August 5th, 2010
11:30 AM ET
4 years ago

Social Security: More going out than coming in

New York (CNNMoney.com) – It's official: Social Security will reach its tipping point this year.

For the first time in nearly 30 years, the system will pay out more benefits than it receives in payroll taxes both this year and next, the government officials who oversee Social Security said on Thursday.

And while Social Security cash flow will likely head back into the black for a few years after that, starting in 2015 it looks to stay in the red for the long haul, the trustees said in their annual report.

Full story


Filed under: CNNMoney.com • issues
soundoff (56 Responses)
  1. Kevin in Ohio

    This is news? The social security system was NEVER actuarially sound..... and it is robbing future generations of their freedom.

    August 5, 2010 11:47 am at 11:47 am |
  2. jeff in SF

    The one-stop solution is to lift the salary deduction ceiling; that would make it solvent right there.

    August 5, 2010 11:58 am at 11:58 am |
  3. Joe from CT, not Lieberman

    Maybe if Congress hadn't been using the SS Trust Fund as a "rainy day slush fund" for the past 40 years, it would not be in this situation!

    August 5, 2010 12:00 pm at 12:00 pm |
  4. Barbara Wyatt

    If the Federal Government would Start Re-Paying what they have Taken out of SS their would be No Problem !!! Why do they get away with Not Paying their Loans ?

    August 5, 2010 12:00 pm at 12:00 pm |
  5. GOP

    I got an idea, NO!!! And if that doesn't work Obama is trying to take a way your benefits, raise your taxes, and destroy America.

    August 5, 2010 12:01 pm at 12:01 pm |
  6. Save America, impeach the treasonous republicans

    War in Iraq: more going out than coming in. War in Afghanistan: more going out than coming in. Tax cuts for the wealthiest Americans: more going out than coming in. Tax money given to red states: more going out than coming in. All these problems can still be fixed.

    August 5, 2010 12:04 pm at 12:04 pm |
  7. Thomas

    Two simple ways to fix Social Security

    1. Remove the $106,800 taxable income cap on SS tax

    2. Mandate that all money collected for social security can only be used for social security programs.

    Done.

    August 5, 2010 12:04 pm at 12:04 pm |
  8. Dutch/Bad Newz, VA

    Okay. But the solution is definitely not to privatize SSI like those teabag nuts Sharon Angle and Rand Paul suggest.

    August 5, 2010 12:10 pm at 12:10 pm |
  9. glenn a taylor

    well social security has become the new welfare,people come up with all kinds of reasons to collect it .on my block alone with just 20 houses on it,there is four families on it that get it ,that didnt work very long in there life that went to the doctors with all the right things to say,got diagnosed with some kind of mental problems.put on medication and sell them every first of the month.its like a drive thrue.i think if they didnt need the meds ,they dont need the ss.they should pass a law ,if your caught selling your drugs you lose ss for the rest of your life ,

    August 5, 2010 12:13 pm at 12:13 pm |
  10. Craig from LA

    The solution is FAIRNESS! Remove the current cap of $106,000 so the wealthy pay 6% of their income like us working folks. Why should the wealthy pay a smaller percentage? How is that right?

    The additional money generated would fund the system to the end of the century. Again, all people should pay 6% of their income, fair is fair.

    August 5, 2010 12:13 pm at 12:13 pm |
  11. jerry moses

    I wonder if we had the money that has been taken from the fund for the express use of dubious and possably nefarious purposes by our CONGRESS AND SENATE, PROBABLY A LOT DEPARTMENTS.

    August 5, 2010 12:13 pm at 12:13 pm |
  12. gt

    the politans in power new this.. they have done nothing,,, vote all the rangel and water corrupt politians out of office this year.....american is the change you wanted....

    August 5, 2010 12:14 pm at 12:14 pm |
  13. SLM

    CNN how about a report on how much social security is going to illegal aliens and non-residents who never contributed a dime. That would be news worthy.

    August 5, 2010 12:15 pm at 12:15 pm |
  14. Fair is Fair

    "For the first time in nearly 30 years, the system will pay out more benefits than it receives in payroll taxes."

    No problem. That means that there should be 30 years worth of surplus cash in the fund to tap into. Wait... what's that? You mean the federal government has been spending that surplus cash and that's all that's in there is IOU's?

    Social Security, indeed... more like Social INSECURITY. A ponzi scheme that would make Bernie Madoff blush.

    August 5, 2010 12:15 pm at 12:15 pm |
  15. Geoz

    Do you remember Al Gore's Lock Box? This would have been prevented by Al Gore. Hate him as much as you want, but he was right (again).

    August 5, 2010 12:15 pm at 12:15 pm |
  16. NancyLV

    The people collecting unemployment from the federal government should not feel so bad they won't get their social security anyway when it comes time for them to retire, this is just what is owed to them now instead of not being their when it is time to retire.

    August 5, 2010 12:15 pm at 12:15 pm |
  17. lois

    They had better be looking at ways to put money back into Social Security......The baby boomer crowd will see to it.......The Obama Adm should not funding terriorists organitzations and keep our money here in our country.........

    August 5, 2010 12:17 pm at 12:17 pm |
  18. Randolph Carter, I'm no expert but...

    I hope you all know that SS has nothing to do with the deficit. It is completely separate from the federal budget and is only in trouble because we've "borrowed" so much of it to pay for the republican jobs program AKA the Global War on Terror (TM). After the midterm elections, you'll start hearing a lot of talk about cutting and/or privatizing SS. Don't fall for it. Your corporate masters just want to steal the last big chunk of money that is left. Have a nice day!

    August 5, 2010 12:18 pm at 12:18 pm |
  19. jim

    Social Security was and is a great idea but once politicans got themselves involved it 's nothing more than a giant ponzi scheme. Never mind though ,all the newest illegals granted amnesty will pull us through the financial shortcomings of the program and everything will work out ok.Yeah. right !!!!

    August 5, 2010 12:19 pm at 12:19 pm |
  20. Orlando Patriot

    Amazing how Bernie Madoff is sentenced to 150 years for one of the biggest ponzi schemes in history but the U.S. government has been the accomplice of a much much bigger ponzi scheme called Social Security!! The system was destined to fail from the very beginning because it works just like a ponzi scheme and is destined to crumble.

    Think about it. The government IMPLIED that if you put your OWN money into the Social Security system (by force may I add) then you will have funded your basic needs when you retire. So where is that money? They are using YOUR money to fund SOMEONE else who is getting payments now on the very same promise made to THEM in previous years. So the ONLY way to pay those who were promised monies are to take from others TODAY with the promise THEY will have THEIR amounts later.

    By definition THIS IS A PONZI SCHEME!!! You have been lied to for years and will continue to be lied to and until the people stand up and tell the government NO!! I will fund my OWN retirement!! Imagine if the almost 13% (Your 6.2% and the employer match) that comes out of your check EVERY week went into YOUR account. AT LEAST NOW YOU WOULD HAVE SOMETHING!!! This ponzi scheme of Social Security has finally gotten to the point where the public is realizing it is unsustainable and you will NEVER get back what you put into it!!! WAKE UP AMERICA!!

    August 5, 2010 12:20 pm at 12:20 pm |
  21. glenn a taylor

    start by reducing payments by ten dollars a month just the people that collect for reasons like alcohol,drug addictions ,obesity,self inflicted mental health,drug or alcohol that caused disibilty ,smoking.they are all there own fault ,why should i have to work till death because of there self inflicked excuses,send this statement to your congress.

    August 5, 2010 12:22 pm at 12:22 pm |
  22. malabar

    What's ur 'Angle' on this dems? hahaha, ur just racists, thats y u hate her. c how easy that is to say and how stupid that is to hear? welcome to our world. maybe someday u patronizing, hypocritical dems will actually see us all as Americans and not thru ur prejudiced eyes, separating people by fear and hate

    August 5, 2010 12:24 pm at 12:24 pm |
  23. Rick CT

    No problem. They have that huge trust fund from all the excess contributions that have built up over the years and were set aside and wisely invested by our government anticipating just this day.

    August 5, 2010 12:25 pm at 12:25 pm |
  24. 'Bama Grandma

    Remove the cap and tax all earned income, problem solved.

    August 5, 2010 12:33 pm at 12:33 pm |
  25. Oy Vey Az

    Well maybe the darned trustees should have been watching the bottom line 30 years ago. Instead of wringing their hands and drooling over all that income they raided for other purposes.

    Proper Planing Prevents Piss Poor Performance.

    August 5, 2010 12:34 pm at 12:34 pm |
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