I'm one of this boomers that was lucky with past choices and investments -
Agree, should be trimmed based on income. Benefits SB trimmed. I receive 5K per month, have high personal income from investments and don't need the extra monthly payments. My cousin on the other hand says these are entitlements that deserve to be repaid back to him so you're up against a stubborn attitude by many.
a fourth category of spending wasn't covered... medicare--- related but not the same. Hospitals have little inventive to cut any services and in fact promote maximum services since the costs are mostly paid out of the federal budget. a few years ago i had a simple operation for an infected gallbladder removal - routine but due to poor care and improper diagnosis, the bill ended up for , 14 days in hospital care and life threatening surgery to cost over $150000 - medicare picked this full amount. There needs to be accountability for medical care thrown at patients and medicare paying the full bill. the waste and over billing of costs is a scandal with hospitals but there is such an incentive to spend since medicare picks up the tab. there should be caps and ranges for what medicare pays,
Thank you! I’m a financial advisor who goes to your well of information often with the hopes of helping my clients cut through the political theater and media soundbytes that fail to explain the whole story. Thank you!
I was listening to a clip from the economist Kathryn Ann Edwards, who stated that most of the savings from raising the retirement age came from the increasing number of people who retire before reaching the standard age and pay the penalty for early withdrawal, so to speak. Is this true or are there strong actuarial benefits from increasing the retirement age.
CBO and SSA scoring of eligibility age do assume a healthy share of this phenomenon. But I don't see that as especially problematic. If someone living to 90 wants to spend one-third of the adult life collecting Social Security (age 66 to 90(), then yeah, the federal government cannot fully encourage that with full annual benefit levels.
Hi Excellent Synopsis of the situation. Given the political situation, a likely outcome is that some adjustments are made that help but they are not nearly enough. The law is then changed and the scheduled payments are simply funded with additional borrowing. So instead of worrying about SS insolvency, etc. the worries should be about the possible impact of higher deficits than otherwise would be the case. Isn't that probably the real-world issue down the road? Thanks.
Really excellent piece. Nothing much to add but I do worry that as 2032 approaches, Congress may reach for what has become the easy button: general fund borrowing to cover a pressing need. And borrowing would accomplish exactly the transformation you warn against, converting Social Security from a self-financing social insurance program into a general obligation, perhaps with relatively little debate or acknowledgment of what’s being changed.
How can we get you a bigger megaphone? This is concise, accurate and fair.
Thanks!
Jessica,
I'm one of this boomers that was lucky with past choices and investments -
Agree, should be trimmed based on income. Benefits SB trimmed. I receive 5K per month, have high personal income from investments and don't need the extra monthly payments. My cousin on the other hand says these are entitlements that deserve to be repaid back to him so you're up against a stubborn attitude by many.
a fourth category of spending wasn't covered... medicare--- related but not the same. Hospitals have little inventive to cut any services and in fact promote maximum services since the costs are mostly paid out of the federal budget. a few years ago i had a simple operation for an infected gallbladder removal - routine but due to poor care and improper diagnosis, the bill ended up for , 14 days in hospital care and life threatening surgery to cost over $150000 - medicare picked this full amount. There needs to be accountability for medical care thrown at patients and medicare paying the full bill. the waste and over billing of costs is a scandal with hospitals but there is such an incentive to spend since medicare picks up the tab. there should be caps and ranges for what medicare pays,
brian Rowbotham
Jessica: You speak my language. What's sad is that so few people know this "dialect"...and sadly, most don't want to learn it. 🫤
As one might deduce from my bio, my experience is that Huxley was generous here with “…vast majority…”.
Thank you! I’m a financial advisor who goes to your well of information often with the hopes of helping my clients cut through the political theater and media soundbytes that fail to explain the whole story. Thank you!
Happy to help!
I was listening to a clip from the economist Kathryn Ann Edwards, who stated that most of the savings from raising the retirement age came from the increasing number of people who retire before reaching the standard age and pay the penalty for early withdrawal, so to speak. Is this true or are there strong actuarial benefits from increasing the retirement age.
CBO and SSA scoring of eligibility age do assume a healthy share of this phenomenon. But I don't see that as especially problematic. If someone living to 90 wants to spend one-third of the adult life collecting Social Security (age 66 to 90(), then yeah, the federal government cannot fully encourage that with full annual benefit levels.
Hi Excellent Synopsis of the situation. Given the political situation, a likely outcome is that some adjustments are made that help but they are not nearly enough. The law is then changed and the scheduled payments are simply funded with additional borrowing. So instead of worrying about SS insolvency, etc. the worries should be about the possible impact of higher deficits than otherwise would be the case. Isn't that probably the real-world issue down the road? Thanks.
Yes - a general revenue bailout just shifts the terrible outcome to a potential debt crisis.
For all intents and purposes, a Ponzi scheme.
Worse, it's compulsory.
Really excellent piece. Nothing much to add but I do worry that as 2032 approaches, Congress may reach for what has become the easy button: general fund borrowing to cover a pressing need. And borrowing would accomplish exactly the transformation you warn against, converting Social Security from a self-financing social insurance program into a general obligation, perhaps with relatively little debate or acknowledgment of what’s being changed.
Right - then we just move towards a debt crisis.
Doug. Sorry . Had not seen your comment and mine was fairly redundant with yours. Thanks.