Social security discussion

[mefordis]

Hi everyone. Does anyone want to discuss their opinions on Social Security's future (nicely and respectfully, of course!)

I have been thinking about the dilemma of social security and it really looks bleak. We have people living longer than ever, and the younger generation do not seem to have great job prospects. Add to that low birth rate (each generation at least lower than the baby boomer generation) and it seems a recipe for disaster.

Here is an example that's frightening: We have my husband's grandmother who is 100, we have his parents who are 75 and 79, we have my parents who are each 70. That's two generations collecting. Will the next generation be able to bear supporting two generations as well? It seems that people are living longer than the creators of the social security system ever thought would be possible.

Any ideas how they will salvage social security? Do you think it will be fine and all work out in the end? Any economists out there care to weigh in?

 

[Gumbo4x4]

I think - and I HATE taxes - the only way it's going to survive is if we increase the contribution rate. We can't just keep raising the age of eligibility.

 

[Mizzoufan]

This is my simple solution. Do away with SS and let people do with that money as they see fit.

 

[Pea-n-Me]

Anyone who can be paying into it, should be paying into it.

We can't sustain more takers than givers.

All these "under the table" folks aren't doing the rest of us any favors - that impacts all of us.

 

[Pea-n-Me]

Hi everyone. Does anyone want to discuss their opinions on Social Security's future (nicely and respectfully, of course!)

I have been thinking about the dilemma of social security and it really looks bleak. We have people living longer than ever, and the younger generation do not seem to have great job prospects. Add to that low birth rate (each generation at least lower than the baby boomer generation) and it seems a recipe for disaster.

Here is an example that's frightening: We have my husband's grandmother who is 100, we have his parents who are 75 and 79, we have my parents who are each 70. That's two generations collecting. Will the next generation be able to bear supporting two generations as well? It seems that people are living longer than the creators of the social security system ever thought would be possible.

Any ideas how they will salvage social security? Do you think it will be fine and all work out in the end? Any economists out there care to weigh in?

People, granted, are living longer. But the baby boomers are getting older, too, and when they're gone (which, granted, may be a while), then I think the numbers might be smaller. Other things will factor in, though, so if we can get a better handle on it now, all the better for the future.

 

[mefordis]

This is my simple solution. Do away with SS and let people do with that money as they see fit.

But wouldn't we have a lot of old people and disable on the street? Not arguing for anything, just I know there are a LOT of people who pay rent and all their expenses with social security. With that gone there would be nothing, right? Also the baby boomers would be up in arms having their social security cut off.

 

[Pea-n-Me]

But wouldn't we have a lot of old people and disable on the street? Not arguing for anything, just I know there are a LOT of people who pay rent and all their expenses with social security. With that gone there would be nothing, right? Also the baby boomers would be up in arms having their social security cut off.

Well they paid into the system, so they should be up in arms if they were cut off all of a sudden.

If there were changes to decrease SS, they would have to be gradual, but meanwhile, people would have to find a way to save on their own, and that might be more challenging than anything else. You're right - as a society, we can't have the elderly and disabled out on the streets.

SS is actually a pretty good system when it works.

 

[Mizzoufan]

But wouldn't we have a lot of old people and disable on the street? Not arguing for anything, just I know there are a LOT of people who pay rent and all their expenses with social security. With that gone there would be nothing, right? Also the baby boomers would be up in arms having their social security cut off.

I believe people need to take care of themselves. Invest or get a savings account. If SS dries up these people will still be without their money.

 

[mefordis]

People, granted, are living longer. But the baby boomers are getting older, too, and when they're gone (which, granted, may be a while), then I think the numbers might be smaller. Other things will factor in, though, so if we can get a better handle on it now, all the better for the future.

Well they paid into the system, so they should be up in arms if they were cut off all of a sudden.

If there were changes to decrease SS, they would have to be gradual, but meanwhile, people would have to find a way to save on their own, and that might be more challenging than anything else. You're right - as a society, we can't have the elderly and disabled out on the streets.

SS is actually a pretty good system when it works.

I think it is a good system for baby boomers up to a point, but there won't be enough money coming in from the Gen X and millennials to pay out all of the boomers + older Gen X, will there? That is when it fails. The baby boomers never had to pay so much and their parent's life expectancy was much lower than their own. Baby Boomers will have many more centenarians, a good thing but they need to be supported. Most don't have the savings.

 

[low-key]

people worked all of there life's and are depending on it, it would be heartless to stop it or cut it back. We have enough taxes so we need to cut spending across the board to save it

 

[Kingdome8]

Social security will never go away. If it did the USA would be the Wild Wild West again. People would be stealing and killing for food and medicine. Would be nuts. Of course country is on its way to bankruptcy.

I think age may go up somewhat which I don't like. But most likely we will receiver 75% of what we should get. Stinks. But no other options.

 

[Mizzoufan]

Well they paid into the system, so they should be up in arms if they were cut off all of a sudden.

If there were changes to decrease SS, they would have to be gradual, but meanwhile, people would have to find a way to save on their own, and that might be more challenging than anything else. You're right - as a society, we can't have the elderly and disabled out on the streets.

SS is actually a pretty good system when it works.

The problem is it doesn't work and hasn't in years. People ned to look ahead.

 

[Kingdome8]

I think it is a good system for baby boomers up to a point, but there won't be enough money coming in from the Gen X and millennials to pay out all of the boomers + older Gen X, will there? That is when it fails. The baby boomers never had to pay so much and their parent's life expectancy was much lower than their own. Baby Boomers will have many more centenarians, a good thing but they need to be supported. Most don't have the savings.

Another way of putting it is
"All Ponzi schemes eventually end".

Just a matter of who gets Screwed

 

[Kingdome8]

The problem is it doesn't work and hasn't in years. People ned to look ahead.

This country has a lot of problems. It's a propped up economy that is virtually broke.
Thank god we can print money here. This is why his election so important. Although all politicians are the same and won't do anything. Lol

 

[DebbieB]

This is my simple solution. Do away with SS and let people do with that money as they see fit.

People who are just scraping by aren't going to put money into a retirement plan. Then what happens when they are old?

The government needs to stop wasting money. Like studies of desert turtles.....

 

[mnrose]

Social Security would actually be in pretty decent financial shape, if not for all the "borrowing" which Congress has done over the years from the so-called trust fund. And, social security really isn't the big financial problem...it's Medicare which will bankrupt us all if we can't do something about the cost of medical care (in general). With minor tweaks...raising the retirement age a bit, slowing down the rate of increase in benefits a bit, and taking away the "cap" on what amount of income is SS taxable....SS will be solvent for the foreseeable future. Medicare? Different story entirely. Not sure what can be done about that, but then again, the cost of medical care is a HUGE problem for everyone, not just retirees. It's maybe a bigger problem for them because (a) they have more medical problems, in general, and (b) they can't change jobs/add a second job/whatever to pay for increased premiums.

You CAN'T stop SS for those who are in retirement or near retirement. I am a baby boomer, and am a few years shy of being able to collect SS, but I can tell you for a fact that I contributed boat loads of money to that system over the years. You can't simply say "too bad for you." At the very, very least you need to give people back what they contributed, with interest, if you want to say "every dog for himself."

Now, I also saved a lot privately and have substantial retirement savings. My husband and I would be "ok" without SS, but we would like to have it. Sure would make things easier if I had that money too. But, there are many people my age who NEED SS or they literally would be homeless in short order. It is my MIL's ONLY source of income, besides a $50 a month pension from an old employer. $50 a month doesn't go far does it? Without SS, she'd be homeless and have nothing to eat. This is true for a large number of current recipients, and will continue to be true for a large number of baby boomers. It's easy to say "hey they should have saved," but for many, this is hard to do with the economy being what it has been and the fact that we are essentially all still working for the same money we were in the 70's and 80's (as salaries for middle class and below have been pretty stagnant since then).

Would an every dog for himself system work? No. It would not. It would mean, literally, going back to what we had before the system, with many seniors living in extreme poverty. We can do better than that.

 

[tinatark]

Remove/Raise the ceiling for paying into SS... currently you stop paying in around $120k. Rework the maximum retirement benefit as well.

 

[gotomu212]

There are actually more millennials than boomers now so the idea that the working population is shrinking isn't really true- Gen X (my people) were just so small that we freaked everyone out thinking the wage contributors were vanishing. Granted millennials make less right now, but that won't always be the case and they will continue to have a solid contribution base.

I definitely think the age will continue to increase and the current and recent past image of long retirements filled with years of travel/grandkids/etc will change. When SS was started we had a labor force in very physical jobs who weren't living terribly longer than their benefits. It really was meant to support you when you were no longer able to work. With jobs transitioning to increased white collar (and out of coal mines and steel mills) people are able to work longer and are living longer.

I agree with the above that Medicare will be the thing that collapses first.

 

[aprilgail]

Anyone who can be paying into it, should be paying into it.

We can't sustain more takers than givers.

All these "under the table" folks aren't doing the rest of us any favors - that impacts all of us.

Not everyone's job pays into social security- I have worked steady on the books for 30+ years and in my lifetime I have only paid in about 140.00 into social security. Instead I pay into railroad retirement which you pay more into but it also pays me more and I start to collect it at 60 years old.
Social Security was never meant to fund a persons entire retirement, it was more like just an extra to help you out a bit.

 

[Christine]

Let's not even get into "saving on your own." I mean, sure I do it and I do a lot. Just like everyone told me to do, I was a good little girl and have 401K plan. How well has that worked out for me after the great housing bust of 2008 when those crooks managed to lose most of it. Even if you save yourself with something that returns a decent rate of interest, you just get swindled.