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security blanket?!....Treasury says Social Security will last 1 year longer.....
Posted by: NewtonMP2100
Date: June 04, 2022 10:55AM
....than they originally thought.....2034.....


Social Security fund will be able to pay benefits one year longer than expected, Treasury says

The Social Security trust fund most Americans rely on for their retirement will be able to continue to pay out benefits for a year longer than prior estimates, the Treasury Department said.

Treasury Secretary Janet Yellen and Labor Secretary Marty Walsh explained that the upgraded outlooks is thanks to a strong recovery from the Covid-19 recession.

....The Social Security trust fund most Americans rely on for their retirement will be able to continue to pay out benefits on a timely basis until 2034, one year later than the Treasury Department estimated last year, according to an updated report published by the government Thursday afternoon.

The improved report, signed by Treasury Secretary Janet Yellen and Labor Secretary Marty Walsh, projects that the government’s disability insurance program will be able to pay full benefits over the next 75 years, the first time Social Security officials have issued such a rosy outlook since their 1983 report.

Last year’s report estimated the Disability Insurance Trust Fund would be depleted in 2057. Medicare Part A will remain fully financed through 2028, two years later than previously projected, the government said.

Yellen and Walsh explained that the improved outlooks for the various funds are due to a faster and more robust economic recovery from the Covid-19 recession.

“The main reasons for the smaller deficit are a stronger than expected recovery from the pandemic-induced recession, higher expected levels of labor productivity, and lower future disability incidence rates that reflect recent experience,” Yellen and Walsh wrote.

The Treasury Department looks after two Social Security funds: The Old-Age and Survivors Insurance and the Disability Insurance Trust Funds. The two programs were created to provide a source of income to former workers who have retired at the end of their careers and to those who cannot work due to a disability, respectively.

Despite the revised projections, and given broad demographic trends and an aging U.S. population, the financial outlook for Social Security, largely funded by payroll taxes, is grim without government intervention or material changes to the country’s tax code.



one.....more.....year.......?!



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Edited 2 time(s). Last edit at 06/04/2022 06:42PM by NewtonMP2100.
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Re: the year of living dangerously?!....Treasury says Social Security will last 1 year longer.....
Posted by: STL
Date: June 04, 2022 11:03AM
Easy fix
Remove the cap on withholding for SS and Medicare
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Re: the year of living dangerously?!....Treasury says Social Security will last 1 year longer.....
Posted by: tuqqer
Date: June 04, 2022 11:23AM
They'll print more money before letting this happen.



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Re: the year of living dangerously?!....Treasury says Social Security will last 1 year longer.....
Posted by: GGD
Date: June 04, 2022 11:38AM
Quote
STL
Easy fix
Remove the cap on withholding for SS and Medicare

The Medicare withholding cap was already removed in 1994.
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Re: the year of living dangerously?!....Treasury says Social Security will last 1 year longer.....
Posted by: Ombligo
Date: June 04, 2022 12:18PM
That is, of course, assuming there is still the United States in 2034.



“No persons are more frequently wrong, than those who will not admit they are wrong.” -- François de La Rochefoucauld

"Those who cannot accept the past are condemned to revise it." -- Geo. Mathias
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Re: the year of living dangerously?!....Treasury says Social Security will last 1 year longer.....
Posted by: JoeH
Date: June 04, 2022 12:59PM
Quote
GGD
Quote
STL
Easy fix
Remove the cap on withholding for SS and Medicare

The Medicare withholding cap was already removed in 1994.

Medicare maybe, but they only increased the cap for SS. For 2022 SS tax of 6.2% is collected on the first $147,000 of income. Medicare is 1.45% on income up to $200k, then 2.35% over that except if you are married. Then it is that rate on income over $250k filing jointly, $125k if filing separately.
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Re: the year of living dangerously?!....Treasury says Social Security will last 1 year longer.....
Posted by: Blankity Blank
Date: June 04, 2022 03:54PM
Not an end of the world thing, but the scare title of the thread is not cool. SS is not a joking matter for a lot of people.



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Re: the year of living dangerously?!....Treasury says Social Security will last 1 year longer.....
Posted by: Acer
Date: June 05, 2022 08:52AM
And it's not "last."
SS can keep paying benefits, but they would have to be reduced to something like 75% of original.

I don't have a link handy, but IIRC, interestingly, the problem is the Baby Boomer bolus. If you run the timeline out, the shortfall begins to correct itself.
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Re: the year of living dangerously?!....Treasury says Social Security will last 1 year longer.....
Posted by: Blankity Blank
Date: June 05, 2022 09:24AM
Quote
Acer
And it's not "last."
SS can keep paying benefits, but they would have to be reduced to something like 75% of original.

I don't have a link handy, but IIRC, interestingly, the problem is the Baby Boomer bolus. If you run the timeline out, the shortfall begins to correct itself.

CNBC
”If Congress fails to act by the time the main Social Security trust fund is depleted, federal law would automatically cut benefit checks for retirees by about 20% across the board.”



National Suicide Prevention Lifeline
As of July 16, 2022, the National Suicide Prevention Lifeline is now available by simply dialing 988. The previous number, 1-800-273-8255, will remain active.

I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain.
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Re: security blanket?!....Treasury says Social Security will last 1 year longer.....
Posted by: Michael
Date: June 05, 2022 02:06PM
Quote
NewtonMP2100
“The main reasons for the smaller deficit are a stronger than expected recovery from the pandemic-induced recession, higher expected levels of labor productivity, and lower future disability incidence rates that reflect recent experience,” Yellen and Walsh wrote.

I wonder whether the "lower future disability incidence" is related to the huge loss of elderly over the last 2 years. They aren't drawing SS any more.
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Re: security blanket?!....Treasury says Social Security will last 1 year longer.....
Posted by: Speedy
Date: June 07, 2022 07:32AM
2034? I’m good because I’ll be dead by then.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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