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Recognized Social Butterfly
Posts: 838
Registered: ‎09-03-2011

Re: Question what era we are in? So am I.

Message 1 of 4 (882 Views)

@mjp6060 I agree with you

 

Most people do not understand FICA stands for Federal Insurance Contribution Act....ignoring the word Insurance.

 

Social security is a group guaranteed insurance annuity that is inflation protected and designed to last your lifetime. Like with any group annuity, long lives are balanced by early deaths.

 

“Entitlement” is a political buzzword used to inaccurately pigeonhole all Federal Government social programs, Medicare, social security, unemployment and welfare programs as the same.

 

“Earned benefits” would be a more accurate term to call Medicare and Social Security. Because American workers have paid into these two programs their entire working lives in order to receive benefits once they’ve reach the age to claim them.

 

Valued Social Butterfly
Posts: 8,625
Registered: ‎08-18-2008

Re: Question what era we are in? So am I.

Message 2 of 4 (926 Views)

This link from the Social Security Administration - History of the Program

will tell you a lot about why it is going broke, in addition to what retiredtraveler said.

 

SS History - Ratio of Covered (paying in ) Workers to Beneficiaries 1940 - 2013

 

Social Security has ALWAYS been a program where those paying in are paying the benefits of those who are retired. 

 

Per the ratio chart:

In 1950, there were ( in thousands) 48,280 workers paying into the system; paying the benefits to (in thousands) 2,930.  In other words, there were 16.5 workers paying into the program and paying the benefits of retirees,disabled persons, or survivors and dependents.

 

In 2013, there were (in thousands) 163,221 workers paying into the system; paying the benefits to (in thousands) 57,471.  in other words, there were 2.8 workers paying into the program and paying the benefits of retirees, disabled persons, or survivors and dependents.

 

There is still about 2.8 Trillion in the Trust Fund but with 10,000 Boomers retiring EVERYDAY for a good while, that reserve amount is going down rapidly and will be depleted around 2034.  Unless something is done sooner, rather than later, ALL beneficiaries receiving a benefit in 2034 and after will their benefits cut by upwards of 20% - that condition and this solution is built into the SS law.

 

The Social Security History on the SSA website can easily answer your questions as to how we got here.  

Trusted Social Butterfly
Posts: 7,095
Registered: ‎02-14-2008

Re: Question what era we are in? So am I.

Message 3 of 4 (940 Views)

No. It is an entitlement. I'm not against it, but you are not paying anywhere near what you get out.

 

"....We found that, for Medicare recipients, the "worst" deal for any of these demographic groups is still quite generous. A two-earner couple, with one high earner and one average earner, who both turned 65 in 2010 would have paid $158,000 in Medicare taxes over their lifetimes, but can be expected to be the recipient of $385,000 in Medicare spending. That’s a ratio of $2.40 in benefits for every dollar paid in taxes -- and that’s the least generous ratio we found.

The highest such ratio we found was for one-earner couples in which the earner turned 65 in 2000 and was paid the average wage. Such a couple would have paid $39,000 in Medicare taxes but can expect to benefit from $306,000 -- a ratio of $7.80 in Medicare spending for every dollar the couple paid in taxes....".


Just think. The world was built by the lowest bidder.
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Conversationalist
Posts: 7
Registered: ‎04-02-2014

Question what era we are in? So am I.

Message 4 of 4 (946 Views)

I am of the generation boomer. My dad returned from th "Good War" and began a life full of hope and prosperity. This man with two years of high school became a father, a successful businessman, and a leader in the senior movement in the 60's. untill his death in 03. I had hoped for the same or better. Now I don't know where my world has gone. I am threaten everyday with the prospect of losing my social securty and my medicare by politicians that got through school BECAUSE of social security. Our medicare is an entitlement, nonsense. I have been paying for medicare since 1965. Thats not an entitlement that's paying a premium for future insurance.We must keep our President to his word.. He seems to have a bit of confusion about remembering his promise. Do not let him Speak Up. We got a $4.00 raise in our Social security but Congress keeps getting more.Is this Hoover's America? Is this the late 1800's when my grandfather came to America and worked for .45cents a week in the stockyards of Chicago. We ar suppose to be going forward and we are still blamed for the debt of the country, when we are a seperate fund that has be robbed by Congess by the tune of trillions of dollars they owe us. When do we claim that we have worked for these benefits of our labor and there is no topic of dicussion about changing our promised rewards.

MJ Prete