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Old 01-29-2017, 01:05 PM
 
2,952 posts, read 1,638,569 times
Reputation: 5292

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Quote:
Originally Posted by pahippo View Post
the assumption is that making that much money for that length of time you would have invested in your own privatized retirement fund.

And you should have.

As mentioned, ss is meant as a supplement, not a mainstay.
^^^^this right here!
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Old 01-29-2017, 01:07 PM
 
Location: North Beach, MD on the Chesapeake
33,896 posts, read 42,133,814 times
Reputation: 43298
Quote:
Originally Posted by mathjak107 View Post
his comparison is flawed all around .
Yes, it is. Might be be misreading the yearly statement? I made significantly less than his six figures and get almost as much as he says he will. Had I waited until 65 instead of retiring at 62 I would receive more. Even more had I held out until FRA of 66.
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Old 01-29-2017, 01:16 PM
 
Location: Las Vegas
13,888 posts, read 25,327,549 times
Reputation: 26385
Is it fair, no. Life is not fair. It can be argued that SS is supposed to be a safety net for all American workers. People who work longer and make more money do get a little more but not a lot. It was meant to protect people who work all their lives and don't make a lot of money.

But I can make you feel better. Just look at the alternative. My H died at 61 and never collected a penny. You are still here to get yours.

None of this has ever been a secret. SS sends you a statement every year you work. Usually a couple months before your birthday. All you have to do is look at the statement and figure out if you are OK with that amount of money. If not, that's your aha moment to start saving/investing. And retiring at 62 is a choice. Collecting SS at 62 is also a choice. And there is a penalty for ducking out early.
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Old 01-29-2017, 01:48 PM
 
Location: Los Angeles area
14,018 posts, read 17,740,386 times
Reputation: 32304
Quote:
Originally Posted by AtlantaNative1968 View Post
If ever there were an argument for privatizing Social Security... I am 55 years old. For over 20 years I have made over six figures a year. My mother, who is still alive at 86 and is getting my deceased father's social security, receives $1200 a month from the government. My father was an uneducated blue collar worker who never made more than 8 bucks an hour base pay. He retired at 62 back in the mid 80s, so he didn't get the full benefit. My mother never worked...a home maker her entire life. So...$1200 a month...which is based on meager increases over the last 15 years. Now me, I have worked constantly since I was 15 years old, the only gap is when I took a year off while going to school when I was in my early 20s. Over 20 years now I have made over $100K a year each year. According to the SSA.gov web site, my benefit if I retire at the same age that my dad did will be $1900 a month. Yes, only $700 more than my mother who never worked and my father who was a low income worker who retired early over 30 years ago.


I am speechless. Where the heck has all our money gone for these decades paying into the government fund? This is a lesson to everyone out there in their 30s and younger. Don't even consider SS as potential income in retirement. Save as much as you possibly can as early as you can and take advantage of as many investment opportunities as you can - like 401K and Roth IRAs. Your government is squandering your social security so do not expect to get anything resembling a return on what you are paying in.
For your information:

1. The Social Security Benefit formulas are, and have been for a long time if not always, set up to give a greater percentage return to low wage earners than to high wage earners. So what you described is the system working as it's supposed to work. Yes, it's income redistribution, and we can be in favor of that in this case or we can be opposed to it, but that's the way Congress voted it to be a long time ago.

2. As others have said, it's insurance, not an individualized account set-up in the same sense as a 401(k). Ironically, what you are complaining about allows your mother to draw benefits although she never worked. That's part of what you (and all the rest of us) have been paying Social Security taxes for all these years, so people such as your own mother will not be totally destitute in old age.

Hopefully, you are beginning to understand why your own benefits are not more than they are.
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Old 01-29-2017, 02:12 PM
 
Location: Ohio
19,916 posts, read 14,238,717 times
Reputation: 16096
Quote:
Originally Posted by AtlantaNative1968 View Post
If ever there were an argument for privatizing Social Security...
You didn't make a valid argument.

Quote:
Originally Posted by AtlantaNative1968 View Post
I am speechless. Where the heck has all our money gone for these decades paying into the government fund? This is a lesson to everyone out there in their 30s and younger. Don't even consider SS as potential income in retirement. Save as much as you possibly can as early as you can and take advantage of as many investment opportunities as you can - like 401K and Roth IRAs.
Perhaps you didn't get the memo....Social Security is insurance to guarantee that you have something at the end of your life when you retire.

Quote:
Originally Posted by AtlantaNative1968 View Post
Your government is squandering your social security so do not expect to get anything resembling a return on what you are paying in.
Government is not "squandering" Social Security, and once again, Social Security is insurance, not a investment scheme.
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Old 01-29-2017, 02:28 PM
 
Location: Central Massachusetts
4,800 posts, read 4,847,776 times
Reputation: 6379
Quote:
Originally Posted by AtlantaNative1968 View Post
If ever there were an argument for privatizing Social Security... I am 55 years old. For over 20 years I have made over six figures a year. My mother, who is still alive at 86 and is getting my deceased father's social security, receives $1200 a month from the government. My father was an uneducated blue collar worker who never made more than 8 bucks an hour base pay. He retired at 62 back in the mid 80s, so he didn't get the full benefit. My mother never worked...a home maker her entire life. So...$1200 a month...which is based on meager increases over the last 15 years. Now me, I have worked constantly since I was 15 years old, the only gap is when I took a year off while going to school when I was in my early 20s. Over 20 years now I have made over $100K a year each year. According to the SSA.gov web site, my benefit if I retire at the same age that my dad did will be $1900 a month. Yes, only $700 more than my mother who never worked and my father who was a low income worker who retired early over 30 years ago.


I am speechless. Where the heck has all our money gone for these decades paying into the government fund? This is a lesson to everyone out there in their 30s and younger. Don't even consider SS as potential income in retirement. Save as much as you possibly can as early as you can and take advantage of as many investment opportunities as you can - like 401K and Roth IRAs. Your government is squandering your social security so do not expect to get anything resembling a return on what you are paying in.

Welcome to the real world. You're one of the rest of us now. I have been saying the same thing to those same 30 year olds. How many of them listen? Not many. Most are too busy living life. Honestly there is nothing wrong with that. Just don't expect to be taking world trips in retirement unless you saved some on your own.
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Old 01-29-2017, 02:45 PM
 
Location: The Carolinas
2,003 posts, read 2,018,760 times
Reputation: 6086
Social Security is a forced retirement account which favors lower-earning workers over higher-earning workers as far as payouts go.

The assumption being that higher-earning workers had the means to create additional retirement savings from their excess earnings.

Social Security was meant to be a retirement SUPPLEMENT, not the SOLE means of support in retirement.

That's about as simple as I can phrase it. Anyone else want to take a crack at it?
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Old 01-29-2017, 02:55 PM
 
Location: Florida
4,365 posts, read 3,702,696 times
Reputation: 4110
Quote:
Originally Posted by mathjak107 View Post
most americans suck at investing . they do not have the stomach for staying the course . last i would want to do is put the masses in charge of investing and handling their own money .

we get blinded to the financial ignorance and lack of discipline when we hang out on financial forums with other like minded people .
Seems that something is missing from our educational system.
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Old 01-29-2017, 02:57 PM
 
Location: Colorado Springs
4,840 posts, read 4,956,944 times
Reputation: 17309
When I was 23, I too hated Social Security. It seemed unfair that I had to pay tax to support old people.

Since then the tax rate increased. It is now 12.4% of a maximum wage of $127,200 or $15,772 per year.

But now that I'm retired and have met so many people who were devastated by illness, job loss, and divorce, I'm glad it's there. For many people, it's all they have once they are no longer able to work.

It was never meant to be the sole source of retirement income; rather it was designed to supplement incomes from pensions and savings. Unfortunately, few people get pensions and too few people are able to save.
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Old 01-29-2017, 03:03 PM
509
 
2,978 posts, read 4,083,555 times
Reputation: 3532
Quote:
Originally Posted by Escort Rider View Post
For your information:

1. The Social Security Benefit formulas are, and have been for a long time if not always, set up to give a greater percentage return to low wage earners than to high wage earners. So what you described is the system working as it's supposed to work. Yes, it's income redistribution, and we can be in favor of that in this case or we can be opposed to it, but that's the way Congress voted it to be a long time ago.

2. As others have said, it's insurance, not an individualized account set-up in the same sense as a 401(k). Ironically, what you are complaining about allows your mother to draw benefits although she never worked. That's part of what you (and all the rest of us) have been paying Social Security taxes for all these years, so people such as your own mother will not be totally destitute in old age.

Hopefully, you are beginning to understand why your own benefits are not more than they are.
Read that statement above again. It is really important to understand.
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