Medicare and Social Security: What you paid compared with what y

How long has the interest rate, controlled by a private bank, not us BTW, been at 1/2 %?
For 30 or 40 years?
A retirement fund has to take the long view, not just 5 years.

Of course the interest and well as the principle has been used by the feds. But that does not mean that Social Security itself has done badly. It is all the other programs from military to food stamps to tax credits that are the problem.
But does anyone say it's all the fault of the mortgage deduction or the Earned Income Tax Credit? Or Ag subsidies or Flood Insurance or anything that is truly a spend without tax increase? At least Social Security was designed to have a tax to go with it.
No - the people that want the merry-go-round of spending to keep turning can see is all that money going out to old people right now. No looking at all that money coming in for all those years. No looking at Federal spending that is called tax deductions. No we all just love those things that benefit ourselves right now and the rest can go begging.
Boy those spenders would love it if all those old people conveniently died off so that the money they use could be spend for things that really matter- like free cell phones or tax credits or (gasp) Federal extended unemployment.

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Expect to hear more of this idea. The wealthy would love it. It is expected the poor would run out of funds and couldn't afford late in life care. Currently, it is that late in life care that is most costly. Since DeathPanels aren't popular, perhaps just running out of cash in your health savings account, would serve the same purpose? That makes sure the rich can afford the health care they need without paying a tax that saves the lives of poor people.
Maybe we can do the same with SS. Start an account at birth. After you retire, you have a fixed amount to live on. Too bad if you live too long.

Absolutely.
That's all part of the "big lie."
It's a terrible idea to put away something for your old age.
It MUST be a socialist idea, why else would it be called social security.
Bad, bad, bad.
And on top of it all, it was designed to run out of money.
If you know nothing about finances, you are easily convinced of it.

One big expenditure you left out of the deficit spending.
A hundred years of war.

Who funds the hsa for the child?

There is no end to the money the federal government spends, but they have successfully turned the spotlight on SS as the reason for all deficit spending.

I think they realized it is easy to do. Younger workers can actually see how much of their money is going for SS and they resent it. They don't seem to resent how it's being or has been spent - they resent the ones drawing it.

I understand their anger - but they aren't angry about all the other things because they don't see the exact percentage of their taxes that go for all the other expenditures - which mostly ends up in the pockets of politician's contributors - and a portion in their own.

They don't see the amount of debt that will be on the shoulders of their children because of government spending. Of course, the government has convinced them that debt is SS.

They've done a really good job, though, of setting the younger generation against the old, and making SS the culprit.

THEN you get the gov. freebies, if indigent or poverty, whatever. Catastrophic, etc. Use the awailable monies for that instead of just handing it all out.

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And that is my fault how? If people are to self absorbed or ignorant to prepare for their own future, why is it my responsibility to prepare for them?

And I have not seen a single proposal that would affect benefits for those already drawing. But those drawing sure will not allow anyone to try to change the system so it is solvent in the future.

You can say there are bonds, loans, interest or anything else to make you feel better. But we all know that all they have is paper and ink. This will do nothing but devalue the dollar for the future. You may get back all or more of the dollars that you paid in but it will only have a fraction of the purchasing power. So carry on! I will look to my own future and not think that big brother should do it for me. I take full responsibility for my own life and if that requires me to die before bankrupting my wife or destroying what we have been fortunate enough to save, so be it.

Private accounts work just fine, Ask some those in Texas that are doing it, also seems to be working just fine for the railroad workers. Don't hear about them complaining now do you?

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What happens if you die 2 years after you turn 65? How much have you paid in and how much did you get back?

2 MAJOR flaws in the article;

#1. How much you get back from SS depends entirely on how long you live after retirement. The average lifespan being something like 76, means that HALF the population will die BEFORE they reach 76. A good percentage of people will die before they even reach 65 and collect not one dime of what they paid in for forty years or more. That money and that scenario is not even considered in the article.

#2. Inflation is WAY, WAY under reported using the government's CPI calculation. The CPI in itself is designed to under- estimate inflation to keep SS cost of living increases and other payments down. They switched to a chain weighted calculation back in the 90's in order to reduce government payment increases. The CPI is not at all calculated the way it was originally. Asking the government to calculate how much of inflation related increases to pay is, in itself, a conflict of interest. Like putting the mouse in charge of the cheese.

I guess if you are dead it matters not. Out living your Health Care is quite a bit different. You want your wife to die of untreated cancer because her Health Savings account couldn't cover it? What's the next step? SS age limit? Just stop paying because you are too old? Stop paying if you use up the SS you paid in?
Sure there are people that never collect. But most get back more than they put in.

One thing that is not being reported is that when SS started 1 person in 10 ever collated.
Now that number is 8 in 10, and soon it will be 10 in 10 no wonder SS is going broke with more now living way past what was considered "normal" years ago. And that is why the AGE MUST be raised to take in consideration that people are living longer collecting more and more then what they paid in.
I myself will go WAY over what I paid in because at the age of 54 i went on SSDI, that amount is figured out and paid out as IF I had worked till I was 62 and retired as that is amount I am getting as if I worked till 62.
I am now going on 63 and in a little over 2 years that SSDI turns into regular SS Benefits, with all the rights that are guaranteed under those provisions and no longer subjected to what SSDI has.

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A brief review of the obituaries in the Kansas City Star shows that 18 out of 89 people who died this week were 65 or younger. 20% who probably paid in but drew nothing out.

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That's the nature of insurance. What happens if your house doesn't burn down and how much do you get back?

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Both Social Security and Medicare are types of annuities, where benefits are available for as long as you live. That means they are insurance against growing very old. The average life span is about 78 now, so half of us will be gone by that age. When people die young, their contributions are applied to those who live to be very old. Again, it's the nature of insurance to do that.

People who die young didn't get screwed. They just never grew old to need the benefits, similar to not having your house burn down so you never needed fire insurance benefits.

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The increasing life span was considered when the FICA was increased in the 1980s. And in fact, wasn't it all over the news about decreasing life spands lately?
The real trouble is the lack of well paying jobs (a lot due to the recession but it started with NAFTA) but of course that just prompts the President and Congress to spend more, not less. And then all that money being spent on the old becomes attractive as a new source to spend elswhere, since the tax base has dropped..
I just read an article about a bill introduced in Congess recently to remove the protection created under Obamacare to allow insurance companies to raise the premium they can charge based on being over age 60 to 5 times the rate charged young people. The basis for this proposed change was the it was not fair for young people, now they are required to have insurance, to subsidize the old.
It's not going to be so good to be a baby boomer from now on.

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quote
According to the institute’s data, a two-earner couple receiving an average wage — $44,600 per spouse in 2012 dollars — and turning 65 in 2010 would have paid $722,000 into Social Security and Medicare and can be expected to take out $966,000 in benefits. So, this couple will be paid about one-third more in benefits than they paid in taxes.


This is what they would have paid in. And in good faith, expected the govt. to invest the money to bear interest. What happened to the interest?
check it
out.http://www.davemanuel.com/compound-i...calculator.php

Like my Dad, this Wednesday turns 84 and still going strong. Still goes up to his fishing home with my Mom each summer for 2 to 3 weeks at a time before coming home for a few weeks then back up on a 250 mile trek one way to the camp ground where they have a Park Model that they bought some years ago.
And they do this 3 to 4 times in the summer time. He leaves his boat up there so he doesn't pull that back and forth though.

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That is what you get for letting the government take care of you instead of taking care of your self. If you had a account to spend any way you want on health care you will have a much better health care and some left over to suplement your retirement.

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