Recently people have indicated, on this board, that perhaps SS has limitless funds.
This month's AARP Magazine (Sept/Oct 2011 issue) did a great article on SS funding.
Some of the most interesting points:
*More than 80% of SS's revenue comes from the FICA payroll tax which imposes a 12.4% tax on income with 6.2% paid by employers and 6.2% paid by workers. 15% of additional funding comes from interest on reserves (funds set aside) and 3.1% from income taxes paid on benefits by higher income retirees.
*FICA revenue not needed right away is credited to the SS Trust Fund, which are the reserves, which are invested in securities.
*The Trust Fund is growing and may peak (approx) at $3.7 trillion in 2022. Then it heads down as boomer retirements accelerate and bonds are redeemed.
*Longer life spans and lower birthrates mean more SS beneficiaries as a percentage of the population, fewer workers paying into the system due to high unemployment, and payroll taxes for the system haven't been raised since 1990
Rt&Lt thumb arthroplasty 2012 ; RT TKR & Bilat CTS 2011
Fusions: L5-S1 (87), L4-S1 (93), C5-C7 ('06), L3-S1 ('10)
C5-C7 foraminotomy 08
Last edited by SpineAZ; 08-15-2011 at 04:16 PM.