Skip to comments.Do SS retirees now die before collecting all their lifetime contributions?
Posted on 11/20/2008 10:38:12 AM PST by Conservababe
Retirees receiving Social Security seem to believe that they will die before collecting all their lifetime contributions to the system, leaving a balance. But is this the truth? I know there are many variables so I was hoping someone could point me to stats.
If you had taken the social security taxes collected from you and your employer ($206,000) over the past 40 years and each year instead had put those into a bond paying 5%, you would now have a nest egg in excess of $450,000!!!!
And assuming as a retired person you only drew 5% a year from that $450,000 nest egg, you would receive $22,500 each year (nearly $2000 per month) and your family would still have the $450,000 when you died.
Yup those government programs are sure a great thing.
Re: “With every single pension or life insurance, the beneficiary is your spouse or your designated person.”
True — but don’t forget if Congress has its way, we will soon be forking over HALF of our post-death assets in 401Ks and IRAs to the GOVERNMENT thanks to that Theresa Ghilarducci (sp) “plan.” Beneficiaries will get only half of what’s left in our accounts when we die!!!
Absolutely- opt out if you please, privatize. Anything. To have someone actually address the problem would be divine.
what are you? a comedian? I can only assume that your post means you have no understanding of what it means to “means test” a program. How dare you call me by that, or any OTHER demonRAT name- you don’t know me , so don’t insult me. YOU wouldn’t like it it if I refered to YOU as “Barney”, would you?
It’s class warfare when you make younger gens pay a tax to support the older gen.- and most of THEM don’t need it, and certainly less than those still working and supporting young families.
MEANS TEST SS. If they don’;t need it, they shouldn’t get it. I don’t CARE how “long” they have paid in. ALL of us pay taxes our whole lives- it ENTITLES us to NOTHING- get it?
Isn't that just another way of saying "From each according to his ability, to each according to his need?"
Re: No, retirees are not dying before they extract as much money from the system as they put in.
They are extracting far more than they put in.”
In the first years of Soc. Sec., people tended to retire by 65 and died a few years later — if they lived much past 70 that was a big deal! But now, with people living so long —that Soc. Sec. just keeps getting paid out on the backs of younger workers.
My parents, Depression kids, always hated the idea of Soc. Sec. as it, like income tax in general, was designed to support those who would not or could not SAVE their income/assets for the future.
They recalled paying income tax at the end of the year, in total— all at once. Naturally that did not last long since so many people couldn’t/wouldn’t come up with the money to pay their tax share.
The current nightmare(s) have been a LONG time coming. Heaven knows how this country will recover from the multiple crises.
Re: “More class warfare. You want to means test people who have paid the maximum amount every year for 30 or 40 years and did the best they could to save for retirement? Screw that! You’re no better than the thieves that are stealing that money from me today.”
Agree, nothing is more corrupt than the idea of “means testing.” That idea, long bandied about, needs to DIE.
If you're going to confiscate from my income on the pretense that it is forced savings for retirement, then you must pay it back. All of it. If you intend to reneg on the the agreement, stop stealing my money. Now!
Re: “Dont forget: unlike money you save in your 401-K, money in your SS account doesnt become an asset for your estate. Instead, the government is able to remove you as a liability when you die and keep any excess contributions.”
Yes, they remove you as a liability when you die, and they don’t waste any time!
My elderly mother died on the 29th of October a few years ago. She had already received the October payment, via automatic bank deposit.
When I notified SS of her death, they demanded the entire month be repaid to them. It would’ve been nice to have kept most of that money to help defray cost of ambulance/ER fees but noooooooooo — they got the whole month’s payment back.
RE: “Dont forget that if you pass away before youre old enough to start drawing SS, you get exactly $0 of the thousands that were taken from you when you worked”
This is why my CPA has advised clients to begin taking SS payments at 62 whether they need the funds or not. Many people just want to “get something back.” I don’t necessarily agree with this practice, but a full 60 percent of early retirees take SS payments the minute they are eligible.
Given the fact that we ALL pay SS no matter what our income level and those with higher income pay more, it sounds like Obummer's wealth distribution plan to me and from your comment you are clearly supporting that idea.
I haven't done or posted anything that you could associate with Barney, so your comment on that point is moot.
You have to factor in your personal health, your tax situation, and whether or not you are still working (on the books).
Collecting at 62 definitely pushes you toward the “underground economy” if you want to keep working at something. That’s my plan.
Also there’s a little known provision that you can “reset” SS by paying back everything you’ve received to date and racheting up your benefit.
"We've established the most enormous gubermint entity ever conceived... and more people are worse off than ever. We've solved nothing! We've fixed nothing!"It is really quite demoralizing.
RE: “Also theres a little known provision that you can reset SS by paying back everything youve received to date and racheting up your benefit.”
Oh yes, I know all about that!!!!!!!!!!!!!!! Can’t remember who told me about it, but it was not the CPA.
Draftees into the military later that year (Roosevelt signed draft bill in September, 1940) were paid $21/month.
I’ve always heard that FDR insisted that benefits be universal lest the super-rich lobby for the program’s termination.
At this point, I don’t know if that’s what would happen or not. I noticed that a lot of those wealthy suburbs voted for Obama.
Makes sense. I saw a TV special on Social Security a few years ago that noted that current recipients receive everything they and their employer put in, on average, within seven years of retirement.
Interesting that many online retirement calculators offer you the option of excluding any potential $ from Social Security. I am assuming that I will receive absolutely nothing. If I do get any benefits I will be glad to spend them to stimulate the economy.
As was yours comparing me with BO’s wife
Good luck with that- I don’t see the government giving ANYTHING back. That includes our freedoms, which are in more danger than ever, now.
No. I have no problem with giving SS to those who truly need help- REALLY need help. It is unfortunate that our culture has encouraged a generation of children only too happy to dump their parents on the taxpayer. I, for one, don’t want to see Granny eating dog food (although, have you checked the price of THAT lately?).
My problem is this: Retirees with separate incomes from unions, 401Ks, other retirement savings, etc, paid off homes or some other way to boost their personal incomes, leaving SS as a means to pay their greens fees- THEY don’t need it. And there are far more of THOSE than “grannys-in-the-walk-up”. Seniors are the most invested and, arguably, the wealthiest population group. Most of them don’t NEED SS, yet all will tell you how entitled they are TO it.
No one is entitled to welfare of ANY type, no one is entitled to the product of another’s labor. Period.
Which, of course, is the basic argument against taxes of any type.
I don't think so...you are promoting wealth redistribution, something that the Obamas support. It's liberal class warfare, plain and simple. I call 'em as I see 'em and if you really feel that way about means testing for SS, you are on the wrong website and should expect responses such as mine.
It’s not your money. It’s a tax. There is no account in your name or a lockbox. Geez.
Excuse me...SS retirement benefits ARE NOT welfare. I have worked all my life (actually since I was 7) and paid in (since I was 15, I lied about my age to get the job as I was homeless), I should be able reap the rewards of MY OWN labor.
no one is entitled to the product of anothers labor. Period.
Make up your mind...you are contradicting yourself. Means testing is exactly that, providing others that didn't bother to work or plan ahead with the fruits of MY labor because you think I don't deserve it because I worked hard and saved for retirement. You can't call yourself a conservative if you truly believe what you do.
You must make very good money.
We need to "give with a warm hand" -- plan it such, so your beneficiaries get most of those assets before Big Fist Government takes it all.
Social Security IS wealth redistribution (or more accurately, income redistribution) already.
Money is seized from someone who earned it via FICA tax, and is then given directly to someone who else who didn’t earn it via a Social Security check.
How is that not income redistribution? Of course it is. It’s redistributed from working people to retired and disabled people.
I don’t favor means testing, but it’s dishonest to pretend that SS in it’s current form is ANYTHING other than a straight income redistribution scheme.
They most certainly ARE welfare. It doesn’t matter how long you have worked- it is not, nor was it EVER a “retirement account”. It is a TAX on the backs of your children to support you. YOU paid the tax to support those before YOU.
If you don’t NEED it, you should NOT GET IT. If you DO need it and can prove it, then NO ONE would deny it to you.
I do not understand HOW I could make my meaning any more clear.
You are NO conservative, you are a socialist. I’m sure you will enjoy the Obama administration.
My father, who died in January 2007 at the age of 97 figured out that he had used up his SS balance in the 1980’s. He got over 20 years of benefits he didn’t contribute.
You ARE an idiot.
Wow, snappy comeback. Get lost Michelle.