Social Security

I think that basic math is going to force a reckoning on Social Security and Medicare. With the skyrocketing cost of debt, we aren't going to be able to deficit spend our way out of it forever. There aren't enough rich to tax to fiscally stabilize it.

It's a question of when and how painful it will be.

I wonder if in France they do what the US does, give people a higher monthly if they wait till later to retire. Seems like the best way to get people who can keep working to do it.

The US really needs to reform it's disability SS pensions. Many people keep it even after they heal up and can work again. Many people who need it can't get it, because they are arbitrarily rejected. People would be more OK with raising the retirement age if they had confidence they could get disability if they needed it.

Raising Federal minimum wage would also mean more SS taxes paid.

I think 62 seems far too young to receive a pension. If you have the ability to retire comfortably on your own, that’s one thing - but I don’t see pushing back the retirement age a bad thing

I understand the pushback on the raising of the age of eligibility, for certain types of jobs it shouldn’t matter as much but physically demanding jobs have a disadvantage
For example an accountant or a clerical job that is mostly performed in mild conditions without great physical strain can be performed well into your senior years as opposed to a construction worker or perhaps a delivery driver, who not only needs greater strength and stamina, but also takes a harsher toll on your health cannot be sustained past a certain age.

It's real simple actually. First lift the cap on earned income subject to FICA tax. Once that's done, cut the tax rate from 6.2% for employers & employees to around 3.5-4%

I’m not planning on it being there for me if I’m lucky enough to make to current eligibility. We vote for too much government now a days. The chickens have to come home to roost at some point. Everybody wants to be a lazy fuck get on the dole, millions more coming over the border illegally paid for by American taxpayer, welfare queens shitting kids left and right, once again paid for by the American taxpayer. All these billions sent overseas every fucking year paid for by the American taxpayer. the government wants to print TRILLIONS in a few years and then have the gall to try and act like that won’t inflate out the American dollar. And people in this country were dumb enough to actually buy that bullshit!

Look at what’s happened to California, that only took a few decades. That was the very best of the first world to now it’s just a fucking joke. NYC Bloomberg years might aswell have been an eternity ago. Chicago and Philly have gone full on third world. Portland, Seattle, SF, LA? I don’t know what the fuck that is. I’m done, we’re just too fucking stupid. Now let’s all watch AOC get re-elected.

SS: Agree with 25. IMHO, I'd rather lift the cap (or raise it quicker) before we tinker with raising retirement age too much.

Medicare: More strongly opposed to raising eligibility above 65. Try raising Part B and D IRMA payments before tinkering with eligibility age.

@Muddy
Your missing a major point, Social Security and Medicare are entitlements which we paid for while we worked, the bastards in congress raided the funds that were supposed to be set aside for those that paid in and were promised a pension in their older years. They stole our money to pay for things that they didn’t want to pay for themselves. That’s always been the problem with our government they control bundles of money that belong to others, yet they act as if they’re entitled to do what they please.
These spendthrift’s belong in jail for their misappropriation of monies that don’t belong to them.

I went to a town hall held by my Republican congressman in his Republican district. Everyone agreed on two things.
1. We need to shrink government
2. We shouldn’t cut programs that benefit anyone in the audience

That summarizes our situation. We’re doomed.

In ten years one third of adults in the U.S. will be retired. The other thirds, many of whom will be poorly educated people with low incomes, will not be able to generate enough in tax revenues to maintain current benefit levels for those retired. There will have to be increases in retirement age and cuts in benefits. Benefits will likely be means tested, with wealthier retirees receiving the biggest benefit cuts or no benefits at all.

People will reluctantly accept these cuts but not if other government programs are treated as sacred cows that can't be touched. There will be a feeling that everyone needs to share the pain. The military budget will be reduced, and the country will move away from an interventionist foreign policy. By then it will be more evident that going to college is not a guarantee of a middle-class life and both direct and indirect subsidies to higher education will be cut too. Other government programs will also face funding reductions.

^^^ doc: In a way, both SS and MC have been "means tested" for a while. SS looks at your highest 35 years income average, and pays benefits accordingly. So someone making at or above the taxable cap for 35 years would get a bigger pension check than someone who made, say, 50% of the taxable cap during those times.

Wrt MC, above a certain income, beneficiaries pay IRMA for part B (and part D if applicable). There are 4 or 5 different tiers (above $85K for single filers, highest tier $500K or more) with each higher tier being socked ~ 1.5K/yr more than next lower tier). Speak for yourself about sharing the pain doc. If I've paid into the system, I damn sure don't want a 50 - 100% benefit cut to subsidize the slackers. Just what income level would you consider wealthy, doc ?

When SS was founded, it was a different time. People felt shame about getting government handouts. So, they designed it to appear to be an investment account where you put money in and got “your” money back at retirement.

Even in the 1930s, that was a lie. It has always been a form of wealth transfer with younger people supporting older people. That works fine as long as there are 10 young people working for every retiree. It’s now close to one for one.

That’s also why it will be so difficult to reform since people think there is an individual account with their name on it somewhere.

One thing that has caused the system to take a beating is our longevity. When first set up, with a 65 retirement age, the average pensioner only collected for 4 years before he, or she, died. Today, the average person makes it to about 80. This means that the average pensioner collects for almost four times longer. The average is also boosted by survivors collecting, although at a lower rate. That is why the age has been creeping upwards over the last few years, and that is probably justified given that we have more healthy years in which we can work. It also makes sense that only newer workers are subject to the new regs.

Caveat:. I am 71 and collecting a pension, so I may be biased.

If you raise the retirement age, you could deal with the issue of some people not being able to continue in their physically demanding jobs by giving them disability pensions. In some cases, you might also be able to find less strenuous jobs for them.

In Japan, people sometimes officially retire and then stay on with their employer in a part time job. I wouldn't mind doing that. I'm almost 67 and keep working because I like helping people and working with computers. I also feel a need for some social interaction and can meet that need by interacting daily with coworkers along with occasional visits with friends, family and stripper regulars. One scientific study found that people who work past 65 actually live longer.

Government programs live on forever, even after the reason for them has died. If we were addressing the economic needs of the older population from scratch today, the system we would develop would look very different from SS. I expect it would focus on the truly needy among the older population who were physically unable to work. Essentially, a disability benefit, not a retirement plan. The idea that people in their 20s should pay so wealthy, healthy seniors can retire in comfort would never fly.

A lifelong liberal lowlife calling for liberal politicians to be thrown in jail for being liberals. Oh, the hypocrisy.

The best ways to shore up Medicare and SS are to reform and shrink the government. No more federal pensions, they all get 401k's and IRAs like the rest of us. No more subsidizing the NEA, PBS, NPR. Cut the NIH, fed Dept of Educ., and others. No more extended benefits for travel and so on. There is so much waste at the federal level, that's where cuts should begin.

^ hard to argue with that statement above.

It is sickening - as an adult who’s had money taken out of my paychecks since my teenage years, whether I need it or not when I retire, it should be available to me.

@gamma, I agree we need to do that, but discretionary spending on the whole is fairly small. The big items are Medicare/Medicaid, Social Security, and defense. There aren't enough rich to tax to make up the difference.

Either we implement broad tax increases or cut the above.

Until January 2025 all we’ll hear is platitudes “it will be addressed fairly for all” BS. Then the loser party will ratchet up pressure for the winner party to state a specific plan (since any plan involves pain & will cost the next election). And repeat kicking the can. The political power is with the payors, so I expect payout cuts, means testing, maybe increased salary cutoffs for pay-ins. Retirement age will never go up, that’s antithetical to every post-boomer mindset.

The floating is dollar has already design to create more tax with inflated prices equaling higher tax revenue and means testing on anyone earning above $26k (single) to $40k (married). Anyway, once funds deplete the incoming revenue will cover benefits for future pensioners to payout 75% of their coverage. Doing nothing will correct itself with lowers benefits, and tweaking will add to the aforementioned 75% benefit in 10+ years, and the tweaking will be a combination of extra taxes and delayed benefits for the Millenials and generation younger. Boomers will not have theirs reduced, unless the cola gets tweaked and likely Gen X will maintain their eligibility requirements.

Social Security will become means based within ten years and anyone who worked hard, paid into and saved money will get nothing.

I'll comment where i want