Social Security: going broke in 2042?

[MissMillie]

I heard on the radio this morning that a new report said this, but it was my understanding that while there will be a decrease in how much SS will be able to pay out 37 years from now, it is far from being broke.

What's the skinny on this new report?

[BlueEyedSon]

1. Umm.. use google and find the actual doc...?

[imenja]

2. 2041

where have you been? they resolved the figures by a whole year yesterday. Actually "insolvent" is their claim, not broke.

[MissMillie]

7. I didn't hear about the report until this morning

I've been helping my son w/ some problems at school, and had my mind on that.

[imenja]

8. it was meant in jest

one year is hardly earth shattering, but the Republicans will fixate on it.

[whistle]

3. Nada, nada, lemonada!!! That is the worst case scenario in the

...report having taken into consideration the poor economic performance of 2004. If the projections are raised to include the average for the past 20 years going forward, the fund NEVER goes broke!!!!

[AllegroRondo]

5. And the 'infinite' projection

which some Republicans have been citing as showing a 11Trillion shortfall, includes some great facts like:

- assumes that average life expectancy will increase to 150 years
- assumes that the retirement age will not change

[auburngrad82]

10. Yeah, this killed me.

How are we going to live to be 150 years old if we can't afford adequate healthcare?

The way they calculated that we will live to be 150 years old is they took the average increase in life expectancy and decided that life expectancy will increase by that amount every year forever.

The projected shortfall is also based on the assumption that the economy will grow at a rate that is half of what it has grown at over the last 75 years (which includes the Great Depression) from now until the end of the world. So the Bush economy is putting us into a never-ending recession?

Their numbers are so bogus it's not even funny any more.

[whistle]

13. Oh my gawd, 150 years old! Can you imagine what Barbara....

...Bush senior will be like at 150? So, let see 65million seniors retired at 65 collecting Social Security for 85 years at $1,200 per month gives us:

65,000,000 X $1,200 X 12 months X 85 years = $79,560,000,000,000

130,000,000 X $45,000 ave salary X 12.2% X 85 years = $62,156,250,000,000

Yep, that results in a shortfall alright. But what if people don't live to that ripe old age of 150, but gain say just 21 years of longevity to 100 years old and thus collect social security for a more likely 35 years?

65,000,000 X $1,200 X 12 months X 35 years = $32,760,000,000,000

130,000,000 X $45,000 ave salary X 12.2% X 35 years = $24,979,500,000,000

Every scenario can be made to work by adjusting the parameters of the existing system that is in place by either, increasing the age of retirement, increasing the wage/salary ceiling which pays into the social security fund or increases the percent contribution. Privatization does nothing to change anything to solve the problem.

So, what does solve the problem? Jobs, growing economy, fair wages, broader economic distribution of wealth and allowing Americans to work and contribute as long as they are able!!!! That's the democratic platform for all Americans. One other thought for the future, create the North/South American Economic Union and get every one in this hemisphere on the same economic playing field. That would be a market of over 1 billion consumers all with a high living standard and wages and fair representation working in peace and prosperity. How about setting that as the new democratic Plan for the Next Century?

[Jack Rabbit]

4. If nothing is done, benefits will have to be reduced by 2042

Social Security needs to be fixed before then, but there's plenty of time to come up with a good plan. The situation is not so desperate that Bush's plan would be better than no plan at all. There is no current crisis.

Now that the free marketeers in the Republican Party have made their proposal and now that it has been refuffed, we can start a more serious discussion on how to fix Social Security.

[MissMillie]

6. That's what I thought

but what I heard on the radio today made it sound like "The GOP is right". Which, of course, I had to questions.

[kentuck]

9. All of us 95 year old baby-boomers will be taking all the money...

Of course, most of those boomers that are 96 yrs old will be dead...but those 95 and younger will be robbing the SS fund blind. Never mind that there are from 78-100 millenial babies - more than baby boomers - at the peak of their earning power...

[RaleighNCDUer]

11. That's all true, but the 100 million millennial babies will be putting

75% of their SS contributions into personal accounts, not feeding the system, and after brokerage fees and skimming by unscrupulous brokers, and investing in funds that go belly-up, and having to pay for the debt on the reform, all will be getting a smaller percentage return than their parents and grand parents and great grand parents did under the old system

which proves that * was right.

Sort of.

I guess.

[Afje]

12. What about us X'ers?

The gov. is up to it's eyeballs in dept. What was all that money they borrowed used for, invested in? What do we have to show for it? There is no viable energy industries in place, Medicare is almost broke, SS going to, jobs leaving for China. We can't hardly fund SS on $8 service jobs.