Rash of Retirements Pushes Social Security to the Brink
WASHINGTON — Social Security's annual surplus nearly evaporated in 2009 for the first time in 25 years as the recession led hundreds of thousands of workers to retire or claim disability.
The impact of the recession is likely to hit the giant retirement system even harder this year and next. The Congressional Budget Office had projected it would operate in the red in 2010 and 2011, but a deeper economic slump could make those losses larger than anticipated.
"Things are a little bit worse than had been expected," says Stephen Goss, chief actuary for the Social Security Administration. "Clearly, we're going to be negative for a year or two."
Since 1984, Social Security has raked in more in payroll taxes than it has paid in benefits, accumulating a $2.5 trillion trust fund. But because the government uses the trust fund to pay for other programs, tax increases, spending cuts or new borrowing will be required to make up the difference between taxes collected and benefits owed.
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joeyblueyes
I'M WILLING TO PAY OBITLA'S
Lee In KY
What we need here is a great big "LOCK BOX"! Yeah, that's the ticket! Seriously why would this be "unexpected"? You've got to be F"ing kidding me! It's the freaking Social Security administration - like they don't keep track of people's ages?? Give me a break! This is a con!
petef
Gee, ya figure? It doesn't take a brilliant person to figure out that when you continue to rob the social security pot for "other" programs and policies that lack funding, the money for the intended purpose isn't going to be there. Kinda like if I spend like a drunk every day I might not have enough money to put gas in my car to get to my job! Morons!
mrfredcb
There is no money in Social Security because congress has been stealing it for years. Democrats and Republicans are equally guilty. It is one of the greatest PONZI schemes ever created.
Tom in GA
SS needs to be phased out. Anyone under 50 won't see a dime. Why should we pay for it?
Old Yankee
Sorry, I'd like to reconsider. You'll pay for it because people you never heard of, working in a building you know nothing about, who are responsible to no one, say you will. So be nice and pay up.
Old Yankee
You will pay for it because elected people say you will. How can you not understand that?
Lourdes
Congress at work.
OHIONOBAMA
I want my money now with interest!!! I could have retired a long time ago if I were in charge of my own money.
Tom in GA
You were in charge of your own money.
Jim in JAX
That's not true. SS is mandatory.
Visionist
I think we should look into who the players were that allowed the pilfering of the Social Security funds and confiscate all their holdings................Let'm eat cake
ZiaBlues
Try 40 years of Democrat rule in congress. During that time social programs exploded and they had to get the $$ somewhere. Whoo Hooo, a big pot of money just sitting there. Hey! I know! Let's spend it! Rob the fund (Peter) to give to folks (Paul) so they'll vote for us. And after all, they left us IOU's in the so called SS trust fund. Anyone else find the word "trust" used thusly just a bit ironic?
Tom in GA
Simply put, if you were foolish enough to place your entire retirement hopes on SS, the only one you have to blame is yourself.
BWAtl
Just think,if there wasn't so many congressional ious in the fund where politicians had pillaged it,there would be plenty of money in the fund.Instead they blame seniors benefits for the funds problems.There needs to be an investigation on just how much money has been taken.Take the trillions of dollars saved by not passing obamacare and cap and tax and put it in the fund.
Tom in GA
we don't have the money. The best thing is to phase SS out
No one under 50 is going to see a dime anyway..
reform in 2010
After paying into Social Security our whole lives, us baby boomers are doomed!
Tom in GA
your own fault.
TX-RWE (TXSSAR)
Just goes to show people who are counting on social security what happens when the people trust Washington Politicans to keep their hands out of the cookie jar. If leaders of a private employer stole from the employees' trust fund, they would be in jail...
USNoathkeeper
But what about the "LOCK BOX"...the Government would never take money from one set of people and give it to someone else ....right? Think again, they can't run Am-Track, Medicare, the Post office, IRS, Department of Energy...ETC...what makes you think the can run "Socialist" Security....Just more useless speeding.
USCitizen
After the Repub & Dem's raided the Social Security Trust Fund for programs and other spending bills its running in the Red. There should have been a law passed that made it unlawful to use Monies from SS for anything but SS benefits. I started collecting in 2009, and I know alot of my friends are thinking of also retiring @ age 62, because they don't trust Obama & Congress, and think it might not be there if they wait until they are 65 or 67.
ZiaBlues
You are right but I still place more blame on the Dems. They were in charge of spending for 40 years. (congressional control)