Social Security’s Finances Erode Further, Risking Benefit Cuts; Trump has offered no remedy

[TallGuyJohninBKK]

The nation’s key program for retiree benefits continues to see financing shortfalls. Unless Congress acts, those drops could lead to payment cuts in eight years.

 

June 18, 2025

 

"The Social Security program faces a longstanding financing shortfall that, if left unaddressed, would slash millions of retirees’ crucial monthly benefit payments in just eight years. [emphasis added]

 

The deteriorating financial outlook for the retirement program, which supports roughly 61 million Americans, was released in its annual trustees report on Wednesday.

...

Mr. Trump has vowed to protect Social Security benefits, but he hasn’t introduced any proposals to shore up its financing."

 

(more)

 

New York Times

https://archive.ph/EEWYp

 

 

The above NYT article says the current projection is that Social Security benefit reductions of 23% could commence in 2033 if the program's finances are not rescued before then.

 

And linked above to this prior NYT article:

 

How Unauthorized Immigrants Help Finance Social Security Benefits

Undocumented workers often pay taxes that help fund programs like Social Security — even if they can’t collect from them in the future

 

Updated Jan. 14, 2025

 

"The Social Security Administration receives billions in free money each year from an unexpected source: undocumented immigrants.

 

This group paid an estimated $25.7 billion in Social Security taxes in 2022, according to a recent analysis from the Institute on Taxation and Economic Policy, a left-leaning tax research group. Since unauthorized workers cannot collect retirement and other Social Security benefits without a change to their immigration status, the billions they pour into the program effectively act as a subsidy for American beneficiaries."

 

(more)

 

New York Times

https://archive.ph/RjEWE

 

 

[blaze master]

11 minutes ago, TallGuyJohninBKK said:

 

"The Social Security program faces a longstanding financing shortfall that, if left unaddressed, would slash millions of retirees’ crucial monthly benefit payments in just eight years. [emphasis added]

 

 

If its such a longstanding problem....why did not one else address the issue either. 

 

 

[TallGuyJohninBKK]

11 minutes ago, blaze master said:

 

If its such a longstanding problem....why did not one else address the issue either. 

 

 

From the NYT report:

 

"Republican-led proposals have historically suggested cutting benefits by raising the retirement age, among other changes. Democrat-led proposals typically support raising taxes."

 

And the latter would require unlikely two-thirds majority votes in Congress.

 

 

 

 

[blaze master]

13 minutes ago, TallGuyJohninBKK said:

 

From the NYT report:

 

"Republican-led proposals have historically suggested cutting benefits by raising the retirement age, among other changes. Democrat-led proposals typically support raising taxes."

 

And the latter would require unlikely two-thirds majority votes in Congress.

 

 

 

 

 

So no changes. Got it. 

[KhunLA]

15 hours ago, blaze master said:

 

If its such a longstanding problem....why did not one else address the issue either. 

 

 

Amazing how everything is an issue now ... with the mentally ill Trump folks, while decades earlier, they never had issues with anything or any administration.  

 

Go figure 

 

I read insomnia is skyrocketing  ...

 

[TallGuyJohninBKK]

Anything to deflect from the real and actual topic, and that's that time is quickly running out to avoid future significant cuts in Social Securiity benefits for tens of millions of Americans.

 

The things Trump is doing, in the way of tariffs and immigration enforcement, as the above NYT report explains, are only going to serve to worsen the problem, and hasten the insolvency date for the Social Security trust fund.

 

Quote

 

"Some policy experts say it’s hard to fully project Social Security’s outlook because the latest report doesn’t reflect many of President Trump’s policies, including his tariff and mass deportation plans, which are expected to worsen the program’s deficits.

...

One analysis, from October, projected that Mr. Trump’s proposals would accelerate the trust fund’s insolvency by three years."

 

https://archive.ph/EEWYp

 

 

 

No, the problem didn't start with Trump or the current Congress. It's been left unresolved by prior presidents and prior Congresses due to partisan political gridlock.  But it's Trump and the Republican majority Congress' watch right now and for the coming years...

 

And thus far, they're doing NOTHING to address or solve the Social Security problem, and instead, are just making it worse.

 

 

[lordgrinz]

Why not do away with it, and instead force people to fund their own retirement accounts, thus never having to rely on a Ponzi scheme run by the most inefficient and corrupt entity in existence (The US Government). 

[TallGuyJohninBKK]

1 minute ago, lordgrinz said:

Why not do away with it, and instead force people to fund their own retirement accounts, thus never having to rely on a Ponzi scheme run by the most inefficient and corrupt entity in existence (The US Government). 

 

 

Right wing political nonsense. Social Security has provided retirement financial security for generations of Americans, pays benefits that are adjusted for inflation, in nearly a century has never missed or defaulted on benefit payouts that were earned by Americans, and has invested the system's  funds in  secure, stable assets that aren't subjects to the whims of the stock market or companies failing and going bankrupt.

 

"Eighty-eight years after President Franklin Roosevelt signed the Social Security Act on August 14, 1935, Social Security remains one of the nation’s most successful, effective, and popular programs.

...

Once someone starts receiving Social Security, their benefits increase to keep pace with inflation, helping to ensure that people do not fall into poverty as they age.

...

Without Social Security benefits, nearly 4 in 10 adults aged 65 and older would have incomes below the official poverty line, all else being equal, according to our estimates based on the U.S. Census Bureau’s March 2023 Current Population Survey."

 

https://www.cbpp.org/research/social-security/top-ten-facts-about-social-security

 

 

Social Security has never missed a payment—but DOGE actions could disrupt benefits, Here’s what the ex-agency head warns could happen next

https://economictimes.indiatimes.com/news/international/us/social-security-has-never-missed-a-paymentbut-doge-actions-could-disrupt-benefits-heres-what-the-ex-agency-head-warns-could-happen-next/articleshow/118651479.cms?from=mdr

 

 

[lordgrinz]

1 minute ago, TallGuyJohninBKK said:

 

 

Right wing political nonsense. Social Security has provided retirement financial security for generations of Americans

 

 

Forced on us, and running out of money! Let us FREE Americans decided our own retirement, let us choose to pay into Social Security, or instead allow us to fund our own retirement accounts with the same money. I can tell you that I would be WAY WAY WAY ahead if my contributions were in a retirement account, rather than the Ponzi Scheme run the by the US Government. Land of the FREE my @SS!

[Hawaiian]

26 minutes ago, lordgrinz said:

Why not do away with it, and instead force people to fund their own retirement accounts, thus never having to rely on a Ponzi scheme run by the most inefficient and corrupt entity in existence (The US Government). 

What about those who already paid in?  They're too old to start again.  

[lordgrinz]

Just now, Hawaiian said:

What about those that already paid in?  They're too old to start again.  

 

Keep paying from what is inside the system, or are you advocating robbing Peter to pay Paul? Either the money is in there, or it's a Ponzi scheme, which is it?

[blaze master]

3 hours ago, TallGuyJohninBKK said:

The things Trump is doing, in the way of tariffs and immigration enforcement, as the above NYT report explains, are only going to serve to worsen the problem, and hasten the insolvency date for the Social Security trust fund.

 

Well maybe they shouldn't be relying on illegals to pay into it. As the NYT reports.

 

Yes im sure there are cases of ICE making mistakes picking up the wrong person. No system will ever be flawless that way. To think otherwise is asinine.

 

But the overwhelming vast majority being targeted.are illegal immigrants. Regardless of how much of an upstanding citizen they are or how long they have been there. Or how good of a drunk driver or wine maker they are.

 

They are illegally in the country.

 

As I.commented before. Thailand wouldn't hesitate for a second to deported someone in the country illegally after 10 years. 

 

 

[Mike_Hunt]

On 6/23/2025 at 9:25 PM, TallGuyJohninBKK said:

 

From the NYT report:

 

"Republican-led proposals have historically suggested cutting benefits by raising the retirement age, among other changes. Democrat-led proposals typically support raising taxes."

 

And the latter would require unlikely two-thirds majority votes in Congress.

 

 

 

 

Yet, no proposal has been brought to the house and senate for a vote.

[Mike_Hunt]

On 6/24/2025 at 1:27 PM, TallGuyJohninBKK said:

Anything to deflect from the real and actual topic, and that's that time is quickly running out to avoid future significant cuts in Social Securiity benefits for tens of millions of Americans.

 

The things Trump is doing, in the way of tariffs and immigration enforcement, as the above NYT report explains, are only going to serve to worsen the problem, and hasten the insolvency date for the Social Security trust fund.

 

 

 

No, the problem didn't start with Trump or the current Congress. It's been left unresolved by prior presidents and prior Congresses due to partisan political gridlock.  But it's Trump and the Republican majority Congress' watch right now and for the coming years...

 

And thus far, they're doing NOTHING to address or solve the Social Security problem, and instead, are just making it worse.

 

 

SS has run negative since 2010.  You would figure the Democrats would have addressed this issue by now since they care so much about the American people.

[ricklev]

Moderate increases in taxes, both in the percentage collected from everyone and by increasing the cut off of SS taxes for very high earners will fund the program for decades.  Anyone that starts off with the position that cutting benefits is the only option for solvency is suspect, in my book.  It's a way of framing the issue to avoid finding a solution.     

[Jake44]

On 6/24/2025 at 2:36 PM, lordgrinz said:

Why not do away with it, and instead force people to fund their own retirement accounts, thus never having to rely on a Ponzi scheme run by the most inefficient and corrupt entity in existence (The US Government). 

 

Most voters have been paying thousands of dollars into it every year for decades.  If it gets eliminated, they will obviously be a little pissed off and vote out any member of congress who votes for that, so no chance it will simply be eliminated.

 

[TedG]

On 6/23/2025 at 9:53 AM, TallGuyJohninBKK said:

The nation’s key program for retiree benefits continues to see financing shortfalls. Unless Congress acts, those drops could lead to payment cuts in eight years.

 

June 18, 2025

 

"The Social Security program faces a longstanding financing shortfall that, if left unaddressed, would slash millions of retirees’ crucial monthly benefit payments in just eight years. [emphasis added]

 

The deteriorating financial outlook for the retirement program, which supports roughly 61 million Americans, was released in its annual trustees report on Wednesday.

...

Mr. Trump has vowed to protect Social Security benefits, but he hasn’t introduced any proposals to shore up its financing."

 

(more)

 

New York Times

https://archive.ph/EEWYp

 

 

The above NYT article says the current projection is that Social Security benefit reductions of 23% could commence in 2033 if the program's finances are not rescued before then.

 

And linked above to this prior NYT article:

 

How Unauthorized Immigrants Help Finance Social Security Benefits

Undocumented workers often pay taxes that help fund programs like Social Security — even if they can’t collect from them in the future

 

Updated Jan. 14, 2025

 

"The Social Security Administration receives billions in free money each year from an unexpected source: undocumented immigrants.

 

This group paid an estimated $25.7 billion in Social Security taxes in 2022, according to a recent analysis from the Institute on Taxation and Economic Policy, a left-leaning tax research group. Since unauthorized workers cannot collect retirement and other Social Security benefits without a change to their immigration status, the billions they pour into the program effectively act as a subsidy for American beneficiaries."

 

(more)

 

New York Times

https://archive.ph/RjEWE

 

 

 

If people like you get your way on immigration, they will be collecting SS.  

[TedG]

18 minutes ago, ricklev said:

Moderate increases in taxes, both in the percentage collected from everyone and by increasing the cut off of SS taxes for very high earners will fund the program for decades.  Anyone that starts off with the position that cutting benefits is the only option for solvency is suspect, in my book.  It's a way of framing the issue to avoid finding a solution.     

The tax will need to be increased between 3.2 and 3.6 to fund the shortfall. 

[lordgrinz]

1 hour ago, Jake44 said:

 

Most voters have been paying thousands of dollars into it every year for decades.  If it gets eliminated, they will obviously be a little pissed off and vote out any member of congress who votes for that, so no chance it will simply be eliminated.

 

 

They can keep putting "their" money in if they wish, we'll leave it as an option for those with no financial sense, and those who can't be bothered to take control of their own retirement. The rest of us will exit the Ponzi scheme and invest our money responsibly and wisely.

[Jake44]

8 minutes ago, lordgrinz said:

They can keep putting "their" money in if they wish, we'll leave it as an option for those with no financial sense, and those who can't be bothered to take control of their own retirement. The rest of us will exit the Ponzi scheme and invest our money responsibly and wisely.

 

You are not understanding that you will very obviously never have an option to "exit" unless you give up your citizenship because most voters are older and have already paid 100s of thousands of dollars into it.  

 

They will simply cut back benefits a little.  The thing is not broke, it just can't pay complete benefits in the future.  If they cut back just a little, it can pay no problem.  

[lordgrinz]

2 minutes ago, Jake44 said:

They will simply cut back benefits a little.  The thing is not broke, it just can't pay complete benefits in the future.  If they cut back just a little, it can pay no problem.  

 

Do you hear yourself when you speak?

 

What we need is choice to either pay into SS or have our 12.4% go into our own retirement accounts. Let it stand or fall on its own merits, or lack there of, no more forcing people to pay in against their will.

[TallGuyJohninBKK]

15 hours ago, Jake44 said:

They will simply cut back benefits a little.  The thing is not broke, it just can't pay complete benefits in the future.  If they cut back just a little, it can pay no problem.  

 

The future "little" cutback in Social Security benefits that you're referring to above -- if Social Security's finances are not remedied in the coming years -- would be about a 23% reduction from what otherwise would be the normal benefits amount.

 

To me, that's not so "little," especially considering that I've been paying into Social Security for my entire working life, and haven't yet taken a dime of SS money and probably won't be until around the time the looming shortfall arrives. From my OP post:

 

Quote

The above NYT article says the current projection is that Social Security benefit reductions of 23% could commence in 2033 if the program's finances are not rescued before then.