Geee Posted February 8, 2012 Share Posted February 8, 2012 Investors Business Daily: Politics: In its latest projection, the Congressional Budget Office found that the Social Security Trust Fund had $1 trillion less than expected. Seems it always happens this way. When will Washington recognize that the problem is the model? In an A1 story Friday by IBD's Jed Graham, the nonpartisan Congressional Budget Office said it now expects the supposedly vaunted and unsinkable trust fund to peak in 2018 and then decline to $2.7 trillion by 2022. That's a trillion dollars less than what was projected to be in the pot last year. "The new trajectory suggests that the trust fund's current depletion date of 2036 may jump ahead several years when Social Security's trustees release their annual report this spring, making the retirement program more central to the 2012 election," IBD's Graham wrote. That means the trust fund runs dry sooner than its projected 2036 bankruptcy date. When that happens, workers can expect a legally mandated 22% cut in Social Security benefits when they retire. So, after forking over 12.4% of their earnings — both directly and through their employers — for 35 or 40 years, they can look forward to receiving a less-than-zero-percent return while continuing to spend their working lives paying 100% of the promised benefits to current retirees. They can replace the Social Security shortfall by saving an additional $2,150 a year, but only if they have time to do it — workers approaching retirement will have to save even more — and just to break-even with the promised Social Security payment. How's that for a raw deal? Link to comment Share on other sites More sharing options...
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