I am skeptical that it will happen.
Mainly because it is an actual good idea.
How about we take your SS taxes and invest them in loans to countries like Ukraine. When Ukraine pays back the debt, you get your SS.
Seriously though the only way they really can solve the problem is to increase retirement age and to slow the growth of the benefits by using much smaller inflation adjustments.
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20-40 years ago this would have made sense. They’re so far behind the curve now I’m not sure it’ll help
Social Security is a fundamentally flawed program and needs to be completely replaced by a system that is less costly to the Government and more beneficial to the Tax Payer. There are some good suggestions out there from people that are smarter than me. Unfortunately, it will never happen because Congress wants to keep too much control. This is just another example of why its best to not allow a terrible policy to become law just for the sake of passing something…
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Probably won’t help us, but future generations will benifit.
Where does the initial $1.5T for the sovereign wealth fund come from?
That is a valid question.
SS is underfunded by $22.5T to meet the obligations that it has already promised. $1.5T is not going to solve the problem. It is like putting a Band-Aid on someone when they got their head blown off. The issue is the government forces companies that offer pensions to fund these pensions. A company will make periodic funding to these assets. I think the one at my company is about 95% fully funded. This is not how the government pension plan (AKA social security) works. They only need the tax collections from March 2023 to equal or exceed the payouts in March 2023. The payments that are withheld from our checks is not set aside for my future payout.
The people in Texas that opted out of SS back in the day were smarter than they ever imagined !!!
Huh?
Interesting, but the article ignores an important aspect of how SS works. Current workers fund current retirees. So, how are existing retirees in these three counties funded?
Unfortunately, Congress changed the law in 1983 and I think these three counties are the only ones who established their plans.
Um…
Do you think these counties no longer have any workers?
Regardless, they are funded by fund, which unlike SS, actually has money in it.
Indeed. It just (again) proves how much better things can be done at a local level.
Here is a a good reason why SS has no money (in addition to the Ponzi problem):
https://crsreports.congress.gov/product/pdf/IF/IF10564
The effective interest rate earned on all obligations held by the trust funds in 2021 was 2.5%; the average interest rate on new special issues was 1.4%.
I think mcarley accidentally admitted that.
“Current workers fund current retirees.”
Nothing in the article states that. Note that with SS, current workers pay for people who are retired. And it’s been that way from the start, meaning that some people who never contributed got the benefits.
Everything in that article suggests that current workers are funding their future retirements. Nothing there suggests how people already retired when the program was created are funded.
It’d clearly explained in the article
Which by definition makes it a Ponzi scheme.
It was started over 40 years ago, I am sure they figured it out then.