Can Social Security Be Fixed Or Has That Ship Sailed?

OneEyedDiva

OneEyedDiva

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This article from Investopedia offers suggestions to how fixing the system that is forecast to run short by 2032 might be accomplished. Years ago, I saw 24%, then 23%, then 24% again. But this article is saying that the SS cut could be as much as 28%. Check out the Testimony on the subject, linked below. Your thoughts and concerns? Lets not get political with our comments. Thank you.

KEY TAKEAWAYS​

  • Social Security faces a funding shortfall, with benefit cuts expected by 2032 if Congress doesn't act.
  • Solutions include raising the cap on wages subject to the Social Security payroll tax.
  • Lawmakers could also raise the retirement age, means-test benefits, or combine tax increases with more modest benefit cuts.
"As more Americans retire, payroll taxes from today's workers no longer cover benefits going out. The Old-Age and Survivors Insurance trust fund, which has been covering that shortfall, is projected to run out in 2032, according to the most recent estimates by the Congressional Budget Office.1
Congressional Budget Office. "Testimony on Social Security’s Finances."

https://www.investopedia.com/are-we...y-what-experts-say-you-should-do-now-11948701
 
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We can fix anything if we have the will to change it and fund it.

This is a long but interesting read from the SSA.

https://www.ssa.gov/history/briefhistory3.html

I’m wondering if AI may become an effective tool to help trim the costs of the bureaucracy and put the government on a diet so more of our tax dollars go directly into program benefits and less into the ‘system’ that administers them. 🤔

Hopefully young folks will take all of the fear mongering over Social Security and their financial future to heart and change their priorities enough to save and invest for a secure self funded retirement.
 
I believe there will be cuts. The government has spent the last ten years warning us of cuts so in effect have desensitized us to the inevitable, they won't back off now.

I can only hope for some tax consessions offered to us seniors to offset the cuts. Maybe if our benefits are cut $10k then let us earn $10k tax free thru working, or let us withdraw $10k from retirement account tax free.
 
If a group of politicians kept kicking can down the road it will not be fixed until the fix hurts all.
This has been a decades long problem anyone who made suggestions or tried to change was ridiculed. This is used as a fear tool for elections.


This is more than a revenue issue, but no one will address the other issues.
There is NO one size fits all in any fix ... there should have been regular raising top cap all along.
Small changes should have been made thru years instead of patches and pretending it will be ok.
 
GoodEnuff said:
I agree with you. They paid into the system, too. The "tax the rich" mantra seems to be very popular although I doubt congress would want to disenfranchise their largest donors.
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The formula for determining the amout of benefits is progressive. Those with low average earning due to low wages and/or limited work time get 90%. The next bracket which includes most middle income people get 32%. And high income people get 15%.


And also the higher your income, the more you will be taxed on your social security.


This is why high income people are aginst raising the cap. Because they only get 15% which means they are subsidizing lowere income workers.
 
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Aunt Bea said:
I’m wondering if AI may become an effective tool to help trim the costs of the bureaucracy and put the government on a diet so more of our tax dollars go directly into program benefits and less into the ‘system’ that administers them.
Click to expand...
Social Security operates at about a 1% or less overhead, so it's incorrect to say that we need to "trim the costs of the bureaucracy." SS is an efficient program.
 
According to the...
BOARD OF TRUSTEES OF THE FEDERAL OLD-AGE AND SURVIVORS INSURANCE AND FEDERAL DISABILITY INSURANCE TRUST FUNDS
and based on current law...
social security trust options.jpg
A massive increase of payroll taxes, coupled with benefit reduction is key to resolution. In theory it could be fixed, using their calculations, but the likelihood of the political establishment acting is not so likely, imo. A lot of free spending folks, will suddenly become deficit hawks.
 
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The National Commission on Fiscal Responsibility and Reform, known as the Simpson-Bowles Commission, was a 2010 bipartisan body established by President Obama to address long-term US debt. Co-chaired by Alan Simpson and Erskine Bowles, it proposed "$4 trillion in deficit reduction through a mix of spending cuts, tax reform, and entitlement changes." Nobody including Obama would endorse it. The crisis with Social Security will be on top of us before any politicians realize the house is really on fire. For reference, see the movie "Don't Look Up"!
 
RambleTamble said:
Social Security operates at about a 1% or less overhead, so it's incorrect to say that we need to "trim the costs of the bureaucracy." SS is an efficient program.
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".....Social Security fraud costs the federal government billions of dollars each year in improper payments, and the enforcement response is substantial. Between fiscal years 2015 and 2022, the Social Security Administration estimated it made nearly $72 billion in improper payments across its programs, and its uncollected overpayment balance stood at $23 billion by the end of FY 2023....".
I have a different idea of 'efficiency', and this ain't it. What was saving SS were the undocumented immigrants paying into SS and not ever going to collect.
 
Aunt Bea said:
We can fix anything if we have the will to change it and fund it.

This is a long but interesting read from the SSA.

https://www.ssa.gov/history/briefhistory3.html

I’m wondering if AI may become an effective tool to help trim the costs of the bureaucracy and put the government on a diet so more of our tax dollars go directly into program benefits and less into the ‘system’ that administers them. 🤔

Hopefully young folks will take all of the fear mongering over Social Security and their financial future to heart and change their priorities enough to save and invest for a secure self funded retirement.
Click to expand...
That is an interesting ponderance Aunt Bea, but would AI put even more workers on the unemployment lines? Young people always think they've got more time and some just don't make enough to live on and be able to save. Chronic issue here and I'm sure in other countries as well, especially for those living in big, expensive cities. An interesting theory is that when young people use an app to fast forward their aging process and see their older selves, they were more likely to start saving for retirement.
 
GoodEnuff said:
When I think of cuts to SS benefits, I doubt that will happen no matter what. Think of the votes lost from seniors if that happened.

What would save SS? Perhaps raise the tax limit on workers, raise the benefit age (again), and establish an income cap. Why should the rich collect SS?
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I doubt this will be an easy fix, if it is fixed at all. Someone who used to be on the Forum said they'll probably do something at the last minute. I don't know how feasible that would be. Re raising taxes....from the article I posted in the OP:
"Raising payroll taxes would hurt working Americans most, Boccia said, especially as inflation squeezes household budgets and young workers struggle to afford their homes.

While more likely than other changes, Boccia said any "tax increase would be sudden, severe, and economically damaging, as well as politically highly unpopular.”
 
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