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PhilKravitz
Is social security well funded and safe?
jarednjames said:It all comes down to whether or not you have enough people paying into the system to support the required outgoings of it.
PhilKravitz said:Is social security well funded and safe?
WhoWee said:no...
WhoWee said:Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.
PhilKravitz said:What exactly do we mean by unfunded? How much reasonably expected tax income is devoted to covering these? Do we call the 2.5T of the national debt that is ode to social security unfunded?
Unfunded has several possible components
1) reasonable expected to be covered by future tax under existing tax law
2) already covered but invested in T-bills that we expect will be paid back
3) already covered but invested in T-bills that we expect will never be paid back
4) not funded
What percentage of liability is #4? and what percentage #3?
turbo-1 said:Here you go. Just one idea from the article.
http://finance.yahoo.com/news/12-Ways-to-Fix-Social-usnews-522214004.html?x=0
Jimmy Snyder said:I have to take some personal responsibility for this mess. I'm a boomer and like a locust, I'm not very destructive on my own. However there are more than 70 million of us and only 34 workers and a juvinile delinquent to take care of us. Fiddling with the percentages ain't going to cure that problem. However, the real blame lies at the feet of the Republicans. The Democrats would long ago have taxed us to death and solved the whole problem if it hadn't been for the GOP.
For the very near future at least (it seems, from my internet researches). But, without legislative changes all entitlement programs are in trouble. Aren't they? From what I've learned, there are ways to effectively deal with the problems, many of which have been extensively discussed at PF. But it requires the political will to do so.PhilKravitz said:Is social security well funded and safe?
ThomasT said:For the very near future at least (it seems, from my internet researches). But, without legislative changes all entitlement programs are in trouble. Aren't they? From what I've learned, there are ways to effectively deal with the problems, many of which have been extensively discussed at PF. But it requires the political will to do so.
Because the political will to make the necessary changes isn't there, then it would seem that Social Security, at least as we know it now, isn't safe or assured for future generations.
Yes, social security is currently well funded. According to the latest report from the Social Security Administration, the trust fund has a reserve of $2.9 trillion which is enough to cover benefits until 2034.
Yes, social security will still be able to provide benefits in the future. While the trust fund is projected to run out by 2034, the program will still be able to pay out 79% of promised benefits through payroll taxes.
It is difficult to predict the future of social security and whether there will be changes or cuts. However, it is important to note that social security is a mandatory program and any changes or cuts would require significant political and legislative action.
Social security is primarily funded through payroll taxes, which are paid by workers and employers. The current tax rate is 6.2% for employees and 6.2% for employers, for a total of 12.4% of earnings up to a certain limit.
While social security can provide an important source of retirement income, it is not recommended to rely on it as your sole source. The average monthly benefit in 2021 is $1,543, which may not be enough to cover all expenses in retirement. It is important to also have other sources of income, such as savings and investments, to ensure a comfortable retirement.