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Discussion in 'Politics' started by Crabtownboy, Mar 5, 2016.
Ummm..people who have Social Security paid into it. That is not socialism. So once again you post a very flawed meme.
They pay into it, but they will, on average, receive back more than they put in. In other words, they will receive payments from other people's payments. Also, the two women may not have put anything into Social Security, but are widows living on what their husbands paid in and also receiving more than he put in.
According to the institute’s data, a two-earner couple receiving an average wage — $44,600 per spouse in 2012 dollars — and turning 65 in 2010 would have paid $722,000 into Social Security and Medicare and can be expected to take out $966,000 in benefits. So, this couple will be paid about one-third more in benefits than they paid in taxes.
If a similar couple had retired in 1980, they would have gotten back almost three times what they put in. And if they had retired in 1960, they would have gotten back more than eight times what they paid in. The bigger discrepancies common decades ago can be traced in part to the fact that some of these individuals’ working lives came before Social Security taxes were collected beginning in 1937.
Some types of families did much better than average. A couple with only one spouse working (and receiving the same average wage) would have paid in $361,000 if they turned 65 in 2010, but can expect to get back $854,000 — more than double what they paid in. In 1980, this same 65-year-old couple would have received five times more than what they paid in, while in 1960, such a couple would have ended up with 14 times what they put in.
Not true. I paid into Social Security for almost 60 years and I paid into my IRA/401k for about 45 years. I paid in roughly the same amount over those years but now, today, my private investments pays roughly twice what my Social Security pays and Barclays still makes a tidy profit on my investments.
This is just nonsense. The money is not left lying around in a dresser drawer somewhere! It is invested. The latest information indicates the annual effective interest rate (the average rate of return on all investments over a one-year period) for the OASI and DI Trust Funds, combined, was 3.37 percent in 2015. That is down from 3.6% in 2014. The present low interest income is due to there being less than 1% inflation for the past two years.
At the average rate of return over my working life of $4.6%, my investment would double every 12 years. That means my first years investment would double at 12 years, then double again at 24 years, then double again at 36 years, and yet again at 48 years, and finally one last increase of only about 50% for the last period prior to my retirement.
Now do the same thing for every single year I paid into the SS Trust Fund, shortening the overall terms by one year each year.
That means my contributions, plus interest earned, exceeds what I paid into the system.