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Author Topic: Social Security DI Trust Fund reserves projected to last through at least 2096  (Read 1208 times)

CKolchak

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https://www.ssa.gov/OACT/TR/2022/II_A_highlights.html# This is a link to the 2022 Social Security OASDI Trustees Report, which projects the DI Trust Fund to remain solvent through at least 2096. The 2021 report projected that the DI Fund reserves would be depleted by 2057, so we've seen a nearly four-decade extension of the fund's projected solvency. Among other things, the new report also points out that the number of disability beneficiaries has been falling since 2014, not just during the chaos of the pandemic.
« Last Edit: June 03, 2022, 02:30:59 pm by CKolchak »

Just Me

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I wonder if there will be a increase in new beneficiaries and if so how many in the next few years. Many that had covid are still unable to work due to having it. The pandemic seems to have increased the severity of mental health issues for those already experiencing them. It also seems to have created mental health issues for those that did not have issues before the pandemic.
Nerve damage in upper and lower extremities. Degenerative Disc Disease, RA.

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Just Me

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The report also says they are expected to not be able to pay full benefits by 2035. That is one year later than last year. That makes saving and investing now for our future more important than ever.
Nerve damage in upper and lower extremities. Degenerative Disc Disease, RA.

Hope the size of a mustard seed can produce Faith that can move mountains.

Facts

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They could never stop paying and runaway inflation could decrease buying power so much they effectively inflate SSA nearly out of existence. Speculation, nothing more.

PicoBoulevard

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The report also says they are expected to not be able to pay full benefits by 2035. That is one year later than last year. That makes saving and investing now for our future more important than ever.

That refers to the combined hypothetical OASDI funds, but OASI and DI are separate funds, and DI is fully funded for the next 75 years.  It is the seniors' Social Security that is greatly endangered. 

According to the report, to prevent a 20-25% reduction in OASI benefits by 2035, they would have to consider an immediate payroll tax increase from 3.24% to 15.64% (would never happen) or SS benefits would have to be immediately cut by 20.3%, or they would have to come up with a combination of the two solutions.  Not mentioned is the option of increasing wages taxed by Social Security.  Right now only wages up to $147,000 are taxed.  Perhaps all wages should be taxed.

But as for saving and investing, those are not options for the poor among us.  According to Social Security, 50% of seniors rely on SS for at least 50% of their income and 25% rely on it for all their income.  https://www.ssa.gov/policy/docs/ssb/v77n2/v77n2p1.html

Our housing has become growingly unaffordable and prices for goods and services continue to increase as wages remain relatively stagnant. 

A few government legislators (some of whom want to do away with SS altogether) propose that, to counter our looming loss of income, we 1) consider living with our children if we have any; 2) try to rely on "community funds"; and 3) return to work. 

Very dystopian.

« Last Edit: June 06, 2022, 10:36:17 am by PicoBoulevard »