Social Security is in much more trouble than you thought. A piece in the New York Times shows the Social Security Administration’s forecast are pretty much worthless. For example, their projected death rates look like this:
First of all, the curves should not cross. But more importantly, they should certainly never go to 100%! According to the Social Security Administration, I will never collect Social Security, because there is a 100% chance that I will die by 2028.
With assumptions like this, it’s easy to see that the Administration’s estimate that it won’t run out of IOUs until 2033 is worthless.
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