Why Social Security Is Falling Apart

[Mr Lee]

Something to plan for, just in case it should come to pass. Having our heads in the sand will not prevent things that could happen, from happening, even though it does seem lots of people apparently like to have their heads buried deep in the sand.Even with repeated efforts to shore up the program by raising taxes and cutting benefits, Social Security's collapse seems virtually inevitable.Link to complete info

[MikeB]

Excellent information, as are almost all Motley Fool articles. There has to be changes but I like this line: " Nobody is seriously talking about cuts to current recipients' benefits, just slowing the rate of growth for those payments".

[Jollygoodfellow]

Looks like an editorial type article of one mans opinion with out any real facts and more what ifs. As it says,the key questions are,"What will change" and "when will it happen". A lot could change before 2036.

[MikeB]

Looks like an editorial type article of one mans opinion with out any real facts and more what ifs. As it says,the key questions are,"What will change" and "when will it happen". A lot could change before 2036.

It's an "editorial type" article as are all Motley Fool articles. It may be one man's opinion but hardly without supporting facts, do you doubt that:People are living longer and having fewer childrenThe American birthrate has fallen steadilyThe economy has of course been less than stellar for the past few years, resulting in a smaller percentage of the working age population actually working (and contributing)The "What will change" and "when will it happen" are rhetorical questions implying that there must be changes because the current system will be bankrupt if "business as usual" continues, not that most of us will be around to see it in 2036. Of course, it's a business and they are trying to increase their reader base but the advice on future generations not relying on SS is sound.

[Okieboy]

the fact is if social security goes all other forms of government pensions go with it, and you can take that to the bank

[JJReyes]

When Social Security was first created, America's demographic profile was pyramid shaped. You had a few retirees at the top supported by payroll deductions from a large base. This changed with the introduction of zero population growth. The graph looks more diamond shape now. It will become a reverse pyramid in the future. This mean lots of retirees at the top and a smaller base to support them through payroll deductions.You also have the post WWII baby boomers population. The first boomers started retiring on January 1, 2011 at the statistical rate of 10,000 per day. That's an additional 75 million Americans that will be demanding their social security checks in the coming years.You can start collecting Social Security as early as 62 years, but the lifetime benefits are much less. If you were in your late 50's or early 60's and fired as a result of the 2008 economic collapse, the chances are slim in finding new employment. Once unemployment benefits run out, it is very tempting to accept early Social Security. Solution? Everyone will have to wait until after the November 2012 elections. I am hoping those of us collecting Social Security or will soon be collecting Social Security are grandfathered under the existing system. It will be different for our children and grandchildren. They will have to save more for their retirement.

[Mugs]

there would be money there if the politicians did not steal all the money out of the fund and replace it with iou's

[MikeB]

there would be money there if the politicians did not steal all the money out of the fund and replace it with iou's

Absolutely true and they can keep the monthly checks and just return what I contributed over 40 years. I could buy houses and condos in Fl and Vegas for a song and really retire.

[Mugs]

there would be money there if the politicians did not steal all the money out of the fund and replace it with iou's

Absolutely true and they can keep the monthly checks and just return what I contributed over 40 years. I could buy houses and condos in Fl and Vegas for a song and really retire.

i think you live in cebu at least that is what it says under you name? so if you had the money or your ss was a lot higher monthly would you still live in cebu? you are there because of lack of money based on what you posted right? what would happen to you and others if ss does go broke sooner than they predict? i hope that does not happen but if they do not get a balanced budget soon i think it will happen sooner rather than later with all the older people forced to get on ss because they can not find jobs.

[MikeB]

there would be money there if the politicians did not steal all the money out of the fund and replace it with iou's

Absolutely true and they can keep the monthly checks and just return what I contributed over 40 years. I could buy houses and condos in Fl and Vegas for a song and really retire.

i think you live in cebu at least that is what it says under you name? so if you had the money or your ss was a lot higher monthly would you still live in cebu? you are there because of lack of money based on what you posted right? what would happen to you and others if ss does go broke sooner than they predict? i hope that does not happen but if they do not get a balanced budget soon i think it will happen sooner rather than later with all the older people forced to get on ss because they can not find jobs.

Depends on what you mean by a "lot higher" and, no, I am not here because of lack of money. I was referring to buying "distressed" properties as investments, not living there and it was tongue in cheek ie, humorously intended and not to be taken at face value. The point (that you made) is that we have been legally required to pay into this fund and it has been misappropriated and mismanaged by politicians and is now on the verge of going broke, should we be confident that these same politicians are now going to "fix" it?