10 Things You Didn't Know About Social Security

Reader Comments
Back to article

Thanks for a great article.
Beware! Some people are spreading false rumors about SS.
Consider the "Top 5 Social Security Myths"
Social Security is going broke.
We have to raise the retirement age because people are living longer.
Benefit cuts are the only way to fix Social Security.
The Social Security Trust Fund has been raided and is full of IOUs.
Social Security adds to the deficit.
details
http://pol.moveon.org/ssmyths/index.html

Ol McDonald of TX 7:23PM August 09, 2010

To Chuck of DE: Your comment sounds plausible except for the 'P.S.'. 401Ks are typically invested in public companies by purchasing shares of stock or bonds in mutual funds or ETFs. So how can the government grab those funds?

Gary Johnson of GA 5:08PM August 09, 2010

Unfortunately the article doesn't mention that the Social Security trust fund was converted to Treasury notes in the 1970s. The notes were then used to pay for government deficits. So yes, they social security fund has $2 Trillion in its account, enough to last until 2037, but the $2 Trillion consists of "IOU"s that have been issued to the fund by the treasury. The actual money is gone and spent by Congress for other programs. But because there are "IOUs" in the form of treasury notes, the Social Security administration hopes that most journalists and citizens don't look at the fund close enough to realize nothing is there and that the entire system depends on current taxes! The federal taxes this year go directly to pay for social security for this year. But it sounds great to say, there's a trust fund. To bad it's filled with IOUs from the government. P.S. the government is getting ready to do the same thing to 401Ks, so get ready to have your money withdrawn from your 401Ks and replaced with treasury IOUs!

Chuck of DE 12:34PM August 09, 2010