Is Social Security in Financial Jeopardy Due to This Issue?

by | May 19, 2024 | Thrift Savings Plan | 14 comments

Is Social Security in Financial Jeopardy Due to This Issue?




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Social Security is a vital safety net for millions of Americans who have worked hard their entire lives and are now relying on these benefits to help them in their retirement years. However, there is growing concern that the program is facing financial challenges that could potentially lead to its insolvency in the future.

One of the main reasons that Social Security is at risk of going broke is the aging population. As the baby boomer generation reaches retirement age, there are fewer workers paying into the system to support those who are already collecting benefits. This imbalance between the number of workers and retirees is putting a strain on the program’s finances.

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Another factor contributing to Social Security’s financial woes is the sluggish wage growth in recent years. With wages stagnating, there are fewer payroll taxes being collected to fund the program. This has led to a shortfall in revenue that is only expected to worsen in the years to come.

Furthermore, rising healthcare costs and longer life expectancies are putting additional pressure on Social Security. As people live longer, they are collecting benefits for a longer period of time, putting a further strain on the program’s resources.

In response to these challenges, some have proposed raising the retirement age, reducing benefits, or increasing payroll taxes to ensure the long-term solvency of Social Security. However, these solutions are controversial and could have a significant impact on retirees who are already struggling to make ends meet.

It is clear that action needs to be taken to address the financial challenges facing Social Security. Failure to do so could result in significant cuts to benefits or even the eventual insolvency of the program. As Congress debates the future of Social Security, it is vital that they consider the impact on the millions of Americans who rely on these benefits to support themselves in their golden years.

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14 Comments

  1. @edwardpate6128

    I personally am predicting that life expectancy may continue to drop due to generational poor lifestyle habits in regards to diet and exercise. These will be folks that grew up eating fast food and sitting on the couch. I am currently 64 myself and while planning to 90 to be safe my family history points to a lifespan of about 80.

  2. @Mr._Rick

    Josh, OAS trust runs out in 2033. The 2036 date is if the keep paying OAS from the DI trust.

  3. @jessefletcher9116

    I've been at my VFW post since 2008 and in that time I've seen a lot of people pass on, I wasn't keeping track but seems to me by far that the majority of them passed away in their 60s and 70s. In no way would I agree with the statement "many of them passed away past age 80."

  4. @jamesmurphy5315

    so as I read it men aged 65 last year have a life expectancy of 82.9………..more evidence that collecting SS at 62 is not as foolish as some may at first think.

  5. @anniealexander9616

    We have too many people on disability. Life expectancy is getting shorter. Georgia cut medicaid for 600k people. It's a step in the right direction.

  6. @Liberty-tn3rs

    Millions of older people passed because of the virus , the life expectancy has gone down because this has not been calculated.

  7. @markritacco270

    The MSM is lying as usual with the dates (unchanged from last year)

    A SUMMARY OF THE 2024 ANNUAL REPORTS
    Social Security and Medicare Boards of Trustees
    A MESSAGE TO THE PUBLIC:

    The Trustees of the Social Security and Medicare trust funds report on the current and projected financial status of the two programs each year. This document summarizes the findings of the 2024 reports. As in prior years, we found that the Social Security and Medicare programs both continue to face significant financing issues.

    Based on our best estimates, this year's reports show that:

    • The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of total scheduled benefits until 2033, unchanged from last year's report. At that time, the fund's reserves will become depleted and continuing program income will be sufficient to pay 79 percent of scheduled benefits.

  8. @thomasmoshier3920

    You want evidence? Here’s some. Next month I retire and have the good fortune to have a pension. I have the option of 3200 a month or 455,000 cash. Just for fun, I looked into what kind of annuity 455 grand buys a 65 year old man that doesn’t smoke, drink, isn’t morbidly obese or diabetic. It’s 2200 to 2300 a month. So why the difference? Because my hospital pension includes not only those that take care of their health but also those that do not. The average monthly benefit comes out higher according. Therefore that 83 average for a male is just that the average of everyone. You take out the smokers, drinkers, morbidly obese, diabetic, drug users and the like. The life expectancy is north of 83 for a male and north of 86 for a female. If both are in good health a 65 the odds are favorable that at least one of you approaches 90. Therefore it’s prudent to plan accordingly.

  9. @whatsup3270

    68% of men don't live to age 84 ( when ss filing age matters)
    59.3% of women don't make age 86.

  10. @bowl816

    The last report I saw a 65 year old male would live to 84, and a 65 year old woman to live to 86. Give or take a year.

    I don’t think they can assume anything too specific going into the future.

    I heard the SSI, that’s retirees , that money runs out in 2032/2033, they then have to cut benefits by 21%. Yet the SDI, disability Social Security, that money will last till 2097. So if they continue to give free money, health benefits, and SS to illegals, we pay for it yet again. They say it’s because so many “Baby Boomer” are/will be retiring. So since this is actually paid by people working are there that meany fewer people aged 15 to 67 that won’t be working?

    The math doesn’t work! More people in the USA are between the ages of 15-18 to 67 than there are over 67.

    Either way, the rule of 4% should keep you personally solvent in retirement.

  11. @coreypresent9038

    Yes it dropped because of the covid death bump.

  12. @cutehumor

    I’m planning 80 years life expectancy for myself. I would be longest living male relative in four generations.

  13. @4040smokey

    Have to wonder how these new miracle weight loss drugs will impact longevity. Could be the cure to obesity.

  14. @silentnot4812

    When you receive a massive influx of people who have not received the same type of healthcare, you skew the numbers. There is no way to predict anything and most of the elderly are being kept alive. All of my parents’ friends are in assisted living unable to leave. There is no quality of life at that stage and many have dementia.

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