Social Security?

[Nograts]

Tonight I was doing some research on social security, something I probably should have done years ago. I realized that I never knew much about it. I kind of assumed that I would get a piddly amount back when I was 62 and it would just be beer money.

Well I read this little gem while poking around: http://www.ssa.gov/newsletter/Statement%20Insert%2025+.pdf

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The Social Security taxes you now pay go into the Social Security Trust Funds and are used to pay benefits to current beneficiaries. The Social Security Board of Trustees now estimates that based on current law, in 2041, the Trust Funds will be depleted. Because people are living longer and the birth rate is low, the ratio of workers to beneficiaries is falling. Therefore, the taxes that are paid by workers will not be enough to pay the full benefit amounts scheduled.
However, this does not mean that Social Security benefit payments would disappear. Even if modifications to the program are not made, there would still be enough funds in 2041 from taxes paid by workers to pay about $780 for every $1,000 in benefits scheduled.

So what does this mean? I take an inherent 25% hit on every penny thrown at this thing?

What are your thoughts on opting out? I will only be 55 in 2041. I highly doubt the program will be doing much better 7 years after that projection. The program will probably be set to 70 years or some shit once I get there anyways.

I read you could opt out if you were a minister. Well I am an ordained minister with the Universal Life Church . Would that be enough to get me out?

Should I just keep playing the poker game at a chance for SOME of the pot?

 

[Captante]

Old people vote. Most likely the laws will be amended well before then.

<----- Oh and P&N is over there

 

[Insomniator]

Just save up for retirement on your own and assume you'll be lucky if SS is even worth beer money by the time you are eligible to get it.

 

[pete6032]

Delete.

 

[Nograts]

Just save up for retirement on your own and assume you'll be lucky if SS is even worth beer money by the time you are eligible to get it.

Right. And I'm doing that. I actually stash about 15% away. But the question is about opting out. Why pay thousands into a lottery ticket?

 

[xSauronx]

Right. And I'm doing that. I actually stash about 15% away. But the question is about opting out. Why pay thousands into a lottery ticket?

because simon says.
i dont mind paying taxes
but i hate paying ss tax because i have little confidence in the system getting fixed.

 

[skimple]

Also - fire is hot.

Seriously people - turn off the video games and read the news once in a while.

 

[Nograts]

Also - fire is hot.

Seriously people - turn off the video games and read the news once in a while.

Did you opt out? Is there a way? How can we call shens and keep our money. This is bullshit! I demand justice! And other people's dollars!

 

[s0me0nesmind1]

Tonight I was doing some research on social security, something I probably should have done years ago. I realized that I never knew much about it. I kind of assumed that I would get a piddly amount back when I was 62 and it would just be beer money.

Well I read this little gem while poking around: http://www.ssa.gov/newsletter/Statement%20Insert%2025+.pdf



So what does this mean? I take an inherent 25% hit on every penny thrown at this thing?

What are your thoughts on opting out? I will only be 55 in 2041. I highly doubt the program will be doing much better 7 years after that projection. The program will probably be set to 70 years or some shit once I get there anyways.

I read you could opt out if you were a minister. Well I am an ordained minister with the Universal Life Church . Would that be enough to get me out?

Should I just keep playing the poker game at a chance for SOME of the pot?

You're JUST now learning that social security is a pyramid scheme that is already set to fail?

....Hope you're maxing out your 401k and IRA.

Honestly, it's things like not knowing this as to why we are in a SHITLOAD more trouble. People think Social Security will rescue them when they retire, so they put tiny drops into a bucket for their retirement (or nothing at all).

Then, come retirement, they are going to be absolutely fucked. These are things people should research the moment you start working. I know it's boring stuff, it's also called looking ahead to the future so you DON'T FAIL.

 

[soulcougher73]

No you cant opt out. It sounds nice in theory and id be fine with it personally because im smart enough to invest it. But if they just got rid of SS and gave you you SS tax money back the majority of people would concider it a pay raise and just spend that money on needless things. And when those lame masses got older and couldnt make it on their own they would be on another gov program to support them anyways. If the masses were actually smart id opt it do away with it, but they are not so it needs to stay.

 

[cbrunny]

lol how are you just now figuring this out? I pay into the CPP in Canada, which I fully expect to get zero return on by the time I retire. 2051!

Unless there is major reform, it really is just another tax for us young people.

 

[Nograts]

You're JUST now learning that social security is a pyramid scheme that is already set to fail?

....Hope you're maxing out your 401k and IRA.

Honestly, it's things like not knowing this as to why we are in a SHITLOAD more trouble. People think Social Security will rescue them when they retire, so they put tiny drops into a bucket for their retirement (or nothing at all).

Then, come retirement, they are going to be absolutely fucked. These are things people should research the moment you start working. I know it's boring stuff, it's also called looking ahead to the future so you DON'T FAIL.

I've been capping my Roth since I was 23. I've never bothered to look at SS indepth. I always figured people saying it would run out were doomsday-preppers. So it was a little surprising to see on their own website them admitting they will run out of money. Or, in there words, only be able to pay out 75% on the dollar. So that is an inherent 25% loss am I correct? And that was the guestimate for when I am 55 (and actually several other sources say by 2033, at which point I'll only be 47.

I'm just pissed off that I've been paying into this shithole program that I'm either a) not going to get a penny out of, or b) get about half back what I put into it. Give me my god damn money, and let me invest it.

We need some law where starting in like, 2025 if you can't 'afford' to retire, then guess what mother fucker? You're going to have to keep working or die! So be it! There's too many people on this planet for me to give a shit about people who decided it would be a good idea to own a 900,000$ house and drive a ferrari then put some money away. But I'll be damned if they didn't take every one of those credit card loans.

 

[JTsyo]

You're JUST now learning that social security is a pyramid scheme that is already set to fail?

....Hope you're maxing out your 401k and IRA.

Honestly, it's things like not knowing this as to why we are in a SHITLOAD more trouble. People think Social Security will rescue them when they retire, so they put tiny drops into a bucket for their retirement (or nothing at all).

Then, come retirement, they are going to be absolutely fucked. These are things people should research the moment you start working. I know it's boring stuff, it's also called looking ahead to the future so you DON'T FAIL.

I don't see how that's going to help. Looking at how the government has handled the housing crash, they might just raid retirement funds to pay for the deficit in SS.

 

[s0me0nesmind1]

I don't see how that's going to help. Looking at how the government has handled the housing crash, they might just raid retirement funds to pay for the deficit in SS.

While I won't disagree with your overall statement, there is simply no better way to invest money over a long period of time.

If you stow your 401k/IRA money in a mattress until retirement you're still not going to come out with enough. So if they start charging additional taxes on retirement, so be it. I just want to have enough for me to live comfortably come retirement.

 

[KB]

Did you opt out? Is there a way? How can we call shens and keep our money. This is bullshit! I demand justice! And other people's dollars!

You cannot opt out. This is the only difference between SS and a Ponzi Scheme, you can't say no to it, so it can be perpetuated for much longer.


Here are my reasons why you are likely to get very little if anything and why you need to save as much as you can in other retirement products:

-By 2041 the retirement age will likely rise to 72 - 75. It seems to rise about 1 year every decade naturally, but there are calls are for it to raise to 69 in the near term. This means working far longer than you expect to today.
-The SS trust fund is put into government debt. The current debt is over 17 trillion and the government must borrow in order to pay interest on its debts. Since it can't even pay the interest this means the debt principal will never be paid back and thus the trust fund will never be paid back.
-Machination will replace the vast majority of jobs in the future. By the time 2041 comes around .5 workers will be paying for the SS of 1 retiree. This means they must tax the worker 100% of his salary to pay the benefits of two retirees.

 

[Vdubchaos]

Also - fire is hot.

Seriously people - turn off the video games and read the news once in a while.

Actually, one is probably better off playing video games than watching/reading the news.

There is nothing one can do about SS.......knowing doesn't really accomplish or do anything.

And most people are trying to get by, saving for retirement is not even on their radar (outside of 401k......if you count that as "retirement")

 

[IronWing]

Here, save this post and quote me on this...

Social Security recipients will get every last dollar they are entitled to, period. Every last dollar. No stuttering here. The SS system will make those payments. There will be no default, no cuts to benefits. You will get your payments.

The dollars you get back may be worthless but you will get them.

 

[unokitty]

Tonight I was doing some research on social security, something I probably should have done years ago. I realized that I never knew much about it. I kind of assumed that I would get a piddly amount back when I was 62 and it would just be beer money.

Well I read this little gem while poking around: http://www.ssa.gov/newsletter/Statement%20Insert%2025+.pdf



So what does this mean? I take an inherent 25% hit on every penny thrown at this thing?

What are your thoughts on opting out? I will only be 55 in 2041. I highly doubt the program will be doing much better 7 years after that projection. The program will probably be set to 70 years or some shit once I get there anyways.

I read you could opt out if you were a minister. Well I am an ordained minister with the Universal Life Church . Would that be enough to get me out?

Should I just keep playing the poker game at a chance for SOME of the pot?

Politicians are very good at spending other people's money...

Now, here is a question. In the future, are interest rates going to be higher of lower than they are now?

If they go higher, the percentage of the Federal Budget spent on interest will also rise...

Will politicians raise more money through more taxes? Or, will they just print more money so that there is plenty of money for everything? Of course, that money won't be worth much.

Still. its obvious that the status quo isn't going to hold.

Uno

 

[Newell Steamer]

So, when I get old and there isn't any SS money left, does that mean I'll get all the money I poured in back? Or, can I stop paying it now?

No.

We're fucked.

So, you can either stay off the grid and pay no taxes (work cash jobs) or save money on your own as well.

It's not fair, but, what other options are there?

 

[dank69]

Why Social Security can NEVER go bankrupt

 

[IronWing]

It's not fair, but, what other options are there?

Raise the SS tax to cover the percentage of the national income subject to SS taxes when the program was implemented. The SS salary cap and the shift from salary income to capital gains income among the very rich has undermined the SS tax base. Fix the SS tax base erosion and the SS deficit problem goes away.

 

[Thump553]

OP-the "research" you did assumes that Congress will make no changes to the Social Security program between now and 2041. Granted Congress in the past decade plus has been abysmally inefficient but to assume they will revise/reform the SS program is pure silliness.

This same sort of thing has come up several times in the past and Congress has acted.

This is the sort of Chicken Little thinking that so-called libertarians delight in.

 

[pete6032]

You're just figuring this out now? How old are you? Opt out? Lol.

 

[pete6032]

It's not fair, but, what other options are there?

Remove the $100k cap on earnings tax.

 

[runzwithsizorz]

To say you can not opt out isn't entirely true. The teachers union in California did. Mz. Runz gets a lot less in social security, but a lot more in her pension.