Model Train Journal

Social Security says system's costs will exceed income this year
https://www.cbsnews.com/news/social-sec ... this-year/

The Social Security program's costs are expected to exceed its income this year, marking the first time that has happened since 1982 and forcing the U.S. government to dip into the retirement system's trust fund to pay benefits to participants. The program's trustees said the shortfall trend could worsen in the decades to come.

Indeed, the trustees of Social Security and Medicare forecast the program's reserves will be depleted by 2034, at which point it won't be able to pay full benefits on a timely basis. The report said that if the funds are depleted, the program could pay about three-quarters of benefits.

Because Social Security is a main source of income for older Americans, that scenario could crimp household budgets for seniors and even push some into poverty. About 23 percent of older married couples rely on Social Security as their main source of income, according to the program.

"Workers should panic, but not because of the most recent Trustee report," said Bankrate analyst Taylor Tepper. "Workers should panic because they aren't saving nearly enough for retirement."

HONDO74 wrote: "Workers should panic because they aren't saving nearly enough for retirement."

Maybe the next big financial crisis in this country in the making

HONDO74 wrote:"Workers should panic, but not because of the most recent Trustee report," said Bankrate analyst Taylor Tepper. "Workers should panic because they aren't saving nearly enough for retirement."

How can anyone save anything, when they're paying off ridiculously huge student loans for college? This is just another way Republicans are keeping most Americans in wage slavery. My father served as a Marine during WWII, and afterwards went to USC on the G.I. Bill - all expenses paid. The Republicans have been cutting the benefits of the G.I. Bill for decades. Does it exist at all, anymore?

Roy wrote:

HONDO74 wrote:"Workers should panic, but not because of the most recent Trustee report," said Bankrate analyst Taylor Tepper. "Workers should panic because they aren't saving nearly enough for retirement."

How can anyone save anything, when they're paying off ridiculously huge student loans for college? This is just another way Republicans are keeping most Americans in wage slavery. My father served as a Marine during WWII, and afterwards went to USC on the G.I. Bill - all expenses paid. The Republicans have been cutting the benefits of the G.I. Bill for decades. Does it exist at all, anymore?

Who are the ones that establish the cost of tuition. The school and the administrators. Not the Republicans.

Private nonprofit four-year institution
Tuition for 1987-1988: $15,160
Tuition for 1997-1998: $21,020
Tuition for 2007-2008: $27,520
Tuition for 2017-2018: $34,740

Public four-year institution
Tuition for 1987-1988: $3,190
Tuition for 1997-1998: $4,740
Tuition for 2007-2008: $7,280
Tuition for 2017-2018: $9,970
To put those numbers into perspective, a 1988 graduate of Harvard University would have spent $17,100 on tuition during their senior year. Now, in their 50s, they'd have to pay $44,990 in tuition for their child to attend Harvard today.

It was reported, today, on CBS News, that Medicare will be in trouble by 2036.

Roy wrote:

HONDO74 wrote:"Workers should panic, but not because of the most recent Trustee report," said Bankrate analyst Taylor Tepper. "Workers should panic because they aren't saving nearly enough for retirement."

How can anyone save anything, when they're paying off ridiculously huge student loans for college?

It's not just student loans; that's only one part of the problem.

It's people not bothering to save for their future. My son has a student loan and he has still managed to put away far more than the average person does for retirement at his age. People simply don't bother thinking ahead or acting in their own best interest.

HONDO74 wrote:

Roy wrote:

HONDO74 wrote:"Workers should panic, but not because of the most recent Trustee report," said Bankrate analyst Taylor Tepper. "Workers should panic because they aren't saving nearly enough for retirement."

How can anyone save anything, when they're paying off ridiculously huge student loans for college? This is just another way Republicans are keeping most Americans in wage slavery. My father served as a Marine during WWII, and afterwards went to USC on the G.I. Bill - all expenses paid. The Republicans have been cutting the benefits of the G.I. Bill for decades. Does it exist at all, anymore?

Who are the ones that establish the cost of tuition. The school and the administrators. Not the Republicans.

But who is owned by the loaning agencies - Congress. Student loans are designed to last forever and take advantage of people that cannot afford tuition.

..........they'd have to pay $44,990 in tuition for their child to attend Harvard today.

That's actually kind of low all things considered. Where I got my bachelor's degree passed $50k for tuition per year many years ago.

MurphOnMillerAve wrote:It was reported, today, on CBS News, that Medicare will be in trouble by 2036.

Been a recurring problem for all these programs as they have never really been adjusted properly on input function to address both increasing costs and an increasing population of senior citizens.

Have you ever noticed people that can't save? Take a look at there $600 cell phone or $500 google watch. I can show most people plenty of ways to save.

robert. wrote:Have you ever noticed people that can't save? Take a look at there $600 cell phone or $500 google watch. I can show most people plenty of ways to save.

Or their $1500 TV.....or that new BMW?

I believe that if the money both parties "borrowed" from Social Security was returned solvency would not be an issue. Damn right it's an entitlement, those that contributed and had contributions made on their behalf are indeed entitled to said benefits.

BruceB wrote:I believe that if the money both parties "borrowed" from Social Security was returned solvency would not be an issue.

Would need to be returned with significant interest owed, too!

Wait, what? I thought Al Gore said it was all in the lock-box...

You can fix almost a third of the SS shortfall by eliminating the cap on earnings...i.e. one pays SS tax on the full amount of their earnings, not just until they reach earnings of $128,700 (limit in 2018).

The other 70% you can fix by killing off us boomers...

If you're really serious about fixing it, see here:

https://money.usnews.com/money/blogs/planning-to-retire/2014/11/14/5-potential-social-security-fixes

Well, here's one example of why folks may not have enough money for retirement. I'll give you my own case as an example.
Had $20 grand in a profit sharing plan back in the late eighties. I was off work on workman's comp with a destroyed right elbow and right wrist, and was unable to keep up my health insurance at work 'cause comp didn't pay all that much when you have a family of 6. At the same time, the wife comes down with breast cancer. 3 surgeries, and $63 grand worth of unpaid medical bills. The company terminated the profit sharing plan, and we not only used the money to pay on bills, we got nailed with the 10% penalty for income purposes. We tried to qualify for welfare, and to do so, you cannot have any assets in money, including life insurance. We were required to borrow all the cash value off of our life insurance policies, and pay toward the hospital bills, only to find out that we still didn't qualify. To this day, (I'm 67 and she's 65), we have yet to pay back those loans. Then, I'd tucked away $14 grand in a 401K at work, (no company contribution), and 911 happened. That money dropped to $6 grand, and then the company dropped the plan and kicked me out. It had taken years to start gaining again, so I rolled that into an IRA, but had to prematurely cash it to pay another of life's unexpected surprises. There's probably some of us who don't make enough money in our jobs to be able to forget 10 or 20% of our pay and sock it away for later. Now, here I am again. 1st day back to work after Memorial Day, (the 29th), I fell backwards to the floor across a steel bar and broke two of my ribs. Been off for over a week, and comp won't even start until the 15th, so our tiny savings will be eaten away again before I get back to work. For some of us, life sucks, and then you die.

And BTW, of all the things that have happened to me over the years, busted ribs is the friggin' most painful thing I've had. Most everybody says I'll be off work a minimum of 6 to 8 weeks, but the comp doctor says it'll probably be 2 to 4 weeks at most. Yeah, right! Ya know where comp doctors come from. They're people who made it through college and residency, but couldn't make in the medical field on their own. Hence, comp doctors.

Mitch wrote:There's probably some of us who don't make enough money in our jobs to be able to forget 10 or 20% of our pay and sock it away for later.

You are 1 of what are probably millions in that category. And, then later comes whether you want it to or not, and then what happens?