Social Security
- Thread starter MattF
- Start date
Pssshh...you obviously have never been out of the United States if you think that. At least 80%(probably more) of the world would trade places with a middle class american. If you think middle Americans get screwed, go check out the factories in India or china. Then you will see what screwed really is working 16 hour days for 62 cents per hour. THATS screwed.
Everyone in the United States lives like a king compared to most of the rest of the world. Even our homeless can make 100 bucks per day begging.
The money paid into social security is borrowed by the federal government and used for all manner of things. It is owed to the trust fund and must be paid back with interest.. Social Security is a defined benefit retirement plan and has nothing whatsoever to do with Ponzi schemes which are fraudulent.
We can agree that the government spends money in ways we don't approve of, but that has nothing to do with social security. Government deficits can impact social security indirectly, of course, as I pointed out in my post above.
I agree. However do not forget about disability coverage, survivor benefits to spouses and dependent children. Also consider that if you live well beyond age 78 you can not outlive your benefits. And yes, you will receive a monthly check well in excess of $794 for as long as you live and it will be indexed to inflation, whereas had you funded your retirement privately with bonds paying the same interest as those in the Trust Fund, all the while paying disability insurance premiums out of your contributions, and then on retirement paid yourself the same monthly amount you would receive from social security, it won't be too many years before you run out of money.
Quote from MattF:
So, I'm 31. Just got that nice little letter in the mail from SS that says where you are "at" in the benefits dept. <gag>
If I stopped working at age 62 and took the benefits, I'd get a nice $740/month.
67? $1,066/month
70? $1,322/month
Of course I paid 8800 in over 14 years of "working." (crap jobs) Talk about a quick return...if it's even around then(although it's still poverty levels as is)
Of course, the letter STILL states that "even if modifications to the program are not made, there would still be enough funds in 2037 from taxes paid by workers to pay about $760 for every $1000 in benefits scheduled."
So comforting...
For the smarter ones working the system, this may go too from today:
"An obscure strategy that allows Social Security recipients to boost their income by repaying benefits received in earlier years and then claiming a bigger monthly check based on their older age may soon disappear. Kiplinger's has learned that the Social Security Administration is moving to eliminate the so-called do-over strategy. If the agency gets its way, the new rule could take effect within a few months."
Man my generation is gonna be so screwed....they have NO idea....
You can see from your own numbers what a good deal social security is for you in particular. You definitely won't get "screwed" as long as congress gets busy and makes the necessary adjustments soon. If you possibly can, you'll want to contribute to a Roth IRA or some other supplemental retirement plan, because you can't live very well on social security alone. It is mainly intended to prevent impoverishment in old age. There won't be enough to pay for the gardener, maid, and pool boy.
The employer puts in an additional 6.2%. If you are self-employed, you pay the whole 12.4%
+ Medicare tax... 15.3% total.
America, Finland, Denmark, Sweden??
unless you are self employed as a trader as most on et should be. then you pay nothing.
even if you are self employed as a trader it is important that you find a way to pay in enough to qualify for ss.