Patathome01 Asked November 2022
Social Security benefits cut. What are your opinions?
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Hi, All.
I've read from AARP and from other relevant sources that Congress threatens to cut Social Security benefits 20% to all retirees and future retirees in the year 2034 to balance their federal government budgets. If this should happen, what will happen to the millions of our USA citizens who rely on this as our only income? It's bad and cannot happen to us who have worked all our lives for these vital lifeline benefits.
I will turn 79 that year and am scared I may struggle to pay my bills if Congress cuts 20% from my annual income of only about $29,000. Please help with your opinions.
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The reserves will run out not SS as a whole. Since both my DH and I started collecting at 62, we already only get 75% of our full benefits we would have gotten at 66. So Pata, I don't think u have anything to worry about in ur lifetime.
I worked hard and tried to save more money with over 40 years of employment. If I was able to work the same job for 30-35 years, I feel I would be in a better financial place today. Unfortunately, I got laid off in 2012 from 25 years of service and could not save as much as I had planned for, nor get more in my 401(k) pension. I faced nearly 4 years of unemployment trying to find better-paying jobs and finally forced to take minimum-wage jobs for six years; 2015 to 2021 to retire me at age 66.
I am 67 today. In ten years, I will be 77 and do hope government's SSA benefits will last in my lifetime. Thank you for all your assistance, so I will worry less about the issues and cross the bridge at the time if disaster actually happens.
Prayers and peace to all.
Around me I've seen others who were able to save but didn't. They blew their money on foolish things, like fancy new cars every year or two. (I've never ever owned a new car, always used.) They squandered money on cars for their kids, designer breed dogs, Starbucks and jewelry that they never wear. They quit jobs but didn't find a new one and lived off their retirement income before age 50. A friend and his wife turned down a chance to buy a lucrative real estate business from his boss and friend, retired at an early age to fish and travel, and now they are like "Who has $72,000 a year to spend on assisted living?" Wah-wah-wah, and he was a corporate accountant.
Those of us who planned and worked and denied ourselves things so that we could take care of ourselves in our old age feel resentful at having to support those who didn't.
I'm not talking about hardworking widows whose husbands died leaving them no insurance, though that happened to my MIL and she rose from working as a waitress and helping out on a farm to owning income properties that provided well for her in old age. I'm not talking about genuinely disabled folks who haven't been able to work. I'm not talking about moms who are taking care of disabled children. Most of these deserve help.
But those who kept going on European vacations and Caribbean cruises and expect their adult children to take them in because they're destitute, not so much.
I totally understand your concern, but I don't think you need to be too worried. Someone wants you to be scared. It's manipulation.
Other programs, perhaps run by the states instead of the feds, may come in to take up the slack. In the meantime, save and invest as much as you can. Live frugally as many do. I learned to do so as a child. If you didn't, you still can. Tobacco, alcohol and drugs waste a tremendous amount of money. Designer coffee?? Ridiculous. McDonald's every day? Eat rice and vegetables at home, thus improving your health and saving money to put to work for you.
Have you ever heard the tale of The Richest Man in Babylon? Someone asked him how he became so wealthy. His secret was that of every amount he made, 10% was his to keep and invest. He did that over a lifetime. The interest earned interest.
There are presently rates of 4% and above being paid on CDs. In many ways your financial future is up to you. Your fellow taxpayers were not meant to support you.
I think we all know what will happen if SS stops. We will have more people on Welfare and Medicaid. The States cannot take that on.
CBS: Debt limit "X-date" could arrive within weeks, new analysis finds - CBS News
From msn.com.com website information:
What happens to Social Security if the U.S. breaches the debt ceiling? (msn.com)
If the U.S. defaults, "it is unlikely that the federal government would be able to issue payments to millions of Americans, including our military families and seniors who rely on Social Security," Yellen said late last month.
Here's what to know about Social Security and the bitter partisan fight over the nation's debt limit.
How close is the U.S. to hitting the debt ceiling?
Estimates vary, but the U.S. is likely just weeks away from breaching the debt ceiling.
The "X date" could arrive as soon as early June to early August, the Bipartisan Policy Center recently projected. And Yellen warned congressional leaders in a letter last week that the U.S. could be unable to pay its bills as soon as June 1.
I have high functioning autism and anxiety and will possibly face problems returning to work to earn some income. Until the Social Security crisis passes, what jobs would be available to me? This is welfare I am talking about, since Social Security is my only income. Thank you for your ideas. Please tell me to not worry. I am also seeing a therapist to help me.
Patathome01
And ss was good for many decades
They raised the age of SS and that was less of a battle. It is known by 2034 they will have to adjust SS again and one way do that is cut benefits but there are many different ways to do it.. like raising the cap on social security taxed
GIve your vote to politicians who support that way of adjusting social security. Then the 20% cut won't happen
Its time to raise the cap as too many people have become obscenely wealthy... tme to throttle that back.
Personally I'm for a maximum
Income then the gov taxes 100,% after that.. to avoid the government from taking all. They would have to invest into their company or donate to charity of their choice.. SS Is not at risk. The wealthy see these alternative and trying to get in first to stop it.
The wealthy have the bucks to direct to conversation.. doesn't mean we have to believe them.
I thought that federal employees' incomes come from all workers who pay federal income taxes. If I'm wrong about the federal tax spending, I apologize and will take that back. OK, I will spend less time reading and wait for national news to happen come 2034, if any at all. I will relax and enjoy life for now. Thank you for all your support.
I was a bit surprised because it speaks of systematic problems. We would be inmates if we had any financial gain from insider trading.
I know the thought that our government is corrupt is gut wrenching but, it is a sad truth.
If a Congressperson has a high income, it doesn't mean it comes from the taxpayer. If a Congressperson writes a book or gives speeches, the taxpayers doesn't pay. If a Congressperson does well on the Stock Market with their own funds, the taxpayer doesn't pay. If the Congressperson's spouse does well in their own non-government career, the taxpayer doesn't pay.
Lot of these Congressperson's had employment before going into politics and did well. Many were Attorneys, Professors, Businessmen, Doctors, Mayors, Governors, etc.
Retirement and health insurance of someone in Congress is the same as any Federal employee. Congress doesn't have anything special.
Why should someone earning a billion a year only have to pay on 147k?
It's simple math to solve the potential crisis.
Nobody wants it to end but, if there is no money, there is no money. That's what needs to be addressed, the unhinged spending from Washington.
I do agree with you, I just don't see it happening, they are ALL both sides to arrogant and entitled.
I think removing the income cap is a more likely solution, honestly.
I remember in 1980's when banks had 17% interest rate on savings accounts. Of course, home interest rate were also high back then, but house prices were lower to balance it out.
I had my first savings account when I was 5 years old, so every dollar I got for my birthday and Christmas went into that account. Yep, back when grandparents would send a $1 for a gift, and it was a big deal. I had saved enough for that required 20% down-payment on a house :)
I worked until I was 74, had to quit because the business had closed up during covid. I worked there because each day was an adventure, never knowing what my boss would be up to. I miss working so much, it kept my brain active.
The Rs have always been adverse to social safety nets and have made cruel cuts in the states that they control.
Conversely, the Ds are in favor of increasing SSA bens, esp to the low income elderly and the disabled.
I am personally in favor of trimming SSA bens to upper income Americans who have no need of it, even though they have paid in throughout their working lives.
Vote for pols who favor social programs and lessen your worries.
I grow, wild harvest, can and preserve as much as possible of my family's food, incl raising chickens and feeder pigs. And we eat a lot of local bounty, like wild rice, venison, and buffalo - when I can get my hands ion the latter. We use minimal processed foods and buy in bulk to cook from scratch as much as possible. All of this adds up to greater food security and cost savings. I've simply continued, throughout my adult life, to do as my Mom and extended family did when I was a kid. I've taught my daughter and now my grandkids the same skills.
I, personally, would be unable to remain in my home of 27 yrs without them living with me and I think that many of us need to pool family resources and that those of us who own a home can provide our adult kids and grandkids with the security that they would otherwise not have if having to pay ever-increasing rent costs, etc.
We drive used cars and bring the kids up to value what they have and not expect the material things that are beyond reach. I said goodbye to credit cards decades ago; it's a terrible waste of money. I use debit instead and we live within our means.
My biggest concern about becoming too old and frail to live without supportive care is that the current shortage of health care personnel will deepen as more of us Boomers age, a frightening reality facing us.
Be careful how you vote, that is the key determinant of the future of SSA bens.
It's not a fear tactic, it's a reality. Just do a bit of net research on the cuts made to social programs under R control. It's absolutely factual.
In 80s there was obvious population decline for a while they set up a trust fund for the population glut to pay into as there wouldn't be enough paying into it during their senior years.. it is this trust fund that is running out.
It was never meant to be permanent the trust fund was suppose to run out at time it is..
And the birthrate decline has resolved so ss is not at risk..
Just politician millionaires using the trust fund to scare u.
My senator -.i didn't vote for him-wants SS to be voted on every year. Fl Republican senator wants SS to end in 5 years.
And for the next 2 years we r safe from that as president Biden will not sign such thing and there is not enough in Senate to override a veto. And there will not be for a long time as this last election generation z made their voice heard.. they do not like being the ones that will have to live or die through climate change and they r sick of active shooter drills they have to do if they want to survive going to school. Those 3 issues go together ss, active shooter drills and global warming there won't be enough political will to end ss for longer than ur lifespan.... Fyi Japan or China I forget which one doesn't have work based SS only need base ss..so it will never be going it alone.
If you have at least $5,000,000.00 today in assets and now need care in an NH or whatever, you are likely to be cared for sufficiently in your lifetime, Social Security benefits or not.
If you can afford long term care insurance and the service finds you eligible, go for it. Unfortunately, many people cannot afford to pay the premiums. The service also looks at family history for health risks and may deny benefits to those interested. Best good luck and prayers.
My sig-other and I both learned from our parents to save, save, and save some more. Unfortunately his advice to save has fallen on deaf ears of his grown children.
When I was working it was during the glass ceiling time, so I earned less than a man doing the same job who had less seniority and less education.... the company offered 401k dollar to dollar match, I took the max that I could. When I left that company after 20 some years, I couldn't believe how much was saved in that account :) Chances are today the company doesn't have that match option as employees prefer a higher salary instead, too easy to spend.
Both sig-other and I have each a 26 year old Jeep [both bought used] and will keep driving them until the wheels fall off, we loved those vehicles. Hardly any major repairs.
When I see my social security amount hit the bank, I need to remember that the check was higher as Medicare took a percentage out to add to my Medicare account.
I was taught that way.
Add in that I am a former New Englander (frugality is second nature) And I have Scottish heritage. (frugality once again)
I have saved. I have a pension. I also put money into an IRA (sadly the Roth IRA was not available when I started and would have cost to change)
I also purchased Long Term Care Insurance. I did that when I was caring for my Husband and I figured I would not want anyone to do what I was doing.
The Work and Save, method works.
Not living beyond your means is important.
Pay off credit cards each time.
the only debt I have is Auto and Mortgage, both are being paid off early.
BUT What is scrimping and saving if you do not enjoy life.
So allow yourself enjoyment but keep it within your means.
It wasn't because of your Scottish heritage or old New England values about spending and earning.
Now, my husband is a Jew. A natural-born one. Not a convert for love like myself. He certainly fits the Jewish stereotype and is also a business guy.
He took a bath on his 401k. He doesn't live like a king spending like it's the end of the world. Not at all. He's a very responsible person. It wasn't his fault that the company folded and he was broke. This is what it is today. Unless you've got a government or municipal job, there is no more pension.
My situation back in 2012 was that I couldn't find any more better paying or even clerical work because I could no longer compete due to my autism disability and anxiety, yet SSDI denied me because I had too much employment experience and education. I got so frustrated between that and my late mother's care I had to see a therapist to get me through those tough times.
If Congress does threaten to cut benefits, I can be assured that many "bells" will ring, and "whistles" will blow to get their attention come 2034.
It's federal employees who do not pay into Social Security, so they do not care.
Which brings me to the other part everyone working gets billed for. Medicare. It aggravates the population big time to see ads for free stuff that they the working people don’t get with their health plans if they have one. They would go into orbit were they to discover how much it costs to keep a “feisty fighter” alive through medical intervention.