then die

Meaning you would contribute at most 40 years of your income into the fund

but then get rewarded up to 25 years of your income on interest out of the fund

So the Social Security bank should theoretically

go up in value

right?

no.

People are living much longer.

People are demanding more social security rewards

People are using social security loopholes which I can't explain in one chat atm

Some at 2004 said the social security fund is expected to run out in 2018

It's 2019 right now, and we're still doing fine

but the gap is still huge

It turns out the baby boomers are dying faster than estimated to be (since they were growing out of their estimated lifespan when currently calculating for the boomers)

and this current generation of zoomers are growing more and contributing more

So the current situation?

We're fine for now

But that gap in unfunded liability and funded liability is growing and growing.

for comparison, the 2004 article listed the gap was only 20%

Now our gap is currently at 37%

The gap is essentially "what if everybody wanted to cash in their checks right now" and the gap represents how much money the US needs to owe to pay it off to everybody

and it's not just social security

it's medicare as well

medical services are costing more and more

People contribute to medicare and don't get anything until they are old enough (65) to qualify

Then it turns out that you were paying $3/month to medicare because you were making shit income for 40 years

and 3 * 12 * 40 = $1440 over your working span

and using our compound interest formula and inflation calculator (assuming 2%)

That comes out your medicare reward should be about $34560

oh wait

that's what you should be getting

but your current medical bill is actually MORE THAN THAT

and since medicare promises to cover you as a senior

well fuck it you'er gonna get more than what you should have been getting

and then we start the unfunded liability crisis

having to borrow money from our budget to pay for your healthcare

it's not lik the government are incompetent

they just don't have 200 IQ to estimate this in their head

That’s what computers are for

it's not like the computers do it automatically

humans have to enter it in