Is the era of large Social Security surpluses over?
REPORTER: Well, as President Obama works to pass his budget, his job will be complicated by a big change in the government’s math. Based on numbers from the President’s budget and the Congressional Budget Office, it appears that the era of large Social Security surpluses is over. Darren Gersh examined the numbers and found that Social Security’s finances are facing the same headwinds hitting the overall economy.
DARREN GERSH: The Great Recession has brought great changes to Social Security with unemployment rising. Analysts say there are fewer workers paying into the system, pushing Social Security payroll tax revenues down.
In tough economic times, disability claims also tend to rise and more workers retire early, driving up benefit costs. And remember those high-energy prices of last year? They raised energy and food costs, boosting payments to beneficiaries in a 5.8 percent cost of living increase. That’s the largest in 25 years.
Chuck Blahous was executive director of President Bush’s Social Security Reform Commission. He says the tend is clear.
CHUCK BLAHOUS: You see, with the higher COLA payments, the higher disability benefit claims, the higher retirement benefit claims, in combination with the lower payroll tax revenue, then most of your surplus is gone.
DARREN GERSH: Last April, the Social Security surplus was projected to be $83 billion this year and almost $90 billion next year. Using figures from the President’s budget and the Social Security Actuary, Nightly Business Report calculates this year’s surplus is now likely to fall to $30 billion and $27 billion next year.
But the Congressional Budget Office is more pessimistic. It expects the surplus will be $16 billion this year, but only $3 billion next year. All together, the recession has shaved more than $150 billion off the Social Security surplus over the next three years. Read more
How Social Security Works
SHANE KILLIAN: I have been making a lot of science ideas because I’ve seen a great need for people to have a greater understanding of science. Once again, like every election year, I started seeing a similar girth of knowledge with political policy.
It’s amazing how may otherwise skeptical people just turn it off when they enter the political arena and completely trust what the government tells them.
No, there’s no conspiracy mongering here. I don’t put up with that. I just wanted to tell the objective truth about how government policies work.
This first video will cover Social Security.
Charles Ponzi was one of the greatest swindlers this country has ever seen. No, he is of no relation to Chris Parilla’s wife; I would just want to make that clear.
In 1918, soon after being released from jail for smuggling and other offenses, he begun running an investment scam. He would take money from investors and just spend it, living the good life. When it came time to pay off the investors, he would get money from new investors and use some of it to pay the old investors and use the rest for himself, and so on. This is the type of scam known as the Ponzi scheme.
Then the other Ponzi schemes had followed including one from the Church of Scientology. Both prosecutors and psychologists have noted the effects of the Ponzi scheme on its victims: Few of them even want to admit that it’s been a scam and often speak out in court in favor of the person who ripped them off.
What does that have to do with Social Security?
Well, Social Security works the exact same way. Government gets the Social Security tax, uses part of it to pay part off current beneficiaries and just spends the rest however they want. Read more
Does Social Security discriminate? A question for the poor and middle class
In a world where state-sponsored equality rules, one would think getting what you are entitled to would be easy. But actually, it has become quite difficult. The Social Security Administration, one of the oldest and most relied upon government agencies, has a bias when it comes to social classes.
People with disabilities are one of the groups that need Social Security the most. Many of them are poor. But it has become quite difficult for these individuals to get Social Security benefits. To qualify for benefits, those with a disability must first obtain proof of their disability as well as proof that they are unable to work. Many people with disabilities who apply for Social Security benefits are at the poverty level and cannot afford to support themselves without government assistance. However, if Social Security overpays them, they are asked to repay that money. If they are unable to do so, an overpayment begins to accrue.
If you are unable to pay back this overpayment, the money owed will continue to add up until you are asked to repay a lump sum. A lot of disabled people are denied Social Security benefits, because they are too able-bodied. If you can walk, you may run into this problem. At the same time, you may be unable to work, because no one is willing to hire you. Even still, you may not qualify for benefits.
On the same token, the middle class suffers as well. A lot of people in the middle class need Social Security benefits, but are denied for one reason or another. If you are unable to work, you probably need money. If Social Security says your spouse makes too much money, you may be disqualified from receiving benefits. In some cases, you may not be eligible for benefits at all, if you are married.
It is quite easy for some people to receive benefits. Welfare mothers with several children generally do not have a hard time qualifying for benefits and may begin receiving them right away. However, for disabled people to receive benefits, they must wait months, even as much as years, for Social Security to approve their claim. And even then they may be disqualified for one reason or another.
What if you receive Social Security benefits but also decide to work to earn some extra money? You will be asked to report your earnings information to the SS administration. As a result, Social Security will reduce your benefits amount, because you are making money from a source outside of the organization. The more you work, the less you get.
Some people say that every US citizen should get all the money they need. It costs the government almost nothing to print new money, and they have been doing it for their own needs for many decades, so why should this essential ingredient of everyday life be denied to average citizens for the most spurious and bureaucratic of reasons?
Your Path To Receiving a Social Security Income
As a country, the United States of America makes sure that every citizen of the country lives and dies with dignity. The pride of being an American is strongly supported by the welfare amenities provided to her children. Truly a democratic nation, the US provides many benefits through the Social Security Administration. The path of receiving those benefits is discussed below.
When you work, you are required to pay the SS Administration a certain amount of tax. After taking its cut to fund its operation, the administration forward the money to other people who no longer work. Research proves that post-retirement is supported by Social Security at a maximum rate. Social Security income is the most applicable and practical way to lead your life after retirement.
Traditionally speaking, the advice given to citizens is that they can reap benefits from the agency as soon as they turn 62. But contemporary financial planners say that, by delaying to start receiving benefits from age 62 to 66, there will be a rise of 8.25% in payments. Doesn’t that sound good? The longer you wait, the more you get. Also, the amount you will receive depends on how much you have contributed to the system in the past. If you have any doubt, you can check your expected Social Security income with the Social Security Benefits Calculator.
To receive benefits you should apply either by sending in a form or by applying online. Call center assistance is also given to people with queries. Important details like date of birth, Social Security number, previous income, and planned age of retirement should be submitted along with the application.
The benefits that you will receive as Social Security income are monthly benefits, survivor’s and disability benefits etc. The SS Agency is looking out for you to make sure you have a secured and happy life after retirement.
Cheque de estímulo para beneficiarios del Seguro Social sin trabajo
El paquete de estímulo colosal de Barack Obama contiene algo para casi todos, incluyendo un cheque de $250 para las personas que no trabajan y que reciben beneficios de Seguro Social.
La Administración del Seguro Social publicó el siguiente informe:
“El Presidente Obama firmó recientemente la ley titulada, «American Recovery and Reinvestment Act of 2009» (Ley de Recuperación y Reinversión Americana del 2009). Esta ley contiene una estipulación de un pago único por la cantidad de $250 a las personas que reciben beneficios de Seguridad de Ingreso Suplementario (SSI, sus siglas en inglés) o de Seguro Social.
Esperamos que todas las personas que tengan derecho a un pago, lo reciban a fines de mayo del 2009. No tiene que hacer absolutamente nada para recibir este pago.
Actualmente, estamos trabajando en los detalles sobre cómo emitiremos el pago especial a casi 55 millones de nuestros beneficiarios.
Tan pronto tengamos más información disponible, lo haremos público en esta página de Internet. Por favor marque esta página como un sitio favorito y chequéela regularmente. Gracias”
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