2007-04-07 22:05:57 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Social security is in excellent financial shape on paper and by about 2020, the social security trust fund will have close to 6 trillion dollars in U.S. government bonds. A better question would be :How long before the rest of the government goes broke?
President Bush has stated that the fiscal 2006 budget deficit was 248 billion dollars.. But this figure does not include the 186 billion borrowed from the social security trust fund last year (every penny of which came from FICA taxes on the earnings of workers that was earmarked for their retirement), nor does it include the approximately 100 billion dollars per year cost of the war. From Fiscal 2002 to Fiscal 2006, the Federal Government borrowed approximately 2.4 trillion dollars, including borrowing from social security trust fund. That 2.4 trillion dollars in borrowing means that from fiscal 2002 to fiscal 2006, approximately 1/4 of non social security government spending was financed with borrowed money. (See www.ctj.org/pdf/def0706.pdf)
It would cause a real financial crisis if the government ever defaulted on the bonds in the trust fund, so politicians have been trying hard to convince the public that the problem is with social security rather than the rest of the government. That is why President Bush says Social Security is going to go "bust" in 2042 - so that he can have an excuse to cut benefits now in order to build up an even larger trust fund that the rest of the government can borrow and not pay back. Its is true that Social Security may need a little tweaking some time around 2042 or 2052 (depending upon which economists you believe) - but nobody can really predict how much since those dates are so far in the future. The predictions depend upon making a good estimate of the average life expectancy in 2042 as well as a good estimate of how the economy will do for the next 35 years.
2007-04-08 20:34:32 · answer #1 · answered by Franklin 5 · 0⤊ 1⤋
Just when I'm ready to retire. (22 years)
My wife and I are not planning on getting SS.
If we get it we will consider it extra money. I do hope will get it just to help or maybe cover medical cost.
Medical cost are and will be the largerst expense people are going to face. I don't think most people really understand how much medical cost are going to be when they retire.
My advice is to find a good savings/investment plan that works for you and go with that. Don't plan on SS. If you do that and have enough to retire when you want you will be fine. Then if you do get SS, it will be extra money. And we can all use that.
2007-04-08 02:45:24 · answer #2 · answered by alanpks4 4 · 0⤊ 1⤋
The only thing to put Soc. Security on the Republican agenda was Democrats and public opinion. Looking at the Republicans today, how long do you think it would take them to disregard what someone has to say, Democrat or anyone in the public sector, for that matter? Once the Republicans finally break Soc. Security do you think they will actually give it back?
2007-04-07 22:21:02 · answer #3 · answered by eks_spurt 4 · 0⤊ 3⤋
The 12th of Never. Congress has some hard choices to make politically, such as removing the cap on SS wages and levying SS tax on unearned income. It will happen. The only unknown is when.
Raising taxes is politically difficult. Allowing SS to fail is political suicide. Turning it over to the private sector -- the folks who brought you Enron and World Com -- is unthinkable.
2007-04-07 22:56:22 · answer #4 · answered by Bostonian In MO 7 · 3⤊ 2⤋
Probably one day before my 65th birthday. (17 years)
2007-04-08 00:38:47 · answer #5 · answered by Anonymous · 0⤊ 1⤋
that happened years ago...
2007-04-07 22:13:09 · answer #6 · answered by Anonymous · 1⤊ 1⤋