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When does social security tun out?

Posted by on Aug. 19, 2011 at 6:29 PM
  • 3 Replies

3. When does the money run out?
The Social Security trust funds are projected to be able to pay full
benefits until 2041.2 Today baby boomers are still all of working age, and
annual Social Security trust fund income exceeds benefit payments. This
annual cash surplus is expected to continue until 2017 and help build up the
trust fund balances. After that time, annual benefit payments are expected to
exceed income, but interest income will more than make up the difference.
(See fig. 10.) Beginning in 2027,Trust fund balances are expected to then
decline rapidly until they are exhausted in 2041. At that time, annual income
will only be sufficient to pay about 74 percent of promised benefits. By
2079, income will only be sufficient to pay about 68 percent of promised
benefits.
Covered workers per OASDI beneficiary

 

 

17. Do Social Security taxes get spent on other government
programs?
Yes. By law, the Social Security trust funds must invest in interestbearing
federal government securities.14 Treasury then uses the cash to pay
for other government expenses. In effect, Treasury uses Social Security’s
excess revenues to help reduce the amount it must borrow from the public
to finance other federal programs. In other words, Social Security’s excess
revenues help reduce the overall, or unified, federal budget deficit. If
Treasury could not borrow from the trust funds, it would have to borrow
more in the private capital market and pay such interest in cash to finance
current budget policy. However, Treasury still has to pay the trust funds
interest on these securities. When Social Security needs to draw on the trust

 

14. Why are Social Security benefits taxed?
Since 1984, some Social Security beneficiaries have had to pay federal
income tax on up to one-half of their Social Security benefits.10 These
income tax revenues are returned to the Social Security trust funds. In 2004,
they provided 2 percent of the trust funds’ total income.11 Currently, about
two-thirds of Social Security beneficiaries are not affected by the taxation
of benefits. This tax treatment of Social Security benefits roughly parallels
the tax treatment of similar defined-benefit pension benefits.12
In addition, because of changes in 1993, some of these beneficiaries
also have to pay federal income taxes on an additional 35 percent of their
benefits. However, the additional revenues collected from this source are

 

http://www.cafemom.com/group/33200/forums/read/14752620/In_These_Hard_Times_How_Do_You_Feel?next=51#replies

by on Aug. 19, 2011 at 6:29 PM
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Replies (1-3):
EireLass
by Ruby Member on Aug. 19, 2011 at 7:35 PM

If a person is already collecting SS....will the amount go down?

SS is supposed to be taxed?  

atlmom2
by Susie on Aug. 19, 2011 at 7:45 PM

Its being and been used for many things that it wasn't meant for.  It needs a huge overhaul.  I wish we could invest and take all we have paid in because dh pays the max every year and we will never see it probably.  We hope so but who knows with stpuid govt. spending etc.  The life expectancy is 20 years higher than it was when it was formed.  Also some retire so young and get money for more years than they ever paid into the system. 

Naturewoman4
by on Aug. 20, 2011 at 7:03 PM
I did hear Soc. Sec. is good for about 12yrs. My husb. qualifies at 62, next yr. But he doesnt want to retire. I think I heard the Gov. using that money we already paid into it, on other programs. All I know they better pay us.
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