Social Security, Medicare a Bargain for Many

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There are many, many benefits to Social Security which make it a real value.
Retiree income benefit, employee disability benefit, widow's benefit, orphaned
children's benefit and another 68 reasons for getting Social Security.
I once spoke with a middle aged guy in a wheelchair who could no longer walk
due to an accident. He was getting SSI (about $700/ mo. at the time) because he had never paid into S.S. on his self-employed and under the table earnings. He thought ill-fortune would never happen to him.

linkin of NY 10:58PM April 18, 2011

Kind of a nonsensical article. Retirees who earned $44,000 were likely to have
only earned that amount during the last year or two of their working life.
From their early working years, when they were earning $350 a month, through
every grueling year for the next 40 while getting a 1% - 3% raise if lucky, they
hardly paid anything in SS and M-Care taxes.

linkin of NY 10:53PM April 18, 2011

The tax numbers stated above must include an implied interest rate on the taxes paid in - since the employere and employee last year paid in 6.2% of employee's salary - that works out to a bit more than $6,000 paid in for each at the salary cap ($106,800) - multiplier by 30 years and that is $180,000 each (but a good bit lower in reality as both the percentage and cap have changed over the 30 years) and no where near the total taxes suggested above.

Doug of NJ 1:50PM April 18, 2011

It is articles like this that continue to perpetuate the myth that social security is a "good deal" for the working person. I would suggest the author ask Warren Buffet if he would be satisfied with getting what he put into an investment over a working lifetime back, without any gain, with the added stipulation that you can only collect it in small monthly portions after you turn 66. No ability to pass it on to your family if you die young. I think anyone would much rather have the 2 - 3X amount they would have if invested at 3% interest over a working lifetime. The real benefactors from social security were those that retired in the 50 and 60s without putting much in and the rich that get lower taxes thanks to the "social security" surplus used to fund the government and keep capitol gains taxes low. Social security is neither social or secure. It is a regressive tax on the working person.

The flyer of TX 9:16PM January 05, 2011