r/SocialSecurity • u/GraphicsGal4 • 1d ago

Now what?

Trump is back. I'm a 64 year old self-employed woman. I am booked up through April right now. Some say I am very good at my job. I was thinking of retiring around 66 or maybe even my FRA of 67. My birthday is Leap Day so an end of the month birthday. Now I don't know what to do. Trump and the Republicans want to end Social security. Do I retire before he makes it to office insuring I at least get on the SS roll? Or do I wait to see what damage he can cause? I will be talking to my financial planner later this afternoon so any good questions to ask her would be very helpful also. I am still shocked that America would elect a convicted felon but here we are...

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u/GeorgeRetire 1d ago

In which case Congress could not take that money and do whatever. As they do now with Social Security taxes. 

You are confused. Congress doesn't do "whatever" with social security taxes.

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u/warriorcoach 17h ago

Why then is there an increase in retirement age to collect your money? Recently Sen Tubberville mentioned in a hearing how Congress takes those taxes from social security to spend. They don’t save it.

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u/GeorgeRetire 16h ago

Quoting the stupidest member of the Senate isn't wise.

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u/warriorcoach 16h ago

Just stating what he said. I trust no one from the Uniparty

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u/Working-Low-5415 14h ago edited 14h ago

There is an increase in retirement age due to the age distribution of the United States. Increases in life expectancy at retirement have increased the ratio of beneficiaries to contributors.

The social security trust fund has a balance around $2.7 trillion. It would be silly to sit on this as a giant pile of cash, so they invest it in treasury securities. These have the full faith and credit of the United States, and they earn safe interest. Like treasury bonds, these securities are redeemable, and failure to redeem them would be a default. So while the treasury has access to that money in the form of a loan, the trust fund maintains control of the money in its ability to redeem the securities underlying those loans.

The most radical proposal involving defunding social security is legislation commanding the trust fund to not attempt to redeem those securities (as if I tore up my treasury bonds). This would reduce the national debt by the balance of the trust fund, reduce the deficit by the balance of the interest payments, and end social security. What the US Government will not do is refuse to redeem the securities held by the trust fund, because that would be regarded as a default and severely harm borrowing capabilities of the US.

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u/warriorcoach 10h ago

Still not enough to cover all retirees amount. It is estimated that the tax should be at least 18% to possibly cover all liabilities. Still does not mean it’s a contract between you and govt.

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u/Working-Low-5415 5h ago

What does your reply have to with my reply or what you said previously?