Social Security's New Math

Social Security's New Math

finance.yahoo.com

Come January 2010, seniors may do a double take after seeing their Social Security checks. The two to three percentage-point increase in benefits they usually get each year won’t be there.

That’s because, for the first time in three decades, there likely won’t be a cost of living adjustment (COLA). “People notice when their checks don’t change, says Bruce Meyer, a professor at the University of Chicago’s Harris School of Public Policy.

(visit the link for the full news article)

This is pretty crazy. Social Security now isn't expected to be adjusted for cost of living/inflation until 2012. Something just isn't right here. Costs have not gone down and we are still experiencing inflation, yet retirees will not see the normal annual increase for cost of living and inflation.

I think what this really means is that the system is broken. Social Security and Medicare won't be around as long as people would like them to be. They are on life support. As the national debt outgrows the GDP in the next decade expect to see them on the chopping block.

finance.yahoo.com
(visit the link for the full news article)

reply to post by MikeboydUS


You got to feel for those people who rely on that money, but I cant honestly say it is a bad thing. If you listen to the likes of Ron Paul, he would probably say it is a necessary thing...

Lets get the budget balanced...you know?

reply to post by open_eyeballs


So what I'm wondering about, is what happens to all those benefits we have "accrued" through payments into the system?

They gonna give us tax refunds/exemptions? I'd sure as heck expect they'd have to do something if it fails altogether.

reply to post by HunkaHunka


I think if it fails altogether we will be having bigger problems than social security checks...

But as we all know, the fed will buy another 50 bill in bonds...so we'll be set for another few years...

until the "economy" bubbles again...

reply to post by open_eyeballs


It will be bad for the people who depend on Social Security to live and pay bills. Not everyone has had the money to put into IRAs and 401Ks, so Social Security is their lifeblood.

Even more aggravating is the fact that people like me who are paying into system will likely see none of it. I take what I can and put it into funds and commodities. Even some of that isn't safe from hyperinflation which is another looming threat.

Its just a giant mess. There isn't any easy way out of it. Stopping COLA increases and eventually reducing payments will only delay the inevitable.

this is sick! pure sickness. IM not old, yet, but my grandmother and grandfather, throught the 80's when iw a kid, would sometimes talk to me about social security. Its a necesity!!! they did watch thier coupons and what they bought, they were resoursful..it was just enough to pay the rent where they lived, in a house converted to a 2nd floor apartment, barley enough for food, and braely enough to hide some away..they were basically able to only really afford, more or less, bologna, olive load, canned or bottled chap veggies, milk, bread, ect you get the idea..not able to really buy things like forzen pizzas,..a delcasy to them! was HOOD ice cream, the low end cheap synthetic garbage..
They have since passed..but they used to tell me all the time.. dont get old, save yuor money, and win the lottery*
Really, this is totaly unfair to old people..if anyone needs money its them! since they have to rely on government to live, at this point.

reply to post by MikeboydUS


i hate to say it because i cant stand the gold pushers that are out there...most of them may as well be snake oil salesmen, but have you thought of precious metals?

im right there in that group that will never see ss...but again, we should be thinking its a better thing to see this beuarocracy go the way of the dinosaurs...

but i agree it shouldnt be done today or tomorrow, and therer has to be something that takes its place...but what?

Yeah, i wonder if social security will be around in the next 20 ro 30 years..im 34 now, but even as a yuong teen, my father used to say, one day the governemnt might do away with social security, and then yuor screwed..it has been a government agenda, to my knowledge for decades..to eliminate it.
i mean geesh, the fed is cocerned with a few hundred doallrs per peson on social security? meanwhile bernenke and his friends int he big banks, take our tax moeny, and redo thier houses, give mutli millioons to the middle east, shuodl be enemy countrys for that matter. ti jsut dosnt make an damn sense at all. its mindless and pointeless, to reduce a seniors lifeblood income to save a few bucks, so to speak. makes you wonder, what thier game now is...

I`m disabled and just started getting my SSD last month, and yes, they started as of December last year to not give cost of living. That is what it said in my paper that I got from them. It wouldn`t surprise me in the least that it goes broke in the next 2-3 years.

reply to post by open_eyeballs


Yeah Ive looked at precious metals and they are part of the commodities I put into. I fear though that a Gold Bubble like the Rhodium Bubble will emerge on the horizon. Rhodium at one point was up to $9000 an ounce. Its now sitting at $1500 an ounce. I fear that the Gold Bubble will appear as the national debt surpasses the GDP and fears of hyperinflation set in.
So I try to have a balanced mix of things and so far its worked out well. Throughout the economic mess I have had losses in some that were compensated by others.

Not surprising since they had to borrow six billion just to pay the bills for the month of august. September is expected to show a ten percent increase in benefit payments, I guess to others coming online. The conservative estimates say that SS will be broke by 2025- if they are borrowing money on a monthly basis now just to make payments, doesn't that mean they are broke now?

Originally posted by MikeboydUS


This is pretty crazy. Social Security now isn't expected to be adjusted for cost of living/inflation until 2012. Something just isn't right here. Costs have not gone down and we are still experiencing inflation, yet retirees will not see the normal annual increase for cost of living and inflation.

I think what this really means is that the system is broken. Social Security and Medicare won't be around as long as people would like them to be. They are on life support. As the national debt outgrows the GDP in the next decade expect to see them on the chopping block.

finance.yahoo.com
(visit the link for the full news article)

reply to post by inbound


The truth is that we are already broke. We arn't insolvent yet though. Our assets still outweigh our debts.

When our liabilities (the national debt) exceeds our assets (the GDP) then we'll be insolvent and on the path to bankruptcy. We are estimated by the IMF to pass that point somewhere between 2012 and 2019. Those estimates can and do change though. The 2019 one was an older one. The more recent estimates put it around 2012-2014.

Social Security never has been, never will be, never can be broke. The reason it has no money is because politicians have spent the interest on the money for decades. If the money was just left alone, it would be busting at the seams with cash.

This pisses me off. Our seniors don't get a cost of living adjustment but those crooked lying asses in congress don't have to think about giving themselves a raise..even though they don't pay for taxes and damn near all of their expenses paid for by the common man.

....*oils up his arsenal*

reply to post by cenpuppie


You bring up an excellent point. I guarantee the US Senate and House of Representatives will all get COLA increases on their salaries. In fact the entire Federal Government, including the Social Security Administration, will get a COLA increase.

This makes the Social Security math look even more ridiculous.

reply to post by MikeboydUS


I live on social security and a 30% VA disability check and I am none too happy about this...at least my VA check will go up...probably by $25 or so.

I too live on ssd, my child born with health problems is also disabled.

My disabled child I tell all the time, go out and work when your old enough. Never think your going to live off the public as I have to do now. I think he is listening? I worked for years with my deformities and health problems. They did not ask so I did not tell.

This is not just the senior citizens problem. This is everyone's problem.

Employers will not hire the disabled, or I can find anyone who will give me a chance. Afraid of being suede or whatever? Maybe? Or maybe the disabled are not worth the trouble to hire??

The government takes out of social security for other programs. Wasn't it Clinton who did something rather back in the day......
My mother just retired after 70 something years in teaching. My man is hitting retirement age. He worked all his life and looking forwards to what?? The economy pretty much did the money saved up in. Being laid off , off and on.....

One thing about people is, they do not usually think of such things until they are in the situations themselves, or a family member. Learn to grow your own food, and raise your own meat because some day that might be all you can afford!

Try, or write down what it would be like to live on $700 a month. Add in your rent, medical premiums (and the doctor bills the insurance does not cover), food, entertainment, electrical bill, all utilities, plus the computer you are on (internet) which to most is considered entertainment. Gas, car upkeep (and the money if you dont drive to drive you around). If you have kids.....

Ok now what is left? Some may not even get $700 a month? Some may get more ? Back oh in the 80's I think it was, some old women was found eating cat food. She was in the news when this subject was talked about back then. What has changed?

Some people feel guilty, or have to much pride to live off welfare. Though the professional politicians don't they live off the public's generosity? Doesn't these business who have gotten help from the government living off welfare?

What is the difference between a elderly person, or a crippled person going in to the nearest welfare office and our politicians? I do not no either......

The way I see it social security is not welfare, but it is thrown into the same category. Wait and you will see.....

reply to post by open_eyeballs


Kills me, I don't need it but I gotta say there is always some person that's says just this ......

Well lets cut it we need to save money, DUDE ..... FIRE those crooks who STOLE IT, instead as usual the victim again is penalized for the crimes of the CRIMINALS.

that thinking is really screwed up

In my opinion, nothing is going to be really done, good, with social security, unless many people get together, bring this to the worlds cameras attention, to gain momentum, protest, get petitions isgned, and argue this case directly at congress room. The only times anyting really changed for the public, is when they gathered, planned, proteste and pushed it in thier faces.