If you find that your bank is undercapitalized like SVB is, you can do what many bank customers are doing. Withdraw money and hide the cash under your mattress.
However, the way social security benefits work is different.
money you is paid to the trust fund already used Funding for current retirees. This means, as explained earlier, that the money you might think you have is not actually yours.
But this again If you’re concerned that something bad is going on with the Social Security Administration, you can’t withdraw your donation.
In our minds, social security taxes we paid is oursFor all intents and purposes they simply not.
Keep that in mind when reading the following.
If Social Security were a bank, it would go bankrupt.
First, trust funds have their own “capitalization” problem, as explained in the latest report. Management Committee Report:
Both Social Security and Medicare face long-term funding shortfalls under their currently scheduled benefits and funding. The costs of both programs will grow faster than Gross Domestic Product (GDP) through the mid-2030s, largely due to the rapidly aging US population.
The Old Age and Survivors Insurance (OASI) Trust Fund can pay retirement and survivors benefits and pay scheduled benefits in a timely manner. Until 2034, One year later than last year’s report. At that time, the fund’s reserves will be depleted and continued tax revenue will suffice. Pay 77% of your scheduled benefits.
So now the deadline for business as usual is 2034.then profits decrease almost a quarter(In case you didn’t think trying to live on a fixed income was hard enough yet…)
The conclusion is particularly ominous.
Taking action sooner or later will allow us to consider a wider range of solutions and give us more time to incrementally change. This is to ensure that the public has sufficient preparation time.
What exactly is “preparation time”? for?
By any chance?again Significantly higher taxes for those still earning a salary – or Significantly Reduced benefits.
But who knows?may both.
As you know, the system of transferring money from new investors to previous investors has a name. Ponzi schemeBut let’s give the Social Security Board a little credit – at least they tell us right in front of That “our” money is gone.
Another complex issue in the social security funding dilemma – social security advantage It is linked to inflation (Cost of Living Adjustment or COLA).However, social security payroll tax that is Not adjusted for inflation! Clearly, when inflation rises, spending grows much faster than earnings. I’m not advocating a payroll tax increase. I just want to point out this glaring flaw in the bizarre scheme our nation is trying to deliver. Several retiree Several Income (but not enough to live on) Several time…
The problems are many and the solutions are thin on the ground.
Have you come up with the best member of Congress lately? “Don’t retire.”
Let’s ‘help’ defer Social Security benefits until ‘the right age’
When I discovered this “plan,” I couldn’t help but recall the famous words of Ronald Reagan.
The top 9 scariest words in English are “I’m from the Government, and I’m here to help.”
Consider the problem: Social Security is running out of money.
So a bipartisan group of politicians decided the solution is To “help older Americans make more informed choices that are likely to lead to better outcomes.”
a Report from United Income This solution overview begins with intentionally slippery language.
…Research shows that delaying claims by retirees can increase the value of their monthly benefits, so the economic impact of Social Security could be even greater if more people wait to enroll. I know. But how much is lost each year from households making suboptimal decisions about when to claim Social Security, how many people are making mistakes, or who is making those wrong decisions I don’t know if
Let me take this chatty doublespeak masterpiece line by line.
of Financial effect: Money – why not just call it “money”? Don’t ask, this is how bureaucrats in the ivory tower communicate.
can become: There is uncertainty here.
If more people waited: Such lack of specificity! How many more? how long did you wait
monthly benefits can gain: By “can” they mean can or can’t – who knows?
how much per year lost: they already said, Twicethere is no certainty that waiting to claim benefits will guarantee you more money. butthey call these uncertainty Untapped economic impact lost. you can’t lose If only it wasn’t there in the first place!choose words lost Invite the reader to imagine these hypothetical benefits as real. robbedNonsense.
of suboptimal decision: “Mistake” in plain English.See how they moved on lost How about calling these hypothetical gains the result of silly mistakes? moreover, suboptimal for whom? (Spoiler alert: it turns out they mean suboptimal For the Social Security Administration, not adult Americans Perhaps they can trust their own decisions.
How many people make the mistake of: Again, they characterize the decisions they dislike as: error — This is a judgmental and derogatory term. (When I asked Amanda Whitehorse her senior prom and she said no, I said, “You’re making a mistake.” from my point of view she has sinned suboptimal decision By going to prom with Jake Jones instead.but was it TRUE suboptimal decision for her? don’t know!I don’t claim to know what’s best for someone elseThe authors of this report are different. )
Who is making these wrong decisions: This is the kicker.By moving from bloodlessness that sounds logical suboptimal Candid, plain, and extremely biased wrong decision, the author very clearly flagged. It’s simply not a bad idea. error. that’s what we say child liar. That’s not how we talk to respected adults.
that is wrong decision claim social security benefits at suboptimal Is your career obsolete for hours due to health problems that force you to retire early? Is it because you need to provide full-time care for your family? For the individual making this decision, clearly not!
But for reptilian actuaries and bureaucrats who value social security solvency, as a whole You are just a number on a spreadsheet, not a person.just another Wrong decision.
(Sorry for the rant, but this kind of intentionally slippery misinformation infuriates me.)
don’t read the report. Here’s their brilliant idea – their amazing plan to solve the Social Security crisis boils down to persuading Americans to:
- work longer
- retire later
- Wait until you’re 70 before applying for Social Security benefits
If I do not?Well, you lost As a result, the profit you could (probably) get suboptimal decision and error That is again a Wrong decision.
Ultimately, this plan to save Social Security from bankruptcy marketing scheme Based on simple mathematics. Life expectancy in the United States is now 77 years old. Social Security Benefit Calculator Determine retirees who pay typical wages and retire at age 62 Social Security Administration costs 16% more than the same retirees claiming higher benefits at age 70.
that’s it. That’s the whole plan! Persuading retirees to delay claiming benefits means: pay less in short Social Security will bankrupt more slowly.
let me warn you again don’t read the report – but if you do, you can have fun with nasty word problems like:
95% of retirees at risk of more than 10% chance of paying their retirement benefits believe their chances of paying their retirement benefits will increase by an average of 28%.
I’ve read that passage at least eight times and still don’t understand what it means.
and me I guarantee you Neither do the “bipartisan MPs” who are touting this so-called plan in the Capitol.
we are in trouble best idea What we have to save Social Security is a marketing plan to convince Americans who have worked their whole lives to accept a small portion of my money.
Saving should be simple
What can you do to prepare for changes in Social Security benefits? Today is a good time to rethink your retirement savings plans in light of the expected changes in Social Security.
savings for retirement should do it Keep it simple – spend less than you earn! Save regularly! Spread your savings across different assets so that they grow in value, or at least maintain their value.
Do you know what makes retirement savings complicated? everything else.
Planning for future expenses is difficult enough when you know today’s dollar won’t grow as much in the next few years. Learn more about Inflation resistant investment Help future-proof your savings.
I am a believer in simplicity.That’s why I think it’s worth spending some time on educate yourself on the benefits of diversifying your retirement savings in physical gold and silverThey are simple, straightforward and many A track record of maintaining purchasing power over the long term.
Unlike social security benefits and the stock market, physical precious metals are the same tomorrow as they were yesterday. They cannot go bankrupt. No one can print more.
Gold and silver were a valuable safe haven before the invention of the Social Security Administration. I think gold and silver will still be highly valued after the Social Security Administration is gone.
peter reagan is a financial markets strategist at birch gold groupAs a precious metals IRA specialist, Birch Gold helps Americans protect their retirement savings with physical gold and silver. Based in the Los Angeles area, the company has been in business since 2003. It has an A+ rating.
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