This is supposed to be good news?

Well…Social Security is set to go bankrupt one year later than estimated:

The trust fund for Social Security will be exhausted in 2041 and the Medicare trust fund in 2019, the trustees of the two programs said Monday. Both dates were one year later than previously estimated.

In their annual report on the financial health of the government’s two biggest benefit programs, the trustees said that slight reductions in projected benefits and slightly higher tax collections had extended the dates that the trust funds are projected to be depleted.

However, the trustees said both programs continue to face serious financial problems with the pending retirement of 78 million baby boomers. The report for the first timed triggered a Medicare funding warning that will require
President Bush to submit to Congress next year proposals for trimming Medicare costs.

And what was the title of the AP article? Social Security, Medicare: Good news. I am not joking. Social Security and Medicare are going to last one year longer than previously estimated and that is some how “good news.” Meanwhile, you are throwing your money down the drain. It’s gone…you’ll never see it again.

H/T: National Taxpayers Union

  • Brad Warbiany

    Trust fund… What an f’ing joke.

    Isn’t there supposed to be money in a trust fund? Not a promise to pay it back with higher taxes later?

  • VRB

    It may be better than that, the first baby boomers will be 95. I know they don’t believe they will ever die. I wonder how many will live to see 2041. In ten more years, there will be more workers that recipients again. There may be some that live to 100, but not enough to burden the system. Hoping Social Security will run out of money, will not reform or get rid of it.

  • Brad Warbiany


    There are currently more workers than recipients. According to the National Center For Policy Analysis, the ratio is currently 3.3 workers to one recipient. It’s expected (by the experts) that it will fall below 2 to 1 by 2030. I think your plan (expecting them all to die early) is probably not going to work. With current medical technology, they’ll probably live quite a while.

    When they take 12.4% of my income, though, I consider it a burden to the system. And as they age, that burden will only increase.

    I have a question for you, though, VRB. Do you think there is a trust fund?

  • VRB

    There will not be as many baby boomers making it too sixty. See what is killing people. Cancers are still taking it toll. Diabetes is becoming an epidemic and many find out too late to keep it under control. You have faith in technology that doesn’t exist and if it doesn’t appear in the next fifteen years, quite a few boomer will die in their seventies.

    I know there is no trust fund and any extra money is going into the general fund. I have no illusions about Social Security and since I am approaching retirement knowing that if I live too long SS will probably be my saving grace. With housing(my taxes) and utilities cost tripling every five or six years.

    Well guess what, when I was getting Medicare benefits because of my kidney disease, I paid for Medicare and had a payroll deduction. I felt as if I was paying twice; intellectually I know that wasn’t the case. I have been paying for someone else much longer than you.

  • VRB

    One other the thing, If everyone who worked was getting a payroll deduction then the ratio would be more that 2 to 1. Think of all the undocumented workers and there will be more in a few years, more legal immigrants and more HB1 personnel.