Average American Pays Less into SS and Medicare than They Receive

Discussion in 'Economy' started by Toro, Sep 11, 2011.

  1. Toro
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    Toro Diamond Member

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    It is estimated that for the average couple aged 65, each earning $43,500 a year, over their lifetime, they will on average pay $598,000 in SS taxes and receive $556,000 in SS benefits. They will pay $119,000 in Medicare taxes and receive $357,000 in Medicare benefits. In total, the couple will pay $717,000 in taxes and $913,000 in benefits, or $196,000 more than they received.

    For an average couple aged 46, each earning $43,500 a year, they will pay $917,000 in taxes for SS and Medicare and receive $1,226,000 in benefits, or $309,000 more than they receive.

    The study assumes a 2% real rate of return.

    Social Security and Medicare Taxes and Benefits Over a Lifetime
    http://www.urban.org/UploadedPDF/social-security-medicare-benefits-over-lifetime.pdf
     
  2. Listening
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    Listening Gold Member

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    I am not sure what point you are trying to make here.

    When I first read this, I have to be concerned with the assertion people will somehow get more out of the system than they put in.

    At first blush:

    The government does nothing to add value to the dollars it collects.
    Therefore it is nothing more than a pass through system with administrative costs.
    So, the money going in has to equal the money coming out.
    If someone is getting more out than they put in.
    Somene else is putting more in than they are getting out.

    These are just a few quick thoughts.

    I would like to know why you posted the article.
     
  3. jillian
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    jillian Princess Supporting Member

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    if that is the case, what is the long term effect on finances?

    the thing is, when ss was started, the average life expectancy was 61 years old. (maybe 62, i don't recall which). it is much higher now.

    so perhaps the answer is to raise the age a few years??

    i know that's blasphemy, but maybe the right thing to do?
     
  4. uscitizen
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    uscitizen Senior Member

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    To me the OP means that it works as an insurance policy should.
     
  5. Sunshine
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    Sunshine Trust the pie. Supporting Member

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    That is likely true. But you have to consider other things besides just bald numbers. When my husband and I married in the 60s together we made $10,000. He had a good full time job and I had a part time job. In that day $50,000 would build a house with an indoor pool, and people earning $20,000 were considered to be rich. Of course in that day we would not be paying in the amount that we would be paying now. Now he has been dead over 25 years, I make 6 figures on my own and I pay one hell of a lot. That's just simple math.

    BUT.........if SS had kept our money invested and not plundered our retirement funds over frivoloties, then the investment would have kept up with inflation and there would be no problem.
     
  6. Sunshine
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    Sunshine Trust the pie. Supporting Member

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    The age has already been raised.
     
  7. Truthmatters
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    Truthmatters BANNED

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    Well it seems to me all we have to do is lower medical costs and we will be fine.


    That can be done by taking more of the unnessesary costs out of the medical field.

    Gotta do research.

    Gotta pay for the needed products involved in treating people

    Gotta pay the staff

    gotta pay for the buildings and upkeep.

    MMMM where in the hell can we cut cost?

    CUT OUT PROFITS!


    Problem solved huh?
     
  8. jillian
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    jillian Princess Supporting Member

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    it hasn't gone into effect... and will only be raised GRADUALLY for people born 1960 and later....

    glad to be of assistance. information is your friend.

    What is the Social Security Retirement Age? | National Academy of Social Insurance
     
  9. CoolBreeze
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    CoolBreeze Momma if you could see me

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    Thanks for pointing out the obvious to the lefties Sunshine. If the policos wouldn't have squandered the SS funds and invested it, SS wouldn't be in the situation that we now find it in.
     
  10. Sunshine
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    Sunshine Trust the pie. Supporting Member

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    It most assuredly HAS gone ito effect. My full retirement age is 66 and has been for some years now.
     

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