In May, 2012, the American Academy of Actuaries published its look on the 2012 Social Security Trustees’ report. Figure 1 of the report is reproduced below.
To read the report is surreal. They talk about drawing down trust fund assets as if the assets are something like real estate, stocks, non-US treasuries. In fact, the assets are US treasuries which, when redeemed, require higher taxes or additional borrowing to cover. Contrary to the report, Social Security became PAYGO in 2010 when the payroll tax became insufficient to cover outflows.
Wow! When I first saw that graphic, I thought it was the stock price from the Wall Street investment firm, Bernard L. Madoff Investment Securities LLC.
Then I realized, “Oh, it Social Security and Medicare — same difference!
This is why our generation increasingly focuses on generating passive income for themselves. I have always wondered if the money I pay into the system is something I will ever see when I retire in roughly 55 years…I’m assuming the SS retirement age will be about 80 by then. I wonder if workers were working more, at the labor force particpation rates of pre-9/11 for instance, how much better would the cash flow deficit be?
To read the report is surreal. They talk about drawing down trust fund assets as if the assets are something like real estate, stocks, non-US treasuries. In fact, the assets are US treasuries which, when redeemed, require higher taxes or additional borrowing to cover. Contrary to the report, Social Security became PAYGO in 2010 when the payroll tax became insufficient to cover outflows.
It’s shocking to read a report like this. Given the Governments prestigous track record in handling money, im appalled by these findings!
….not.
Damn, I’m glad I did early retirement — before all the money is gone!
So there goes the so-called safenet for senior citizens…
Wow! When I first saw that graphic, I thought it was the stock price from the Wall Street investment firm, Bernard L. Madoff Investment Securities LLC.
Then I realized, “Oh, it Social Security and Medicare — same difference!
And this is why my generation will never retire…
This is why our generation increasingly focuses on generating passive income for themselves. I have always wondered if the money I pay into the system is something I will ever see when I retire in roughly 55 years…I’m assuming the SS retirement age will be about 80 by then. I wonder if workers were working more, at the labor force particpation rates of pre-9/11 for instance, how much better would the cash flow deficit be?