Social Security is a vital program, it must be sustained, but it needs help.

Social Security is a vital program, the dependence on it is not going to go away and is likely to increase. In the long term increasing the benefits will be necessary.

You can choose to believe who you like, but the truth is that Social Security needs help. The revenue must be increased, the benefits changed in the future or a combination of both. The Trustees have been saying this for years and they have been ignored.

There are groups and individuals on Twitter and Facebook, supposedly advocates for Social Security, who are intentionally misleading Americans and spreading false information. I urge you to check out the many post on this blog related to Social Security.

“Low interest rates and a rigid rate structure have hurt the mother of all retirement annuity gorillas.

The giant Federal Old-Age and Survivors Insurance (OASI) trust fund — the fund that makes Social Security retirement benefits payments — is reporting a $22 billion operating loss for 2018 on $831 billion in revenue, compared with $26 billion in operating earnings on $826 billion in revenue for 2017.

The OASI trust fund backs its Social Security retirement benefits obligations with a portfolio of $2.8 trillion in government bonds. The size of the portfolio held steady between 2017 and 2018.

The bonds in the portfolio in 2018 paid interest rates ranging from 1.375% to 5.25%, and the average rate increased to 2.875% for bonds purchased in 2018, from 2.25% in 2017.

But, because the overall average portfolio yield is continuing to fall, bond interest revenue fell 3%, to $81 billion.

Benefits payments, meanwhile, increased much faster than payroll tax revenue.

Gridlock in Washington could change things, but, in the past, the trust fund “depletion dates,” or dates when program funds empty out, have served mainly to focus congressional attention on passing rescue bills. For insurance lobbyists, the major significance of that activity is that Medicare and Social Security rescue bills often end up serving as tugboats for moving other, less glamorous financial services legislation through Congress. ” SOURCE: Think Adviser

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