[yorkiemom]

The problem is that social security was supposed to function like an annuity.

That's how it's been sold to us over the decades but the fact is that it's never been structured like an annuity. From the beginning, Peter payed for Paul's retirement.

Exactly. It is Socialized Security. Those paying in very little will get all of it back and a lot more. Those paying in the max will NEVER get all their money back.

I was doing the calculations on how much my hubby will pay in if he works from 52 to 67. He will pay in about $120,000. If he lives to his expected life span, he will get back $42,000 from paying in that extra for 15 years. If he quits working at 52, he'll not get screwed over as much by the U.S. government. If we have enough saved and a good homestead when he's 52, there's no point him working longer - other than for 401K matching money.

Very few people realize how socialized SS is. And that they are paying in just to subsidize others.

[Sparticus]

Very few people realize how socialized SS is. And that they are paying in just to subsidize others.

Absolutely. Every dollar that is payed in today, goes right back out to pay for current retirees benefits. Everything that current retirees paid in the past went out right back out to cover the cost of their parents' benefits. Any extra money received by SSI was spent immediately on that years general Federal budget.

A wise person won't count on SSI being available in 20 years and any savings people manage to acquire is in danger of being inflated away. An independent retirement as an old age lifestyle is going the way of the dodo bird. I guess the moral is be nice to your kids.