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What is the Significance of Early Curtailment of Social Security Benefits for an Average American?

David Crabtree

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An announcement last week about Social Security payouts possibly being reduced sooner than planned sounded an alarm for Americans whose retirement plans had already been thrown off by Covid-19.

However, financial experts say there is no need to get alarmed.

And, last week, U.S. Treasury Secretary Janet Yellen said that one of the dangers of the continuing government impasse over the debt ceiling, which could result in a government shutdown, is that “nearly 50 million seniors could cease receiving Social Security benefits for a time.”

According to a study by Social Security and Medicare trustees, if Congress does not solve the program’s long-term budget problem, payouts would have to be lowered by 2034 – a year sooner than originally predicted. If nothing is done about this by Congress, the consolidated Social Security trust funds will be able to only arrange 78% of the promised payments to the retired and handicapped recipients. According to some news sources, the figure is closer to 75%.

Credit – india-briefing.com

There is no mystery as to why the money is vanishing faster than anticipated. Look no farther than last year’s economic slowdown caused by the pandemic, which contributed to a significant reduction in employment, resulting in lower payroll tax income.

However, only because payments may have to be lowered sooner rather than later doesn’t really imply that Social Security coffers are drying out, as some worry. According to Monotelo Advisors, a Chicago-based financial and tax planning business, this is unlikely.

According to Monotelo’s website, it will be possible for the Social Security Administration to make payments of about three-fourths of the promised benefits, even if the present wage taxes that are being collected are the only total funds that become available to the Social Security till the middle of the next decade.

“While a 25% reduction in benefits could significantly hurt the retirement plans of those who are relying on their Social Security benefits, it is far less damaging than the program being shut down entirely,” Monotelo said.

In an email to GOBankingRates, a similar opinion was offered by Scott Thoma, retirement strategist at Edward Jones, arguing that one cannot assume that Social Security will get bankrupt just based on the assumption that the financial reserves of Social Security could get drained a year earlier than expected.

“There are changes that can be made to put the program on solid footing,” Thoma said. “In order for the program to remain fully funded through the 75-year projection period (they run it for 75 years — through 2095), payroll taxes would need to rise about 3.36%, or just under 1.7% for both the employer and employee, to fully fund the program. If no changes are made, benefits would need to be cut by 24% starting in 2034 (they would be able to pay 76 cents for every dollar of benefits).”

That is if nothing is done by the government to improve Social Security. Other modifications that might be done include raising the full retirement age, revising the lowering formulae, and eliminating the taxable income cap.

“The key thing to remember here is that Social Security is not necessarily going bankrupt,” Thoma said.

The potential for reduced benefits might tempt some retirees to apply for benefits early to get as much as they can before the funds run out. But that’s not necessarily the best strategy.

“If you start taking your benefits as soon as allowed, they will be reduced to 70% of your full retirement age benefit,” Monotelo noted. “Comparing this to the 75% that could be received even after the fund runs out, you would still be hurting your retirement by applying early.”

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On the Caspian shore of Russia, thousands of dead seals have washed up

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Russian authorities inspected the coastline.

Officials announced on Sunday that over 2,500 dead seals had been discovered near the Caspian Sea coast of Russia.

Authorities in the Russian province of Dagestan stated that the cause of the shocking mass deaths was unknown and that they believed it was probably due to natural causes.

The number of dead seals discovered off the coast on Saturday initially appeared to be 700, but later rose to 2,500, according to the Russian Ministry of Natural Resources and Environment.

The Caspian Environmental Protection Center’s Zaur Gapizov stated in a statement that the seals had probably been dead for a few weeks. He claimed that there was no evidence that they had been killed or caught in fishing nets.

The dead seals were thought to have perished due to natural causes.

According to a statement posted on the Telegram messaging app by the Dagestan natural resources ministry, samples taken from the seals’ internal organs did not contain any traces of pollution.

A North Caucasus fisheries official was quoted by the business newspaper Kommersant as suggesting that the seals may have perished due to protracted storms, although the news website Fontanka.ru suggested that the mass deaths may have been brought on by a natural gas leak from the sea’s abundant resources.

The Dagestan ministry stated after this incident that there was still a stable number of Caspian seals in the region, “ranging from 270,000 to 300,000.”

According to RIA, the seals are at the top of the food chain and have no natural enemies as adults. They can grow to a length of more than 1.6 metres (5.2 feet) and a weight of up to 100 kilogrammes (200 pounds).

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At the Union Square subway station, a man was robbed and cut in the face

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Police reported that a guy was cut on a Queens subway platform early on Sunday and was taken to the hospital.

Around 6 a.m., the attacker cut the victim with a sharp object as he was standing on a platform for the northbound F train at the Kew Gardens/Union Turnpike station, according to police.

Following the suspect onto the station, the victim argued with the suspect while he was attempting to retrieve his bag.

The defendant allegedly then produced a knife, cut the victim in the face, and fled.

The victim’s minor cut was treated.

The suspect managed to get away with the bag, which had a pair of boots and several equipment for building valued a combined total of approximately $420.

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man who killed 70 years old Massachusetts couple over a barking dog was found in Florida.

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man who killed 70 years old Massachusetts couple over a barking dog was found in Florida.

Police stated that they had apprehended the fugitive suspected of fatally murdering an elderly Massachusetts couple during a dispute about a noisy dog in Florida.

The Plymouth County District Attorney’s Office reported that Christopher Keeley, 27, was apprehended Thursday at 8:20 p.m. in Miami Beach, approximately 1,500 miles from the Marshfield home where he is accused of beating Carl and Vicki Mattson, both 70, to death.

The couple and Keeley allegedly got into a fight about a barking dog, according to the police.

According to court documents obtained by CBS, the alleged brute had been staying in the Mattson’s Gotham Hill Drive house as a courtesy to a family member but had just been ordered to leave.

According to Keeley’s arrest on a warrant as an out-of-state fugitive, Miami-Dade County jail records show this. It was unclear at first if Keeley had hired a lawyer.

 

Massachusetts couple

 

Questions were not immediately answered by representatives of the Massachusetts State Police and the Miami-Dade Police Department. It was impossible to speak with a district attorney’s office representative for Plymouth County right away.

A dog that had been reported missing earlier was also discovered dead inside the home, according to the DA. It’s unclear to whom the dog belonged or how it passed away.

This would not be the first time Keeley had turned to murder after a dispute.

In a dispute over a phone charger when he was 18 years old, Keeley broke his grandmother’s vehicle window, according to The Patriot Ledger. He was accused of intentionally causing damage to a vehicle.

man who killed 70 years old Massachusetts couple over a barking dog was found in Florida

 

According to Keeley, he attacked the couple after a dispute about a barking dog.

At least two further significant run-ins with the law involved Keeley. According to the publication, he was detained in 2016 at the age of 21 for organising and carrying out a group beating of a man with autism before snatching his cellphone and wallet. According to reports, a court in Massachusetts deemed Keeley “to be dangerous,” and he was subsequently given an 18-month prison term.

Keeley was recently charged with narcotics possession after it was claimed that he was found driving about with marijuana and Xanax. According to court documents obtained by The Ledger, he was charged with drug offences.

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