Posted on 01/10/2018 8:07:57 AM PST by Oldpuppymax
If you’re counting on Social Security to finance your retirement, you’re in for a big surprise—and not the good kind.
Let me give you two reasons why.
One: Social Security is going broke.
And, two: Even if it weren’t going broke, it couldn’t possibly cover the cost of a decent retirement.
Let’s look at these two reasons in a little more detail, and then I’ll propose a solution.
Social Security is going broke.
When this government program was set up in 1935, the average life expectancy was 60. But you couldn’t collect your first check until you reached 65. In other words, most people didn’t live long enough to receive Social Security. And most of those who did, didn’t collect it for very long. Today, the average lifespan is 79. So now, most people do live long enough to receive Social Security—for 10, or 20, or even 30 years.
Here’s another important piece of information: When the program started, the ratio between worker and retiree was 159 to 1. That means for every one person drawing benefits, 159 were paying in. Today the ratio is 2.8 to 1. Get that? We’ve gone from 159 workers supporting every retired person to fewer than three workers supporting every retiree. And it’s going down.
You don’t need an advanced math degree to figure this one out: Social Security is spending more than it’s bringing in. Far more. Its own Board of Trustees has said that it will be bankrupt within twenty years.
That doesn’t mean it won’t exist. It means that either the government will pay you less than it promised, or it will have to raise taxes to make up the shortfall. Most likely, both.
Sounds about right for an entitlement program...
(Excerpt) Read more at thecoachsteam.com ...
“”Ask Congress if they pay into the SS system. You may be surprised... and angered. Congress isn’t stupid, just as they exempted themselves from Obamacare, they, long ago, exempted themselves from Social Security.””
Not true; it was changed in 1984 - they DO pay SS tax...
http://www.latimes.com/business/la-fi-laz-congress-social-security-20150213-story.html
To kind of springboard off your post, I started paying into SS at age 15. At that time I earned something like $1.60 per hour. Sure sounds crazy compared to a $10 an hour minimum wage some kid may get today, but in reality, that $1.60 in 1973 would be the equivalent of about $8.60 today, so not really too far off your $10 comparative wage. Also, I think the federal minimum wage today is actually $7.25, which would have been $1.35 back then (although I don’t think many employers are actually paying the federal minimum these days).
Damn right its my money! Just try to steal it, give us a reason.
My retirement was wiped out 20 years ago in a divorce. SS is more than just a side issue for me. I actually paid the maximum amount more than a few years.
The law was written so that any surplus from the social security tax was put into the general fund, and the social security trust fund was given a special treasury note that could not be redeem or sold to anyone else then the federal government. This was done because of two reasons; 1. people did not trust the stock market at that time (great depression)2.economist thought that putting that much money into the stock market would cause massive problems.
I stand corrected. Thank you for that. Good to know.
“I’ve been saying this for years. For every 1 retiree 2.8 (Let’s call it 3) are required to support”
I paid in more than I will be getting in retirement.
But nothing about welfare going broke? it’s always the tax payer funded and promised Social Security.
The reaction of the Dems, media and AARP was a cacophonous, shrieking whine.
SS is doomed unless discussion of common sense reforms are met with a mature reception. Impossible in this climate.
>> Too bad it wasn’t given a chance. The dems used the ‘pushing grandma over a cliff’ lie.<<
I would be happy to get my contributions back n a lump sum and be on my own.
That ain’t gonna happen though.
“Gimme MY damned dollars and let me invest them as I see fit.”
Yup.
Problem is those many millions of people who will either spend their money early, or suffer from bad investments. The whole theory of welfare (SS included) is creating a “safety net”; like it or not, politicians aren’t going to let lots of people just die when your money could just be redistributed.
IIRC, it’s now down to 2.05 workers for every retiree.
LOL. Ask Congress if they pay into the SS system. You may be surprised... and angered. Congress isn’t stupid, just as they exempted themselves from Obamacare, they, long ago, exempted themselves from Social Security.
Also ask the average citizen who isn’t collecting yet if they think they will ever be “taxed on a tax”.. They don’t realize that if you earn money after you retire a portion of your SS will be taxed...
If you’re married and file a joint tax return, then a combined income between $32,000 and $44,000 puts you in the 50% taxable range, and income over $44,000 means that up to 85% of your benefits are taxable. If you’re married and file separately, up to 85% of your benefits can be taxed, regardless of your income.Jun 6, 2016
Surprise......
I want my meager pensions too, and keep yer claws off what I have done alone after divorce..
And when I am dead, it goes to family NOT GOV!
“Any responsible pension (read: legal) would be criminally prosecuted for administering such an absurd racket which fundamentally and structurally flawed.”
You are correct. Social Security, however, is NOT a pension, it’s a tax! All money collected is part of the general revenue.
You may invest. Too many foolish people would spend it only to be broke in 6 months again.
Let’s remember to thank Lyndon Johnson for moving Social Security into general revenue to fund his Great Society give always. Let’s also remember to thank DemocRATS for allowing illegals to get benefits.
I paid into Social Security and Medicare for 50 years. I won’t live long enough to get my money back
You didn’t recover after 20 years?
You do understand you retire in an area where the cost of living is low.
I had considered Ky, I will try to get home if I make it out of Tx alive in 3.5 years.
Its getting crazy expensive here.
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