👴👵 What Are YOUR RETIREMENT CONCERNS today?

[Anonymous]

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***READ comments and/or ADD a comment***

(1) Still WORKING - what are YOUR concerns while planning? 🤔

(2) RETIRED - YOUR concerns? 🤔

Thanks, Nicole 👴👵 (Retirement Forum)

[Winter2024]

ALL ages are welcome to comment. What are YOUR CONCERNS?  🤔

And THANK YOU to the EXPERT MEMBERS who stop by when they can to provide some "possible" solutions to OUR CONCERNS!!!  👍👍👍

Some of us are concerned about:

[1] Our Retirement Social Security/Medicare possibly being affected in a few years due to the planning of the folks in charge.  🙄

[2] Our health.

[3] Housing.

And so on.

Stop by to share when YOU can and/or READ comments left by OTHER MEMBERS.

Thanks,

Nicole  👵

[Winter2024]

Lol, I have several but the MAIN ones right NOW are:

[1] The "availability" of GOOD AND HONEST Medicare Doctors.

Knock on wood mine stays with Medicare.

[2] NEXT, the price of HEALTHY FOOD. Seems "junk" food costs LESS these days.  🙄🙄🙄

Nicole  👵

[AZBlueSkies]

  I’m afraid of the upcoming election.  The Republican party seems determined to destroy Social Security and Medicare.  I have other sources of income, but without Social Security and health care, life would be bleak and probably short.  

[Winter2024]

@AZBlueSkies , they said Social Security will NOT be around and ALOT of Medical People are REFUSING to deal with Medicare.

Nicole  👵

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[*** @AZBlueSkies wrote:

  I’m afraid of the upcoming election.  The Republican party seems determined to destroy Social Security and Medicare.  I have other sources of income, but without Social Security and health care, life would be bleak and probably short.  ***

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[AZBlueSkies]

  Exactly, that’s why I’m afraid.  It’s just crazy that Congress did nothing all those decades, when they knew this day would come.

[GeorgeM80439]

You are right when you say congress did nothing all those decades and now the day is here.  You blame republicans for all the SS woes but the democrats have added more programs that have nothing to do with the original intention of SS and now we have a spending problem. Also, all those "IOUs" that congress made as they spent the SS surplus in the past is the biggest fraud of all.  AARP, why are you not calling out congress on the spending of SS surplus with no plan to pay it back?

[Tonster521]

@GeorgeM80439 I am providing a link to info at the SSA website that will help you understand how SS taxes (FICA) are invested on a daily basis. https://www.ssa.gov/cgi-bin/transactions.cgi  FICA taxes are invested in two types of treasury securities; namely, Special Issue Treasury securities called Special Issue Certificates of Indebtedness (short term) and Special Issue Treasury Bonds (long term). They are redeemed from time to time with money from the General Fund of the Treasury. In other words, taxpayer's taxes/money. Several Administrations suggested to invest about 50% of FICA taxes in the equities of corporations. Those ideas were defeated. However, hindsight is 20/20 vision. If 50% of FICA taxes were invested on equities of corporations, we probably would not be discussing depleting the SS surplus.

[GailL1]

@GeorgeM80439  wrote 

AARP, why are you not calling out congress on the spending of SS surplus with no plan to pay it back?

==================================

I think this is a whole lot bigger than what you think - because it ts the TOTAL DEFICIT that has slurped up this money - 

According to the ledger, Social Security has a surplus of 2.8 TRILLION  (end of 2023 - 2,788,463 TRILLION  to be exact) but it is declining every year because outgo is greater than income.  

But because we now have a Unified Budget (since President Johnson), the SS surplus that is in these “special treasuries” and gets interest is only a number on the spread sheet because we don’t really have the funds readily available for really anything cause we run deficit spending - there isn’t any savings accounts even in in of the Trust Funds and there are many of them, not just SS.

But the US Treasury does pay the SS Trust Fund interest on this surplus number.

Here’s the Spread sheet 1957 - 2023 - note at the bottom for the last few years on the 1st one, which is the total balance sheet, we are now spending more (in benefits outlay)  than what is coming in from all sources - payroll taxes, taxes on social security benefits and interest on these special treasuries.

SSA.gov - Trust Fund Data 1957 - 2023 

The 2nd and third charts show the income and the expenditures in each of these years and add back up to Chart 1 - which is the income and outgo combined.

[Tonster521]

@GailL1 The 2023 Trustee Report indicated a surplus of $2.8 Trillion. I think that means another three zeroes after the billions. SSA pays a little over $1 trillion per year. What's a couple of extra zeroes. Those payments have exceeded SS taxes for awhile which means the SSA  will be depleting the $2.8 Trillion surplus by 2034 or 2035 unless Congress develops a solution. I found an article that provides data regarding the government's tax revenue and expenditures for 2023.https://www.cbo.gov/publication/59730#:~:text=Revenues%20received%20by%20the%20federal,receipts%20fr.... The numbers illustrate that the government spends more than it receives. So, the deficit continues to increase. IMO, I do not see this pattern of spending to change. 

You are correct that the accounting is essentially spreadsheet debits and credits. I believe the Treasury's main paperwork or computer work is maintained at the New York Federal Reserve. Other accounting may be outsourced to other. banks. 

[GailL1]

I edited my post - Thanks, @Tonster521 

Me and my brain are just getting old -  TRILLION is a number that I just can’t comprehend too well.

[Tonster521]

@GailL1 I agree. Trillion is a difficult number and concept for young and old. Don't laugh. I still use a Texas Instrument calculator that charges itself by light (sun and/or light bulb). I bought it in the 1970's mainly because it did not need batteries. It cost about $15 back then and still works fine. I need to do some analysis or use another calculator when working with numbers equal to 10 Billion or more (greater than 9,999,999,999). It only displays 10 digits. It does store the greater numbers in memory. Because I do not see the numbers, I am double and triple checking the calculations when using memory. So, we are only "old" if counting time. Otherwise, as I responded to Nicole, we are vibrant, valuable and "seasoned" not "old". I understood your initial posting. What's a few extra zeroes? The message to Congress and for other readers is "when you find yourself in a hole, quit digging!"

[Winter2024]

@Tonster521 , so you are figuring 2034 or 2035?

Last year the media was full of 2035.

Sad that Old Folks like myself MAY lose their RETIREMENT Social Security in a few years.

Thanks for stopping by,

Nicole  👵

[Tonster521]

@Winter2024 Nicole, thanks for the thumbs up. I have read so many opinions that I use both 2034 and 2035. If Congress does not fix the SS Program, we will have a reduction in SS Benefits at some point in the future. SS Benefits will still be payable, but at a revised amount. So, it is a possible setback, but it is not a complete loss. I do not believe we are "old". We may be "old" if you are counting time. Years ago, I heard someone call themselves "seasoned" ;and, I have used that term from time to time. So, we are vibrant, valuable, and "seasoned", but not "old". Thanks.

[GeorgeM80439]

Thanks for the info. What you state here is exactly what I meant.  Social security and medicare are line item taxes taken out with the promise of benefits when we retire.  Over the years, politicians (both parties) used the surplus to pay for other things the money was not originally intended for and to advance their own political agenda. Now people like me who paid into the program their entire working lives and getting ready to retire are now being told the program is running a deficit and benefits may get cut in the future. Any cut in benefits or change in qualification requirements is nothing but a big ripoff to all the people who worked and played by the rules.  All this points to the fact that politicians cannot be trusted to do what is truly right for the people who contribute in this country.   

[Tonster521]

@GeorgeM80439 SS Taxes are invested in Special Treasuries which are essentially book entries. These Special Treasuries are not marketable,but may be redeemed when needed. The Special Treasuries have been called "loans" to the government. However, the SS taxes never leave the Treasury's account at the Federal Reserve of New York. As Gail indicated, it is accounting probably computer entries. I do not want to scare you, but you need to understand how the SS Program is funded. There is any individual accounts in our names with contributions like an IRA or 401 K that earn interest or dividends. Our contributions are called payroll taxes which are based on earnings. You do not pay into the SS Program. In fact, the Supreme Court ruled that workers have no legally binding contractual rights to SS Benefits, and that SS Benefits can be cut or even eliminated at any time. I agree with your last sentence.

[GailL1]

Yes, @GeorgeM80439 - NO TRUST FUND ledgers have any money directly in them - but we have NO reserve for anything - we print money for our needs, and with each printing of more and more - the dollar is worth less and less.

A far cry from those of us who have managed our finances well and have a reserve to fund our retirement, our healthcare, our other needs - 

The Budget details certain spending as discretionary and NON-discretionary (mandatory) - meaning that Congress either has to fund it annually (discretionary) OR  it is suppose to run on its on via various funding sources - NON-discretionary (mandatory).  

In the case of the Social Security and Medicare (Part A) Trust funds, they are funded primarily by payroll taxes and then SS also get funds from the taxes paid on Social Security benefits which some of us have to pay plus interest from the special treasuries where the reserve is shown to be in the bookkeeping of our government.

The SS law does require that these programs be self-sufficient but currently they aren't because we have too much going out (benefits) and too little coming in - 

Without a correction to these numbers (outgoing or incoming, or some of both) we will reach insolvency in the programs of SS and Medicare not too far into the future.

Insolvency means that the trust fund is unable to pay benefits in full and on time. It does not mean that Social Security will be completely eliminated and unable to pay any benefits. But the law also covers a situation such as this specifying that future benefits could only be paid from taxes collected.  At the present time, the Social Security Trustee Reports says that current benefits would be cut about 20% in order to meet this requirement - The dates of this drift around 2033 - 2034 for Social Security and a bit earlier for Medicare 2031(paying out about 89% when insolvency hits the HI Trust fund).

Numbers Don't Lie - so even if we had the cash readily available in each of these Trust Funds under some lock and key - we would still be short.

Some links for those that are interested:

Social Security Trust Funds Trustee Report 2023 - Summary 

Congressional Reserarch Service - Social Security: What Would Happen If theTrust Funds Ran Out?     ...

SSA.gov - Social Security Trust Fund Data

The problem is easy to describe - it is the solution(s) that we seem to have a problem doing something about.  There are tons of proposals to fix it but it seems many of them want to expand it before any fix.

SSA.gov - Proposals to Change Social Security to fix Insolvency

Happy Reading 

[Winter2024]

Do YOU think OUR Retirement Social Security Benefits will become affected by 2035?

Or BEFORE?

Or AFTER?

At this point I have NO IDEA!!! For awhile there I kept hearing it would run out by 2035.

Thanks,

Nicole  👵

[GailL1]

@Winter2024 

The date comes from the Social Security Trustee Report - last one was dated 03/30/2023 - new one should be out soon.

SSA.gov Social Security Trustee Report SUMMARY 2023

from the link ~ 2023 REPORT

Based on our best estimates, this year's reports show that:

• The Hospital Insurance (HI) Trust Fund will be able to pay 100 percent of total scheduled benefits until 2031, three years later than reported last year. At that point, the fund's reserves will become depleted and continuing program income will be sufficient to pay 89 percent of total scheduled benefits.    This is Medicare Part A - where payroll taxes go

• The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of total scheduled benefits until 2033, one year earlier than reported last year. At that time, the fund's reserves will become depleted and continuing program income will be sufficient to pay 77 percent of scheduled benefits.  This is Social Security Retirement & Survivors Benefits

• The Disability Insurance (DI) Trust Fund is projected to be able to pay 100 percent of total scheduled benefits through at least 2097, the last year of this report's projection period. By comparison, last year's report projected that the DI Trust Fund would be able to pay scheduled benefits through at least 2096, the last year of that report's projection period.  This is Social Security Disability Insurance (SSDI)      NOT SSI - Supplemental Security Income

• If the OASI Trust Fund and the DI Trust Fund projections are added together, the resulting projected fund (designated OASDI) would be able to pay 100 percent of total scheduled benefits until 2034, one year earlier than reported last year. At that time, the projected fund's reserves will become depleted and continuing total fund income will be sufficient to pay 80 percent of scheduled benefits. (The two funds could not actually be combined unless there were a change in the law, but the combined projection of the two funds is frequently used to indicate the overall status of the Social Security program.)  This is Social Security Retirement, Survivors and Disability ALL added together.

• The Supplemental Medical Insurance (SMI) Trust Fund is adequately financed into the indefinite future because, unlike the other trust funds, its main financing sources--premiums on enrolled beneficiaries and federal contributions from the Treasury--are automatically adjusted each year to cover costs for the upcoming year. Although the financing is assured, the rapidly rising SMI costs have been steadily increasing demands on beneficiaries and general taxpayers.  This is Medicare Part B - comes from premiums paid into it by beneficiaries. - NO deficit cause we just pay more in premiums when needed (every year unless there is no COLA)

. . . . Lawmakers have many options for changes that would reduce or eliminate the long-term financing shortfalls. We urge Congress to consider such options for both Medicare and Social Security, with each year that lawmakers do not act, the public has less time to prepare for the changes.  This is the cautionary statement that has been on this report ever since Obama was President.

[Winter2024]

So GRATEFUL to my NEW Allstate Agent who EDITED my policy so I got a DISCOUNT.

My PREVIOUS agent from 2018 did a runner/lol 🤣😂

I RETIRED 2020 and should have gotten this DISCOUNT.

Glad I decided to stop by their office.

The premium keeps going UP. Use to go DOWN as my car aged. A 2006 Hyundai Elantra. 😥

Nicole  👵

[nctarheel]

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@Winter2024 wrote:

(8/10/23) Stop by to read our comments when you can.

And leave a comment..... 😏

Anyone age 50+ welcome!

Nicole 🙃

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Hey Nicole,

Good to hear from you again.

Having been retired for over a decade, I have no pressing concerns.

I planned for retirement from early in life.

I didn't foolishly spend my retirement funds on other things.

The earlier one plans for retirement, the more comfortable their retired life will be.

Comfortable doesn't mean rich; it just means less worrisome.

There is enough to worry about as one ages.

[Winter2024]

I HOPE our Retirement Social Security will INCREASE for 2024. 🙏

I guess we fill find out THIS October 2023! 🙄

Nicole 🙃

[GailL1]

Two more months of financial data before we know what the COLA will be for 2024 - currently it looks like we will get one but for around 3% or so.  

The other shoe on the table is how much Medicare Part B premiums for 2024 will slurp this increase up.

KFF.org 07/06/2023 - New Alzheimer’s Drugs Spark Hope for Patients and Cost Concerns for Medicare

Want cures and treatments - somebody has to pay and many pay nothing.

[AZBlueSkies]

Part B went up a little but all other insurances skyrocketed!

[Anonymous]

***READ comments and/or ADD a comment***

(1) Still WORKING - what are YOUR concerns while planning? 🤔

(2) RETIRED - YOUR concerns? 🤔

Thanks, Nicole 👴👵 (Retirement Forum)

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[PhyllisD295263]

I was forced to retire concerned about income. How can i earn from baking homemade desserts? 

[Anonymous]

(Tuesday 6/13/23)

Signed up for MEDICARE this morning! 

Now to FIND new primary doctor and dentist as my OLD ones do not "accept" Medicare. 😭😭

Nicole 🙃

[Anonymous]

(Sunday 6/11/23)

The price of food, housing and medical care!

Nicole 🙃

[Anonymous]

(Wednesday 5/31/23)

As I AGE, I am "concerned" about dementia.

Nicole 🙃

[Anonymous]

(Monday 5/22/23)

SO GRATEFUL I made it to 2023 WITHOUT getting COVID 💃🥳 and planning on "returning" to Consulting.

My concern TODAY is the news the media has been printing.

Lol, some say workers are needed - economy is "booming".

While others are predicting "doom and gloom" with more to arrive soon!

So, I am taking my TIME to figure out IF it is worth it TRYING to get back out there.

Turning 65 this September and MEDICARE "decisions" will come before a job. 😉

Nicole 🙃