Adults only please!?

Question

Do you think that if the government were not allowed to tap into Social Security revenue to fund other projects and programs, the system would remain solvent? Why or why not? All answers appreciated and elaborate ones treasured. Thanks for your thoughts.

Crudader, I understand what you are saying. On the other hand, Americans aren't saving, be it a regular savings or a 401K. I am not saying you are wrong though. I don't know have any answers on this issue of social security. I just posted this to learn more.

Paranthro, Wow, this is first time I have heard about this. That is shocking. I could easily picture a similar senario happening here in the States.

Paranthro, Wow, this is first time I have heard about this. That is shocking. I could easily picture a similar senario happening here in the States.

Answer 1

Try this out:

I put into a spreadsheet the amount of money that I can expect to make, over a 30-year working life. I started at around 10,000 and factored in an annual pay raise of 10%. That includes promotions as well as cost-of-living raises, and it works out to about the same as I've actually realized, in my career.

Then, I calculated the contributions I'd made, on my Social Security payments, over each of those years, assuming a 7% contribution (which is about what it is, now).

Then, I calculated the interest I would have earned, if I'd been saving that money in a private account, earning 5% compound interest.

Then, I doubled the resulting total, because employers "match" our contributions to Social Security.

At the end, I found that the balance of money in my account, interest included, was only enough to provide me with my final year's salary for an additional two years.

Of course, Social Security doesn't give you a salary equal to the highest annual salary that you earned, during your working life. Let's say it only gives you 40%. That means my contributions to Social Security, alone, would be enough to fund my retirement for approximately 5 years.

Now, I grant you that I only figured this out for a 30-year working life, as opposed to a 40-year working life. But you can still see that saving 14% of your salary, every year, won't buy you a 20-year retirement income. It only buys a five-year retirement income, and only then at a reduced rate.

Social Security, even without the theft from the Trust Fund, that Congress has been perpetrating, over the years, will NOT, of itself, provide a decent retirement income for life. It relies on people dying before they retire, which is why they keep raising the retirement age. It relies on having more workers contributing to Social Security than there are retirees who collect Social Security benefits. In short, Social Security is a Ponzi scheme, destined for bankruptcy no matter what.

Answer 2

"Do you think that if the government were not allowed to tap into Social Security revenue to fund other projects and programs, the system would remain solvent?"

In regards to retirement, not now, no. You have the "baby-boomers" reaching the age of retirement and the system is going to be overwhelmed with them. Had we done what you are proposing 25 years ago, maybe. Also, the life expectancy of people has increased over the years. People are living longer and collecting more than they themselves paid in. (Don't get me wrong, this is a good thing!!)

As for the vast array of other social programs that falls under the umbrella of Social Security, I still say no. The welfare system was set up decades ago to help people temporarilly in times of hardship. It was never designed to become a way of life to be handed down through generations which is what it is today. It may not have been intentionally designed that way but it is the nature of the beast, so to speak.

What the Social Security programs are designed to do is keep people coming back to the polls to vote in whatever officials will keep the checks coming. The elected officials need you to need them. This is why Social Security *will* never be *fixed*.

First, the revenue generated by taxation for Social Security is not put in some bank account somewhere. It is merely numbers on paper. The revenue goes into a general fund that is used by the government for expenses anywhere in their budget. Every year Congress appropriates money to be used by the Social Security System. It doesn't actually mean that the money is there. It just means that the money will be "made available" if need be.

PS... "There have been rumors for several years that US social security and retirement insurance funds have been accessed through banks for lending purposes, Check how much of it went to Halliburton for instance!..How much was lost through bad bank investments in large American failed corporates!..In a few years people are going to find out that the bits of paper theyve got their retirment insurance on is just bum fodder!..."

Ohhhh... c'mon now, that is just plain ridiculous and something that paranthropus2001 just made up to slam our country. Baloney. If you believe what this person has told you I have a bridge I want to sell you that goes from the US to Spain.

Answer 3

No. Social security is a pyramid scheme. It relies on an ever expanding base of incoming money in order to pay for its obligations. Once the Boomers produced a smaller generation than their own, even an untapped Social Security was in trouble. SS also relied on people not living long after they retired. Now, it is not unusual for people to live 10-30 years after they retire. Considering that if you started at 18 and paid in the maximum amount every working year of your life until 70 (which is highly unlikely), you will have all of your contributions plus "interest" returned to you within three years. The way to fix it is to make it like a 401K plan where people can choose some investment options that will maximize their return.

Answer 4

"For seventy years, social security has been a safety net for the disabled and the elderly, and this has been accomplished by simply having ordinary Americans make contributions into the Social Security program, through their paychecks. And for seventy years, social security has been a resounding success.

It is because of Social Security, not in spite of it, that poverty amongst some of our most vulnerable citizens plummeted after its implementation.
It is because of Social Security that homelessness in the elderly is nearly non-existent.
And it is because of Social Security that no grandparent will ever bear the brunt of an economic tragedy.

Social Security is economically smart, socially needed, and morally just. And put simply, it is just the right program to have in place."

Answer 5

there is a serious problem with this..It happened in Australia during the early Vietnam war, retirement funds were accessed by the federal govt to help pay for the war, they 'invested' it with many large companys who, it was later learned funneled it off shore, never to be seen again!.Thousands lost their retirement benifits because the govt. couldnt control the money flow! My friendly advice to you is, try to get your govt. to tell you how they've invested the money..And with who..And where is it now!..There have been rumors for several years that US social security and retirement insurance funds have been accessed through banks for lending purposes, Check how much of it went to Halliburton for instance!..How much was lost through bad bank investments in large American failed corporates!..In a few years people are going to find out that the bits of paper theyve got their retirment insurance on is just bum fodder!.....

Answer 6

No, it's crap whether they tap into it or not. The only way to remain solvent is to get all congressmen/women and senators on the same plan instead of their cushy lifetime stipeneds.