Tag: Social Security bankrupt

Via Birch Gold

The Social Security Administration (SSA) is in enough trouble on its own. But now, there are three big cultural and economic forces that appear to be taking their toll on the program.

It’s the same program you have plunked your hard-earned dollars into, in the form of mandatory payroll taxes, over decades of work. Maybe we shouldn’t call them your hard-earned dollars, though. Because once that money goes to Social Security, it’s not yours anymore. As the SSA states very clearly:

Continue reading “Social Security Under Pressure Thanks to These 3 Economic Trends”

Via Birch Gold

We’ve known that Social Security has been on the verge of a substantial change (at minimum) for quite some time.

You can see how disturbing things could turn out by looking at the bar graph below from Peter G. Peterson Foundation. It reveals a cumulative cash deficit of $2.9 trillion from now to 2035, after which, the trust fund (Social Security’s bank account) will be empty:

Continue reading “Even Its Employees Think Social Security Is in Trouble”

From Birch Gold Group

Thanks to the pandemic, Americans on the verge of retiring could be forced to deal with some adverse effects.

NBC Connecticut provided some insight on the developing situation:

Your Social Security payments have been determined in part by a formula that includes your earnings at age 60, two years before you’re eligible. Connecticut Congressman John Larson said for people turning 60 this year, when many workers’ wages are down, that could be catastrophic.

According to Larsen: “What it could mean is a person born in 1960 would lose $2,000 a year for the rest of their lives.”

Continue reading “COVID-19 Just Foisted this New Threat On Social Security Benefits”

From Birch Gold Group

There is no question that U.S. debt has reached unimaginable levels. There is also no question that Social Security is in trouble.

But new trouble could arise for both if the latest government meddling doesn’t pay off. For example, a new proposal to “fix” Social Security is already drawing criticism, as one part raises the full retirement age to 69 by 2075.

Legislation passed in 1983 gradually pushed the retirement age to where it is now, which is 67 if you were born in 1960 or later (see official chart below):

Continue reading “Attempt to Reduce National Debt May Cut into Your Social Security”

From Birch Gold Group

According to official reports, in about 15 years a big cut to Social Security benefits can be expected if nothing is done.

As we’ve reported before, the clock is ticking. The “big cut” is 25%.

What’s even more troubling is the fact that most people won’t be able to mitigate the damage if everything pans out the way reports say it will.

According to data provided by the Fed, about 25% of the country will be able to “shrug off” a major cut to their Social Security benefits:

Continue reading “Most People Won’t Be Able to “Shrug Off” Imminent Cuts to Social Security”

Guest Post by Simon Black

In the year 1890, according to census records, my great-great-grandfather was spending the final years of his life living with one of his children on a farm in Choctaw County, Oklahoma.

I’ve spent most of the last twenty years doing some hardcore research into my family history– and I’ve identified records going all the way back to 1250 in England.

And one common theme that I’ve noticed: when people reached a certain age, they almost invariably moved in with their kids and grandkids.

This is what ‘retirement’ used to mean; it was simply expected that younger generations would look after older generations.

Continue reading “Social Security will cross another dangerous milestone next year”

Guest Post by Simon Black

Two days ago the respective Boards of Trustees for Medicare and Social Security released their annual reports for 2018.

As usual, the numbers are pretty gruesome… and the reports plainly stated what we’ve been talking about for years: the trust funds for both Social Security and Medicare are going to run out of money.

Soon.

In the case of Medicare, the Trustees project that its largest trust fund will be fully depleted in 2026, just eight years away. In the context of retirement, that’s right around the corner.

For Social Security, the Trustee report stated that the program will spend more money on benefits in 2018 than it will generate in income and tax revenue.

So this year will be the first time Social Security has run a deficit since 1982.

Continue reading “It’s official: Medicare trust fund will run out of money in 8 years”