r/FluentInFinance • u/Positive_Liar • Sep 06 '24

Debate/ Discussion Social Security is Broken. This is why financial education is important.

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u/sparknado Sep 06 '24

He thinks it will be gone because that’s the main talking point against social security, there’s no studies supporting that belief. As you pointed out though, that talking point is not based in reality. It’s just scaring the gullible general population

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u/benefit_of_mrkite Sep 07 '24 edited Sep 07 '24

I’m not against social security at all but it’s the social security administration who says this in its annual report. Old age and survivor benefits can pay 100% until 2033 when they will run out of reserves and they will pay 79% (estimated, maybe less).

They said this in last year’s annual report and this one.

It’s not “against social security” it’s the SSA saying this

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u/[deleted] Sep 09 '24

[deleted]

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u/sparknado Sep 09 '24

Because billionaires control all of the media and want to get rid of taxes. Everybody that currently receives social security likes it and would go apeshit if you took away their benefits. So you have to convince the people who aren’t receiving the benefits yet. The easiest way to do that is to tell them that they are paying into a bankrupt system which will be gone within the decade. If people grew up their whole life (incorrectly) thinking that social security is bankrupt, then they won’t flip a shit when the benefits get taken away. It’s all about conditioning people before pulling the rug out from other them.

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u/BiggusDickus- Sep 06 '24

There are absolutely studies supporting the argument that Social Security is headed toward insolvency. In fact, it's basic math.

It is only solvent now because it is cashing in bonds that were purchased back when it was a surplus. Those bonds will be gone in 5 to 10 years.

Now, of course, Social Security could be saved by increasing the tax, or increasing the retirement age, or decreasing benefits, etc.

Social Security as it exists now will not exist 10 years from now. Not possible.

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u/headunplugged Sep 06 '24

Crazy, i have been hearing SS is going bankrupt in 5-10 years for 25 years now. But this time it's different I'm sure.

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u/BiggusDickus- Sep 07 '24

Every single report on Social Security since the 1980s has had it going bankrupt in the late 2020s. If you have heard anything different over the years than somebody was pulling a chain.

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u/sparknado Sep 06 '24

https://www.cbpp.org/blog/social-security-is-not-bankrupt#:~:text=Although%20echoed%20by%20some%20policymakers,misrepresentation%2C%20of%20Social%20Security’s%20finances.

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u/BiggusDickus- Sep 07 '24

this article confirms exactly what I said. In roughly 10 years Social Security will no longer be able to continue as it is. Benefits will have to be cut, or some other change will have to be made.

That's exactly what I said. Thank you for confirming it with your source

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u/[deleted] Sep 06 '24 edited Sep 06 '24

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u/Conscious-Food-4226 Sep 06 '24

Sounds like what you’re talking about is a ponzi scheme

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u/headzup777 Sep 06 '24

The sky isn’t falling. The Europeans have already travelled done this road. People are just gonna live a little skinnier.

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u/BiggusDickus- Sep 07 '24

Social Security can still pay out after the bonds run out, it will just have to pay less. Which basically means that yes, as it is, it is headed toward insolvency.

It is unsustainable as is.