Originally Posted by MarkinCA:
Hello John,
The following excerpt is from the current June 2011 AARP Bulletin that states: "The administrative cost (for Social Security) is .09 percent. It returns 99 cents to beneficiaries on every dollar collected. By the end of 2010, the Social Security trust fund had a positive balance of $2.6 trillion. As a result of interest earned on the trust fund balances, the fund's surplus will continue to expand to approximately $3.67 trillion at the end of 2022. After that year, it is projected that the balance will begin to decline. Still, reserves will be sufficient to pay full benefits through the year 2036. After that, Social Security would still be able to pay for 77 percent of benefits."
The name of the article is Social Security's Enduring Truths and its Author is James Roosevelt Jr (the grandson of President Franklin D. Roosevelt).
There are individuals John who strongly wish to "privatize" Social Security so their buddies on Wall Street can rape us further. They can go stick it. There are individuals (the same) who also strongly wish to "privatize" Medicare. They can also go stick it too:-) There is a very simple way to insure that Social Security continues on strongly past 2022, but I will not get into that in your thread. I hope this helps you out...
Even though that article was published in June it was probably penned earlier, because it differs with what is in the official SS trusties report..
I have nothing against those currently drawing SS or those on the verge of doing so. But lets understand a few things about how broken the systems is.
When enacted about half of all the people paying into it would have died before collecting, medical science has improved lifespans so much that now most people live to collect. Note, I have nothing against people living longer (in fact I plan to do so myself), just pointing out a flaw in the design of the program.
On average most recipients will get back everything they paid in plus interest in the first seven years, after that the money they get is not money they paid in themselves. The program was never designed to be just you saving for your retirement, it was always about current workers helping support the retired. Currently there are about 2.9 workers for every retiree, by 2035 there will be 2.1.
In 2008 it was projected that in 2017 SS would start paying out more than it takes in and in 2041 all surpluses (currently invested in US treasury certificates) would be exhausted. After the most recent economic downturn SS started paying out more than it takes in last year and the exhaustion of surpluses is estimated to be in 2035 (incidentally, about when I would expect to fully retire if I don't retire early). With the debt ceiling being reached, and assuming republicans have the cajones to keep it from being raised, if the US has to default on paying the retirement of treasury certificates, that 2035 date could become 2011.
The best place to keep current is the Trustees report:
The "ANNUAL REPORT OF THE BOARD OF TRUSTEES OF THE FEDERAL OLD-AGE AND SURVIVORS INSURANCE AND FEDERAL DISABILITY INSURANCE TRUST FUNDS" for the years 1997-2011 is available here:
Trustees Reports for your further reading enjoyment
:-)
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Originally Posted by camiller:
With the debt ceiling being reached, and assuming republicans have the cajones to keep it from being raised, if the US has to default on paying the retirement of treasury certificates, that 2035 date could become 2011...
Exactly!
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