Francis Ryan’s Post

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State Rep Retired - Commonwealth of Pa; Colonel, USMCR (Ret); CPA, CGMA

The Social Security trustees announced just recently a significant improvement in the financial status of the trust fund. Even though the trust fund is still significantly under funded changes in a positive direction. This is a quote from the most recent announcement: “If the OASI Trust Fund and the DI Trust Fund projections are combined, the resulting projected fund (designated OASDI) would be able to pay 100 percent of total scheduled benefits until 2035, 1 year later than reported last year. At that time, the projected fund’s reserves would become depleted, and continuing total fund income would be sufficient to pay 83 percent of scheduled benefits. (The two funds could not actually be combined unless there were a change in the law, but the combined projection of the two funds is frequently used to indicate the overall status of the Social Security program.)” Incidentally, the 2023 report had the benefit reduction down to 80% of benefits. That being said, the better solution to the Social Security problem is to allow the trustees to invest the funds in investments other than government securities as anyone with fiduciary responsibility would be allowed to do. Obviously controls would have to be put in place to prevent the government from controlling the market more than they already do. But that can be done outside trustees and putting the voting shares of companies in blind trusts. Failure to do that makes this option very unpalatable. https://lnkd.in/e9-xiW4s

Fact Sheet: 2024 Social Security and Medicare Trustees Reports

Fact Sheet: 2024 Social Security and Medicare Trustees Reports

home.treasury.gov

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