US Social Security funds run out in 17 years: Treasury

July 13, 2017

The US government retirement program for the elderly will be exhausted starting in 17 years unless policies are changed, the US Treasury said Thursday.

Social Security, the Depression-era retirement fund, will be exhausted in 2034 under current policy, according to the annual report.

Meanwhile, the Medicare trust fund supporting hospital insurance will be able to pay full benefits only until 2029, a year longer than forecast in 2016.

Social Security and the Medicare health insurance programs together are the largest source of federal spending in the United States. About 50 million Americans receive retirement benefits annually, while 57 million are covered by Medicare.

"Tens of millions of Americans rely on these programs, and it is important that we ensure their long-term stability," Treasury said in a statement.

"A combination of an aging population and tepid economic growth has produced the projected shortfalls for both Social Security and Medicare."

A disability insurance fund under Social Security is projected to be fully funded through 2028, five more than last year's estimate.

To avoid future cuts

While the funds do not face an immediate crisis, officials say lawmakers should act now to prevent problems in the future.

Once the funds are no longer sufficient for full benefits, payouts will be cut. Medicare payouts could be reduced to 88 percent of benefits starting in 2029, if no changes are made to shore up the program.

"The number one way to grow the assets of the trust funds is to grow the economy," Treasury Secretary Steven Mnuchin told reporters.

The Trump administration has proposed slashing taxes to boost growth, expecting that economic growth will make up for lost revenues, something economists say is unrealistic.

Mnuchin questioned as unreliable those forecasts which say the administration's plans could bring a sharp drop in revenues and harm Medicare and Social Security.

"There's no point to look at outside scoring of the president's tax plan since we haven't fully released the president's tax plan," he said.

Mnuchin reiterated that the administration hoped to see tax cuts enacted this year, helping return the US to yearly of three percent or more—a target that Federal Reserve Chair Janet Yellen said Thursday would be "quite challenging" to reach.

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BendBob
5 / 5 (2) Jul 13, 2017
I wonder if the Social Security funds that were "borrowed" for other projects over the past several decades has been repaid?

I kind of doubt it. And, I'm sure they won't blame themselves for the shortfall.
rderkis
1 / 5 (2) Jul 13, 2017
I'm sure they won't blame themselves for the shortfall.


Confused, why "themselfs" in a democracy, shouldn't you be saying "ourselves"?

Soon medicare costs will be plunging. With a cancer cures around the corner along with cures for most any inherited diseases and contagious ones as well.

On top of that with stem cell therapy to heal cartilage and muscle. Disability payments will plunge to lows never seen before.
denali1996
3 / 5 (1) Jul 13, 2017
We don't live in a democracy, we live in a republic. So, we can at least blame our representatives.
Whydening Gyre
not rated yet Jul 13, 2017
Guess I'd better not wait to 65 to apply, then....
Kweden
5 / 5 (3) Jul 13, 2017
"The number one way to grow the assets of the trust funds is to grow the economy," Treasury Secretary Steven Mnuchin told reporters.

Must have overlooked all the robbing every administration for ... how long? What was it the Reagan administration stole from the working class people to pay foreign debtors...$28 trillion.

Seems to me that the best way to save the trust funds is to quit robbing them in order to pay back the old money families who we borrowed money from to pay for their wars, so that our people could fight kill and die for their pleasure. If a company did to the pensions what the government is doing it is considered felony.

Concerning the projected dates it will run out: those dates are directly in line with international agreements made after ww1 and 2 for the dissolution of nations by 2050... including the united states by 2035...and they've continuously revised the plan for how to accomplish this... but the global economic collapse was not anticipated.
rderkis
1 / 5 (2) Jul 13, 2017
We don't live in a democracy, we live in a republic. So, we can at least blame our representatives.


At least you said "Our" that time. Much better :-)
rderkis
1 / 5 (2) Jul 13, 2017
[q Must have overlooked all the robbing every administration for ... how long?

Let me guess that whole thing is only one of the million or more conspiracies you believe in.
Why don't conspiracy theorists eventually realize there is somthing wrong in their head and seek some psychological help?
EmceeSquared
5 / 5 (1) Jul 13, 2017
denali1996:
We don't live in a democracy, we live in a republic. So, we can at least blame our representatives.


No, we live in a Constitutional democratic republic, which is a type of democracy (and a type of republic), defined by the Constitution.

Saying we don't live in a democracy is how the privileged powerful get people to surrender our democracy as if we never had it. You can blame our representatives, but the people are to blame for the representatives.

Especially when the people vote for people like Trump, who put people like Mnuchin in charge of the Treasury, after Mnuchin robbed the country blind at Countrywide mortgage.
EmceeSquared
5 / 5 (2) Jul 13, 2017
Mnuchin, who helped run the Countrywide mortgage bank that robbed the country blind just a decade ago, is floating the standard "Conservative" BS to the idiots who voted Trump into the power to appoint Mnuchin to Treasury. "Grow the economy" is code for "cut taxes". Mnuchin will "cut payroll taxes to grow the economy". Those payroll taxes are the taxes that fund Social Security. Mnuchin will execute Trump's policy of destroying Social Security far earlier than 2034.

Instead, the cap on taxable income for Social Security should be removed, from $118,500 to any income. That way people earning $millions would pay the same rate as everyone else, and dozens of times as much that they're now not paying as their fair share.

But 63 million Republicans voted for Trump, especially Baby Boomers. Instead of fixing Social Security, or even just protecting it, they're robbing it.
Shakescene21
5 / 5 (3) Jul 14, 2017
@MCsquared: Yes, the cap on SS payroll taxe liability should be raised from $118,500 to 100% coverage. And all income, including capital gains, should be included in the SS base.

Obviously, the maximum payout shouldn't be raised in line with the increased tax levels.

And we also should be looking at longer-term solutions, such as taxing robots. As robots become more and more efficient, taxes on robots could fund the entire welfare state for all of us.
rderkis
1 / 5 (2) Jul 14, 2017
And we also should be looking at longer-term solutions, such as taxing robots.


Long term? Robots won't be owned by anybody but the government. Robots will be tasked with building more robots, repairing robots, even mining and forging robot parts. Plus they will be designing their own improvements. All that plus any job we want them to take over including medicine, art, music, etc. Till then the profits will start going to supplemental basic income(sbi) for the workers they replace.
antialias_physorg
5 / 5 (1) Jul 14, 2017
officials say lawmakers should act now to prevent problems in the future

Ahahaha..hahah...*snort*...that's rich. Lawmakers acting to prevent future problems. Oh my...thanks for the laugh.
Freethinker51
1 / 5 (1) Jul 15, 2017
Keep raising the age of eligibility and make workers contribute more. Ditto for Medicare. I want to live another 30 years without having to panhandle.
EmceeSquared
not rated yet Jul 15, 2017
Freethinker51:
Keep raising the age of eligibility and make workers contribute more. Ditto for Medicare. I want to live another 30 years without having to panhandle.


Why should the retirement age be higher than 65? That just keeps old people working past their real ability, which also makes them sicker. And keeps jobs occupied that younger people need.

Just eliminating the taxable income cap so the top 10% pays the same rate (not even a progressive rate) as everyone else funds SS more than would raising the retirement age to the average age at death.

As for Medicare, it's the most effective and efficient healthcare finance in the US. It doesn't need fixing. But giving it to everyone (instead of the demented insurance bankster system) would make Medicare even better funded, with less concentration of sick and old people insured. Which would make workers need to contribute even less, while retaining or increasing Americans' health.
rderkis
1 / 5 (1) Jul 15, 2017
Keep raising the age of eligibility and make workers contribute more. Ditto for Medicare. I want to live another 30 years without having to panhandle.


You don't get it. If you live another 5 to 10 years you won't die of old age. Then it's just a matter of making you young again.
There win't be any need for SS or medicare/medicaid.
Why can I see this coming and I am 70 and you young people can't? Just read the breakthroughs posted here and check this out.
http://theemergin...ment.pdf
And these results have been checked over and over again by different scientists. All resulting in very similar conclusions.

My battle cry used to be "Live Forever" now with increased knowledge of where we are going and how fast we are getting there, it is "Forever Young"(again). :-)

EmceeSquared
5 / 5 (1) Jul 15, 2017
rderkis:
If you live another 5 to 10 years you won't die of old age. Then it's just a matter of making you young again.
There win't be any need for SS or medicare/medicaid.


Yes, when we don't die of old age, not spending the last 10-20 years dying instead of being healthy enough to work and enjoy our time off, when we can make old people young again - sure, eliminate retirement and medicine.

Not until then. This story we're discussing is about Trump's Treasury Sec "Countrywide" Mnuchin starting to eliminate SS and Medicare *now*, not then.

Why can I see this coming and I am 70 and you young people can't?


Because you're in a fantasy world where instead of dying in the next 5-10 years you'll just be made young again. You don't understand medical breakthrus are just a tiny part of the disease/aging processes. Or that scientific discovery takes decades to become medicine. But you know your generation voted to steal your SS and healthcare, so you choose fantasy.
billpress11
not rated yet Jul 15, 2017
Here is another reason why the SS retirement fund will running out of money. SS tax money originally earmarked to the retirement fund is being diverted to the SS disability fund. Some thing seems amiss about this because the number of people collecting SSDI in the last 20 years has more than doubled from less than 5 million to nearly 11 million.

From link below:
The New Federal Budget Deal Helps to Prevent SSDI Benefit Cuts
The new budget deal allows for a shift of funds from the old age retirement program into the disability fund. Beginning next year, .57 percent of the 12.4 percent payroll taxes that are collected will be diverted from Social Security's retirement fund into the disability fund. This means the disability fund will now receive 2.37 percent total from payroll taxes collected. This change was sufficient to provide money for benefits until 2022. 
http://www.ssdisa...transfer
EmceeSquared
not rated yet Jul 15, 2017
billpress11:
Here is another reason why the SS retirement fund will running out of money. SS tax money originally earmarked to the retirement fund is being diverted to the SS disability fund. Some thing seems amiss about this because the number of people collecting SSDI in the last 20 years has more than doubled from less than 5 million to nearly 11 million.


Bad healthcare and lowered work safety requirements creates more disabled people. Bad healthcare includes overprescribed opiates which addict people, who switch to heroin, who become disabled. Diverting SS retirement to SS disability payments depletes SS retirement, even as disabled people who can't work can't pay SS taxes depletes SS retirement.

All these are laws forced by the Republican Congress (18 of 22 years: since 1995 except 2007-2011) especially through total government shutdowns (which also disrupts SS).
rderkis
1 / 5 (1) Jul 15, 2017
diverted to the SS disability fund.

The already are doing stem cell therapy for the back and joints. Once it is really perfected what do you think that is going to do to the disability count?
EmceeSquared
not rated yet Jul 16, 2017
rderkis:
The already are doing stem cell therapy for the back and joints. Once it is really perfected what do you think that is going to do to the disability count?


Stem cell therapies for the back and joints aren't going to be "perfected" to eliminate all their diseases and cure all their traumas within the next 5-10 years. Yet you think all disease and aging will be cured by then.
rderkis
1 / 5 (1) Jul 16, 2017
I made some pretty ridiculous sounding claims. So it is time to show you what research I based some of those claims on.

Keep in mind this is a way of making a vaccine, it is not about the vaccine itself. Check out cure rates in mice 100% for bacteria, viruses and parasites. ALL THREE! Now mice are not people but the technique for making the vaccines should work on all animals with RNA including humans. Furthermore the vaccine can be developed ion ONE week! And this technique is only starting to be developed. How far will it go? The bill gates foundation just gave away a lot of money for the rapid development of a method of making a vaccine to fight pandemics. In other words just this type of research.
https://phys.org/...ola.html

Medical advancements are far surpassing moore's law of computers.
TheGhostofOtto1923
not rated yet Jul 16, 2017
What the world needs (and will get) is another indystrial revolution of sorts. Vast sums of money being created out of thin air (as it usually is) and issued for the purpose of establishing the equivalent of intercontinental railways, interstate highway systems, national electrical grids, international maritime trade, etc.

And where will all this new development take place? Space.

Earth will become the equivalent of the City of London, managed like a park, the seat of inner system government.

Today's deficits will seem as paltry as those of the 18th century.
EmceeSquared
5 / 5 (1) Jul 16, 2017
I made some pretty ridiculous sounding claims. So it is time to show you what research I based some of those claims on.

[...]
https://phys.org/...ola.html

Medical advancements are far surpassing moore's law of computers.


That vaccine story was already public a year ago already. Yet it hasn't changed anything outside a lab. It will eventually. But your "5-10 years until no diseases and aging reversed" claim is lunacy. You're arguing to let go of Social Security and Medicare now because of advances that will play out over the next 20-50 years.
EmceeSquared
not rated yet Jul 16, 2017
TheGhostofOtto1923:
What the world needs (and will get) is another indystrial revolution of sorts.


The next industrial revolution is already fully underway: clean energy. The dirty energy revolution of the late 1800s through the 1900s is exhausting itself and us, leaving a cesspool to clean up. The rest of the world, led by the US, is committed to that great wealth generator. The US, led by a traitor lunatic president and his evil traitor party, is committing to the cesspool instead.
rderkis
1 / 5 (1) Jul 16, 2017
Let me guess. My post brought out a bunch of lunatic conspiracy theorists and doomsayers. I have already muted/ignored EmceeSquared and TheGhostofOtto1923 for those reasons plus trolling. I am guessing I missed nothing constructive by muting/.ignoring them.
EmceeSquared
5 / 5 (1) Jul 16, 2017
rderkis:
Let me guess. My post brought out a bunch of lunatic conspiracy theorists and doomsayers. I have already muted/ignored EmceeSquared and TheGhostofOtto1923 for those reasons plus trolling. I am guessing I missed nothing constructive by muting/.ignoring them.


Classic troll: Makes outlandish statements, willfully ignores careful rebuttals, projects that others are the trolls. No interest in discussion, just disruption. Factproof. At 70 years old, they're never going to change.
TheGhostofOtto1923
not rated yet Jul 17, 2017
Let me guess. My post brought out a bunch of lunatic conspiracy theorists and doomsayers. I have already muted/ignored... TheGhostofOtto1923
Is this the only way you can keep pretending you know what you are talking about? Come on, there must be other ways which will allow you to keep learning what your deficits are dont you think?

And you should appreciate how important that might be to you.

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