Social Security - your thoughts?

#676
#676
SpaceCoastVol said:
Then get your ass to work and sign off the interwebs. I need a new set of clubs.

Just like in my former profession. The junior guys wanted me to leave so they could have my seat. They didn't give a **** about me. So I don't give a **** about them. I hope they eliminate the cap so that every dollar they earn is taxed. I paid for their insurance when they were furloughed, and they wanted to keep the age at 65 rather than move it to 67 so that I would get out of their way. So **** em.
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like i said, selfish. no different than the rest of the takers
 
#677
#677
NEO said:
So on a serious note, I have a buddy who is late 50s and owns a very successful restaurant. He has been divorced about 18 years.

We were eating and I told him I literally had nothing in the tank to even pretend to care about getting to know a female but still had guy needs. Even asking there name seems like to much emotional effort right now.

He immediately goes…that’s why I f hookers.

He then proceeds to give me his personal wisdom they kinda hit hard. He said “we are both successful guys and can get laid. That’s not the issue. The issue is we don’t wanna the hassle anymore. You don’t pay a hooker for sex. You pay them to leave.”

Hit me hard. Like I’m done here. Transaction complete. No fighting. No screaming. No dealing with her feelings. Just bye.

Kinda changed my view.
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If it floats, flies or f^cks, rent it.
 
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#684
#684
2034 is right around the corner and not looking good. Best case scenario, everyone takes an immediate 25% reduction in benefit pay out since SS will only be collecting about 75% of needed revenue for SS benefits. I won't even get into the worst case scenario. You can't torch the currency through inflationary spending/debt and excess printing of a currency backed only by the phrase of "good faith and credit of the United States Government" and 1) expect the politicians to do the right thing or have any realistic solution and 2) have the expectation of that same incompetent group to somehow make you whole. SS is and always has been a Ponzi scheme because the .gov does and always will do as it pleases with other peoples money.

www.crfb.org

As Social Security Turns 90, It's Racing Towards Insolvency | Committee for a Responsible Federal Budget

2025-08-14-Social Security turns 90 today – but its retirement program is on course to be insolvent by age 97 – according to new estimates f
www.crfb.org www.crfb.org
 
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#685
#685
We just take the streets like the radical left and burn down the city!
JK, but we are being stolen from... Some people can't afford a 401k.
SS may be the only way they eat when they can't work any longer.
You take away a person's food that's worked for 40 years... I can see crazy things happen.
 
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#686
#686
Vol737 said:
2034 is right around the corner and not looking good. Best case scenario, everyone takes an immediate 25% reduction in benefit pay out since SS will only be collecting about 75% of needed revenue for SS benefits. I won't even get into the worst case scenario. You can't torch the currency through inflationary spending/debt and excess printing of a currency backed only by the phrase of "good faith and credit of the United States Government" and 1) expect the politicians to do the right thing or have any realistic solution and 2) have the expectation of that same incompetent group to somehow make you whole. SS is and always has been a Ponzi scheme because the .gov does and always will do as it pleases with other peoples money.

www.crfb.org

As Social Security Turns 90, It's Racing Towards Insolvency | Committee for a Responsible Federal Budget

2025-08-14-Social Security turns 90 today – but its retirement program is on course to be insolvent by age 97 – according to new estimates f
www.crfb.org www.crfb.org
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This is true and criminal. My Dad made good money and retired a full bird Colonel after 26 years, then made more per year in the private sector by far than USAF. Paid into SS his entire life. Drew from it and pension for about 2 years before he died. All his siblings have died in their 60s and there were 11 counting him. I have also paid in for my entire life and will likely never draw a dime. I would have to live about 18years after this heart attack AND be retired which I will never have enough money to do. SS is a terrible ponzi scheme and a POS.

What's worse to me and most people dont realize is that by constantly printing more and more money, the government has eroded away the value of every dollar we have all saved for retirement or any other purpose. Between printing dollars until they have probably half the purchasing power of the 80s or 90s, and yearly inflation devaluing our currency even more, it's become very hard to actually build wealth. Especially during the Biden administration when the real undoctored inflation rate probably outpaced my 401ks growth year over year all by itself.

Until I start this new job next month I am living off of my former 401k which is now an IRA...and having to pay 34% to the government on my own money before I see it. 30% fed and 4% to NC. I have never hated the government as much as I do now.
 
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#687
#687
marcusluvsvols said:
This is true and criminal. My Dad made good money and retired a full bird Colonel after 26 years, then made more per year in the private sector by far than USAF. Paid into SS his entire life. Drew from it and pension for about 2 years before he died. All his siblings have died in their 60s and there were 11 counting him. I have also paid in for my entire life and will likely never draw a dime. I would have to live about 18years after this heart attack AND be retired which I will never have enough money to do. SS is a terrible ponzi scheme and a POS.

What's worse to me and most people dont realize is that by constantly printing more and more money, the government has eroded away the value of every dollar we have all saved for retirement or any other purpose. Between printing dollars until they have probably half the purchasing power of the 80s or 90s, and yearly inflation devaluing our currency even more, it's become very hard to actually build wealth. Especially during the Biden administration when the real undoctored inflation rate probably outpaced my 401ks growth year over year all by itself.

Until I start this new job next month I am living off of my former 401k which is now an IRA...and having to pay 34% to the government on my own money before I see it. 30% fed and 4% to NC. I have never hated the government as much as I do now.
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401K's seem like such a great deal.....until you need that money earlier than you expected. It's ridiculous.
 
#688
#688
norrislakevol said:
401K's seem like such a great deal.....until you need that money earlier than you expected. It's ridiculous.
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nothing says you have to have a 401k, or put all your excess savings in it.

diversifying is still the name of the game.

you can also take a loan out against your own 401k. instead of just pulling cash out. you just have to pay interest on that loan...to yourself. works out great if you can repay that loan, you get hammered by the IRS if you don't.
 
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#689
#689
LouderVol said:
nothing says you have to have a 401k, or put all your excess savings in it.

diversifying is still the name of the game.

you can also take a loan out against your own 401k. instead of just pulling cash out. you just have to pay interest on that loan...to yourself. works out great if you can repay that loan, you get hammered by the IRS if you don't.
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I did not know you could borrow from your 401k. Good to know.
 
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#691
#691
InVOLuntary said:
Back when I was a youngin' my wife and I needed to do a renovation on a rental property. We borrowed some of our 401K. Neat thing about it, all the interest we paid went back into 401K.
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I like paying interest to myself. I don't have a 401k but I know my kids will. Might be useful to them one day.
 
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#692
#692
LouderVol said:
nothing says you have to have a 401k, or put all your excess savings in it.

diversifying is still the name of the game.

you can also take a loan out against your own 401k. instead of just pulling cash out. you just have to pay interest on that loan...to yourself. works out great if you can repay that loan, you get hammered by the IRS if you don't.
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My thoughts as well. 401Ks are SUPPOSED to be for retirement. They tell you right up front that there will be tax burdens and penalties if you draw from it early because they're giving you up-front tax benefits so that you WON'T withdraw early, retire broke, and be a burden on society.
 
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#699
#699
W.TN.Orange Blood said:
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it was written into the SS law that when SSA takes in a surplus of SS taxes, the SSA must "loan" that surplus to the Treasury and the Treasury issues bonds to the SSA for that surplus money. That surplus at the Treasury then gets spent by Congress on things that have nothing to do with SS. The so called SS "trust fund" therefore has no cash in it but bonds and these bonds are IOUs where the gov't has to pay back that money else the system goes broke.

So when SSA has to dip into the trust fund to pay people a SS check they have to cash out those bonds. So they get the money out of the general fund (from taxpayers) to pay retirees a SS check. Taxpayers are essentially being taxed twice. Congress taking SS money and spending it on things that have nothing to do with SS is how the Dems set SS up to work. SS is nothing but a tax, it's not insurance, it's not a savings account, not an IRA just a tax. Grok estimates SSA has taken in about $2.5 trillion in surplus*, and the $2.5 trillion was all "loaned" to the Treasury where it was spent by Congress. Taxpayers was essentially have to be re-taxed to replace that $2.5 trillion. SS was just an excuse for the Dems to create a new tax to increase gov't revenues so Congress would have more money to spend.....paying someone a SS check was a secondary issue. Dems baked this 'stealing' of SS tax money into the SS law.


* GROK: "Since its inception in 1935 (with payroll tax collections beginning in 1937), the Social Security program has accumulated a cumulative surplus of revenues over expenditures totaling approximately $2.561 trillion as of December 31, 2025. This figure represents the combined assets of the Old-Age and Survivors Insurance (OASI) Trust Fund ($2.338 trillion) and the Disability Insurance (DI) Trust Fund ($0.223 trillion)."

SSA is having to dip into the so called "trust fund" now to pay retirees..,,SSA had to cash out $67 billion of bonds in the trust fund in 2024:

  • In 2024 (the latest actual/full-year data):
    The combined OASDI trust funds had total income of approximately $1,418 billion and total costs of $1,485 billion, resulting in a net decrease in reserves of $67 billion. This net drawdown represents the amount redeemed from the trust funds after accounting for interest earnings (which partially offset the gap). Reserves fell from $2,788 billion at the end of 2023 to $2,721 billion at the end of 2024.
  • For 2025 (projected under intermediate assumptions):
    Total costs are expected to reach about $1,609 billion, exceeding total income, leading to a continued net decrease in reserves. The drawdown is projected to be larger than in 2024 (increasing over time), with reserves declining further from the $2,721 billion level at the start of 2025. The exact net redemption figure for 2025 isn't finalized yet (as it's ongoing), but projections show the annual shortfalls growing in the short term, requiring increasing redemptions to pay full scheduled benefits. - GROK.

(Again, money is taken from the general tax fund (from taxpayers) to cash out the bonds in the SS trust fund..this draw down is being payed for by Taxpayers..retirees living on the back of taxpayers......


GROK: - the money to redeem (or "cash out") the special-issue U.S. Treasury securities held in the Social Security trust funds during the current drawdown phase ultimately comes from the federal government's general fund operations, which are financed through a mix of general revenues (like income taxes), other government receipts, and — when necessary — additional borrowing from the public.Here's a clear explanation of how this works, based on official sources like the Social Security Administration (SSA) and Congressional Research Service:The Mechanics of Redemption
  • The Social Security trust funds (OASI and DI) hold special-issue Treasury securities — these are essentially IOUs from the U.S. Treasury, backed by the full faith and credit of the government.
  • When Social Security's ongoing costs (mainly benefit payments) exceed its incoming revenues (payroll taxes, taxation of benefits, and interest on the reserves), the SSA redeems some of these securities to cover the shortfall.
  • The Treasury Department (as the managing trustee) redeems the securities by providing cash to the trust funds. This cash is drawn from the general fund of the Treasury — the same pool used for all federal government operations (defense, education, interest on public debt, etc.).
  • The cash in the general fund comes from:
    • General tax revenues (e.g., individual and corporate income taxes).
    • Other receipts.
    • Borrowing from the public (issuing marketable Treasury bonds, notes, etc., to investors, including foreign governments, institutions, and individuals).
Key Implications During the Drawdown
  • During the surplus years (roughly 1983–2020), excess payroll taxes were loaned to the general fund (via the purchase of special-issue securities), which reduced the need for the government to borrow from the public to finance its deficits.
  • Now, in the drawdown phase (since around 2021), redeeming those securities increases pressure on the general fund. The Treasury must cover the redemptions using its available cash, which often means higher borrowing from the public (increasing the publicly held national debt) or relying more on general tax revenues.
  • This does not require a new, special appropriation from Congress — the redemption is automatic and legally required. The securities are redeemed at face value plus accrued interest, and the Treasury honors them as obligations of the U.S. government.
  • However, it does represent a real claim on future general fund resources. As the SSA notes, when reserves are drawn down, "the government must raise the funds necessary to honor the redemption... by increasing taxes or other income, reducing non-Social Security spending, borrowing from the public, or a combination."
In short: The drawdown isn't funded by "new" money appearing out of nowhere — it's repaid from the same general Treasury resources that fund everything else in the federal budget. This is why the ongoing Social Security shortfall adds to overall federal fiscal pressures, even though benefits continue to be paid in full for now (until projected depletion around 2033–2034, per the 2025 Trustees Report).
If legislative changes aren't made, the program will eventually rely solely on incoming payroll taxes (covering ~77–81% of scheduled benefits after depletion).

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to fix the shortfall, Congress will have to
1) increase SS tax,
2) cut retirees checks about 19-23% or
3) borrow money to pay the shortfall, that is, Congress can borrow money to put into the general tax fund whereby there is sufficient money in the general tax fund to cash out the bonds in the Social security trust fund.
"If Congress enables borrowing from the public (via Treasury operations and debt ceiling authorizations) to fully fund the general fund redemptions needed to pay 100% of Social Security benefits during the post-insolvency period, the additional borrowing required for the first ten years (2035–2044) would be approximately $8.5 trillion to $10 trillion in nominal dollars." - GROK


When the social security trust fund is depleted and there are no more bonds to cash out, can SSA still get money from the general fund to pay retirees?


GROK - Yes, the Social Security Administration (SSA) could still receive money from the federal government's general fund to pay full benefits to retirees after the trust funds are depleted and there are no more bonds to redeem — but only if Congress passes new legislation to authorize it. Under current law, this is not automatic or allowed.

Here's a clear explanation based on the most recent official sources, including the 2025 Annual Report of the Board of Trustees (released in June 2025) and analyses from the Congressional Research Service, Center on Budget and Policy Priorities, and others:

What Happens Under Current Law After Depletion?
  • The combined Old-Age, Survivors, and Disability Insurance (OASDI) trust funds are projected to become depleted in 2034 (one year earlier than in the prior report, partly due to recent legislative changes like the Social Security Fairness Act).
  • After reserves are exhausted (i.e., no more special-issue Treasury bonds to redeem), the program can only pay benefits using its ongoing annual income — primarily payroll taxes from current workers, plus taxation of benefits and other minor sources.
  • This ongoing income is projected to cover only about 81% of scheduled benefits starting in 2035 (dropping gradually to around 72% by 2099 under intermediate assumptions).
  • The SSA cannot borrow money, run deficits, or automatically draw from the general fund (the pool of federal revenues like income taxes used for other government spending). Benefits would be limited to available dedicated revenues, resulting in automatic across-the-board cuts (e.g., ~19% initially for the combined funds).
The Trustees Report explicitly states: "Under current law, however, these programs are not allowed to pay any benefits beyond what is available from annual income and trust fund reserves, and they cannot borrow."

Could Congress Change This to Use General Fund Money?
  • Yes — Congress has full authority to amend the Social Security Act to allow transfers from the general fund to cover the shortfall and pay 100% of scheduled benefits.
  • This would essentially make Social Security partially or fully financed by general revenues (similar to how Medicare Part B and Part D are largely funded by general fund contributions, which adjust annually to cover costs).
  • Options discussed in policy analyses include:
    • Direct appropriations or transfers from the general fund.
    • Increasing payroll taxes, removing the wage cap, or other revenue boosts (but if not sufficient, general fund support could fill gaps).
  • Historical precedent exists: Congress has always acted before depletion in the past (e.g., major reforms in 1983), and it has occasionally provided limited general fund reimbursements (e.g., for payroll tax cuts in prior years).
  • Without such changes, full benefits cannot continue — the program would pay only the partial amount from dedicated taxes.
Why This Matters
  • Depletion doesn't mean "Social Security runs out of money" entirely — payroll taxes keep flowing in indefinitely, covering a large majority of benefits.
  • But it does trigger automatic reductions unless Congress intervenes.
  • Using general fund money post-depletion would increase federal borrowing needs (or require tax hikes/spending cuts elsewhere), as it shifts the shortfall from dedicated payroll taxes to the broader budget.
In short: No automatic general fund bailout under current rules — benefits would drop to ~81% of scheduled levels after 2034. But Congress can (and likely would face pressure to) pass laws to transfer general revenues and prevent cuts, as the program remains a legal obligation with strong political support.

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Having posted all of this, my best guess as to what happens when SS has a shortfall in about 2033, Congress will NOT raise SS taxes nor cut benefits but Congress will enact new legislation to allow transfer of money from the general tax fund to cover the shortfall. And then Congress will have to borrow the money to put in the general tax fund so there will be sufficient money for the SSA to get to cover the shortfall thereby Congress will start adding 10's of trillions to the growing debt.
 
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