You paid in on pretax dollars which is the IRS justification for taxing social security. However, you will only be taxed if your income is over a threshold amount. Therefore, some people are taxed and some are not. Here are a few more facts: If you could have invested the money paid in over the years you would be better off financially. …
You paid in on pretax dollars which is the IRS justification for taxing social security. However, you will only be taxed if your income is over a threshold amount. Therefore, some people are taxed and some are not. Here are a few more facts: If you could have invested the money paid in over the years you would be better off financially. The money paid into Social Security is not invested and earning income like a pension fund or a 401k. Also, your heirs will not get any benefits at your passing. For instance, a married couple both pay into social security but one passes away. The surviving spouse collects the higher of the two benefits but will not collect both. It is not set up for you to collect all that you paid in. Many never collect. Someone who passed away before the age they would have collected will obviously not collect what they paid in. Those paying in now are actually paying those who are collecting now. It is somewhat of a Ponzi scheme. Sometime in the future we as a country have to exit the social security train. Unfortunately it is not a good campaign slogan for people running for office and if they said such a thing they would not be elected. I've wondered how to exit and be fair to all. The only thing I could come up with is everyone stops paying in now and funds are diverted from some other federal program to pay those who have paid in over the years. Gradually over the years all those who paid into social security will pass away and social security would be "paid off".
Many corporations have stopped pensions by not allowing any new employees after a certain date to get it. NC did this for teachers, too. I honestly never planned to get SS, thought it'd be gone already.
You paid in on pretax dollars which is the IRS justification for taxing social security. However, you will only be taxed if your income is over a threshold amount. Therefore, some people are taxed and some are not. Here are a few more facts: If you could have invested the money paid in over the years you would be better off financially. The money paid into Social Security is not invested and earning income like a pension fund or a 401k. Also, your heirs will not get any benefits at your passing. For instance, a married couple both pay into social security but one passes away. The surviving spouse collects the higher of the two benefits but will not collect both. It is not set up for you to collect all that you paid in. Many never collect. Someone who passed away before the age they would have collected will obviously not collect what they paid in. Those paying in now are actually paying those who are collecting now. It is somewhat of a Ponzi scheme. Sometime in the future we as a country have to exit the social security train. Unfortunately it is not a good campaign slogan for people running for office and if they said such a thing they would not be elected. I've wondered how to exit and be fair to all. The only thing I could come up with is everyone stops paying in now and funds are diverted from some other federal program to pay those who have paid in over the years. Gradually over the years all those who paid into social security will pass away and social security would be "paid off".
Many corporations have stopped pensions by not allowing any new employees after a certain date to get it. NC did this for teachers, too. I honestly never planned to get SS, thought it'd be gone already.
I can almost hear it echoing from the Powers That Be:
How dare you call it a Ponzi Scheme! It's Paying-It-Forward!