Social Security statements

[David S]

As you approach geezerhood you will begin receiving statements from the Social Security administration telling you how much you will receive in retirement benefits. Typically these arrive around your birthday. My wife recently received one. This time there was a new paragraph added which is of interest. This is what it said:

"In 2017 we will begin paying more in benefits than we collect in taxes. Without changes, by 2041 the Social Security Trust Fund will be exhausted* and there will be enough money to pay only about 75 cents for each dollar of scheduled benefits. We need to resolve these issues soon to make sure Social Security continues to provide a foundation of protection for future generations."

In other words, after forcibly extracting 12.4% of your pay throughout your career, the crooks who run our government will be able to pay only 75% of what they promised.

Now ask yourself a question: Who do you trust more with your money, the crooks in government or yourself?

[??????????]

I get those statements now and I've earned enough credits to be eligible for benefits. Social Security withdraws from your paycheck should of course, be optional.

[DownWithTheLeft]

Myself, as always I will state my maxim:

"The only way to stop the government from not wasting your money is to not give it to them"

[MODU]

I noticed that as well.  Wasn't sure if it was a subtle hint by the government to tell the public to get on their Congressman's back about reform, or if it was just a heads-up warning.  Personally, I trust myself with my own money, especially since I get a better rate of return than what the government can provide.  However, I do know that there are plenty out there that failed personal finance 101 and will need government help one way or another come retirement time.  That's why I'm in favor of the SS being turned back into an insurance policy rather than a government handout.  I don't need it, and I know there are plenty like us in the same boat.  While I'll never turn my back on the additional paycheck, I can easily live without it.

[opebo]

I've gotten those statements and I am ineligable, which is a travesty, merely because I have not been employed much at all.

[MasterJedi]

I've gotten those statements and I am ineligable, which is a travesty, merely because I have not been employed much at all.

You didn't pay much in (which comes out of your paycheck) so because you are lazy and don't work (in the US) then you won't get crap once you're old and need the money.

[David S]

I've gotten those statements and I am ineligable, which is a travesty, merely because I have not been employed much at all.

Yeah -funny how that works isn't it.

[Verily]

I get those statements now and I've earned enough credits to be eligible for benefits. Social Security withdraws from your paycheck should of course, be optional.

Remember this day... I agree with StatesRights!

[opebo]

I've gotten those statements and I am ineligable, which is a travesty, merely because I have not been employed much at all.

Yeah -funny how that works isn't it.

Dudes I thought your standard right-wing line was that no one will get money when they're old due to some sort of 'insolvency'.

So, my strategy is ostensibly the way to go.

[CPT MikeyMike]

Thus start getting IRAs ready and a money market account - I'm not counting on SS when I turn 65, 68 or whatever the age will be around 2045.

MODU -  did you do anything with TSP when you were in?

[MODU]

MODU -  did you do anything with TSP when you were in?

TSP's came about after my time.  I did a mix of IRAs and mutual funds shortly before retiring and going into commercial shipping.  From there it was 401(k)s and stocks/funds.

Money market accounts have a bit of bad taste in my mouth right now with the low fed rates.  You can get better returns on low-risk mutual funds which have bond holdings but also invest into large stable companies.

[??????????]

Thus start getting IRAs ready and a money market account - I'm not counting on SS when I turn 65, 68 or whatever the age will be around 2045.

MODU -  did you do anything with TSP when you were in?

I'm already pumping as much as I can into my 401k.

[David S]

I've gotten those statements and I am ineligable, which is a travesty, merely because I have not been employed much at all.

Yeah -funny how that works isn't it.

Dudes I thought your standard right-wing line was that no one will get money when they're old due to some sort of 'insolvency'.

Right wing? Me? 

Well anyway this is the first time I've seen the Social Security administration acknowledge that government may not be able to keep its commitments for SS. But in my estimation they still aren't telling the whole story for two reasons:
1) They admit that in 2017 they will begin paying out more than they take in. But they aren't saying that the Social security trust fund does not have any money in it, only special treasury bills which are in effect IOUs. That will be kind of a double whammy for uncle Sam because it means government loses the gravy train of SS dollars from which they could borrow, plus they will then have to start paying back all the money they previously borrowed. So the 2041 date is somewhat meaningless. The trouble will actually start in 2017.
2) They aren't talking about the 40 or 50 trillion dollars in unfunded future liabilities aside from social security. That problem will make it very difficult for them to find the funds to pay back social security.

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Well if you don't need a job to survive, then not working is undeniably a good way to avoid SS taxes. Just don't complain about not being eligible for benefits.

[AkSaber]

I get those statements now and I've earned enough credits to be eligible for benefits. Social Security withdraws from your paycheck should of course, be optional.

Agreed. I've always believed that the people are wiser at preparing for their retirement than the government is.

[Saw11_2000]

People should be saving for their own retirement...

[Frodo]

Suddenly, private retirement accounts look much more attractive.... 

[KEmperor]

Yeah, I've been getting those statements now too.  Of course, I am well aware of the fact that by the time I am old enough to start receiving any of my money back the system will be dead anyway.  That's why I am funding my 401k as much as possible.

[David S]

Yeah, I've been getting those statements now too.  Of course, I am well aware of the fact that by the time I am old enough to start receiving any of my money back the system will be dead anyway.  That's why I am funding my 401k as much as possible.

^^^^ Exhibit A, a wise strategy.

[opebo]

Please do keep in mind, youngsters, that regardless of whether social security survives, or you have a retirement account or not, life after 65 is no picknic.  Naives, enjoy your youth and do not worry about saving for your final years of enfeebled misery - you may be spared them by a hurtling bus or a vigorous disease anyway.

[David S]

Please do keep in mind, youngsters, that regardless of whether social security survives, or you have a retirement account or not, life after 65 is no picknic.  Naives, enjoy your youth and do not worry about saving for your final years of enfeebled misery - you may be spared them by a hurtling bus or a vigorous disease anyway.

^^^ Exhibit B - dumb strategy.

[opebo]

Please do keep in mind, youngsters, that regardless of whether social security survives, or you have a retirement account or not, life after 65 is no picknic.  Naives, enjoy your youth and do not worry about saving for your final years of enfeebled misery - you may be spared them by a hurtling bus or a vigorous disease anyway.

^^^ Exhibit B - dumb strategy.

Really?  Your strategy will not change the fact that human life ends in physical pain, misery, and despair.

[David S]

Please do keep in mind, youngsters, that regardless of whether social security survives, or you have a retirement account or not, life after 65 is no picknic.  Naives, enjoy your youth and do not worry about saving for your final years of enfeebled misery - you may be spared them by a hurtling bus or a vigorous disease anyway.

^^^ Exhibit B - dumb strategy.

Really?  Your strategy will not change the fact that human life ends in physical pain, misery, and despair.

No one can escape death but KEmperor's plan allows one to die in his own cozy bed with pain meds to ease the transition. You plan allows one to die hungry and cold in the street.

[opebo]

Please do keep in mind, youngsters, that regardless of whether social security survives, or you have a retirement account or not, life after 65 is no picknic.  Naives, enjoy your youth and do not worry about saving for your final years of enfeebled misery - you may be spared them by a hurtling bus or a vigorous disease anyway.

^^^ Exhibit B - dumb strategy.

Really?  Your strategy will not change the fact that human life ends in physical pain, misery, and despair.

No one can escape death but KEmperor's plan allows one to die in his own cozy bed with pain meds to ease the transition. You plan allows one to die hungry and cold in the street.

Haha, no.  The plan is that if one finds oneself in an unpleasant situation with not a lot of time left anyway, one does the obvious thing.

[Undisguised Sockpuppet]

People should be saving for their own retirement...