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The article does continue to say “At that point, current revenue would be sufficient to pay about 80 percent of schedule benefits.” SS isn’t going away. At wor
by javagram 7y ago
The article does continue to say “At that point, current revenue would be sufficient to pay about 80 percent of schedule benefits.”
SS isn’t going away. At worst the benefits will be slashed to some fraction of what the law requires.
Considering the rising cost of living we should all save for retirement using a pension plan or 401k anyway though. Agreed that the framing of blaming millennials makes no sense here.
- DuskStar 7y agoThe author also says that planning to receive 50% of your stated social security benefits is crazy, and then mentions that absent any legal changes there'll be a 20% cut in 15 years. Am I supposed to believe that that cut won't go up with time?
- javagram 7y agoThe Social Security Trustees report state that they can use revenue under current law to pay for 75% of scheduled benefits through 2093. Unless there is a dramatic economic collapse due to climate change or global thermonuclear war or whatever, you should be able to plan on receiving more than 50% of your benefits. Of course in case of collapse like that my 401k probably doesn’t keep its value either... https://www.ssa.gov/oact/TRSUM/ https://www.ssa.gov/oact/TRSUM/
- DuskStar 7y agoIt would be wonderful if that 75% number pans out! But at the same time, I'm still going to do my retirement planning assuming that Social Security dies before I'm able to withdraw a single dollar. Pessimistic assumptions are a good idea in situations like this.
- tunesmith 7y agoLast time I checked, the projected shortfall (if no one does anything to help) would be 77%. I don't know where they got the 50% number.