[OC] US Social Security Fund HistorySubmitted by PM_Ur_Illiac_Furrows t3_11q7ed4 in dataisbeautiful
bostwickenator t1_jc1th2t wrote
Reply to comment by ThePurpleDuckling in [OC] US Social Security Fund History by PM_Ur_Illiac_Furrows
That cost curve looks exponential.
ButterflyCatastrophe t1_jc2alfc wrote
Almost anything reported in dollars is going to lookbe exponential because of inflation and population growth.
warren_stupidity t1_jc2e3ky wrote
sure, as it is a population model. The boomer bulge is entering its dearth slope not coincidentally at the same time it is peaking at retirement. The point is that it corrects. All on its own, But we should abolish the cap on FICA taxes, put the full retirement age back to 65, use a better CPI index, COLA the earnings threshold for taxation that was set back in 1984, and increase the minimum benefits. And medicare needs to be rolled into a comprehensive universal health insurance system.
bostwickenator t1_jc2fnii wrote
Agreed. My point is anything tied to an exponential factor will eat anything not defined against the same. I am no expert here but I'd think legislation which sets non population based caps or doesn't compensate for inflation will be a problem.
w4ffl3 t1_jc2hcx1 wrote
The US isn't expected to grow any further in population so SS and similar funds have to deal with the disproportionate size of boomers and generations after them, but after that it won't be an issue without a significant demographic change
TracyMorganFreeman t1_jc49480 wrote
Solvency dwindles if you're going to expand benefits and lower the retirement age.
>use a better CPI index.
Redundancy aside, I don't know what that means.
FHubris t1_jc2p5p3 wrote
Warren gets it
Scary_Princess t1_jc3enw9 wrote
Exactly that cost curve is going to continue going up and the income isn’t going to trend the same way. Currently the fund is collecting 95% of what it needs to pay annually. If we run a 5% deficit against the trust, the trust will be emptied in 20 years. Because the of the difference between incoming money and outgoing benefits the trust is expected to be exhausted by 2033-2035.
It can be solved at anytime, but solutions today will be far less painful than solutions in 2032
ThePurpleDuckling t1_jc1tjws wrote
Sure. But the income is generally keeping pace.
twilliwilkinsonshire t1_jc3zwwo wrote
It has not for years, look closer at that chart.. the income has been steadily slower pace than cost since 2009.
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