Social Security Trust Fund Gone; Killed by Recession

One of my favorite quotes has been the survey that showed more Gen X’ers believed in UFOs than believe they will receive Social Security. Although it was a good story, it was at least partially rebuffed.

Now it turns out the cynics were right. Rosy projections from the CBO indicated that the Trust Fund would have a surplus through 2017. Actually, the social security surplus this year will be about $3B and then go negative over the next two years.

If you don’t care to read the link, check this out from the SOCIAL SECURITY ADMINISTRATION TRUSTEES ANNUAL REPORT:

“Projected long run program costs are not sustainable under current financing arrangements.”

“For the second consecutive year, a ‘Medicare funding warning’ is being triggered, signaling that non-dedicated sources of revenues—primarily general revenues—will soon account for more than 45 percent of Medicare’s outlays.”

Not worried about it because you are entitled to Social Security payments because you have paid in for the required 40 quarters? Guess again, because the Supreme Court doesn’t think so. Here’s the case.

Madoff maybe the king of Ponzi schemes, but according to these numbers, he’s only won the silver.