Did the government make a Social Security goof?
Academics warn that agency officials are using outdated calculations and have severely overestimated the money available for retirees.
The fiscal cliff has been averted for the moment, and Congress is continuing its latest game of financial chicken with a new target in sight: the upcoming debt ceiling. But two academics say all this political brawling is taking attention away from another crisis looming on the nation's horizon: Social Security.
Samir Soneji is a demographer and professor at the Dartmouth Institute for Health Policy and Clinical Practice, and Gary King is a professor of government at Harvard. On Sunday, the two boiled down their recent findings in an opinion piece for the New York Times.
According to King and Soneji, the Social Security Administration has grossly underestimated the money it needs for retiring Americans "to the tune of $800 billion by 2031, more than the current annual defense budget."
And if nothing is done, they say, the Social Security trust fund will run out two years ahead of current government predictions.
The professors say two major issues have led to these serious miscalculations.
The government’s forecasting methods for Social Security have barely changed since the program’s creation during the Great Depression -- "even as a revolution in big data and statistics has transformed everything from baseball to retailing."
And that outdated mode of forecasting, the professors note, has failed to take into account crucial factors about longevity -- especially the fact that Americans are living longer and healthier lives. Better treatment of cardiovascular diseases and a dramatic decline in smoking, they say, "are adding years of life that the government hasn’t accounted for."
The professors believe the nation faces some stark choices if Social Security is to be saved. Among the options they suggest are raising the retirement age to as high as 69 or 70, increasing payroll taxes, limiting annual cost-of-living adjustments and reducing benefits.
They also point to new research that suggests that retirement, while popular, may in itself reduce a person’s life span "by breaking lifelong routines and disrupting deep social connections." And with that research in mind, they wonder if retirement should be optional.
Given modern demographics and statistical analysis, professors Soneji and King think now is a great time to open a public debate about Social Security’s future. The constant political bickering in Congress may make this suggestion seem odd, they say -- but "the longer we ignore the problem," they warn, "the more disruptive any change will need to be to keep Social Security alive."
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I've been saying this for months now... Social Security is all but bankrupt people. Forget ss savings, time for PERSONAL savings!! Buy a good safe, and start packing it with YOUR OWN MONEY!!! It's a safe bet that by the time we 40 and 50 yo's get to retirement age (if we do), that the ss bank will be full of IOU's. Remember that the Dems AND Rep's that control OUR ss money also have managed (with Noblaba's and W's help) to drain this savings plan to the point that dust now lines the vault's floor. Do NOT trust the gov't with YOUR money and retirement, save on your OWN!!
A dis-satisfied customer and voter...
The biggest joke is there is no longer a Social Security "FUND" The government has long since raped the actual fund empty. There is no magic bank account with billions of dollars in it. The social security fund is virtual, it only exists within the column of a ledger that states this much money has been paid in, and this much money has been paid out. The money, that was actually in an account at one time was used by the government for other purposes, so today, social security is simply a tax or bond the government takes from working people, with a half hearted promise to pay something back one day. But should the day come that the government decides to change the program, there is no giant cash of money to give back.
Its merely a tax used to put money where ever they (the government) feels it should go.
Congress and Senate and everyone who makes these calculations should also be on social security and medicare they also should have no retirment form the taxpayer. They never talk about what they have because they are the eliite.
So in other words it's just another confirmation that Obama and the Democrats are feeding us lies.
In the sad, but true department: Social security funding is better off than Illinois pension system which is rapidly approaching a $100 million shortfall and that is just one state.
When are you people going to wake up and finally figure out that this government is not your friend and never will be they're not out there to make life easier for you there only out there to make it easier for them what he think you got national healthcare for so they could control the masses what you think the still from Social Security so they control the masses control is the answer because without it they wouldn't have a job that's why Social Security is in such dire need is it is is a Ponzi scheme that's legal and nothing you can do about it so you models go talk that wall you're looking at right now overtop are your computer screen it will probably listen to you more than any government official well
I'm just tell you the truth I know you won't believe it because you almost of you liberals out there believe that the government is out there to help you it's not in a never will be it's fair to keep you under control that's all it's therefore you see these liberals honestly believe that you can't do anything without them you were too stupid and to dump to live your lives without that without their input you don't have the brains to do that that's their beliefs and there's nothing you can do to change it there's nothing I can say to change but if you think more government is the answer by all means put them in charge you regret it later but liberals have to be shown to actually believe thank you very much from all of your valuable time have a good day
just keep giving it to all the illegals in this country.
all the poor lazing no good "disabilities" in this country.
and then one wonders why it will run out of money!!!!!
"They also point to new research that suggests that retirement, while popular, may in itself reduce a person’s life span"
This statement suggests that they're trying to have it both ways. Supposedly, because people are living longer they want to raise the retirement age, and yet retiring shortens your life!
So let's see, work until 75 and live to 95, or retire at 65 and live until 85.
I'll take the latter.
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[BRIEFING.COM] The time is drawing near for the FOMC to release its latest policy directive. It will be done at the top of the hour; and the major indices are mixed at the bottom of the hour.
Market participants are expecting the policy directive to read very similarly to the last directive. Any new nuggets of information, therefore, that suggest the Fed is angling to prepare the market for the fed funds rate to go up sooner rather than later would be a source of ... More
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