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Shocking social security news

From Birch Gold Group

On October 18, the Social Security Administration announced their plans for the 2017 Cost of Living Adjustment, which it applies to beneficiaries’ monthly checks each year to offset rising inflation. However, the news isn’t making anybody happy.

Beneficiaries will receive a measly 0.3% increase to their benefits, which translates to about $5 a month.

Not only does the tiny increase do nothing to help beneficiaries keep pace with price increases, but it’s coming in tandem with a major spike in Medicare premiums set to happen early next year.

All things considered, it’s becoming apparent that Americans can no longer rely on Social Security to provide them with a stable or comfortable retirement. The entire system is headed for disaster, and this news is just the beginning.

Unlucky Medicare News

As if the paltry Cost of Living Adjustment for 2017 wasn’t troubling enough, the Federal Government is adding insult to injury by introducing a Medicare hike of up to 22% (for some beneficiaries) right alongside it.

That means anybody receiving Social Security benefits will be faced with two wealth preservation challenges at the same time:

1.) Finding a way to keep up with inflation using a fixed income, plus this miniscule Cost of Living Adjustment

2.) Paying additional healthcare costs while Medicare premiums skyrocket.

USA Today points out that beneficiaries are essentially giving their Cost of Living Adjustment right back to the government:

“The even more bitter pill: Many current Medicare beneficiaries won’t be able to spend any of that extra money. Instead, they’ll likely have to send their COLA straight back to Uncle Sam to cover higher Medicare Part B premiums.

“Almost a third of Medicare’s 56 million beneficiaries could see their premiums jump 22% next year, according to the Medicare Trustees Report, putting the cost at an estimated $149 per month. Those unlucky 30% of beneficiaries include people enrolling in Part B for the first time in 2017, people who are on Medicare but who aren’t currently taking Social Security benefits and current enrollees who pay an income-related higher premium.”

The Ticking Social Security Time Bomb

To make matters worse, the Social Security system at large is growing less sustainable by the day. If you look closely at the numbers, likening it to a government-sponsored Ponzi scheme isn’t an unfair comparison.

William Baldwin explains why Social Security is on borrowed time:

“Bad news: The system is already bust. More money is going out in benefits and overhead ($714 billion a year) than is coming in from payroll taxes ($646 billion). For now, the government is covering the shortfall the way it pays for other things: by borrowing, collecting income tax and printing money.

“There’s supposed to be $2.7 trillion set aside in a trust fund to cover Social Security benefits. It turns out that this fund is a fiction. The savings account is empty.

“No, benefits are not going to be sliced right away. But the insolvency of the Social Security Administration means that down the road big changes are inevitable in payroll taxes or benefits or both.”

With the Social Security Administration struggling to keep the system running as it should – mostly holding it together with chewing gum and bailing wire just to meet today’s benefit payments – it’s only a matter of time before reality catches up.

One Smart Way to Hedge Your Retirement Against Uncle Sam’s Social Security Nightmare

If you don’t want to end up like many current Social Security beneficiaries, struggling to make ends meet with shrinking benefits and increasing costs, it’s imperative that you allocate a portion of your savings into something that’s both inflation-resistant and untouchable by the government.

Precious metals like gold fit the bill on both counts. Even if you’re a ways off from retirement, the time to start preparing is now. You can only assume the situation will degrade further as you get closer to retirement age, so acting sooner rather than later could be the smartest move.

  • stanleyhead

    Thirty Years Ago I ask my Congressman Charles Wilson about the Elected members of congress using the SS system to pay for items They Could Not get passed by vote. His answer was short with no excuse; It might be Immoral But IS Not Illegal. So most of the SS Reserve was whipped out by Americas elected officials to get reelected.

  • Joseph C Moore USN Ret

    Relying on the government that takes from what you have earned to dole back a portion is continuing the cycle. The federal government has grown WAY beyond its constitutional bounds. There are no boundaries in the bureaucrats minds.

  • deerflyguy

    Take the Social Security money that you earned and have coming, for as long as it comes, but do yourself a favor and rely on only yourself for subsistence in a post apocalyptic society. Make sure you have food, water, shelter, firearms and ammunition for protection. Buy gold and silver for future valuable consideration, but paper money may become worthless and can only be counted on as tinder for starting fires, and substitution toilet paper. Of course, there are many other items that will be necessary for long term survival, but those are the basics, and don’t rely on the government or others to provide them for you! Maybe that will be the case, but don’t bet your life on it!

  • ronbudro

    The government and the wealthy are our enemy who has been stealing from us for many years and what have we been doing. Voting the same asses back into office who have been doing the stealing.
    The Buddha said there are beings so ignorant they don’t even know enough to be ashamed of themselves. That is the American people who refuse to hear anything negative.
    So now comes the time when those lazy Americans will feel ashamed. And feel the suffering of their non action

  • digriff

    “There’s supposed to be $2.7 trillion set aside in a trust fund to cover
    Social Security benefits. It turns out that this fund is a fiction. The
    savings account is empty.

    THAT is the problem with SS. The politicians could not keep their hand out of the cookie jar…..surprising right? When the baby boomers were paying in, there was a major surplus. Where did that go?

  • 2summer4

    Another case where Americans suffer under Obama. Obama is giving social security monies to Middle East ‘migrants’ who he ushered into this country. They receive social security and other benefits as a welcome to America gift.

  • Stephen Korup

    Yes they do but the Strange info is what happened to the 2.7 Trillion that is supposed to be in an account to Cover Benefits, according to what we were told about a Year ago there was Money in the Fund that would keep Social Security solvent until about 2030 . A question that should be asked is why can’t Congress pay back the Trillions that they have borrowed over the years for other Programs

  • Stephen Korup

    I didn’t see what You had written and said almost the same thing , You make a Very Important and Valid Point , the President probably took most of that money to pay for that Failure of His ” Obamacare “, either that or is how they have been paying Michelle’s Vacation bill’s that she has run up to an Unsightly Amount.

  • bpgagirl22VAnow

    Why it’s in Iran’s hands now! Plain and simple. That’s what O sent them for that ransom SHIT! Just proves how much he hates all of us “old folks” and what we stand for! SOB POS.

  • Robert E Lierman

    O they can and will they will just just print it. BTW congress cant pay for anything unless they print it We the taxpayers are the only ones that can pay it. I recommend stocking up on silver and lead.

  • Cookie Vranish

    Obama is an incredibly hateful SOB! The people that voted him in will suffer also!

  • Stephen Korup

    Got it , Great Advice . Thank You My Friend .

  • Cookie Vranish

    Obama took 640 billion dollars from Medicare to fund Obama Care at the start of it! It looks like he spent that and now needs more! Got to take care of his Muslim brothers.

  • Stephen Korup

    I wouldn’t argue with You on that point , but what I don’t understand why did he have to take that money to fund That shit hole program. I thought he said that there was Tax money in the Budget to cover that .

  • branoli

    Be sure to stock up on plenty of lead to protect all that silver and all of your other possessions that someone else might think they want but don’t have the money to buy.

  • Michael Siegle

    The money is in a special account at Fort Knox …

  • deerflyguy

    The surprise isn’t that they spent it, the surprise will be if they leave anything behind when his term is up!

  • deerflyguy

    What he meant to say is what all politicians believe, which is that there’s always more where that came from!