Social Security Cost-of-Living Adjustment for 2022 Is 5.9%

[SlugSlinger]

You guys aren’t seeing the point. SS is still around but the value it offers is no where near what was promised. If you understand the time value of money, you will understand why SS is and has gone away in real terms.
Additionally, we have millions and millions of illegals entering this country that are well into adulthood. These folks have never paid into the system and by god will be getting these reduced benefits. You know, share the wealth. You’ll still get your share, but your share we’ll be a little thinner because it’s spread around to more people.
I guess something is better than nothing in way too many folk’s eyes.

 

[Dale00]

His point is that Social Security is 78% solvent up until 2092 based on the most probable projections....not that they will only pay out that much. The government will find ways to make up that shortfall because it is politically expedient to do so. Social Security payments will continue long after Biden, Harris and the progressives are run out of DC.
Yes it is well known that the return on investment is lousy...that's another issue apart from whether or not people will have the rug yanked out from underneath their retirement planning.

 

[SlugSlinger]

Like I said, too many folks think something is better than nothing.

 

[Perplexed]

Ive been planning on it not being there since I started working.

Same. My financial advisor gave me a funny look when I told him while planning my retirement that I didn’t want to factor in SS at all. Then he got it.

 

[Dale00]

The idea that Social Security is going away is a widespread belief perpetuated by the internet. I do not think you will find financial planners who agree.....except to placate individual customers so as not to lose their business. Look online and you will find plenty of stories about the coming dissapearance of Social Security....sponsored by people selling precious metals, dehydrated food etc.

 

[SlugSlinger]

Still missing the point.

You do realize you posted a video of some old dude on the internet claiming to know the future what is going to happen with social security? You can’t really argue the internet is bad and use it as your source.

A real way to add some value to this post is to research the amount of the average SS payment in 1980 and the payment today and let’s look at what that payment can buy in real terms. That would be some good information instead to acting like a fortune teller by say you know for fact was is going to happen in 2092.

The idea that Social Security is going away is a widespread belief perpetuated by the internet. I do not think you will find financial planners who agree.....except to placate individual customers so as not to lose their business. Look online and you will find plenty of stories about the coming dissapearance of Social Security....sponsored by people selling precious metals, dehydrated food etc.

 

[Dale00]

Ageism and hyperbole don't work well as arguments either. The main point of the young guy in the video is that people should not live in fear of never being able to retire because social security is failing. Of course social security was never intended to provide enough to support people in retirement in and of itself. Additional investments, savings or pensions are needed. If social security is going away why is the financial planning mainstream covering this up?

 

[SlugSlinger]

Actually social security was set up as a safety net for those who didn’t have access to those other investments or couldn’t save money on their own.

Sounds like you agree with the idea that SS is going away, at least as a percentage of their “real” investments. Because this is exactly what is going on for those who actually invest in their future. For those that will rely on SS only, then it’s going away as a way to live a reasonable retirement. Does SS even provide enough income to live above the property level?

Personally, I have excluded SS from my financial planning as well.


Why would someone hire a planner that tells them that they cannot rely on the future payments? They will hire someone that tells them oh, yes, you’ll get everything you deserve.

 

[El Pablo]

The idea that Social Security is going away is a widespread belief perpetuated by the internet. I do not think you will find financial planners who agree.....except to placate individual customers so as not to lose their business. Look online and you will find plenty of stories about the coming dissapearance of Social Security....sponsored by people selling precious metals, dehydrated food etc.

It was my belief pre internet

 

[SlugSlinger]

This came from the internet:
As in the source of the SS payments.

Trustees Report Summary

A SUMMARY OF THE 2024 ANNUAL REPORTS

www.ssa.gov

Based on our best estimates, the 2021 reports show:

• The Old-Age and Survivors Insurance (OASI) Trust Fund, which pays retirement and survivors benefits, will be able to pay scheduled benefits on a timely basis until 2033, one year earlier than reported last year. At that time, the fund's reserves will become depleted and continuing tax income will be sufficient to pay 76 percent of scheduled benefits.