by Lori F.
Member since:
December 12, 2006

Why the Baby Boomers Shouldn't Be Breaking the Bank

November 03, 2007 09:31 PM EDT
views: 43 | comments: 54

There are an estimated 500 million people paying into the Social Security entitlement program.

The first of the Baby Boomers are starting to retire.  There are an estimated 78 million of these first generation boomers retiring now.

Now I am no math wiz by any means but there are over 5 times as many people paying as there are receiving so why is Social Security going broke?

Currently there are about 53 million people on Social Security.  Even figuring these people in the numbers just don't add up.

There should be a surplus of funds. 

Your thoughts on where the money went?

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Comments: 54

Joe T. Nov 3, 2007, 9:38pm EDT
The funds have been co-mingled ever since the Reagan era. Reagan and his minions wanted to dismantle the Social Security system and they did what they could but it didn't work. Don't be fooled by these people who play chicken little about the Social Security system in this country. It is a program that works.
Rick *Don Rico* J. Nov 3, 2007, 9:42pm EDT
500 million paying in? I thought we only had 350 million in the US...
Amanda J. Nov 3, 2007, 9:44pm EDT
You're not counting all the parents that get money for their children because of a "disability". I am not talking about medical problems (though they can get it too). I am talking about the children who have behavior and/or learning problems (90% of the time caused by either bad genes from the parents or bad parenting)! They have no extra expense because of it. The schools have to deal with the problem and the parents pay NO extra to the school. (Though, the government does also give extra to the school.) I have one parent that in a claim to SSI claimed the child was starting fires and getting in fights every day at school. I was AMAZED he was having these problems at schools since he is one of my best students.
Kimberly Ripley Nov 3, 2007, 9:55pm EDT
It's not so much where the money went, but what are people going to do? Not everyone has had the good fortune to make investments for their future!
Timothy V. Nov 3, 2007, 10:13pm EDT
" 500 million paying in? I thought we only had 350 million in the US... "

I think that Rick poses a valid question/point. Who are the other 150 million who are paying into the Social Security system? Immigrants here on Greencards possibly?
Lori F. Nov 3, 2007, 10:16pm EDT
I apologize I typed wrong I meant to say 300 not 500. Sorry Rick. Any way that is still 3 times the people paying then collecting. Tim I didnt account for the illegals. I decided not to even go there on this thread.
Lori F. Nov 3, 2007, 10:17pm EDT
No George it doesnt. It is used as a slush fund but was never supposed to be set up that way.
Joe T. Nov 3, 2007, 10:18pm EDT
It is in the general fund for quite some time now.
Col. George W. Nov 3, 2007, 10:19pm EDT
Lori, The Social Security Trust is NOT broke or going broke. As of about a minute ago the below figures were posted on the "National Debt database"
$ 2,177,463,425,767

Then there is the Mecicare Trust - $ 3,690,020,447,385 (note this also includes gas tax which is supposed to pay for highways)

There is more going into those Trusts every second of every day.

The big crisis in Social Security that is predicted to happen in 2017 is when the SS Trust will be paying more out than it collects and will have to call in the TRILLIONS of dollars in IOUs that the Federal Government put in the Trusts when they "borrowed the money" It is NOT a SS Chrisis at all it is a Chrisis of the Fed. Gov. having to replace the funds they "borrowed" Same is true of Medicare, Medicare Plan D.

The politicians, pundants and media tell about a big SS Chrisis and how SS has to be "fixed". It ain't broke it is the Federal Government that needs to be fixed.

Amanda, Those kids are not drawing SS they are probably drawing Medicaid and Welfare. Social Security don't pay medical bills of any kind. The only way a kid can get a SS check is if one (or both) parent is dead or disabled.
Lori F. Nov 3, 2007, 10:19pm EDT
Joe but that is not the way it was set up.
Col. George W. Nov 3, 2007, 10:20pm EDT
George W - NO NO NO Social Security is NOT counted as general revenue in spite of how the politicians treat it.
Lori F. Nov 3, 2007, 10:21pm EDT
Colonel George thanks for the stats. I have heard differently.
Col. George W. Nov 3, 2007, 10:25pm EDT
ALL money collected for Social Security goes into the Social Security Trust
ALL money collected for Mecicare goes into the Medicare Trust.

Once in those trusts the Fed. Gov. steals whoops I mean "borrows" it.
Bob B. Nov 3, 2007, 10:25pm EDT
This year's report by the trustees who oversee the social security fund found that, if left alone, the Social Security system will continue to be able to pay its bills for at least the next 40 years — thanks in part to a $1.4 trillion nest egg of Treasury securities that has been stashed away over the past several decades. A separate analysis by the Congressional Budget Office figures the fund is in good shape until 2052.

http://www.ssa.gov/OACT/TRSUM/trsummary.html
http://www.cbo.gov/ftpdocs/55xx/doc5530/06-14-SocialSecurity.pdf
Chris E. Nov 3, 2007, 10:28pm EDT
I am confused as to where you are getting your numbers. In 2006 the population was
299,398,484. http://factfinder.census.gov/servlet/SAFFPopulation?_sse=on.

Not everyone pays into SS. The population includes children & unemployed. Plus not everyone who works pays into ss. My husband does not because he is exempt from paying it because he is a police officer. So how could 300 million people pay into SS?
Joe T. Nov 3, 2007, 10:29pm EDT
If the SS system is left alone (and it's a big IF), the bills can be paid when it comes due. There are political forces out there determined to destroy the system. I suppose some people want to return to the days when old people were stranded and homeless.

Thanks Bob for the information. The system should be solvent. There is no reason to do away with it.
Col. George W. Nov 3, 2007, 10:30pm EDT
z Facts.com Try that they have a national debt clock. Bob, I wonder if that 1.4 trillion is in addition to the funds that are on the books of the trust.
Lori F. Nov 3, 2007, 10:30pm EDT
Chris I explained that....can we focus on the point of this thread and not just my mistakes please.
Lori F. Nov 3, 2007, 10:31pm EDT
Joe the problem is they dont leave it alone....its like an obsession with some of these people.
Chris E. Nov 3, 2007, 10:32pm EDT
I know you corrected yourself but that number is still way higher then is possible.
Bob B. Nov 3, 2007, 10:34pm EDT
Colonel - I believe it is in additon to.
Lori F. Nov 3, 2007, 10:34pm EDT
Chris all of my pieces are opinion pieces. I fall short sometimes on the research. I am sorry all you are getting is from my thread is my mistakes. There is an underlying issue.
Col. George W. Nov 3, 2007, 10:41pm EDT
Ron Paul has spoken of this and I have posted a couple of his speaches etc. on the Ron Paul for President group. He seems to be the only candidate with his finger on the situation.
Col. George W. Nov 3, 2007, 10:42pm EDT
Bob, That is called good news
Chris E. Nov 3, 2007, 10:42pm EDT
I think you are missing my point. I am not trying to focus on your mistake. You said thatafter correcting yourself that 300 million are paying in so we should have this huge surplus because of that and you asked where the money is going to. My point was the total population was less then your number plus that included children etc.. that don't pay that the number would be way lower therefore not as much is coming is as you thought and that would answer your questions. There really is not that much of a surplus so the money has not gone anywhere.
Joe T. Nov 3, 2007, 10:42pm EDT
Good point, Lori. The main idea of this article (as I see it) is that there is no reason why the SS system shouldn't be solvent considering the amount of contributors to the system. It is a good point.
Col. George W. Nov 3, 2007, 10:44pm EDT
Chris, are you nit picking? lol Lori, don't let it bother you.
Chris E. Nov 3, 2007, 10:49pm EDT
No I am not nit picking. I was giving her a logical explanation to her question.
Col. George W. Nov 3, 2007, 10:52pm EDT
Chris, At this time there is a Lot more going into the trust than there is being paid out in benefits. The first baby boomers will begin retireing in 6 to 7 years and it will take a very long time for them to get through 2 or 3 trillion dollars not counting the continuing contributions that will come in. Any SS crisis is a long long way in the future and probably will never happen.

I remember back in the 70s they had this same kind of BS. That is when they raised the retirement age.
Lori F. Nov 3, 2007, 10:54pm EDT
Ok Chris I see what you are saying. But given the corrected stats you still have 3 times as many people paying into social security than receiving it. And it has always been like this. There should be quite the surplus of funds but there isnt.
Lori F. Nov 3, 2007, 10:55pm EDT
Colonel George the baby boomers are starting to retire now. My mom is retiring this month is she is the first of the baby boomers born in 1942.
Joe T. Nov 3, 2007, 10:58pm EDT
I'm a boomer and hoping that it will be there for me. As it stands, I can't retire till I'm 67. By then, who knows what will be possible. I won't retire unless I have to, however. I like working.
Lori F. Nov 3, 2007, 11:00pm EDT
Joe I am not a boomer and they gave my mom a really nice early retirement package. I doubt whether I will see much if any Social Security when its time for me to retire.
Col. George W. Nov 3, 2007, 11:03pm EDT
Lori, I just told you SS has a gigantic surplus. The problem is not SS, it is the Federal Government "borrowing" that surplus. It is not a "bookeeping" problem it is real money that belongs to the people who paid into the Trust and it is wrong for the Federal Gov. to "borrow" it.
Joe T. Nov 3, 2007, 11:05pm EDT
My Dad had a good retirement package. Between his pension and SS, he lived pretty comfortably. I don't have that coming as I paid into SS for my early working years and then paid into the teachers retirement system. I was married for ten years and can draw on my ex-wife's earnings, however. It's funny how things work out.

Have confidence. Social Security isn't going anywhere. It will change but the system is one program that is working. We don't want to return to the old days when older people didn't have any safety net.
Lori F. Nov 3, 2007, 11:06pm EDT
Colonel I do understand that. The US government is the only place where you can continue to rob Peter to pay Paul and not go to prison for imbezelment.
Col. George W. Nov 3, 2007, 11:10pm EDT
Lori, She is not a baby boomer then. The boom came After the war when our men came home so I have been told anyway.
Col. George W. Nov 3, 2007, 11:12pm EDT
Lori, you are so right. They get away with it by putting an IOU in the Trust.
Lori F. Nov 3, 2007, 11:12pm EDT
Colonel the baby boomer generation started in 1942 from my understanding.
Joe T. Nov 3, 2007, 11:14pm EDT
Actually, baby boomers are born between 1945 and 1964, Lori. But, your mother is close enough. 1942 was a slim year for babies. Most of the fathers were at war.
Lori F. Nov 3, 2007, 11:14pm EDT
Colonel I just looked it up and you are correct the boomers didnt officially start until 1945...so she did miss it.
vickey w Nov 3, 2007, 11:20pm EDT
Colonel, you are correct. I heard this to on tv, that the baby boomers came after ww2, when the soldiers came home. I am a baby boomer but I was born later. I forget how far , they consider the baby boomers. I think it goes through the 60's.
Col. George W. Nov 3, 2007, 11:22pm EDT
I heard Ron Paul on TV last night. He spoke about Social Security saying it is not constitutional but he felt it is something we need and will strengthen rather than try to so away with it. His plan is to pass a LAW that the Federal Government cannot borrow from the Social Security or Medicare Trusts. He says that he will find a way for the money they "borrowed" to be paid back. One way he mentioned was to bring our troops home from around the world and quit supporting foreign economys with our military people's money going into it.

He can do this and still remain consistant with his Constitutional agenda because Social Security, although set up by the Congress, is not part of the Government it stands on it's own. Much as the Post Office does. Social Security and Medicare are Insurance not taxes.
Col. George W. Nov 3, 2007, 11:24pm EDT
vickey, that is because Korea happened so soon after ww2.
Joe T. Nov 3, 2007, 11:25pm EDT
Ron Paul cannot bring home all of our troops around the world. We have vital interests that must be protected. South Korea comes to mind.

Ron Paul is a nut case. He will never get elected. Some of his ideas are good but he isn't really good material for the presidency.
Col. George W. Nov 3, 2007, 11:34pm EDT
EXACTLY what vital interest do we have in South Korea? In case you haven't heard we are now on fairly friendly terms with N. Korea. We have 130 bases around the world and not one "national interest" in any of them. Our military is for National Defence not some politicians idea of "National Interest". It is time we quit policing the world just as Ron Paul says. It is time to quit Empire Building. It is time to forget Globalism and One World Govrnment. It is time Americans took care of their own business like rounding up and shipping out all of the Illegals.

That is a little off subject Lori and I apologise.
Amanda "middle of nowhere" C. Nov 3, 2007, 11:53pm EDT
I think I'll be poor when I retire. Why change things?
Lori F. Nov 3, 2007, 11:57pm EDT
Colonel no worries. The one rule on my thread is....there are no rules. You can talk about or get off subject as much as you want. And I never delete comments...except my own.
Ron B. Nov 4, 2007, 1:14am EST
For the past forty years, every time Washington writes a check, it is in fact NSF since it spends money it does not really have (deficit).
Kieran W. Nov 4, 2007, 9:02am EST
Lori ~ Couldn't tell you specifically where the money went but from what I know, government allowed access to Social Security for causes other than Social Security (when it was at a surplus). I assume that's worsened by claimants who've not paid in drawing various forms of SS benefits. Great topic, thanks.
PAY IT FORWARD
Marty S. Nov 4, 2007, 3:39pm EST
We sell China the bonds, they buy the bonds, supporting their own export based economy. The same holds true of Japan.
Vicki W. Nov 4, 2007, 11:18pm EST
Good Article...
Cheryl R. Nov 11, 2007, 1:33pm EST
Thanks for a good question Lori. If the monies are not available when needed, I'd assume that the Feds misused the fund.

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