Right-wing billionaires have long wanted to shred the safety net. Under Trump, they’re using lies and fears over the deficit to debilitate Social Security.
Right-wing billionaires have long wanted to shred the safety net. Under Trump, they’re using lies and fears over the deficit to debilitate Social Security.
I’m not arguing if the system is good or bad. I think there should be a good retirement system in place.
Average person makes 65k in America
SS is 12.4% usually split between employee and employer.
That’s 8k a year.
Average SS monthly payment is ~2k
18 to 62 is 44 years of payment.
65k × 12.4% = ~8k per year payment
44 × 8 = ~350k
62 to 78 is 16 years. 2k × 12 = 24k per year
16 × 24k = ~384k
So looking right now if I made average pay, paid SS when I was 18, worked until 62, collected SS at 62, died at 78. I would be looking at a 10% return on my investment
Even more if I live past 78
If I came to you said said. “Would you invest for the next 44 years and I’ll give you your money back after and 10% more over 16 years, but I’m going to have to have new people entering my “scheme” to pay you…”
That would be a ponzi scheme.
If the government simply kept the money paid and then paid it back with interest earned loaning it out until time to pay. SS wouldn’t be in a crisis.
Social Security is an investment in the health of our society, it’s not a financial instrument. You can’t pool risk and get predictable returns without cutting corners & dropping high-risk members (hello health insurance industry).
I’m not arguing if the system is good or bad. I think there should be a good retirement system in place.
Average person makes 65k in America
SS is 12.4% usually split between employee and employer.
That’s 8k a year.
Average SS monthly payment is ~2k
18 to 62 is 44 years of payment.
65k × 12.4% = ~8k per year payment
44 × 8 = ~350k
62 to 78 is 16 years. 2k × 12 = 24k per year
16 × 24k = ~384k
So looking right now if I made average pay, paid SS when I was 18, worked until 62, collected SS at 62, died at 78. I would be looking at a 10% return on my investment
Even more if I live past 78
If I came to you said said. “Would you invest for the next 44 years and I’ll give you your money back after and 10% more over 16 years, but I’m going to have to have new people entering my “scheme” to pay you…”
That would be a ponzi scheme.
If the government simply kept the money paid and then paid it back with interest earned loaning it out until time to pay. SS wouldn’t be in a crisis.
Social Security is an investment in the health of our society, it’s not a financial instrument. You can’t pool risk and get predictable returns without cutting corners & dropping high-risk members (hello health insurance industry).
It’s not a Ponzi Scheme by definition.