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Yahoo
2 hours ago
- Business
- Yahoo
Social Security trust fund now projected to run dry in 2034, triggering massive benefit cuts
The trustees for Social Security and Medicare released their annual report on the status of the entitlement programs' trust funds, which are expected to be depleted sooner than previously thought. The Social Security and Medicare trustees "found that the Social Security and Medicare programs both continue to face significant financing issues." Trustees found that if Social Security's Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds were combined, the trust funds would be able to pay 100% of scheduled benefits until 2034, one year earlier than reported last year. The depletion dates for both Social Security trust funds advanced by three calendar quarters compared to last year. At the time of depletion in 2034, the trust funds would be able to pay only 81% of scheduled benefits, meaning Social Security recipients would see a mandatory 19% cut automatically. That's because Social Security benefits are financed through a combination of payroll taxes from current workers along with the trust funds, which would leave the program relying solely on payroll tax revenue once the trust funds are depleted. Cbo Says Us Budget Deficits To Widen, National Debt To Surge To 156% Of Gdp For comparison, the average monthly Social Security benefit as of January 2025 was $1,976, according to Social Security Administration (SSA) data. A cut of 19% would amount to a reduction of $376 per month, lowering the payment to $1,600 a month. Read On The Fox Business App Medicare's Hospital Insurance (HI) trust fund is projected to be depleted in 2033, three years earlier than last year's report, according to the trustees. At that time, 89% of scheduled benefits would be payable, leading to an 11% reduction in payments relative to pre-depletion levels. "The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust their expectations and behavior," the report said. Social Security Payments To Increase For Public Pension Recipients "With informed discussion, creative thinking, and timely legislative action, Social Security and Medicare can continue to protect future generations," the trustees added. The Social Security and Medicare trust funds are facing depletion due to the aging of America's population relative to prior decades, as the ratio of workers to retirees has shifted. Data from the SSA shows the ratio of covered workers paying taxes to the number of beneficiaries was 8.6 workers to beneficiaries as of 1955. That number has declined to 2.8 as of 2013 due to the aging of the population. The Federal Deficit Keeps Growing, And The Congressional Budget Office Has Solutions "Social Security and Medicare won't even be able to pay full benefits to current retirees – they will be insolvent when today's 59-year-olds reach the full retirement age and today's youngest retirees turn 70," Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, said in a statement. "Where is the sense of urgency? "It's time to start telling the truth when it comes to Social Security and Medicare. We are running out of time to phase in changes gradually and avoid harsh cuts, sharp tax increases or unacceptable borrowing," MacGuineas added. "Demagoguing this issue may be politically expedient, but it will ultimately prove ruinous for the tens of millions of Americans that rely on the programs." AARP CEO Myechia Minter-Jordan said in a statement it's critical for Americans to be able to rely on Social Security and Medicare in their retirements and urged Congress to take steps to protect the programs. "AARP members and older Americans nationwide consistently say that the future of Social Security and Medicare are the issues they care about most, and they stand ready to hold politicians across party lines accountable to strengthen these programs for the long term," Minter-Jordan article source: Social Security trust fund now projected to run dry in 2034, triggering massive benefit cuts Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
IOL News
5 hours ago
- Politics
- IOL News
The weaponisation of intelligence in SA politics
Nco Dube a political economist, businessman, and social commentator. Image: Supplied The recent revelation by former uMkhonto weSizwe Party Secretary General Floyd Shivambu, who claims he was sacked on the basis of a fake intelligence report, is neither new nor surprising in the context of South Africa's post-apartheid political landscape. Instead, it is the latest in a long line of controversies where unverified intelligence reports have been deployed as weapons in intra-party feuds, factional battles, and the broader contest for power, often with former president Jacob Zuma at the centre. The use of intelligence reports—real, doctored, or entirely fabricated—as tools for political ends is deeply embedded in our recent history. The so-called 'Browse Mole Report' is a prime example: a controversial document that allegedly implicated various political figures and was used as justification for decisive political actions, despite its questionable provenance. Throughout Zuma's presidency and beyond, a series of unverified intelligence reports have surfaced, each conveniently appearing at moments of heightened political tension, often to the detriment of Zuma's rivals or critics. These reports have not only been used to discredit opponents but have also served as pretexts for removals, suspensions, and even criminal investigations. The pattern is clear: intelligence, or at least the suggestion of it, becomes a bludgeon in the hands of those seeking to manipulate outcomes within the ANC (or its offshoots like the EFF and the MKP) and the state at large. Another one of the most infamous cases was the so-called 'Operation Check Mate' intelligence report. In March 2017, then-President Jacob Zuma abruptly instructed Finance Minister Pravin Gordhan to cancel an international investor roadshow and return to South Africa. The only explanation offered was an 'intelligence report' alleging that Gordhan was plotting with foreign interests in the UK and the US to overthrow the state. The report's existence and authenticity were never substantiated, and it was widely dismissed as a fabrication designed to justify Gordhan's removal and facilitate a cabinet reshuffle. In December 2021, journalist Thabo Makwakwa received a purported State Security Agency (SSA) report alleging that the United States had infiltrated the ANC's leadership to the point of influencing or subverting national policy. The report was used to justify a High Court gag order preventing publication, ostensibly for reasons of national security. However, the Supreme Court of Appeal later ruled that the classification of the report as 'secret' was unjustified and that its suppression served the political interests of the ANC, not the country. The court's decision exposed how the SSA's mechanisms were misused to fight internal ANC battles and highlighted the blurred lines between party and state. There have also been instances where fake intelligence reports were used to push false claims of judicial corruption. Political figures like Bantu Holomisa, Julius Malema, and former Public Protector Busisiwe Mkhwebane have been accused of leveraging such reports to undermine the judiciary's credibility. These tactics not only damage individual reputations but also erode public trust in key democratic institutions. Another example is the 'enemy of the state' dossier targeting the National Union of Metalworkers of South Africa (Numsa). This fake report surfaced during a period of intense labour and political contestation, aiming to discredit Numsa leaders and justify state surveillance or action against them. The report was later exposed as baseless, but not before it had caused significant disruption within the union and the broader labour movement. The Supreme Court of Appeal's rulings and investigative journalism have repeatedly shown how the SSA has been weaponised to serve the interests of particular ANC factions. The agency's resources and credibility have been compromised by their use in intra-party feuds, often with little regard for legality or national interest. Shivambu's claim that a fake intelligence report was used to justify his removal fits seamlessly into this established pattern. His experience reflects the broader reality of intelligence being weaponised in the service of political factionalism. The implications of his allegations are profound: they highlight the persistent challenge of verifying intelligence in a context where its very existence is often shrouded in secrecy and where the mere mention of a 'report' can be enough to destroy reputations and careers. Why Intelligence Is So Easily Weaponised South Africa's intelligence community has its roots in the clandestine operations of both the apartheid regime and the liberation movements. The skills, networks, and mindsets developed during those years did not simply disappear with the advent of democracy. Instead, they were repurposed, sometimes for noble ends, but often for the pursuit of personal or factional power. The ANC, as the dominant political force, has long been riven by internal divisions. Intelligence operatives and their reports are frequently drawn into these battles, not in the service of national security, but to gather dirt on rivals, discredit them, and sway internal elections. This dynamic has only intensified as the stakes have grown, with control of the state and its resources hanging in the balance. The Zuma Factor Jacob Zuma's career is inextricably linked with the intelligence world. As a former head of intelligence for the ANC in exile, Zuma has always understood the power of information and disinformation. His rise to power and his presidency were marked by a proliferation of intelligence-related scandals, from the so-called 'spy tapes' to the endless stream of dossiers implicating his enemies in plots, corruption, or treason. Zuma's embedded relationship with intelligence operatives, both official and shadowy, allows him to cultivate an aura of omniscience and threat: his opponents could never be sure what he knows, what he was willing to fabricate, or how far he would go to protect himself. The Mechanics of Fake Intelligence Reports Fake intelligence reports are typically crafted by individuals or groups with access to the language, format, and networks of the intelligence community. They are then leaked, sometimes anonymously, sometimes through willing intermediaries, to the media, party structures, or law enforcement agencies. The reports are rarely subjected to rigorous verification; their power lies in their ability to sow doubt and suspicion, not in their factual accuracy. Once in circulation, these reports serve multiple functions, discrediting political opponents by associating them with scandal or criminality. They then justify suspensions, removals, or investigations under the guise of 'due diligence,' creating an atmosphere of fear and mistrust, deterring would-be challengers from stepping out of line. The media, often hungry for scoops and exclusives, can become unwitting amplifiers of these reports. Even when journalists are sceptical, the mere existence of a 'leaked intelligence report' is newsworthy, and the damage to reputations is often irreversible, regardless of subsequent denials or debunking. Few, if any, of those responsible for producing or disseminating fake intelligence reports are ever held to account. The ephemeral nature of these documents and the secrecy that surrounds them make it difficult to trace responsibility or impose consequences. For those in power, the ability to instill fear and uncertainty is a potent weapon. Zuma's Legacy: Intelligence as a Source of Power and Control Zuma's presidency did not invent the use of intelligence as a political tool, but it did elevate it to an art form. By cultivating relationships with both official intelligence operatives and shadowy figures, Zuma created an environment where information, real or fabricated, became the currency of power. His willingness to deploy intelligence innuendo, to hint at plots and conspiracies, and to use reports (however dubious) as justification for political action has left a lasting mark on South African politics.
USA Today
6 hours ago
- Business
- USA Today
Could you invest your own FICA taxes? The new Social Security proposal explained
As Elon Musk took a figurative chainsaw to the Social Security Administration earlier this year, there were those, like U.S. Rep. John B. Larson (D-Connecticut), who suspect the move had a lot to do with a desire to privatize Social Security. Social Security privatization refers to transforming the current Social Security system, primarily a government-run program, into a system that allows Americans to invest their Social Security contributions into private accounts rather than paying into the federal program. The challenge If you've ever looked at a paycheck and wondered what FICA stands for, it's the Federal Insurance Contributions Act. Of your gross wages, 6.2% goes into FICA to pay for Social Security and another 1.45% goes toward covering Medicare. Your employer matches both amounts, resulting in a total contribution of 15.3% of your wages. Contributions made today support benefits for retirees, people with disabilities, and survivors of workers who have died. Think of it as today's employees helping fund the benefits of today's retirees. Since Social Security was first established in 1935, the understanding has been that each generation of retirees will be supported by younger workers still on the job. A perfect storm of demographic changes in the United States put the Social Security system in a vulnerable position. Between the declining fertility rate and increased life expectancies, there are fewer workers to support an ever-growing group of retirees. As of this year, 12% of the total population is 65 or older. By 2080, it will be 23%. In other words, the worker-to-beneficiary ratio is expected to drop dramatically, potentially impacting the SSA's ability to fulfill promised benefit payments. A move away from FICA? Among the proposals being made is the suggestion that Americans retain the 6.2% of their wages currently allocated toward FICA. Instead, they can invest it in private investment vehicles and decide how the money should be allocated. Supporters of Social Security privatization argue that the change would give individuals greater control over their retirement savings and potentially allow them to earn returns higher than those provided by the current system's fixed benefits. They also see it as a way to reduce the financial burden on the federal government. On the other side are those who worry that some Americans may not have the financial literacy or resources to manage investments on their own. Not everyone has experience managing assets, and it's concerning to think about throwing millions of people into the investment pool who may never have learned to manage their finances effectively. Another concern involves what happens to those who spend years investing for retirement only to hit a string of bad luck. That may mean making bad investment choices or even facing losses due to uncontrollable setbacks, like a recession or bear market. Opponents worry about what will happen to those who hit retirement age with little money put away through no fault of their own, and point out that the current Social Security system offers fixed benefits that retirees can count on. Countless issues to work through Even if Congress were able to come to a consensus and privatize Social Security, there are thorny issues that would need to be managed. For example: Partial privatization? Some supporters of Social Security privatization suggest allowing workers to invest a portion of their current Social Security contributions in private accounts, with the remainder allocated to the traditional pay-as-you-go system. While this model would lower the Social Security benefits earned by workers who choose this path, they would have a safety net of some sort to look forward to in retirement. Given how difficult it can be to get Congress to agree on anything, there's no doubt that deciding to upend the entire Social Security system will be an uphill (and long-fought) battle. In the meantime, the more immediate goal is to find a way to shore up the current system so that retirees will receive every dollar they've been promised. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
Hindustan Times
11 hours ago
- Business
- Hindustan Times
Monthly social security checks could be cut by this year if Congress doesn't act
The Social Security Administration's (SSA) trust fund is slated to run out a year earlier than previous predictions as per 2025's Trustee Report Summary released on Wednesday (June 18). This could put about 70 million current beneficiaries of the system at risk as the demographic in the US starts shifting from a younger tax-paying population to an older benefit-ridden one. Although numbers can alter from year to year based on fluctuations in the economy and regulations in the number of beneficiaries, one thing is clear: the SSA's funds will deplete sooner rather than later and leave millions in the lurch. The root of the issue lies in the fact that the number of dependents is rapidly increasing and is projected to overshadow those contributing to the system. As the program's data suggests, the number of people claiming benefits jumped 17% to 1.8 million in May 2025 and is already on the fast track to enlisting 4 million additional beneficiaries this year. In addition, the recent implementation of the Social Security Fairness Act has substantially increased the pool size and quantum of benefits per individual. Dependents of and those receiving public pensions are now eligible to receive full benefits from the program. This puts additional constraints on an already overburdened system. The report implies that funds are now expected to run out by 2034, a year earlier than what was predicted earlier. 'If the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund projections were combined, the resulting projected fund (designated OASDI) would be able to pay 100 percent of total scheduled benefits until 2034, one year earlier than reported last year. At that time, the projected fund's reserves would become depleted, and continuing total fund income would be sufficient to pay 81 percent of scheduled benefits,' the report claims. The only viable solution to this situation is to either reduce the benefits/beneficiaries or increase the amount of revenue generated. Poll after poll declares that the public is increasingly in favor of the latter option over the former, since they oppose the principle of depriving those in need of crucial funds. 'To ensure we serve the public and deliver high-quality service to the 185 million people who work and pay payroll taxes for Social Security and the 70 million beneficiaries who will receive benefits during 2025, the financial status of the trust funds remains a top priority for the Trump Administration,' said Commissioner of Social Security Frank Bisignano in a statement published by the US Department of the Treasury. One popular approach suggested by multiple advocacy groups is to raise the cap for taxable income from the current threshold of $176,100. This 'tax the rich' has garnered favor among those who believe the wealthy should be responsible for bankrolling the SSA's depleting funds. The idea of raising the full retirement age to 70 years instead of the current 67 has failed to gain much support amid fears that the same may deprive an older population of much-needed support. Amid recent job cuts and multiple other changes at the SSA, stability of income after retirement has become all the more crucial. As Bisignano said, 'Congress, along with the Social Security Administration and others committed to eliminating waste, fraud, and abuse, must work together to protect and strengthen the trust funds for the millions of Americans who rely on it – now and in the future – for a secure retirement or in the event of a disability.'
Business Upturn
18 hours ago
- Business
- Business Upturn
Axiscades Technologies shares jump over 2% to hit 52-week high after strategic MoU with European space tech firm Aldoria
By Aditya Bhagchandani Published on June 20, 2025, 09:28 IST Shares of Axiscades Technologies surged over 2% to ₹1,445 in Friday's session, extending their winning streak for the sixth consecutive day. The stock hit a new 52-week high of ₹1,479 earlier in the day after the company announced the signing of a strategic Memorandum of Understanding (MoU) with Aldoria, a European leader in Space Surveillance and Situational Awareness (SSA). According to the company's official statement, the partnership aims to bolster India's space safety, security, and sovereignty through advanced SSA solutions. 'Both organizations will evaluate opportunities for high-level data and system alignment to provide cutting-edge SSA solutions that contribute to India's space safety,' the release said. The collaboration is also expected to include joint development of scalable, end-to-end software and system integration concepts. The companies have reportedly been in discussion with ISRO and ISTRAC for the past five months, following which they chose to formalize this partnership to address India's evolving space needs. The market responded positively to this development, with Axiscades' stock not only hitting its record high but also emerging as a top gainer on the NSE for the day. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
