Tuesday, December 8, 2009

A rare moment of total honesty from Social Security

From a Social Security newsletter, which can be found at SSA.GOV , entitled "What Young Workers Should Know About Social Security And Saving".

"....Because people are living longer and the birthrate is low, the ratio of workers to beneficiaries is falling. Therefore the taxes that are paid by workers will not be enough to pay the full benefit amounts scheduled.

However, this does not mean that Social Security benefit payments would disappear. Even if modifications to the program are not made, there would still be enough funds in 2041 from taxes paid by workers to pay about $780 for every $1,000 in benefits scheduled."

Consider the nerve it takes to publish a statement like that one. I'm going to take your money under false pretenses. I'm going to claim that I'll give it back to you based on a certain schedule. But I know that I'm full of crap. Everyone knows that I'm full of crap. But hey, I'm probably good for 75% of what I promised ! !

No one has the nerve to stand up and claim that I'm not full of crap, including me. But if people don't start saving more on their own, it's going to be an even bigger mess. Therefore, you must continue contributing.

And I'm going to issue press releases that show how badly screwed my system is.



TarrantLibertyGuy said...

It's a good thing that us idiots aren't left to our own devices with regards to our own retirement! Otherwise, we may make unwise decisions that will lose value!! I love the government making decisions like this for me. Losing almost a quarter of my 'investment'.

Pre-emptive Dr. Ralph Reply: (I know, I know, it's not an 'investment', just a tax!)

It's also a good thing that I'm encouraged to invest in equities vs. bonds... (due to the required Bond funds' returns not even keeping pace with inflation) - and PROHIBITED from investing in hard assets like gold. (I'm talking my old 401k)

Note: I lost 41% in 2008. It's up a bit through this year... Still down overall - almost as much as Social Security would be! Lastly, gold is up 120% over 5 years. DJIA is down 18% over the same period. So, the thing I can 'invest in' for my old age, is down - but not quite as bad as my Social Security 'promised annuity'. The one thing I'm prohibited from investing in (through my 401k) is up 120%...... WTF!

ΛΕΟΝΙΔΑΣ said...

Medicare/medicaid which are off budget and therefore "invisible" have been bankrupt for two years. They have continued only through transfers from the treasury by the sale of debt whose interest will be showing up shortly on budget thus contributing to the "official" national debt. Social "Security" will join them in bankruptcy NEXT YEAR, not 2041. This is being hidden for political reasons. The smoke and mirrors is described in detail here.

This is the main reason the Fed MUST keep interest rates at near zero.