some day it's going to start sucking down our souls at a rate that no one can deny. When though... who knows.

Originally posted by jam321
Many believe social security is a guaranteed right. It's not.

Social security not guaranteed right

Here is a quote from that thread that I got from social security website.
The link is no longer valid.

Should I count on Social Security for all my retirement income?

A. No. Social Security was never meant to be the sole source of income in retirement. It is often said that a comfortable retirement is based on a "three-legged stool" of Social Security, pensions, and savings. American workers should be saving for their retirement on a personal basis and through employer-sponsored or other retirement plans.

It's funny that you bring this up!

On the bottom of my annual social security statement, it said the exact above quote for 2 years -- I believe for the years 2006 & 2007 [received in '07/'08] and no longer does.

Nor could I find any information about it when people had questioned that it really said what I said it did.

This year, there is a clause at the bottom that simply states:

Based on the current retirement age, social security funds will be paid out at a rate of approximately 76% [74%?] of the above amounts by the time you are eligible to claim benefits.

Congress has, and continues to have, the right to change any of the above at any given time.

The first thought that popped into my head was: If they are already telling me I won't get full benefits, you can bet I won't get any..... Amazingly though, I still have to contribute as much as ever.

I read that they may cut benefits? So they can justify spending trillions of dollars yet say they may have a short fall in social security I don't buy it. Maybe they stole the money from Social Security to pay for everything. I know on the soical security web site it says benefits can't be decreased. They would have to pass a new law and most americans would oppose that. They never listen to us but still..
I could not imagine living on any less. I work part time, get Social Security and go take online courses. I can't work full time due to my disabity yet SS and SSI only allows me to make about an extra $100 per month before they start reducing beneifts. It is a fine line indeed; if they could take away those rules where people on disablity could make at least $500 extra without cutting benefits than if something were to happen where benefits were lowered than it would not be as bad.
The problem is there was no raise in cola,prices have risen and most on SS make less than $1,000/month. SS is not welfare but a program everyone pays into and after all we are taking about people who mentally or pyschically can not work full time. Most employers will not make accomedations. I know I get dizzy spells so bad that I can only work maybe an hour a day.
someone needs to help people on disablity get jobs working from home. Instead of outsourcing the customer service jobs people can do it from home. All it would recquire is an internet connection and a phone. Most people have that.