VIDEO ON MSN MONEY

319Comments
Sep 20, 2011 7:47PM
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Alincary,

 

Does the Obama Administration intend to make the customary adjustments in the future?

 

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  The President (Obama, Bush, et al) does not decide the COLA, it is established by law passed by Congress.  I agree the index used to determine an increase appears to be flawed as it seems to ignore cost increases in food, medicine and energy, but that's for Congress to fix (don't hold your breath).

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Congress will not fix social security until they are on it instead of the 3 MILLION dollar pension  and health care package Congress gives themselves. Without campaign finance reform and term limits, no honest human can run for a federal office and win.
Sep 20, 2011 7:42PM
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“You know you’ll have more money at the end of your lifetime if you control it than the politicians,” former House Speaker Neutered Grinch

 

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  ..sounds great on the surface, for the government has certainly f'd it up enough with raiding the fund in the past, but what's the alternative, trust Wall Street?  Hmmmmmmmmmmmm.....remember the houseing bubble?  Seems to me that maybe the best, and safest,  solution is to get the government to finally run the SS fund the way it was designed and originally intended, and keep Gingrich's "Street" friends out of it.     

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Let's be clear on what this is really all about;. The 2.6 trillion in the social security trust fund has been borrowed by the US Government and has already been spent (the government replaced the funds with special bonds held by the social security admin. in West Virginia-you can look it up)..  It's gone, spent, period. It's now part of the 14 trillion dollar plus national debt.  it will have to be paid back through revenue to the Federal Government know as "taxes"...Bottom line is we all have to work to pay the US Government the money to replace the money they borrowed from Social Security which they have been taking out of my paycheck for over 30 years.....The real crux of the matter is that  most people still want to believe that the US Government is good for those funds, but some of us know better- you don't pay back that much money -you default.  And that is the cold, hard truth.

 

By the way, by 2015 the US Government is projected to have borrowed another $650 billion from S.S. raising the amount owed to 3.25 trillion....So don't tell me Social Security is doing just fine...You can't call debt you have to pay back ian asset.....Unless you're a politician  ;-)

Sep 20, 2011 7:33PM
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As retirees, my wife and I have not recieved cost of living adjustments in 2009, 2010 and 2011 even though there has been an increase in our expenses for food, fuel, etc.   As I understand it, the reason for denial of adjustments is that the Consumer Price Index was low for those years. My Question is:  Does the Obama Administration intend to make the customary adjustments in the future? If an adjustment is made in the future, will it be based on the difference between current and the last CPI trigger figure?  Seniors who rely on Social Security Income need the COLA in order to keep pace with inreased costs of living. During our working years we were led to believe that the system would be available when we retired.  To reinforce the S.S. Fund, I suggest that TAX REVENUE collected from IRA mandatory withdrawals be deposited in the Social Security Account.  Since both programs are related to Retirement, it seems that this would be an appropriate solution..  
Sep 20, 2011 7:28PM
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Moor: One of the Republican proposals (and some democrats agree - not many) is to change the COLA to the wage increase index instead of the CPI. It is not a lie.
Sep 20, 2011 7:28PM
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I should rephrase that comment...SS money is there and as long as those who deserve it are getting it everything is fine.  The scam is the government telling us that they don't have enough. All they are trying to do is let us down easy and take more SS money away.  Just wait until China calls in its marker.  The only place that has enough money to pay that bill is your 401k, they will try to take that next.
Sep 20, 2011 7:24PM
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http://www.heritage.org/Research/Reports/2004/09/Misleading-the-Public-How-the-Social-Security-Trust-Fund-Really-Works

There you go- a system that is full of virtual air.  The article explains very well how the system works (or doesn't).

Collect, spend and be happy. 

Until it runs out.  Check the magic year of 2018.

Then something will have to be done.

Sep 20, 2011 7:20PM
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What they fail to tell you is that not everyone lives to the age of retirement.  Many pay in for 30 years and die.  In fact the average person collects 11 (eleven) checks.  Sounds like a pretty good deal for the government.  SS is the biggest scam there every was.  All i can say is in 2041 you better have my money.
Sep 20, 2011 7:13PM
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Jim Anspoch,

Are you sure you paid in and didn't take out for disability or something?  Wow!

Sep 20, 2011 7:11PM
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Jon Miller,

Who is spoon feeding you lies about the republicans shooting down cost of living adjustments for social security.  Social security COLA is pegged to the consumer price index which measures inflation.  No political party has anything to do with giving more or less.  Due to the CPI showing no inflation and actually negative for a while you received no increases.  Before the recession you had received very large increases because of the CPI, so really you are lucky that your payments don't go down along with the CPI and can only go up.

Sep 20, 2011 7:09PM
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By the way, the people who complain that SS receipients get more than they paid in, are full of you know what. These bonds issued by the government to cover social security pay interest. If you continually put money in a savings account at a bank for 50 years do you expect to only get back what you put in. Hell no, you get what you paid in plus compound interest over your lifetime.

 

200 dollars a month payed into social security over 50 years amounts to only 120,000. However, with 4 percent interest compounded monthly you end up with 391,200. That's the way it works since the SS bonds from the government pay interest.

 

 

Sep 20, 2011 7:05PM
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This article is crap people, please pay attention to what you are reading.  First off, MSN had an article 2 weeks ago saying that social security was going broke, now they have an article saying it isn't.  Also, read the beginning of the article and see if it makes sense together.  Of course not, one place it says it can only pay full benefits for the next 25 years and then pay 3/4 of its obligations for another 50 years.  The next paragraph they have a guy saying total outlays won't even exceed total revenues coming in for decades, which is more than 25 years and full benefits would be able to be paid far after we have more outlays than revenues coming in because of the balance going forward.  Not to mention that this year social security revenues became less than outlays (not decades in the future like a quote in this article), much sooner than previously thought they would, even the NY times wrote about it last year, google "social security payments more than revenue".  This article is full of crap and disingenuous.


Sep 20, 2011 7:03PM
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If there is still a goodly amount of money in the Social Security coffers why did Obama threaten not to pay recipients when default was looming? Why does Obama now, want to cut payroll taxes and say he doesn't want to cut entitlements? He doesn't have to, he is cutting the funding for SS. This guy is one of the best liars around.
Sep 20, 2011 7:02PM
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The idea that we can draw down the principal without killing the system is ridiculous, it can survive if it only pays out it's interest every year or less.  That seems to be ignored, this is a controlled crash.  Why are we are concerned about futile remedies when it is unsustainable indefinitely?  The only real focus is on who will be forced to pay more or receive less, with the insane assumption that some generation within this century will get shafted altogether.  That type of landfill thinking is quite vexing.  I refuse to start with that assumption, regardless of the impact on me.  If this was water, what would we do?  Set the date to run out altogether? 

Sep 20, 2011 7:01PM
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Regarding transition costs, I am willing to accept the transition costs.  I would continue to pay into SS for 30 more years and relinquish my claim to SS benefits as long as my two boys (1 & 3) never had to pay into the bankrupt system.


Sep 20, 2011 6:51PM
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The only reason that only 40% of the population pay taxes is that the other 60% are illegal or on welfare or in jail. Now stupid people who never have done anything for themselves think that, that 60% are rich people. I think that if you grow up stupid you should be deported to mexico.
Sep 20, 2011 6:47PM
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Finally someone who will tell the truth about social security. It is a great program. It is not broke and will be around when the young retire and everyone will be glad it's there.  It is not a Ponzi scheme since all are required to pay into it thus it can't have the "chain broken" unless it's privatized as some would do. (hint: Republicans). It only requires a minor tweek which would hurt no one and it will pay full benefits til the sun quits shining. It's time the public told the politicians to quit talking about it when it comes to deficit reduction.

 

Finally, without the 2.6 Trillion dollars in overpayments by social security participants the Federal Government would be 2.6 Trillilon more dollars in debt.

Sep 20, 2011 6:46PM
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republicans keep shooting down the ssi cost of living increases people need,remember that the next time you vote,and the comment people getting five times what they paid in,are you an idiot,people need this money to live off of, what the hell do think this system was created for,thanks to someone that had they insight to look past they end of thier noses!!!big shot bankers are to big to fell but the rest of the american people are not?
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