tag:blogger.com,1999:blog-7334408760351487944.post7525513701316303059..comments2023-11-12T06:43:00.060-05:00Comments on Notes on Social Security Reform: Five Facts You Should Know About Social SecurityAndrew G. Biggshttp://www.blogger.com/profile/16617460431856611873noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7334408760351487944.post-67718809928865701262014-01-28T21:03:20.316-05:002014-01-28T21:03:20.316-05:00Andrew, I think you have choosen the wrong words. ...Andrew, I think you have choosen the wrong words. <br /><br />Number 1 is not a fact. It is a likely outcome. The Trustees do not engage in predictions. They make assumptions, and tell you the results of those assumptions. But let's not confuse their assumptions with fact.JoeTheEconomisthttps://www.blogger.com/profile/15000542138416955049noreply@blogger.comtag:blogger.com,1999:blog-7334408760351487944.post-9192466745956551512014-01-13T19:39:55.851-05:002014-01-13T19:39:55.851-05:00"1. Benefits will be cut by over 23% within t..."1. Benefits will be cut by over 23% within the next twenty years if no changes are made.<br />2. Social Security benefits will increase in real terms for future retirees even with changes in benefits to restore solvency"<br /><br />Let me get this straight. In 20 years there will be a 23% cut.<br /><br />At 3% wage growth, the initial benefit in 20 years will be 73.5% larger than it is today. Inflation will knock a good 46% off of it. When inflation or buying power is accounted for the initial OASI benefit will have 20.3% more buying power.<br /><br />Now subtract 23% from the future $1.203 in benefits and you will get 92.8 cents for each 1 dollar in buying power today.<br /><br />But wait, that's not all folks. When the trust fund ratio to SS-OASI expenses reach 30% the COLA is reduced by 10% for each 1% reduction in the ratio until the ratio reaches 20% when COLA is eliminate.<br /><br />I have no idea what credentials if any the person who wrote this article has, but they need to do some more research and bone up on their math.<br /><br />PS you cannot subtract exponential equations linearly.WilliamLarsenhttps://www.blogger.com/profile/00226403551284640494noreply@blogger.com