Social Security Retirees Could Face $18,000 Cut
 

I hope this will not happen. But if it does, it will create major problems.


Social Security Warning Issued as Retirees Could Face $18,000 Cut - Newsweek

only if nothing changes, and that time frame is way too long for nothing to change. .
just a repeat article when there is nothing else to write about, or someone is on vacation

They need to let younger people put their money into a secure group of Mutual funds so that it will grow to a nice retirement amount. Anytime the government controls things it will not turn out well. They have raided the SS fund many times and used it for other pet projects. Eventually it will dry up. We have way too many government give away programs as it is right now.

You really think that a seven year time frame is way too long? 2018 was not that long ago.

And what do you think will change? We have to cut benefits, increase taxes, or do both.

Not exactly. SS taxes that had been collected, in excess of what was needed to pay benefits, were put in the general fund and spent to support Government operations. Treasury issued special T-Bills to the SSA for these excess funds. Essentially IOUs that the SSA can collect on in the future. This is the so-called Trust Fund and has a value of about $2T. These special T-Bills are now being cashed in to pay benefits as the current SS taxes are less than benefits paid. Essentially, the Government goes out and borrows money from world markets to pay off these special T-Bills as Government expenditures exceed Government revenue. This obviously continues to be a less than desirable situation. This will continue until about 2033 when the Trust Fund has been exhausted and SS taxes can only fund about 80% of benefits. This situation can and will most likely be fixed before 2033.

They will probably increase the amount of income subjected to SS taxes and increase the retirement age. Another possibility is means testing of benefits.

This has been the doom and gloom scare tactic since at least the 60's. I even bought into it and prepared to be financially independent. They will continue to kick the can down the road. Logical solutions are raising the income limit and raising the retirement age. It has lost the original intent of being a safety net and has become an expected retirement plan.

It was a Ponzi scheme from the get go. That is why I initiated taking my check at full retirement age on the button. Also I feared a situation like IRMAA where if one received income over a threshold SS payments would be reduced or even eliminated. What I essentially did was invest my SS checks over the years.

It is time to find and eliminate SS disability fraud, too.

Folks born in 1960 have already had their retirement age raised 2 years. Hopefully any future benefit reductions won’t apply to anyone already 65 or older, but I certainly wouldn’t bank on that?

They should have let younger folks invest some of their funds in mutual funds years ago but now they cannot do that or they will have even less money for benefits

They would have had less money now for benefits AND they would be figuring out how to help the younger folks who either didn’t invest or invested poorly.

IRMAA penalties are both good news and bad news. The bad news is you are paying IRMAA penalties. The good news is you are making enough money that you are paying IRMAA penalties.

IRMAA is theft, plain and simple. It is like based on my income I have to pay $50 for a $10 hamburger. Same burger, several times the price.

Maybe it’s more like based on your income the govt will pay more of your health insurance premium. The less you make the more they pay and the lower your portion. The more you make the less they subsidize and the higher your portion.

The burger has always cost $75, the govt has been picking up a larger share so that you could still afford it.

Government itself pays for nothing. Taxpayers pay. Only about 60% of the population pays income tax, the rest get a free ride.