Here's the press release for the 2009 Social Security Trustees Report. The surprising thing isn't the shift of the first cash deficit date from 2017 to 2016, or the shift of the trust fund exhaustion date from 2041 to 2037 (I'd guestimated something very close to that). It's the increase in the long-term deficit from 1.7 percent of payroll to 2.0 percent. That's an 18 percent increase, which seems like a pretty big deal to me. According to the press release that's not all driven by the recession, though; part of it comes from lower assumed rates of mortality, which imply longer life spans and more beneficiaries. Plus, there could be some other technical changes which await a closer reading of the report. Social Security Board of Trustees: Economic Downturn Leads to Worsening of Long-Range Financing Outlook The Social Security Board of Trustees today released its annual report on the financial health of the Social Security Trust Funds. The Trustees project that program costs will exceed tax revenues in 2016, one year sooner than projected in last year's report. The combined assets of the Old-Age and Survivors, and Disability Insurance (OASDI) Trust Funds will be exhausted in 2037, four years sooner than projected last year. The worsening of the long-range outlook for the Social Security program is due primarily to the recent economic downturn and faster reductions in mortality than previously assumed. In the 2009 Annual Report to Congress, the Trustees announced: "Today's Trustees Report contains some disappointing, but not unexpected, news about the financial condition of the Trust Funds," Commissioner Astrue said. "We should be neither casual nor hysterical about the revised insolvency dates. As with the economy as a whole, the Social Security system will weather this recession. However, the sooner we get on with the task of reforming the system, the easier it will be to make the tough choices that we all know we need to make." Other highlights of the Trustees Report include: The Board of Trustees is comprised of six members. Four serve by virtue of their positions with the federal government: Timothy F. Geithner, Secretary of the Treasury and Managing Trustee; Michael J. Astrue, Commissioner of Social Security; Kathleen Sebelius, Secretary of Health and Human Services; and Hilda L. Solis, Secretary of Labor. The two public trustee positions are currently vacant. The 2009 Trustees Report will be posted at www.socialsecurity.gov/OACT/TR/TR09/ by Tuesday afternoon.
Tuesday, May 12, 2009
Social Security deficits start 1 year earlier; trust fund loses 4 years; long-term deficit rises by 18 percent
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The lesson here is that it's up to you to make enough money to be very comfortable. If you let government of anybody else determine your financial future than you are at their mercy.
Some people feel that it's not fair that you've invested in these program and now you don't reap the returns. We've all made hundreds of bad investments in one way, shape or form but we ultimately move on from them.
If you have a job, don't get another job. Invest. Start a small business. Open up multiple streams of income and acquire your own wealth so that you don't have to rely on government.
Ryan
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