The reason why it will go broke is because the money isn't invested and is a pay go system. It's been destined to fail since day one without tax and age increases.

I can guarantee it that if I was able to invest the money me and my employer have paid into SSI the last 30 years plus what I'll pay in the next 15 I'd be a millionaire or darn close to it. And being a single father if I kick the bucket my children would be able to get the balance of my investments.

As it is if I die tomorrow they are pretty much screwed except the one who will be a minor for a few more months.

The Social Security Retirement contribution is 6.2% for the employee and 6.2% for the employer, a total of 12.4%. Substantially more than about 5%

Life insurance is even stupider-your betting that your going to die soon and they're betting your gonna live longer.

It may well not have been the best choice, but there was no one with a better plan and it is by far the most successful social program in the history of the world for well over two generations, which is a long time when we look at human life spans, cultures and societies. Because it is a social program many don't like it and that is your choice. I find aspects of it troubling but it is the system we have and just because I don't like something does not mean I am not going to find out how it works best for me and my family.The fact that it earns a low return but is very safe is the basis for it being a stable program for mostly lower income earners who would have very minimal retirement income even if they saved 5 % of their earnings or more. The system provides benefits for those with lower means which is the social aspect of the program, especially the Medicare aspect of the program. Health care providers would have to charge higher income earners significantly more then the do now if there were no funds from lower income earners to pay the costs or they would choose to not get care at all and thus we all pay more as there are fewer customers.
Without SSI and Medicare there would be a huge shift in millions of families of how their discretionary funds would be spent, having to provide funds for three generations while they are working, youth, themselves and their elderly parents. I don't see a lot of families with those levels of income being able to handle those costs fully or even partially.

Bryce

Life insurance is voluntary.

A death benefit is tax free money. Nobody has ever sent their death benefit back to the company and asked for their premiums. I am glad my wife and I have ours, and it is mostly paid up.

The original intent of SS was to do two things for the worker. Provide a lifetime disability benefit if the worker was disabled during their working years. If the worker was able to work until retirement, SS would provide a retirement income for life.

Unfortunately, legislators couldn't keep their hands off the money that was rolling in and nabbed some of it for their little pet projects. Some examples are paying SS disability benefits to people who have never paid into it. Paid college tuition for a disabled worker's children. Saw a woman who was on disability because of obesity. The same woman's 10 year old son was drawing SS because she said he suffers from depression.

You would probably be better off financially if you invested your money in a bank, stocks, real estate, etc. Problem is, most people don't have the discipline to do that.

Too anyone who finds fault with Medicare, I ask you, would you be willing to pay my medical bills if I paid you twice the amount I pay Medicare? Enough said. Thank goodness for Tricare and Medicare.

PS: I need hernia surgery and cervical surgery pretty soon. Two cancer surgeries last year, and a long list of surgeries before that. Heart is now OK since being shocked back into rhythm two years ago.

My Dad just died a month ago or so at 93. He lived a good life! But, when he was a young man, men worked for $1 a day. Compare what he earned during his lifetime to the cost of medical care today. The assisted living facility he died in was costing $4500/month.. At the wages he earned through his lifetime, there's no way he could afford anything at the rate of inflation. Without assistance, old folks today would just be put to death, like the Demoncrats would like. For the working class of Republicans, that is.

Do you really think that you only pay 5%? As an employer I pay a bit more than 1/2 of the SS/Medicare deduction, like all employers that money comes from what the employee makes for me while that employee works for me. In other words it comes out of what I can pay that employee.

AARP is in the business of SELLING SUPPLIMENTAL MEDICARE INSURANCE.

If you are self employed, you get to pay the employer and employee side of FICA.

I'm not sure if I have been responsible and disciplined or just lucky.
I will start receiving my military retirement in about 4 years, plus I have been contributing 10 percent to my 401K and a modest amount to a Roth IRA.
And since I don't intend to stop working until I am no longer capable, social security should be just gravy.
I have been blessed with good health which has helped me to get to this point.
If you are young, get started on helping yourself.

No you pay 7.62 but about 6 for SSI which is not far from 5%. To many that seems like a lot and they don't want to pay that, but in reality most people don't save that much per year in their life time. If you want to find out how well the average USA couple is doing financially for retirement just spend some time talking with some financial planners and they will help you understand the potential train wreck coming down the road as many are not saving enough and if SSI does need to change there will be some real changes in life styles. The option many are choosing is to find work that they can physically and mentally do until they are in their 70s. A service centered economy allows for much more employment like that.
The link below gives some idea of the amount saved by people in different age groups.

https://www.thebalance.com/average-...155888#average-savings-for-60-somethings
Bryce

Bryce the worker pays 12.4% The rest is accounting flim flam. In reality the wage worker does not even send the IRS money. The employer does. Us self employed cut checks to the IRS.

To visualize this think about the two commissions that come out of a deal at a Canadian Auction that in reality the trapper pays.

employer,matches,the,,amount,,,,taken,,,out,,,of,,,my,,,,check,,,,for,irs

Maybe the government should make business contribute 100% of your ssi. Then you guys could claim you are paying 0%.

IF SS holds and my wife and I both retire at about 62, I shouldn’t have to touch too much of my retirement to live comfortably. Everything will be paid off before I retire, so she can take her cruises and I can take my turkey trips. Of course if the Stock Market crashes I’ll be working until I die, lol.

I got a $28 raise on my SS for 2020 lol!!

This is simplifying based on just flat dollars, no interest or other adjustments. If a person makes 30,000 a year for 35 years, they will make $1,050,000 in their lifetime. 6.2 percent is $65,100.00. Employer pays in the same. On the first $10,272 per year they will receive 90 percent, from $10,272 to $61,884.00 per year they will receive 32 percent. So, $10,272 X .90 = $9,244 + (30,000 - 10272) X .32=$6,313. 9,244+6313=$15, 557 Annual Social Security benefit per year at full retirement age. It would take a little over four years to receive as much as they paid in. 8 and a half years if you figure in the employer portion.
Considering the fact a very very small percentage of people can save money, and pensions are a thing of the past....maybe social security isn't such a bad thing.

Ohh..the multiplier in excess of $61,884.00 is 15 percent. I think these numbers are 2016 or 2017 numbers and they are adjusted annually, but it gives you a rough idea.

Thank you Bryce and a few others that took the time to actually verify your facts instead of just coffee shop talk.