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.

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Filed under: CNNMoney.com • issues
soundoff (56 Responses)
  1. Marge

    That is only because starting with Reagan who really raided social security to balance his budget after giving huge huge tax breaks to the rich social security has been raided terrible over the years. If the money owed to the system plus the interest it would have earned social security would be solvent into the next century. AND REGARDLESS OF THOSE IGNORANT REPUBLICANS WHO ARE SALAVATING at the chance to give those billions of money to wall street , social security is NOT, REPEAT NOT NOT NOT NOT GOING BROKE.

    August 5, 2010 12:42 pm at 12:42 pm |
  2. Mike

    Sounds like a ponzi scheme to me. The Justice Department should investigate it.

    August 5, 2010 12:46 pm at 12:46 pm |
  3. snow

    This is what happens when the government gives social security to those not entitled like people in prison.

    August 5, 2010 12:47 pm at 12:47 pm |
  4. Annie, Atlanta

    "More going out than coming in." No kidding. We need our jobs back.

    'Bama Grandma – I agree! That cap makes no sense.

    August 5, 2010 12:56 pm at 12:56 pm |
  5. hrh

    The solution is simple, and well-known: the cutoff for paying into SS is now about $120,000 a year. Abolish the cap and have people pay into the system, no matter how much they earn. Makes sense, the more one earns, the more one is able to pay, and the amount is such a piddling percentage of earnings. But the political party owned by the upper echelon will have none of it.

    August 5, 2010 01:00 pm at 1:00 pm |
  6. Rick McDaniel

    Ya know......the oppotunities to fix this, have been there, for a long time. What stands in the way? The government's unwillingness to set the monies aside, for individual accounts, that they cannot borrow from!!!

    August 5, 2010 01:05 pm at 1:05 pm |
  7. Curt Stout

    Social Security would be fine if the government would just quit taking money out of it for other things. That is why there is a problem if in fact there is one. Leave the money ALONE.

    August 5, 2010 01:08 pm at 1:08 pm |
  8. Ricky

    Let Madoff types run it privately as Bush wanted and then see what will happen!

    August 5, 2010 01:13 pm at 1:13 pm |
  9. Darth Vadik, CA

    Well this is easy, make the rich boys pay for the social security more, they only pay up to $80,000 of what they make and the rest of it is not taxed, if you raise that top level to $250,000, then SS would be safe for another 50 years, if you bring it up to $500,000, then it would be safe for 100+ years.

    If you put the SS money in the money market, Maddoff will just steal it from you, and you'll have NOTHING.

    August 5, 2010 01:13 pm at 1:13 pm |
  10. Steve A. , New Braunfels , Texas

    No problem- bring the jobs back to America and there will be more people paying into it, and quit giving it to every illegal imigrant that crosses the border. no more ankor babies...problem solved.

    August 5, 2010 01:16 pm at 1:16 pm |
  11. Denise

    Absolutely eliminate the annual cap. The whole concept of social security is the working class contributing to the welfare of the retired class. Not "Oh, I'll never be able to withdraw as much as I put in if I have to pay social security on all my earnings." If the middle class pays on their entire salary all their working life, so can the rich.

    August 5, 2010 01:16 pm at 1:16 pm |
  12. Brad

    There is roughly 2.4 trillion dollars in the trust fund invested in what the entire financial world considers the safest investment in the world, US Treasury bonds, just like the one's we sell to China and other investors to finance our wars and othere deficit spending. If I am an investor I certainly expect my bonds to be paid and so should the SSA. The first quarter shortfall of SSA was around $2 billion dollars. If the bonds are paying even 1% that's $24 billion in interest per year, without even touching the principal. The sky simply isn't falling on SSA.

    August 5, 2010 01:21 pm at 1:21 pm |
  13. JonDie

    And so why didn't Bush and the Republican-controlled Congress fix this between 2001 and 2007? Oh that's right, the Republican-plan was to put Bernie Madoff and the Wall Street bankers who nearly put the country into a second Great Depression in charge of a privatized Social Security System...and for some reason Democrats didn't go along with this.

    August 5, 2010 01:24 pm at 1:24 pm |
  14. lil

    It will be even less if the republicans dont stop sending our jobs overseas with their tax cut for the very rich.

    By the way tell your good old gop senators to leave the 14th amendment alone. Just stop saying no and voting against their own ideas just to keep the economy from going. Think about the middle class and stop just trying to use anything to advance themselves.

    Hi gop we are on to you.

    August 5, 2010 01:26 pm at 1:26 pm |
  15. Greg Pottstown PA

    Marge August 5th, 2010 12:42 pm ET

    That is only because starting with Reagan who really raided social security to balance his budget after giving huge huge tax breaks to the rich social security has been raided terrible over the years. If the money owed to the system plus the interest it would have earned social security would be solvent into the next century. AND REGARDLESS OF THOSE IGNORANT REPUBLICANS WHO ARE SALAVATING at the chance to give those billions of money to wall street , social security is NOT, REPEAT NOT NOT NOT NOT GOING BROKE.
    ____________________________________________

    What do you think it means when you are paying out more than what you are bringing in? It means that you can't sustain the current situation. In this country we call that going broke.
    Btw, Did you actually try to blame Regan for this? Do you believe the crap coming out of your own mouth?

    August 5, 2010 01:30 pm at 1:30 pm |
  16. bill

    bama grandma.is right on .remove the cap everyone that gets a paycheck pays period.THEN KEEP CONGRESS OUT OF IT.PUT IN A TRUST FUND.NOT BUSHES STOCK MARKET.

    August 5, 2010 01:34 pm at 1:34 pm |
  17. Victim of Puritan-Fascists

    Stop building billion-dollar ships for the Navy that we don't need to fight Cold War era battles that we never needed to fight. Then fund SS properly.

    August 5, 2010 01:37 pm at 1:37 pm |
  18. awaitingliberalizationbyCNN

    Republicans are in hot, steamy Kansas City. Now where were those fun, rich union executives that Obozo slammed Bush and the Republicans to yesterday? Republicans are probably paying their own way to, not using the stimulus money Obozo stole from us to give to the union executives. The man has to pay for an audience, what a joke.

    August 5, 2010 01:43 pm at 1:43 pm |
  19. Fed Up

    If the Feds had left the funds alone, instead of including them in the General Fund to spend as they wish, there might be more in the fund. That way, it would have been used for the purpose intended.

    August 5, 2010 01:44 pm at 1:44 pm |
  20. NYCitizen

    And HOW MANY ILLEGALS are benefitting from our System? They work off the books, don't pay into the system like we do, or pay any sort of taxes and you are suprised that Social Security is in the red? And the Obama Adminstration has the audacity to file a motion against Arizona's immigration laws? You gotta be kiddin me!!

    August 5, 2010 01:46 pm at 1:46 pm |
  21. awaitingliberalizationbyCNN

    It is a Ponzi scheme. I got some "franked" mail last nite from my democratic congress idiot who told me how he is going to fight privatization of Social Security. I did a calculation, If I had invested this money myself, instead of giving to the government and having the liberals give it to the dope smokers and unions, I would have done much better being privatized. Another democratic lie (there are so many).

    August 5, 2010 01:46 pm at 1:46 pm |
  22. BADGER

    The Republican myth continues, imagine if Bush would have gotten his way and privatized SS no one would be getting anything. Now their next move is to abolish the minimum wage. When the hell is working America going to realize that the Republican's want only the rich and the very poor in this country? Work your whole life and die with nothing. No pensions, No health care, No living wage, No nothing for the working class is the battle cry of the Republicans and most of the idiots that vote for them have been voting against themselves, the dumbing of America is working well. At least I got my guns, and the gays can't get married, and oh yea we got to get our country back from that black guy. More tax breaks for the rich, the middle class and poor can pick up the tab. GOD I'm glad for Republican's.

    August 5, 2010 02:01 pm at 2:01 pm |
  23. Chessnutz of Liverpool NY

    LOL I'm screwed, a late boomer from 1956, they will have to raise the SSI age to 82 by the time I'm eligible I'll be dead.
    Maybe I better start selling crack on a street corner to support myself after age 55.

    August 5, 2010 02:03 pm at 2:03 pm |
  24. diridi

    fix and save...it is advise...i give to America....or else it is going to be chaotic society...

    August 5, 2010 02:14 pm at 2:14 pm |
  25. Need new leadership

    Yep... just like all unsustainable democrat policies. Social Security, pensions, Medicare, Medicaid and now Obamacare are all unsustainable programs.

    There are fixes, but Obama refuses to listen to those that have real ideas.

    August 5, 2010 02:16 pm at 2:16 pm |
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