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To: ratzoe

On average, people take more out of Social Security than they put in.

http://www.politifact.com/truth-o-meter/article/2013/feb/01/medicare-and-social-security-what-you-paid-what-yo/


22 posted on 11/09/2014 6:37:24 PM PST by Amity
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To: Amity

The article says the combination of social security and Medicare yields more, not just social security. And, if you read closely, you will see that the average couple actually does get less social security benefits than they pay in taxes. Medicare is where they come out ahead.

There are two problems with this:

1. it assumes everyone spends the same amount on medical care. Someone that takes care of themselves will have less medical expenses. Of course, they will probably live longer, tipping they scales toward more SS benefits.

2. The average income couple is representative of a very small set of people. I did the calculations: the couple with median incomes “break even” on SS: their taxes and benefits almost balance out. But, if your average lifetime income is less than the median, you get a better deal. If your income is higher than the median, you get a raw deal.

The farther your average lifetime income departs from the median, the better or worse deal you get. This is the part that few realize, and if it was better known, there would be a lot less support for SS - because it would expose the means testing that makes it almost indistinguishable from other welfare programs.


24 posted on 11/09/2014 9:54:49 PM PST by justlurking (tagline removed, as demanded by Admin Moderator)
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To: Amity
On average, people take more out of Social Security than they put in.

Thanks for the link
27 posted on 11/10/2014 4:47:48 AM PST by ratzoe (damn, I miss Barbara Olson)
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