Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

This is why you shouldn’t count on Social Security: It was Meant as a Last Resort
MarketWatch ^ | 10/28/2017 | Alessandra Malito

Posted on 10/28/2017 3:57:33 PM PDT by SeekAndFind

Many Americans rely on Social Security benefits to see them through retirement, but how much should they really be depending on those checks?

Not very much, experts said.

Social Security is not being used as it was intended, said Ric Edelman, executive chairman and co-founder of Edelman Financial Services in Fairfax, Va. and author of “The Truth about Your Future.” When Congress and President Franklin D. Roosevelt created the system in 1933, the program was designed to be a safety net for Americans — for those who had no financial support. Now, “a great many Americans are relying heavily on Social Security to maintain their lifestyle in retirement.”

More than 66 million people received Social Security and/or Supplemental Security Income in August, more than 46 million of which were Americans 65 and older. Social Security makes up a majority of cash income for 61% of elderly beneficiaries, and a third rely on this benefit for 90% or more of their income, according to the Center on Budget and Policy Priorities, a governmental budget policies think tank based in Washington, D.C. The average monthly retirement benefit under the Old-Age and Survivors Insurance was $1,326, according to the Social Security Administration.

Retired workers received an average of $1,371 while spouses of retired workers received $714 and children of retired workers received $659. “Social Security is funding as last resort, and if it goes away there is no government program to serve as a fall back,” Edelman said. “This is the fall back.”

How did Americans get here?

Unfortunately, it’s a familiar story: many Americans just haven’t saved enough for retirement, either because of poor planning or an inability to put money away for their futures.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Culture/Society; Government; News/Current Events
KEYWORDS: boomerssux; retirement; socialsecurity; taxhypocrisy
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-80 ... 181-192 next last

1 posted on 10/28/2017 3:57:34 PM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

social security... will be nothing but extra “play” money for me.


2 posted on 10/28/2017 3:58:06 PM PDT by TexasFreeper2009
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

THE SOCIAL SECURITY TRUST FUND IS ESTIMATED TO BE EXHAUSTED BY EARLY 2030's


3 posted on 10/28/2017 3:59:11 PM PDT by SeekAndFind
[ Post Reply | Private Reply | To 1 | View Replies]

To: TexasFreeper2009
social security... will be nothing but extra “play” money for me.

Yep.... personally, if they would give me back all the money I paid in..... in today's dollars.... I would take my contribution and let them off the hook....

4 posted on 10/28/2017 4:00:30 PM PDT by kjam22 (America need forgiveness from God)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

Putting the work force back to work, increasing government receipts by 100-200%...

That’s going to make a lot of things more healthy.

During the process, we need to get to work with a robust plan to help people develop retirement systems of their own.

Phase the government out of it over 40 years.

Within 20 years, we could have the government out of 30 to 50% of the old Social Security plan, and 50% of the public headed to retirement fully vested in their own non-government plans.

We just need to get to work on it, NOW...


5 posted on 10/28/2017 4:03:24 PM PDT by DoughtyOne (Rush Limbaugh: 45% of California families speak a foreign language at home. Oth src: full U.S. 21%)
[ Post Reply | Private Reply | To 3 | View Replies]

To: SeekAndFind

I think they will screw the younger folks, and keep paying old farts because the old farts vote in much better percentages.


6 posted on 10/28/2017 4:03:28 PM PDT by entropy12 (LEGAL immigrants are sponsored by a relative. Almost all are low skill & low wealth. So stupid!!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: SeekAndFind

I am not counting on it, though I wish I could have invested that amount for myself over the years.


7 posted on 10/28/2017 4:03:56 PM PDT by MtnClimber (For photos of Colorado scenery and wildlife, click on my screen name for my FR home page.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

This guy is conflating Title II, Retirement Survivor, and Disability Insurance, with Title XVI, Supplemental Security Income.

RSDI is an entitlement only for people who have paid enough FICA tax to be covered. SSI is a welfare program administered by the SSA, but the money comes from the general fund, not from FICA taxes. SSI is indeed a “program of last resort,” as shown here:

https://www.ssa.gov/oact/ssir/SSI13/III_ProgramDescription.html

RSDI is most definitely NOT a program of last resort.
If you don’t understand the difference between RSDI and SSI, you don’t know enough to make an intelligent statement about either program. They’re as different as football and baseball.


8 posted on 10/28/2017 4:08:10 PM PDT by Terabitten (Time for the GOPe to reap the whirlwind.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TexasFreeper2009
social security... will be nothing but extra “play” money for me.

Same. Will go towards additional traveling - probably all of it, which means a lot of travel.

9 posted on 10/28/2017 4:09:17 PM PDT by rb22982
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

It’s my mom’s (99 y.o.) main source of income. But she makes just enough to make her eligible for MediCal benefits that would make her last years much more comfortable. Meanwhile, of course, people who’ve paid next to nothing into the tax system get a free ride. Oh well.

Anyone old enough to remember the magazine ads saying “We retired to Florida on $300 a month!”

But I agree, too many depend on SS and haven’t saved enough to take care of themselves in retirement. Because I draw a state pension, 60% of my Social Security is withheld—don’t want any “double dipping”.


10 posted on 10/28/2017 4:09:20 PM PDT by hanamizu
[ Post Reply | Private Reply | To 1 | View Replies]

To: DoughtyOne

The first step would be to put the “employer contribution” on paychecks as a deduction to the employee.
It costs the employer nothing to pay it to the employee instead of the government (might need a tax change)- it’s just a different accounting entry.

Politicians hate for people to see their taxes.


11 posted on 10/28/2017 4:13:42 PM PDT by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat/RINO Party!)
[ Post Reply | Private Reply | To 5 | View Replies]

To: kjam22
I've suggested it before. At 65 the Feds could pay you off with your contributions plus a reasonable rate of return.

Some who don't rely on the income would do it and invest it.

Some may be I'll with a terminal illness and could use it now.

12 posted on 10/28/2017 4:26:26 PM PDT by Eagles6
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind

This is such bullcrap. That its “only meant to be a supplement”. It would be criminal if an investment house took 12.5% of your salary, invested it over 45-50 years, and then said you shouldn’t count on it it.

Utterly insane.

A person who works from age 18 to 65, earns an average of a modest 50k and saves 12.4% of it, and invests it all that time could easily have well over a million dollars in savings. And they could live off it, and pass it on to their heirs.

Stories like this are how the deep state flips you the finger and laughs at you.


13 posted on 10/28/2017 4:27:02 PM PDT by DesertRhino (Dog is man's best friend, and moslems hate dogs. Add that up. ...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

To fill the gap, we need to pass a law mandating employers to begin withholding from paychecks during working years to deposit in a personal security account.

That way people will have a nest egg waiting for them when they retire and it would be in addition to what they would get from Social Security.

We need to seriously think about ways to strengthen and to preserving retirement income and this is a challenger with people getting older and living longer.


14 posted on 10/28/2017 4:30:52 PM PDT by goldstategop ((In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever))
[ Post Reply | Private Reply | To 1 | View Replies]

To: hanamizu

“too many depend on SS and haven’t saved enough to take care of themselves in retirement.”

Oh, they did. And they did so at gunpoint. 12.4% of their pay from age 18 or whenever to retirement age 45 years later. Only the fiduciary has stolen it and is blaming you for not saving for yourself.

Its criminal.


15 posted on 10/28/2017 4:31:11 PM PDT by DesertRhino (Dog is man's best friend, and moslems hate dogs. Add that up. ...)
[ Post Reply | Private Reply | To 10 | View Replies]

To: kjam22

“Yep.... personally, if they would give me back all the money I paid in..... in today’s dollars.... “

LOL! For that $1 I paid in 1964 I am getting $1 in todays dollars.


16 posted on 10/28/2017 4:31:49 PM PDT by TexasGator (Z)
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind
many Americans just haven’t saved enough for retirement, either because of poor planning or an inability to put money away for their futures

Uh, they forgot something here...lol

They forgot to mention wages were in decline and or have been stagnate for decades....Just a wild guess, but I would imagine this would be a sizable factor here.

17 posted on 10/28/2017 4:33:24 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
On a NOMINAL dollar basis, SS looks like a real stinker. Assume you can earn 8% in a blended portfolio working from Age 21 to 65 and paying in the max SS contribution every year:

Item Value
SS Percent 6.20%
Earning Cap $127,200
Max Annual SS "Contribution" $7,886
Work Years Pay In 44
Nominal Annual Return 8%
Future Value $3,193,000
Retirement Years 25
Annual Withdrawal $299,100

It looks like SS is a huge ripoff. But, if you look at REAL earnings rates (i.e., inflation adjusted dollars - NOMINAL Rate minus INFLATION Rate), you're still getting ripped off. SS is paying you less than half of what you would make on your own:

Item Value
SS Percent 6.20%
Earning Cap $127,200
Max Annual SS "Contribution" 7886
Work Years Pay In 44
Nominal Annual Return 8%
Inflation Rate 4%
Real Annual Return 4%
Future Value $945,400
Retirement Years 25
Annual Withdrawal $60,500

The absolute worst thing about SS is you don't have any equity to pass to your heirs. If you saved on your own and croaked the day after retiring, your heirs would have a nice payout.

18 posted on 10/28/2017 4:33:28 PM PDT by ProtectOurFreedom
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

.
They can just give me the money back with compound interest, and I’ll call it square!
.


19 posted on 10/28/2017 4:34:14 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they'd be)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TexasFreeper2009

As a child I thought Social Security was a welfare program. My grandfather retired and for some reason I knew he was taking SS check. He didn’t need it. I asked him why he took money from the govt. He looked at me in awe and said “Because it is my money”.


20 posted on 10/28/2017 4:35:16 PM PDT by cornfedcowboy
[ Post Reply | Private Reply | To 2 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-80 ... 181-192 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson