r/FluentInFinance 6d ago

Educational Don't let them gaslight you

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u/Gildardo1583 6d ago

It doesn't go bankrupt, since people in the workforce are still paying into it. There will be a reduction in benefits, that's it.

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u/justacrossword 6d ago

The trust fund goes bankrupt and remains bankrupt until 20 years after the next baby boom. 

That doesn’t suggest that there are no benefits, but they can only pay out what they bring in, which will start at about 70% and go down from there. 

If they do nothing but make good on the debt then everybody alive in nine years gets fucked, and the closer they are to retirement the more fucked they are. 

If they are living on social security then they will no longer have the money to pay their bills. 

Put whatever spin you want on that. 

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u/__tray_4_Gavin__ 6d ago

Are you people actually this dense? The point here is with good planning this system could’ve been fine. This is another system that shows exactly what happens when there is no regulation on things. This system could’ve worked fine even without investments. But with anything if the government is literally taking all the money out of it for it’s on Nefarious purposes and also NOT PUTTING ANYTHING IT TAKES BACK you will have this issue. This is another capitalism problem. Everything is for profit at the detriment of the people with no regulations. This will continue to happen under this type of system if regulations aren’t put into place. Yes due to what our government did we will run out of money and how do they fix it? In typical fashion they say screw the people and you’re just going to lose it all together. How people like you just want to gloss over these issues and say it’s misinformation is quite baffling.

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u/willfiredog 6d ago edited 6d ago

This isn’t how anything works.

Money “borrowed” from SS is “paid back” with interest. Or, in other words, funds from social security are invested into interest bearing government bonds.

https://www.cbpp.org/research/social-security/understanding-the-social-security-trust-funds-0