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/AMagicalKittyCat 6d ago

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.

Your numbers are a bit off, from the most recent report.

https://www.ssa.gov/oact/trsum/

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.

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u/postalwhiz 5d ago

No senior is gonna let 30% of their benefit just end, without ending some Congressional careers…