2020 is a milestone year for Social Security

Beginning in 2020, Social Security spending will exceed all forms of the programs revenue, including interest income on the trust fund.

Think about that.

Annual OASDI cost has exceeded non-interest income every year beginning with 2010. The Trustees project that cost will continue to exceed non-interest income throughout the 75-year valuation period. Beginning in 2020, cost is projected to exceed total income, and combined OASI and DI Trust Fund reserves diminish until they become depleted in 2035.

The Trustees have been warning of what’s coming for many years and Congress has been ignoring those warnings for the same period.

And yet, advocates tell us SS has a surplus, advocates and some politicians call for increases in benefits and higher COLAs. Legislation (Social Security 2100) introduced two years ago languishes.

Doesn’t being mislead and lied to bother you, it bothers me. And, sans politics, this was an easy problem to solve and still is if the truth be told.

6 comments

  1. Nope, especially when you’re trying the old ‘blood from a stone’ routine of getting money you’re owed from the government (in any country) … and banks, and any corporate entity. I wish you much luck and patience.

    Like

  2. I was listening to the Democratic debate last evening and not one mention regarding SS and the Medicare premiums increasing, yet they talk about giving Medicare to all. What they aren’t mentioning is that we as seniors do pay for Medicare it is not free like some candidates seem to think. That $144.+ takes a chunk out of my SS check, I don’t know about the rest of you, but where is the saving for the seniors, not just everyone else. and why no discussion regarding our benefits.

    Like

    1. Fact is, should M4A ever become law, those of us with Medicare would save thousands of dollars each year. No premium, no need for Medigap, no out-of-pocket costs. But we will never see it happen.

      Like

  3. Our ever increasing global debt levels will eventually cause a massive financial default and/or reset …yuck it up future welfare recipients !!

    Like

  4. The old metaphorical phrase, “the body politic” is not used much anymore. But I was thinking about it in terms of the looming Social Security and Medicare situations. Like an infection that is ignored for too long, the ultimate treatment and cure is so much worse , the longer the infection is ignored. In this case, the attending physicians, both the Democrats and Republicans, are content to let the situation fester.

    Like

    1. Oh, I am sure the DC politicians will fix SS and Medicare, lol. By raising premiums and cutting what is covered by Medicare. As far as SS goes, once the trust fund equals zero, they will just cut benefits by the required amount needed to balance the payments. In 2035 those of us who are still alive will just be told the national debt is just to high and the law that covers SS that regular income taxes cannot be used to fund SS. The low income folks on SS will then find out that they now qualify for $100 in food stamps, after taking a 25 % cut in their SS check. We will basically be told to suck it up and be glad we are still getting something.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s