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AS A RETIREE FOR WHOM Social Security payments are my financial foundation, it’s worrying to hear about a potential cut in benefits 11 years from now—because I’ve seen this movie before.
If Congress does nothing, benefits would drop 23% in 2034. It’s an unfathomable situation, but one that most pundits believe is unlikely. Let’s hope. Thankfully, I feel secure that my state pension—one third of my monthly income—will stay solvent.
More than 40 years ago, Congress and President Reagan made significant changes to Social Security’s rules, including one that would have hurt my family if it had happened just a few years earlier. As a fulltime college student in the 1970s, I received a monthly payment from Social Security because my father was disabled by a stroke when I was 12 years old.
Since 1981, payments to children of retired, disabled or deceased parents typically cease at age 18 or upon high school graduation. The policy changed because many elected leaders believed needs-based financial aid programs, such as Pell grants, would fill the void for lower-income families. At the time, student enrollment and eligibility could not be readily verified, as it can today, thanks to the electronic filing of the FAFSA, the Free Application for Federal Student Aid form. In 1978, the Social Security Administration estimated that as much as $150 million a year was being overpaid because students were no longer going to college fulltime.
Although the benefits weren’t needs-tested, it was reasonable to assume that a college student whose parent was disabled, retired or dead didn’t have significant family income. Average 1972 benefits were $1,017 for students from the lowest income families (under $2,500 a year) and $1,344 for students from the highest income group (over $20,000), according to a 1977 study by the Congressional Budget Office.
I can’t recall precisely how much I received each month, but I think it was about $100. It certainly helped. I attended a state university that had much higher in-state tuition than most others. I was fortunate that my grandfather paid my tuition for all four years, but the Social Security payments helped considerably, especially with room and board. I also worked part-time and summers.
Could I have gone to Penn State or any other college without the help of Social Security? Yes, but it wouldn’t have been as easy, and I doubt I’d have been eligible for Pell grants or other assistance because my mother was still working.
Because of the help I received, I’ve always been happy to pay my share of Social Security during my 40-plus years of work. But today, my benefits are more than a helping hand. They’re my bedrock. I hope Congress finds a way to shore up the program without making cuts.
Dwight Eisenhower said: “Should any political party attempt to abolish social security , , , you would not hear of that party again in our political history. There is a tiny splinter group of course that believes you can do these things. Among them are a few Texas oil millionaires and an occasional politician or business man from other areas. Their number is negligible and they are stupid.”
I’m afraid the “splinter group” Eisenhower refers to has grown into a movement during the past decade. True, Social Security can be sustained long-term with a few simple fixes, Everyone knows that. But our political leaders lack the courage to make those fixes. More alarming, some politicians now–and they are a growing number–would be perfectly willing to see the end of Social Security, which they see as a “socialist” program of the nanny state. Few of them will openly advocate to end Social Security. Their long-term plan, I believe, is simply to do nothing and watch the program slowly fade away. And, pardon my cynicism, I don’t thing voters will rush in to save the program. Many of them will not notice what’s happened till it’s too late..
Wise individuals most are indeed.
We all know moneys fungible in .gov.
However as Jeffs -24 in red illustrates, few appreciate truths our children or next generations will face.
Journalism has its agendas, polices & guidelines. Like everything.
Some contributors recognition of truths and insights wish to discuss avoid and they’re uncomfortable with.
As we know history repeats itself.
Few recognize the broad implication denying that SS resembles a Ponzi scheme. Socialism indeed has consequences, unfortunate ones.
As other contributors have alluded, someone or something will save the day.
All of todays youths will face obstacles to overcome.
As have every generation.
Many will sweat and bleed along the way.
The Mariana ridge, a deepest point on this planet with life of one sort or another, is less explored till recently than space, scientifically speaking. Could be new I.T. means.
sorry for editing late, my error, again. 🙁
Best2All.
I was in the same position, receiving a small SS benefit as a young adult. It stopped in 81, just as I started college. Thankfully, back then a semester a community college was just $500, later university was $1000/semester. So I ended up working my way through school with no debt. I have some sympathy for students today, minimum wage has not inflated relative to tuition, so it would be quite difficult to work ones way thru college today, even going the community college/state school track that I took. Albeit there are certainly many students that take more loans than they need or choose an expensive college, all for low pay employment upon graduation. Heck I had to use a job catalog to see projected wages, now a days, one click away.
I suspect that SS is safe for near term retirees, but will likley be reduced for future retirees. Seniors vote…