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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCEO of America's largest Social Security advisory firm: Trump's big tax cut 'did not help'
Seventy-year-old baby boomer Martha Shedden spent more than three decades building a successful career as a civil engineer. But 15 years ago, in 2011, she found a new set of numbers to obsess over: the fiercely complicated rules of the U.S. Social Security system. Today she serves as the president and cofounder of the National Association of Registered Social Security Analysts (NARSSA), the largest Social Security advisory services firm in the U.S., and shes grappling with a problem: President Donald Trumps handling of the nations finances.
The One Big Beautiful Bill Act did not help Social Security, Shedden explained, agreeing with projections showing insolvency is drawing closer and closer as tax cuts keep bringing a reckoning nearer to the present day.
To be sure, she told Fortune, the demographic evidence facing the program is undeniably grim. The ratio of workers to beneficiaries has plummeted from 10 or more in the mid-20th century to merely two or three today. As a result, the timeline for the depletion of the programs surplus trust funds has accelerated, shifting from 2035 to the end of 2032. After 2032, incoming payroll tax revenue, income from taxation of benefits, and interest on the trust funds will not cover 100% of promised benefits.
Still, she argued the situation is retrievable.
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https://finance.yahoo.com/news/ceo-america-largest-social-security-210110223.html
CousinIT
(12,459 posts)Social Security will always pay benefits as long as there are workers.
What needs fixing is the goddamned cap - it needs to be removed or raised significantly.
And maybe the OASDI needs to be raised. How long since that last happened?
What CAN NOT be done is cutting benefits or raising the retirement age. NEITHER of these is even necessary.
Republicans will say it's "broke because it's a Ponzi scheme" or "it's broke because of all the fraud" - NEITHER ONE IS TRUE.
Social Security is the most successful anti-poverty program in America. The rate of fraud is less than 1%. Its operational expenses are also minuscule - and they will be until Republicans privatize it, then that will balloon, taking even more money out of the trust fund. They are trying right now to destroy and enshittify service - shuttering over 50% of social security offices nationwide.
DEMOCRATS MUST HAVE A PLAN to fully staff and fund Social Security and prevent any cuts to staffing or funding for at least a decade. AND they must (See John Larson) have a plan IN 2028 for FIXING THIS SHORTFALL WITHOUT ANY CUTS TO BENEFITS.
THIS should be one of their top priorities - but it won't be unless people are SCREAMING at them to do it.
OC375
(677 posts)My retired neighbor just got back from 3 months in Florida. Absolutely loaded. All the things you see in the retirement commercials like vineyards, and Harleys, and playing in a boomer cover band on the weekend are an option. Kids and grandkids get college, weddings, elective medical procedures, expensive sports and cars guaranteed. I fault them nothing for all that, per se. They did by all accounts work hard. They didn't create the economy they stumbled into when they reached working age.
They also still get to collect social security, medicare, etc... while I pay into it for them and struggle to keep our old cars going and pay medical bills.
That isn't right on some level... I get that promises were made, but it wasn't a suicide pact either, and something has to give. You can tax me more, but I don't think a bunch of laboring folks working until age 70 will fix this.
pat_k
(13,031 posts)Those who benefit most from this public/private thing we call the American economy should be contributing the most.
Or perhaps they'd prefer stepping over starving seniors in the street?