Social Security spiraling towards failure. - PeachParts Mercedes-Benz Forum

raymr · #1 03-27-2008, 02:07 PM

As long as there are people paying in, there will still be money coming out the other end. However, if the pipline is smaller then distributions will be reduced and the eligibility age might be pushed back as the population tends to live a lot longer now.

When you hit a certain age (40?), SSA starts to mail out projections of what your SS benefit will be at different income levels and retirement ages. Aren't those projections accurate, or is there something people haven't been told?

Honus · #2 03-27-2008, 02:15 PM

Quote:

Originally Posted by raymr

...Aren't those projections accurate, or is there something people haven't been told?

I think those projections state what you will be entitled to receive under current law, but I assume that they have to make a bunch of assumptions, such as whether they will have enough money to meet those legal obligations. If everybody keeps living so long, then maybe the money won't be there.

That's my amateur's guess.

aklim · #3 03-27-2008, 02:42 PM

Quote:

Originally Posted by dculkin

If everybody keeps living so long, then maybe the money won't be there.

It is not only that people are living so long. Did we forget that the baby boomers are about to retire? Still think it needs an adjustment? I don't see any way out except a major overhaul.

aklim · #4 03-27-2008, 02:40 PM

Quote:

Originally Posted by raymr

As long as there are people paying in, there will still be money coming out the other end. However, if the pipline is smaller then distributions will be reduced and the eligibility age might be pushed back as the population tends to live a lot longer now.

And that strikes me as the way the Ponzi schemes operate. Only difference is that they can cut and run and be in Switzerland before they get found out.

I wonder how fast we'd be making license plates if we tried such a scheme as SS. I tried but I can't fathom what the difference is between the politicians running SS and people like me running a scheme similar to it.