Zone1 Social Security Scam

[boedicca]

Most people understand that SS is a safety net only and that other means of support in retirement are needed. That's why we have IRA's, 401's, company pension plans, etc.

If people are self-disciplined to enough to save via IRAs or 401Ks, then they are better off taking the @ 15% (employee deduction plus employer match) and then investing it for themselves.

 

[boedicca]

Higher wages are being offered across all skill levels, including entry-level pay. I am astounded at the pay being offered for unskilled work.

It's why unions lobby for increases in the minimum wage. The rates for unionized jobs go up, and this ripples across the economy. And then add in the destruction of the work ethic caused by the ed system and paying people not to work during the Covid-19 prison style lockdowns - thats how we got a screwed up labor market.

 

[Woodznutz]

If people are self-disciplined to enough to save via IRAs or 401Ks, then they are better off taking the @ 15% (employee deduction plus employer match) and then investing it for themselves.

Contributions to IRA's, 401's are also limited. Also, sh-t happens, and many have to dip into these savings, often draining them completely. Fortunately for them, SS is safe from this.

 

[boedicca]

Contributions to IRA's, 401's are also limited. Also, sh-t happens, and many have to dip into these savings, often draining them completely. Fortunately for them, SS is safe from this.

But it's not. It's already being inflated away.

 

[Woodznutz]

But it's not. It's already being inflated away.

SS issues COLA's nearly every year. This year it will be huge. Mine will increase by $2076/annually starting this month.

 

[boedicca]

SS issues COLA's nearly every year. This year it will be huge. Mine will increase by $2076/annually starting this month.

SS Cola is 5.7%. Inflation is far higher than that.

Here is reality: the government has spent all of the SS "trust fund" as well as taken on enormous debt. They see three options: 1) default, 2) massive tax increases, or 3) debase the currency via inflation so the debt is cheaper to payback. When inflation is 10%+, you 5.7% Cola is a cut in benefits.

The government should cut spending and regulations to spur growth - but there's less opportunity for graft in that, so they'll continue to push the scamdemics and wars du jour.

 

[Woodznutz]

SS Cola is 5.7%. Inflation is far higher than that.

My increase was 8.7 %, which is what has been reported.

The government borrows the Trust Fund, which is now being paid back, with interest, to SS.

 

[boedicca]

My increase was 8.7 %, which is what has been reported.

The government borrows the Trust Fund, which is now being paid back, with interest, to SS.

That is mathematically flawed. If you had had your own money to invest, you could easily have $1M plus of additional funds for retirement. That would be your own money, not taxes taken out of someone else's pocketbook. The "interest" on SS is just other people's money. And even at 8.7% COLA, you have a decrease in spending power.

 

[Woodznutz]

That is mathematically flawed. If you had had your own money to invest, you could easily have $1M plus of additional funds for retirement. That would be your own money, not taxes taken out of someone else's pocketbook. The "interest" on SS is just other people's money. And even at 8.7% COLA, you have a decrease in spending power.

Actually, I have invested all of the SS benefits I have received to date; about $350,000. I have well over a $million to retire on.

Inflation is a two-way street. During these times many bargains are to be had, especially big-ticket items, as many businesses struggle to stay open. The housing market is crashing as well so look for bargains there.

I build lots of things in my woodshop but until wood prices come down I'm cutting back on some projects, thus mitigating those inflated prices.
I also live a very spartan life so most price increases don't affect me.

 

[boedicca]

Actually, I have invested all of the SS benefits I have received to date; about $350,000. I have well over a $million to retire on.

Inflation is a two-way street. During these times many bargains are to be had, especially big-ticket items, as many businesses struggle to stay open. The housing market is crashing as well so look for bargains there.

You are not very convincing. If you can save money, then why does it need to be laundered via the feds and taken from other people?

 

[Woodznutz]

You are not very convincing. If you can save money, then why does it need to be laundered via the feds and taken from other people?

I paid in, now I'm being paid. That's how it works.

 

[boedicca]

I paid in, now I'm being paid. That's how it works.

It's a Ponzi, in which you are apparently quite comfortable participating. You said earlier that most people lack discipline, but then cry up over and over again your own ability to save. You are humble-bragging while advocating to deny others the ability to save for their own benefit.

Most people lack the discipline, or the means, to save for retirement. That's why SS was created.
I've paid for someone else's retirement all my working life, and still am as I'm still working, even while also collecting SS.

 

[Woodznutz]

It's a Ponzi, in which you are apparently quite comfortable participating. You said earlier that most people lack discipline, but then cry up over and over again your own ability to save. You are humble-bragging while advocating to deny others the ability to save for their own benefit.

Some can save, other can't. I wasn't able to save for my retirement until I was 44 years old. But I was fully vested in SS at age 28. It takes money as well as discipline in order to save. Comfortable or not I can't change a thing regarding SS. We're all just passengers.

 

[presonorek]

Social Security works

It is an important safety net for tens of millions of Americans

Social Security was designed to function really well with the understanding that when it stops working the person who made all the promises would be dead. I think it still has a few decades left. It’s a Ponzi Scheme. They work really well if you can keep them alive long enough.

 

[rightwinger]

Social Security was designed to function really well with the understanding that when it stops working the person who made all the promises would be dead. I think it still has a few decades left. It’s a Ponzi Scheme. They work really well if you can keep them alive long enough.

Ponzi schemes run out of funds well before 80 years

 

[presonorek]

Ponzi schemes run out of funds well before 80 years

87 years ain’t bad. Is it?

 

[boedicca]

Some can save, other can't. I wasn't able to save for my retirement until I was 44 years old. But I was fully vested in SS at age 28. It takes money as well as discipline in order to save. Comfortable or not I can't change a thing regarding SS. We're all just passengers.

So because the system is pervasive and some people are hooked on it, we should never change it.

Nope. I can't agree with that. It is the mugging of the young by the old. The only reason it has lasted for so long is that we had a relatively high birth rate for awhile, but that is no longer the case. In 1960, the ratio of SS taxpayers to beneficiaries was 5:1. Now it's 2.7. What happens when there are more recipients than payers?

Social Security Recipient to Worker Ratio

As American society ages, the number of covered workers per OASDI beneficiary has steadily fallen.

www.federalbudgetinpictures.com

 

[presonorek]

So because the system is pervasive and some people are hooked on it, we should never change it.

Nope. I can't agree with that. It is the mugging of the young by the old. The only reason it has lasted for so long is that we had a relatively high birth rate for awhile, but that is no longer the case. In 1960, the ratio of SS taxpayers to beneficiaries was 5:1. Now it's 2.7. What happens when there are more recipients than payers?

Currently the rate is 6.2% or 12.4% depending on how you want to make the argument. I imagine when the payers equal the receivers the rate will be changed to 16.74% or 33.48% depending on how you want to make the argument.

This thing is going to be around for a while. We have a gullible society that will put up with anything.

 

[boedicca]

Currently the rate is 6.2% or 12.4% depending on how you want to make the argument. I imagine when the payers equal the receivers the rate will be changed to 16.74% or 33.48% depending on how you want to make the argument.

This thing is going to be around for a while. We have a gullible society that will put up with anything.

I consider the employer portion a tax on the employee; it's compensation that could have been paid to the employee that is diverted to government spending. The original SS tax was 2% (1 pt each for employee and employer). We're now at over 6X the original burden. You are correct, younger folks are going to see the rates accelerate unless the program is dramatically reformed.

 

[Ame®icano]

You will get old someday!!

Maybe, or maybe not.
By the time I become eligible, in 15 years, SS might be gone.