Last week, CNBC hosted a Twitter Space titled “Will Social Security always exist? What you need to know” to discuss the future of Social Security and the impending insolvency of the trust fund. CNBC reporter Greg Iacurci spoke with David Blanchett, head of retirement research for Prudential Financial’s asset management arm PGIM, and Doug Boneparth, a certified financial planner and founder of Bone Fide Wealth.
The Twitter Space participants talked about the future of the Social Security retirement program and its upcoming insolvency in 2033. This insolvency means the program cannot meet the promised benefits of retirees, and beneficiaries will see a 23% cut in monthly benefits. Blanchett stressed that the program will not go away when insolvency occurs, but retirees will face cuts if nothing is done, and that “there are going to be losers.” Blanchett suggests that current and soon-to-be-retirees are the least likely to be affected, but “younger Americans, if you’re maybe in your 40s, should count on a lower benefit.”
Doug Boneparth said that younger clients want to see the scenarios where benefits are reduced, “our firm’s default presentation when we’re doing financial planning deliveries is to show anywhere from a 50% to a 100% reduction in Social Security benefits.” While Boneparth doesn’t believe the program is going away, he does want younger clients to be ready for “the worst that could happen.”
In a back-and-forth discussion with Iacurci the two looked at what seems to be a common long-term solution to insolvency, “What you’re saying is essentially, you can’t count on your full benefit being there, so maybe it’s wise for people to sort of assume, if you’re younger anyway, that there might be a partial benefit cut?” Boneparth replied, “I don’t think it’s out of the realm, I mean, you can look to the past in terms of what has taken place to extend benefits to the program or keep funding in line, and it has particularly been around the retirement age … I would not be shocked to find by the time I’m retired, I’m 38, for full retirement age to be 68 and 69 and I wouldn’t be shocked if the excuse for that is that we’re running out of money and oh people are living longer and want to work more, but I don’t think they want to work more.”
Tell us in the comments what you think about Social Security insolvency and ways to protect future generations from seeing drastic benefit cuts.
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Meanwhile lets send billions of dollars overseas, to things like the six billion we released to Iran in support of the Hamas attack on Israel. Many billions more to BS programs that line the pockets of our corrupt government. Just think what those same tax dollars could have done to shore up the social security program, of which I have (involuntarily) contributed significant money to, hoping I’d get a reasonable return. Maybe just give me my money back, I’ll invest it myself.
The Social Security that was planned for working Americans has been fractured by Democrats. Never was it intended for illegal immigration’s army of parasites, Never for Welfare or disabled Americans as it was for working Americans with Other programs for Welfare and disabled CITIZENS. Politicians have stolen from it beyond repair perhaps. I’m 70 and retired once but my property taxes and insurance along with gas and food and damn toilet paper have forced me back to work. Now they tax my SS all the while giving themselves fat raises and trips , feeding criminal illegals which it is a crime to come to America without proper vetting and paperwork. My parents did it. We also have college kids wanting a free ride while I and millions of others paid our debt. jojo obiden gives away America while saying FU to Seniors. We need Trump and people like him back in office.
It’s is completely unacceptable that the U.S. government is allowed to literally STEAL billions/trillions from Americans, send this money overseas to other countries, and yet they can’t shore up the Social Security fund. There is NO EXCUSE. They all have to be removed, or we’re going to a civil war.
How about a return to how the program was originally devised. Return to “contribute before you can withdraw.” This is how financial accounts really work. Try paying a bill with a check from an account you haven’t invested towards. Perhaps a look at how people who are receiving benefits became eligible for those benefits.
Social Security Trust Fund has Been misappropriated and Put in General Budget,Debt..#Foreign Aid to Many Adversaries #Terrorist Groups ..RestoreTheTheft of Social Security Trust With Interest..Stop Funding Other “Nations Borders “#CongressHasFailed #Yellen Has Failed
I believe that as long as the government perpetuates monetary handouts to those young enough to be in the work force enabling these young people to not work but live on the government’s dime, Social Security payments to the retirees will diminish. The government needs to stop incentasizing people to not work.
Every senior I know has worked all their lives and paid into SS. These Jack *ss rip off politicians cut our income and watch how seniors prove they handle firearms to perfection These A**hole Dems and Rhinos give billions to Ukraine, Iran, and allow all these ILLEGAL BORDER INVADERS to cross, feed and house them off our money. I sure as F haven’t been working these 54 years to pay into this crap. Almost time: To arms, to arms!.
Before even discussing cuts to social security can we please discuss how much we will be cutting Congressional pensions since this is the body that has shirked their responsibility to keep the program solvent.
It’s just like anything else involving our government. If they want to, they will do it, if not they won’t even try. Here’s an example, Isn’t it funny they can round up and arrest American citizens for protesting on Jan 6th by using surveillance cameras, credit card receipts, and many other means available to the FBI, but they can’t figure out that it was Hunters Cocaine that was left in the Oval Office. Which happens to be one of the most secure buildings in the world. Along the same lines. Why is it the government can’t round up and deport these foreign students that are spewing hate on all of our college campuses? Our government is telling us it would be almost impossible to do so. Even though there is a law against such things and plenty of camera footage showing exactly who these people are. The answer, because they don’t want to.
The easy solution to to solving the social security problem would be to quit giving out money to illegals who haven’t put into the system. Here’s an even better solution, QUIT GIVING BILLIONS to countries that hate America and instead use our tax dollars to help out the good old USA.
We need people in Washington that have some common sense and that are looking out for this country. They shouldn’t be so worried about padding their pockets or trying to make people like us that hate us.
Yeah you won’t approve my last writing. It’s too radical but true
Anyone who ever “counted” on government promises is a fool and frankly gets what they deserve for being stupid.
Why not pay into SS on your whole income, not just the first $140,000?
We are 33 trillion dollars in debt and have not put any of this money into social security. We have been betrayed by the corrupt politicians in Washington (as usual).
I Totally agree with Irv C.
Does everyone now understand that all of the Federal government entitlements really are just Ponzi schemes and that the demographics do not work?
If you are over 65 today, you will be fine for the next 10 years.
If you are under 45 you should plan on half of what the Democrats have promised.
The problem is not one of capability, it’s one of political gamesmanship and graft. The Social Security Trust Fund has been raided repeatedly over the last 60 years, starting with the Johnson administrations so called “war on poverty”. Not one single dime of that misappropriated money has ever been paid back by a single bureaucratic entity using it as a slush fund, not one. Every department in the federal government should undergo a full audit to determine how much they have taken from the trust fund over time, means tested and then forced to return the funds on a recuperation payment schedule from their funding annually. Next, stop using the SSTF as a way to bankroll entitlement programs for malingering trash who claim disability and decide to go on life long vacations at the tax payer’s expense. Qualifying for SSDI benefits used to be MUCH more difficult than it is now as recently as 25 years ago. Third, as was mentioned below, if you haven’t paid into it through payroll deductions, you’re not entitled to collect income from it, full stop.
These three simple steps would guarantee solvency in perpetuity and would not impact future generations in any inequitable way. The only thing preventing them is the political will to impliment them.
I warned about this in national publication thirty years ago, and pointed out that the only reason for the trouble is that younger Americans were not having enough children. At 3.6, in the eighties of the last century, the fertility rate would be adequate to support SS indefinitely. Ten or so years ago the SS actuaries told me it was too late for a demographic solution.
In my opinion now, the only option is to pay out current beneficiaries and declare future payments to be direct from revenue (taxation) and therefore public welfare assistance. Well, maybe not the only option, but lots of folks would rather have nothing than be known as welfare recipients.
Every article similar to this should include dialogue about the requirements to receive social security payments – 35 quarters of credits which takes about ten years. That social security has very little to do with debt or deficit or aid to foreign governments. A government shutdown would only affect social security because administrators might not be able to work.
We know that incoming revenue will be insufficient to support current payment levels sometime in 2033. BUT, that means all of us (I am 74) receiving payments would have an estimated 23 percent reduction. I may not live ten more years, but just in case I do, I have planned for a 23 percent reduction. Everyone has ten years to prepare.
Or … explain to near-seniors why full retirement age is being advanced. Or … explain to younger workers why they must contribute more than 7.65 percent.
You see, maintaining the current payout structure is impossible without financial pain. It is just a matter who suffers the pain. And politicians don’t want to lose elections because they inflicted financial pain.
Over the years the Social Security Trust Fund has been raided and all that is left is IOU’s.
Call in these IOU’s and we should be fine.
Nobody should count on SS benefits entirely in their retirement, but should also make sure they have a mortgage-free home to live in before they retire.
We think an older age to draw is a good idea. We also feel like our Congress & elected officials should be required to have the same system. I would also like to see the Windfall Elemination bill changed in Texas. I am only allowed a part of my SS because I draw a small Teacher’s Retirement check, even though I worked in Real Estate & in clothing stores for many years. I have had very long careers and taught 20 + years. My income is small considering the many years I worked & taught. I am thankful for what I get but I think we need a Congress that is capable of making good decisions for the American people. Not a conflict battle Let’s work this out for the American people
John & Betty Slough
I’m 63 and I think I should apply before it does go! My luck anyways I’ll drop dead the day I do…
Don’t blame the Boomers. Blame Ida May Fuller — and the many others just like her.
Need to drain the swamp in 2024. Biden and his handlers/cronies are a disaster. Congress needs to get its act together and start working NOW to fix SS for future retiree’s. Need to stop giving away the store to illegals and other countries. America FIRST!
Make our horrible US government politicians Balance the Budget, stop all immigration, close and secure our southern
Isn’t this always to be expected when the federal government makes promises that it knows, ahead of time, it’s not going to fulfill. For decades, the members of Congress, both the House and the Senate, dipped into the Social Security funds to pay for their special pork projects–always promising to pay back the money they took. They never did. In their campaign speeches they promised to put the SS funds in a “lockbox” where no one could access it except for those receiving the benefits. The lockbox never existed and the funds continued to be depleted. Now, those who have paid into the program for years, due to their contributions being extorted from their paychecks, will have to look elsewhere for their secure retirement because the government has defaulted on yet another promise. Yet, the Biden* administration, under the control of the puppeteer, Obama, is wanting to continue to send millions to other countries–even to those that just viciously attacked the nation of Israel, rather than insure our own elderly citizens have the necessary funds to keep them from living in poverty. Whatever happened to the old adage, “Charity begins at home.:?
The old play ball with me and I’ll shove the bat up your ass.
Inexcusable! Ukraine, the military comedian is allowed in our Congress floors to ask for more of the Billions Biden keeps cranking out!
outrage! This President gave our money to
Ukraine, money to border immigrants He houses and their check and his push for banks to lend immigrants money. This glass house
will break. President. Joe is not concerned about our nation or citizens.
#Electionshaveconsequences
#WeneedAmericaFirst
#stopJoeSpend
Comrade, you’re not going to Influence anyone here with your negative comments! Try AARP instead!
The solution is for people to save and/or invest their own money. SS should be for those who are poor or disabled and cannot work. People over a certain income should not get benefits even if they paid into it. I know that doesn’t seem fair, but it’s like insurance, only there if you need it. We pay premiums for car insurance, health insurance, long term care insurance, etc. Many people never use it.