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View Poll Results: What are your thoughts on Social Security COLA regarding true inflation and current payout not keepi
Social security payments should INCREASE substantially and regularly - to reflect true inflation and COLA amounts for Vets and seniors
47
74.60%
Social security payments should STAY THE SAME – regardless of the fact cost of living has increased substantially and these people served and paid in
6
9.52%
Social security payments should BE DECREASED – regardless of the fact cost of living has increased substantially and these people served and paid in
Social Security is a payroll tax. Period. There is no "account" with your name on it. Nobody cares that you "paid in"... you "paid in" to a huge array of other taxes, too, and have no more expectation of any given return with them than you do with SS. SS is a Ponzi scheme... it depends on contributions from new participants to pay off old participants, and runs into the same problem as every other Ponzi scheme... sooner or later, you cannot attract enough new participants to pay all of the old ones, and it collapses. Trying to romanticize it with silly language like "People paid in!" and "Seniors depend on it!" cannot change the basic math behind it.
When I log into social security I see an account with my name on it and I get check based on what was paid in on my behalf the 2nd wed of every month. It is no different than a whole life policy . There is no segregated account with your premium money , you just get paid on your account out of the company cash register. Ss is no different
The inflation rate in Vietnam was recorded at 4.67 percent in June of 2018. Inflation Rate in Vietnam averaged 6.42 percent from 1996 until 2018, reaching an all time high of 28.24 percent in August of 2008 and a record low of -2.60 percent in July of 2000.
The Gross Domestic Product (GDP) in Vietnam expanded 7.38 percent in the first quarter of 2018 over the previous quarter. GDP Growth Rate in Vietnam averaged 6.25 percent from 2000 until 2018, reaching an all time high of 8.46 percent in the fourth quarter of 2007 and a record low of 3.14 percent in the first quarter of 2009.
The inflation rate in the US edged up to 2.9 percent in June of 2018 from 2.8 percent in May, matching market expectations. It is the highest rate since February of 2012 when inflation was also at 2.9 percent, due to rising prices for oil and gasoline. The last time inflation was above 2.9 percent was in December of 2011 when it reached 3 percent. Inflation Rate in the United States averaged 3.27 percent from 1914 until 2018, reaching an all time high of 23.70 percent in June of 1920 and a record low of -15.80 percent in June of 1921.
The US economy expanded an annualized 2 percent on quarter in the first quarter of 2018, below 2.2 percent in the second estimate and market expectations of 2.2 percent. Private inventory investment and personal consumption expenditures (PCE) were revised down, the final estimate showed. GDP Growth Rate in the United States averaged 3.21 percent from 1947 until 2018, reaching an all time high of 16.90 percent in the first quarter of 1950 and a record low of -10 percent in the first quarter of 1958.
As jetgraphics said, SS tax is just a tax. And future benefits will continue to be determined by our elected officials. Whether they decide on zero or $1M/month, there are NO guarantees. i.e. Politics.
SocSec was a set-up from Day One to institute national socialism.
Ida May Fuller was the first beneficiary of recurring monthly Social Security payments.
Miss Fuller's claim was the first one on the first Certification List and so the first Social Security check, check number 00-000-001, was issued to Ida May Fuller in the amount of $22.54 and dated January 31, 1940.
She received monthly Social Security checks until her death in 1975 at age 100. By the time of her death, Fuller had collected $22,888.92 from Social Security monthly benefits, compared to her contributions of $24.75 to the system.
= = = =
92480% Return on "investment"
= = = =
The age of retirement, 65, was deliberately chosen based on actuarial tables showing life expectancy of 59/61 [in 1930s], meaning the majority of tax payers would NEVER see a dime of "benefit". It wasn't even a tontine, since there was no guarantee of payout. And the majority of recipients would be women, even non-working spouses.
This was targeted at women, who were more than happy for "all men" to support "all women." It spurred divorce, too. Who needs a man, when you can get government support?
It backfired, when life expectancy went up, and forced women into the workplace.
FWIW - FICA / Social Security will eventually collapse, and then things will get "interesting."
Are you prepared?
Ida May Fuller was the first beneficiary of recurring monthly Social Security payments.
Miss Fuller's claim was the first one on the first Certification List and so the first Social Security check, check number 00-000-001, was issued to Ida May Fuller in the amount of $22.54 and dated January 31, 1940.
She received monthly Social Security checks until her death in 1975 at age 100. By the time of her death, Fuller had collected $22,888.92 from Social Security monthly benefits, compared to her contributions of $24.75 to the system.
= = = =
92480% Return on "investment"
= = = =
That's an aberration, a statistical anomaly, even more so since she lived to be 100, and to be expected, since the program had just been implemented.
I challenge you to provide anyone born 1910 or later who had a similar return on investment of 92,840%.
Note that $24.75/month is only equivalent to $448.89/month in 2018 Dollars.
I'm guessing you couldn't survive on $448.89/month.
Also, she lived on $24.75/month for more than 10 years, because it wasn't until October 1950 that Congress authorized an increase in benefits to adjust for Cost-of-Living.
Quote:
Originally Posted by jetgraphics
The age of retirement, 65, was deliberately chosen based on actuarial tables showing life expectancy of 59/61 [in 1930s], meaning the majority of tax payers would NEVER see a dime of "benefit".
No, it was not.
Actuaries never use Life-Expectancy from Birth, instead they use Life-Expectancy at Age 65.
Social Security was specifically based on Life-Expectancy at Age 65, which was 11.5 years for men and 12.9 years for women, with total Life-Expectancy being 70 years for men and 74 years for women.
When Life Insurance was first offered in the 1880s, it was based on existing Life-Expectancy data, and that 50 years later when Social Security was created, it was both known and expected that Life-Expectancy would continue to increase over time.
The 35 States that had social-security-based retirement systems prior to the creation of Social Security also based their actuarial data on Life-Expectancy from Age 65. There were a handful of State that set the retirement age at 70 years.
It was also known that the ratio of Workers to Beneficiaries would decrease over time, and no one expected a payroll tax of 1% to fund the program in perpetuity.
I didn’t vote. I’m happy with what I’m getting. I’ve been drawing SS for about 19 years. I’ve drawn out more than I contributed.
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