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Social Security now expected to run short on funds in 2035, one year later

cnbc.com

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Re: Social Security now expected to run short on funds in 2035, one year later

#81

Post by xboxnolifes »

chefkd wrote: post #56
drewrv wrote: post #36

Earlier quoted context omitted.

They tax people, especially high earners, at a higher rate than Americans. It’s not complicated. The US is the wealthiest country in the history of the planet. We could afford to fund social security if we wanted to but some people are opposed to it.

if you don't mind me asking why? won't everyone just get the money they put in from their salaries? in my head it's like a way to save pre-tax am I simplifying it too much

Once you start getting social security, you keep getting it until you die. Some people take out more than they put in.

Re: Social Security now expected to run short on funds in 2035, one year later

#82

Post by [deleted] »

xboxnolifes wrote: post #81
chefkd wrote: post #56

Earlier quoted context omitted.

if you don't mind me asking why? won't everyone just get the money they put in from their salaries? in my head it's like a way to save pre-tax am I simplifying it too much

Once you start getting social security, you keep getting it until you die. Some people take out more than they put in.

[deleted]

Re: Social Security now expected to run short on funds in 2035, one year later

#83

Post by TheCleric »

chefkd wrote: post #67
TheCleric wrote: post #64

Earlier quoted context omitted.

I wouldn’t call it a Ponzi scheme, but it’s less you get an account and more you pay into a big account and get a stipend based on your peak income. So money we pay now goes to pay current retirement benefits. And hopefully by when I retire the next generation will be paying so I can retire.

this is so maddeningly confusing to my brain that's used to you get what you put in can you explain like I'm 5-10 why is the fund running out if every generation pays? are people in the workforce right now not paying into it or has there been a significant change in demographics between 1983 and now? wouldn't an entire generation need to stop paying for this to happen or is that ismplifying it

> has there been a significant change in demographics between 1983 and now

Bingo. The baby boomer generation that is hitting retirement now is living longer on average than any prior generation. Basically the math for payouts expected a certain amount of eligible people would either not make retirement age or would only collect retirement on average of X years before dying. That looks to be a miscalculation at this point:

https://www.investopedia.com/articles/personal-finance/02251...

Re: Social Security now expected to run short on funds in 2035, one year later

#84

Post by goodluckchuck »

dpkirchner wrote: post #40
goodluckchuck wrote: post #37

Earlier quoted context omitted.

People should be allowed to opt-out, but that would destroy the system because the public doesn’t actually want it.

Social Security is incredibly popular, to the point people actually want to expand it: https://www.nasi.org/learn/social-security/public-opinions-o... > Moreover, Americans are willing to pay more to keep Social Security strong. About 8 in 10 (77%) say it is critical to preserve Social Security even if it means increasing the Social Security taxes paid by working Americans. An even higher percentage (83%) say it is c…

If that’s true, then they should allow people to opt out. There’d be nothing to worry about.
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