Looking for a link

purpleTJchick

purpleTJchick

Well-Known Member
Joined
Apr 6, 2005
Location
Durham
I am looking for an official link (.gov) that defines what happens to the social security money you paid every week If (or more less when) social security dries up.

I did a search on here with no luck, and I tried to do one on google with no luck. I know everyone wants to say "you're screwed" but honestly I am not looking for you 2 cents, I am looking for an official link.

Thanks
 
You won't find an official plan, because it doesn't exist.

The money won't "dry up" all at once. What happens is that SS takes in money through FICA taxes in your paycheck. With that money, they pay benefits to current beneficiaries. They used to have leftover money, and were required by law to buy Treasuries with it. Something like $2-3T worth of the national debt is actually money that the federal government owes to SS in intragovernmental holdings.

But the days of SS surpluses are pretty much over, so now the federal gov't has to raise additional revenue to cover the SS shortfall. They can do that in a number of ways: by selling public debt to cover the intragovernmental debt, by decreasing benefits (either doing things like suspending COLA or changing the rules as to who receives benefits via means-testing or changing eligibility ages), or by raising taxes.

The problem gets progressively worse over time, and it's actually a problem that we've been dealing with since the 70s. Carter increased FICA rates to make up the difference for a while, then Reagan increased rates and changed eligibility ages in the 80s, etc.

But as they say, if something can't go on forever, it won't. And current SS rules pretty much mean it will bankrupt the country within our lifetimes. The only question is *how* the rules will change and when.
 
I sure wouldn't count on SS in any form as part of your retirement. I just look at it as another tax I pay, I will never see a cent of it back in my own pocket.

oh, btw, "you're screwed"
 
Shawn nailed it. you wont find what you are looking for.
 
Thanks, this was the info I was looking for. Makes sense when you put it that way.

I know that SS was suppose to be for those that needed it, not for retirement, but who knew they needed so much to retire?

I would like to think I will save enough for retirement but with no 401k my company adds to it I am left throwing like 75 dollars a week in imy own version of a retirement fund (more when I get more)

by the time I retire all that money might last 4 years...
 
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