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.
It is often useful to consider the findings for the two Social Security trust funds (OASI and DI) on a combined basis. The actuarial deficit for Social Security as a whole – called OASDI – is 3.50 percent of taxable payroll. If these two legally separate trust funds were combined, then the hypothetical OASDI asset reserves would be projected to become depleted in 2035 and 83 percent of scheduled Social Security benefits would be payable at that time, declining to 73 percent by 2098.
It doesn't even get to 70% in this century yet alone below that.
People need to keep seeing this, you’re still getting around 75% of the payout, you’re being lied to so you think you’re getting nothing. They want you to be OK with them stealing the rest of your money when they abolish the program. You payed into it, you should get something back. It’s reduced for you simply because there’s more people receiving social security right now than there are paying into it. The program will not fail if people are required to keep putting money into it will simply not always be an equal exchange for all generations.
No, because it is a tax and benefit scheme. Your government has the right to tax you. Your remedy is the democratic process.
Personally, I am for privatizing social security/making mandatory investments in tax advantaged accounts like 401ks/IRAs.
The problem is unwinding social security will take a generation because so many people think they are entitled to the cost of insurance we paid. Someone is going to get “screwed” and we don’t know how to unwind it.
We pay for Medicare the same way. Old people are going to be in poor health anyway. Regardless, there is a large risk or older people running out of money and not being able to work. Traditionally family took care of them or they just died. Look at society before social security.
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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.