Apr

8

 "As the poor die earlier, Social Security isn't paying off"

This noise is a prelude to a means to testing. It will eventually be a reality.

BTW, has anyone really dug into the new 2012 mortality tables? IMHO, they are a real game changer for both SS and pensions.

I posit that most defined benefit plans will be underfunded once they have to apply the 2012 tables to their calculations.

Big changes are coming in the pension world. I'm seeing a lot more buyout offers being made, even from pension funds that are supposedly over funded.

Data point: I don't know if it was across the country, but I know that locally retired teamsters have seen their monthly pension checks cut by 40% - 50%. That's a real unpleasant surprise to couple who is living on their pension and SS. Couple that with the fact that their SS COLA was (almost) completely eaten up by the increase in medicare premiums and we have a recipe for a real problem cooking…..but of course, I've been saying this for years on this site.


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  1. Arch Stanton on April 12, 2016 4:33 pm

    > This noise is a prelude to a means to testing

    Agree SS will morph into a full-blown welfare program, either via means testing or, perhaps even more likely, via raising the cap on taxable earnings from the current $118,500 to infinity.

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