3 Social Security Shockers From the CBO's Latest Report

[pphilfran]

Graphs and **** at the link...

http://www.dailyfinance.com/2013/02/...latest-report/

On Tuesday, The Congressional Budget Office updated its annual projections on the health of Social Security and its Trust Funds. In essence, if you're still working and you're depending on that program to cover your retirement -- you'll be in for a shock. Or three.

Shocker No. 1: It's failing faster than even last year's dire projection.

Based on that newer projection, the combined Trust Fund is expected to:

• Peak two years earlier -- in 2016 rather than last year's 2018 projection.
• Have $140 billion less in 2022 than projected for that same period just last year.
• Drain an additional $105 billion in 2023 alone -- just one decade from now.

The bad news from last year's CBO projection foretold the three-year shift forward in the projected collapse date of the combined Trust Fund in the 2012 Social Security Trustee's Report. This year's downgrade suggests that last year's 2033 collapse date will likely once again be revised closer -- to 2032 or perhaps even sooner.

That 2032 D-Day is less than two decades away, putting it well in the expected lifespan of typical current workers -- and even of some current retirees.

Shocker No. 2: Social Security spending will nearly double over the next decade.

Not only is the trust fund running out faster than anticipated, but spending is on track to skyrocket -- nearly doubling over the next decade to $1.4 trillion from last year's $0.8 trillion.

Combine the rapidly shrinking trust fund with the escalating expected expenses, and the ugly future becomes abundantly clear. Either taxes are going to skyrocket to cover the costs, or benefits will need to be cut. Neither option looks all that good to anyone who expects to be working more than a decade or so from now.

Shocker No. 3: Disability claims are high -- and rising.

Not only has the percentage of working-age people on disability across nearly all age groups risen fairly steeply over the past two decades, but the CBO is also projecting the levels to continue rising.


People on Social Security Disability generally aren't working -- and if they are working, they usually aren't earning much in the way of reliable income . As a result, the CBO's projection suggests fewer people will be paying into the system, while more receive benefits from it.

That's not a sustainable situation. It's especially not sustainable when combined with the rapidly shrinking Social Security Trust Funds and the country's quickly aging population.

The Bottom Line

The three shockers from the CBO paint a dire picture, indeed: Social Security's combined Trust Fund is collapsing quicker than anticipated, Social Security costs will nearly over the next decade, and Social Security disability claims are high and still rising.

Take it all together, and it's a stern warning of a pending financial catastrophe for a program that over 50 million Americans currently rely on -- and nearly everyone working in the country expects to receive.

[SoonerLibertarian]

You have to restructure social security to where either less people get social security or they rely on it a lot less. Stealing money from the rich to pay for everyone else's social security just won't work for a variety of reasons. But nobody really wants to fix the problem that way. They want to somehow get it to where everyone will still get the same benefits.

[soonerdm]

One thing he's not considering is that boomers are going to work until they are physically incapable. I believe the majority don't have savings enough to retire. So while they will be drawing SS they will also be contributing to it. The disability claims are what I think is the biggest problem. But what will be done about that? Republicans won't do anything because Democrats will paint them as stealing food off a handicapped persons table. Democrats won't do anything because...well they never do. I don't have enough knowledge to know how to qualify for disability.

[OUSchitzo]

Well, maybe with/when the new Health Care System gets overloaded the old people will start dying off due to delays in service. that way there won't be as many to pay for in SSN benefits.

[SoonerLibertarian]

The problem is that I don't see people not working a long time because the savings are so low. But also because you can't get anything in savings. You can put thousands of dollars in a savings account and basically get nothing out of it for decades. Why would you work another 10 years if you are only going to save money and only get 1% interest rate on your savings? What you will really see is more people get as much out of the system as possible till there is nothing left.

[Aldebaran]

Thank god dm is on the case. We are saved.

[oucub23]

One thing he's not considering is that boomers are going to work until they are physically incapable. I believe the majority don't have savings enough to retire. So while they will be drawing SS they will also be contributing to it. The disability claims are what I think is the biggest problem. But what will be done about that? Republicans won't do anything because Democrats will paint them as stealing food off a handicapped persons table. Democrats won't do anything because...well they never do. I don't have enough knowledge to know how to qualify for disability.

Great post. Getting disability is harder than it should be, but it's available to more people than it should be, if that makes sense. ADHD should t qualify people. 30 year olds with anxiety issues should perhaps qualify for short term help, but only if they are actually working to deal with their anxiety. Those that do qualify shouldn't have to wait as long as they do to receive benefits.

SS? Raise the age.

[soonerdm]

Thank god dm is on the case. We are saved.

werd

[KCRuf/Nek]

Great post. Getting disability is harder than it should be, but it's available to more people than it should be, if that makes sense. ADHD should t qualify people. 30 year olds with anxiety issues should perhaps qualify for short term help, but only if they are actually working to deal with their anxiety. Those that do qualify shouldn't have to wait as long as they do to receive benefits.

SS? Raise the age.

Like many things from the government it is hard to get. Usually your first couple of tries are met with a no. Many people are of the mindset that the government says no there must be a good reason why. You would figure they'd have some panel of doctors that look over your records and make an educated decision. Actually they go on the report from a doctor they send you to who basically looks in your ears and your throat. They also can put a year or more inbetween appeals so even if you are deserving what can someone do for all that time they are waiting? Then again there are people that get help without any trouble at all.

[playmakr]

Equally as concerning is the CBO's damning report on the cost and failure of the ACA.

[lauderdaleOU]

Equally as concerning is the CBO's damning report on the cost and failure of the ACA.

7mm will lose their health insurance... awesome!

[lokifz1]

Obamacare has bureaucrats deciding on levels of care and quality of life compared to the expense. They will ration care and kill off people that otherwise would collect social security.

The democrats did do something they will kill of grandpa and grandma to save money.

[KCRuf/Nek]

Obamacare has bureaucrats deciding on levels of care and quality of life compared to the expense. They will ration care and kill off people that otherwise would collect social security.

The democrats did do something they will kill of grandpa and grandma to save money.

"Just give grandma a pain pill and send her home"

- BHO -

[SpankyNek]

Obamacare has bureaucrats deciding on levels of care and quality of life compared to the expense. They will ration care and kill off people that otherwise would collect social security.

The democrats did do something they will kill of grandpa and grandma to save money.

You just defined "health insurance."

Congratulations.

[Yuck Fu]

Gloom and Doom. It's like beautiful music to my ears (or whatever the reading equivalent is). Almost as wonderful as signing a ****ty recruiting cl****.

[Teo9969]

One thing he's not considering is that boomers are going to work until they are physically incapable. I believe the majority don't have savings enough to retire. So while they will be drawing SS they will also be contributing to it. The disability claims are what I think is the biggest problem. But what will be done about that? Republicans won't do anything because Democrats will paint them as stealing food off a handicapped persons table. Democrats won't do anything because...well they never do. I don't have enough knowledge to know how to qualify for disability.

Ha! At what jobs will these Boomers be working when they're 70?

Nothing happening right now is foreshadowing a turn around in the economic climate that will buttress a marketplace where old people on the whole can continue to contribute by working. They will either be kept on at the expense of greater production from someone younger or they will be fired and hope there is an open position as a Wal-Mart greeter.

[brokebacksooner]

Kill off everyone currently on SS and don't allow anyone to retire for 2 years; problem solved. You're welcome.

[Teo9969]

Kill off everyone currently on SS and don't allow anyone to retire for 2 years; problem solved. You're welcome.

Hitler was right...**** the cripples.

[Yuck Fu]

Hitler was right...**** the cripples.

Let's start with getting rid of that damn Muscular Dystrophy Labor Day telethon.!!!!!