Can you survive if Social Security payments stop?

I don't believe this will happen. Not being one of those privileged to discuss politics here, I cannot go into the reasons why it has gotten to this point. But just think of the uproar there would be if SS payments didn't go out. I don't think any politician of any party will want to face that.
 
Since retiring in February 2017 at one of the most expensive regions of the world as a renter, have totally lived frugally off my monthly SS benefit. But if necessary, could live for years without that though would need to move to a lower housing cost region.

Thus in any case, not worrying about SS payments, even if temporarily interrupted.
 
Alligatorob said:
Yes, but not happily... I don't see it happening, too many voters effected.
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Agree.

If this conversation is about a temporary stoppage, I'd manage with savings. Permanent would be trickier and would likely mean DH and I would need to continue working part time for the duration of our lives. Rose would have to leave her box to pitch in sometimes, too.

I believe the chances SS payments permanently stopping are less than 1% and would only happen if there were an unimaginable national or global catastrophe.
 
StarSong said:
I believe the chances SS payments permanently stopping are less than 1% and would only happen if there were an unimaginable national or global catastrophe.
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The "threat" to SS is just one of the potential Economic Catastrophes the nation faces IF Washington doesn't begin to get the National Debt under control. If our government continues to spend without making provisions to pay it's bills, they will ultimately have little choice but to Devalue the dollar. If/when that happens, the majority of our population will be thrust into near poverty as the price of everything doubles or triples. Our politicians should review what has happened in Greece and Argentina in recent years when their leaders failed to do their jobs.
 
Don M. said:
The "threat" to SS is just one of the potential Economic Catastrophes the nation faces IF Washington doesn't begin to get the National Debt under control. If our government continues to spend without making provisions to pay it's bills, they will ultimately have little choice but to Devalue the dollar. If/when that happens, the majority of our population will be thrust into near poverty as the price of everything doubles or triples. Our politicians should review what has happened in Greece and Argentina in recent years when their leaders failed to do their jobs.
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The US needs to either bring in more tax revenue, cut some spending, or both.

SS taxes need to increase. Period. There's actually very little debate about that. Doesn't mean current DC politicians are eager to ruffle their wealthy friends' feathers until the very last minute. After all, there are still numerous election cycles between now and when the crisis becomes imminent.
 
I am not saying it won't/can't happen but so far no politician has has the "Guts" to tackle anything big to do with SS or medicare out of fear of loosing votes.They play games and scare seniors which I don't like or buy into.

To answer the question no we could not survive if they cut it.
 
sch404 said:
I started collecting Social Security 14 years ago when I retired at age 67. The total amount I paid into Social Security was $30,681. My employers paid a Social Security contribution for me of $33,537 for a total paid in amount of $64,218. So far I have received total Social Security benefits of $378,891. This is almost six times what I and my employers paid in. And I am still alive. Still collecting money from SS which was never mine to begin with. Now tell me again how Social Security is not both the worlds biggest Ponzi scheme but also the world's biggest welfare program!
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If it’s a Ponzi scheme, why are you still participating in it? Have the courage of your convictions and tell SSA to stop your payments. Send back the extra money you have collected. Or give it to the poor.
 
It looks like if the withholding taxes for Social Security increased by 2% (1% each for employee and employer), then all would be okay (no benefit reduction needed in 2037). But would require twice as much of an increase in withholding if delay until the last minute. So, I wonder why they don't just gradually increase the withholding by maybe 1/4 of a percent each year so it wouldn't be very impacting.

According to the Social Security website, the shortfall has more to do with the birth rate having fallen (since 1965) to just two children per family instead of the 3 kids per family that was the case back when the Social Security program was started/designed.

Considering how much raising a child costs, I'd think paying a few extra percent for the withholding is a great bargain.
 
sch404 said:
I started collecting Social Security 14 years ago when I retired at age 67. The total amount I paid into Social Security was $30,681. My employers paid a Social Security contribution for me of $33,537 for a total paid in amount of $64,218. So far I have received total Social Security benefits of $378,891. This is almost six times what I and my employers paid in. And I am still alive. Still collecting money from SS which was never mine to begin with. Now tell me again how Social Security is not both the worlds biggest Ponzi scheme but also the world's biggest welfare program!
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You must have made very little salary for a long while. You also did not include any interest growth on your SSI that the government should have held until you retired. The minimum they should have earned in interest growth per year is 3%. In my case, I will NEVER spend the money that I paid into SSI, adjusted for interest growth over the years. I started working at 16...and by 25 I was making good money!
 
The Canadian Pension Plan is fully funded until the year 2065. Unlike the US SS system, the Canada Pension Plan Investment Corporation invests the money that Canadians contribute by buying real companies around the world that include maritime fleets, railways, and commericial developments in countries around the world. The citizens of Canada own ( through the CPPIC) billions of dollars of profit making companies. JimB.
 
Brookswood said:
If it’s a Ponzi scheme, why are you still participating in it? Have the courage of your convictions and tell SSA to stop your payments. Send back the extra money you have collected. Or give it to the poor.
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Brookswood said:
If it’s a Ponzi scheme, why are you still participating in it? Have the courage of your convictions and tell SSA to stop your payments. Send back the extra money you have collected. Or give it to the poor.
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Timewise 60+ said:
You must have made very little salary for a long while. You also did not include any interest growth on your SSI that the government should have held until you retired. The minimum they should have earned in interest growth per year is 3%. In my case, I will NEVER spend the money that I paid into SSI, adjusted for interest growth over the years. I started working at 16...and by 25 I was making good money!
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That is simply not the case. I was an electrical engineer making an excellent salary throughout my career. Later I became a teacher which is not subject to SS. All my SS contributions from employment were made prior to 1993. My first engineering job out of college (year 1965) paid an annual salary of $7,852, one hundred fifty one dollars a week! 3 percent growth per year could not begin to keep up with the inflation that has occurred during my working lifetime.
 
sch404 said:
3 percent growth per year could not begin to keep up with the inflation that has occurred during my working lifetime.
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I suppose because Social Security payments get COLA increases for inflation, but wages are lagging behind (not increasing to completely compensate for inflation), that must be depleting the Social Security trust fund faster. But if wages were to keep up with inflation then the FICA withholding taxes would presumably make it possible for us to receive inflation adjusted amounts. I wonder what your current benefit would be in 1990s dollars? Would that make it seem less like an excessive amount that you are receiving?
 
ohioboy said:
The SS Trust fund is not dependent on the General Revenue fund, not raising the debt ceiling will not affect disbursements.
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I don't believe that your statement is correct. Other than accounting gimmickry, there is no separate fund for social security payments. Social Security pays out more than is collected from current workers. The Trust Fund is an IOU against the General Revenue fund, so that this shortfall comes out from the general revenues. A case can be made that Social Security payments are an obligation, but then again so is everything else the government pays out.
 
sch404 said:
That is simply not the case. I was an electrical engineer making an excellent salary throughout my career. Later I became a teacher which is not subject to SS. All my SS contributions from employment were made prior to 1993. My first engineering job out of college (year 1965) paid an annual salary of $7,852, one hundred fifty one dollars a week! 3 percent growth per year could not begin to keep up with the inflation that has occurred during my working lifetime.
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Not keeping up with inflation and a Ponzi scheme are not the same thing. Ponzi schemes are mathematically unsustainable and that is baked into them. A Ponzi scheme is doomed from day #1 to run out of people to keep on going no matter how wonderful the economic conditions are.

SS is having problems because we baby boomers did not have enough kids. And now our kind are having even fewer kids than we. (“Where are my grandchildren?” I hear that all the time from my peers.) Had both generations kept up a birthrate higher than 2.1 there would be ample funds in SS.
 

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