.... that you put in all your working years and that is what you get your retirement/social security money from, then how does a recipient get a raise?

Ever figure how much you really pay in compared to what you get back?

I believe a person pays for the generation before so technically it’s not your money, your spending the next generation’s money.

You get a raise by working longer and putting more into the system. You will get more $ over the years you draw due to cost of living increases, but that is not really a raise.

But how does a retired person not working get a raise?

If a cost of living adjustment is not a raise on a specific amount of money then what is it? The retiree isn't putting anything else into it.

And where does that cost of living increase money come from?

I feel as though you already know the answers to these questions bowhunter. ... call it a hunch.

Your SS income is based on what you put in. Raises are based on increasing your value to your employer. You are no longer employed so you won't ever increase your value and won't ever deserve a raise and won't ever get one. Same for me.

it's not (and never HAS been) "your" money you're being paid.

politicians have spent every nickel you ever put in, LONG before you've retired.

I'm just trying to figure how a set amount of money with nothing else being contributed to it turns into more money.

There are a lot of people on here who talk about there social security account. I figured since they are retired and contributing nothing else to their personal kitty, they could tell me how SS is adding money to their kitty for free.

It's very confusing.

So where does the cost of living increase money come from?

It comes from the $ you get being worth less.

So if your SS account is worth $120,000 and that is what you put into it, then that is your kitty. Now let's say you get $500 a month. That should last twenty years.

Now let's say you retire at 62 and live to 87. Where does that extra five years of income come from? How does that money get a raise? Where does the money come from to put a raise on those accounts?

If you get a raise based on your premise, then the money wouldn't last as long and would deplete even faster. Where do SSI recipients get money from once there account goes dry?

Have u ever heard of interest?

Next question.

If you have a specific ss account and you die 4 years after you retire, where does that money go? Why can't a recipient get a check cut for all that money they have put in over a lifetime?

Seems unfair.

SS recipients get a cost of living raise every year. The increase for 2026 is 2.8%. That's how you get a raise once you start collecting. You can start collecting as early as 62. But, the longer you wait the more you get, especially so if you keep working and keep putting in. I started at 65. Wife worked till 66 and 1/2. You can wait as long as 70, maybe more. I think the Govt. forces you to start collecting somewhere over the age of 70.

Gotta love it, Social Security cost of living increase come January is around 30.00, Medicare insurance cost go's up from 172.00 month to 185.00

So SS raise is $360.

Medicare raise is $156

So that is a $204 raise for that year.

Wow.

It's called a slush fund, and the slush is melting fast.

SS is political suicide for politicians if they raise the contribution to keep it afloat longer they are out of work, if they give it away on their watch it’s the same outcome.

The way I read it years ago was if you pay 40 quarters so 10 years you qualify for it, so now is that the same starting base as a guy that paid in for 40 years?

Also if you’re disabled at any age you get the same as the guy that paid in for all his years.

So the average earner puts in $250,000 over 38 years.

if the interest rate for that money is averaged at 3.66% that would be $9150/year. If the average earner is bringing home $1800/month. That is $21,600/year. That would be a net loss of 12,450/year.

That means 250,000 would last about 20 years.

I will ask again. Where does the money come from for the ss recipient once the kitty is dry.

Socialism at its bestv

And where does SS disability money come from?

Just bringing concerns to light. Nice to have an enlightening discussion for those who think they pay into their own social security.

Actually it is the world's largest Ponzi scheme. But if a citizen does this, they go to jail.

I would much prefer what I pay in go into a personal account like a roth. That I can invest and pass down.

I make a lot more than 3.8% But then It would not be a slush fund for the government.

FDR mandated Ponzi scheme because the government knows best after all

The government wants you to die as soon as you're no longer productive.

Keith

GWB tried to give us the option for personal accounts but the voters decided they preferred the Ponzi scheme.

The county of Galveston, TX (along with Matagorda and Brazoria counties) actually opted out of Social Security in favor of private accounts, which they call the Galveston Plan.
https://www.ssa.gov/policy/docs/ssb/v62n1/v62n1p47.pdf

The US government changed the rules in 1983 so no new counties can opt out, but those three TX counties were grandfathered in.

If people paid into their own private accounts, that ends the Ponzi scheme, does it not? So why did so many people who pretended to care about the national debt oppose it?

Consider this as well you paid taxes on that SS when you were working and pay taxes on it again when you draw it.

Sounds like the healthcare system.

Not surprising or out of line to have COLA adjustments after starting your benefits. After all the initial payments were based on taking your 40 quarters over time and adjusting the income for inflation over those years. Also there are bend points that have different percantages at different income levels with the lower incomes getting the benefit of the higher percentages in the calculations.The system was created to be fraternal to an extent. If you have a private pension, most of those have adjustments as well so this is not just an SS thing.

Bryce

Where did you get the idea that your SS dispersement is your money? The dollars you pay in go into a general fund that is unevenly paid out to individuals as politicians have controlled. Some get more or less than they paid in and some get paid without having paid in at all(there are also survivor benefits for dependents of those who have died). Borrowing and investing that fund is where the extra money you are asking about is supposed to come from(as well as many more paying in that getting paid). If the fund runs out a lot of individuals will lose a lot. Increasing the SS payroll deduction, the pay in cap and age you can get it all have changed to keep it solvent. Increased life span were never really planned for either.

I can imagine the games Wall Street would play with all that money flowing in. It's bad enough with 401K and other such retirement dollars being there to play with. The somewhat imperfect plan was for the gov to force people to save for their old age and try to help protect it. But when money piles up anywhere it is very difficult keeping the hands of politicians out of it unless you have some that will pass you tax, breaks, loopholes, tax shelters, subsidies or other protections for you. It is now a program that is very mismanaged and used to buy votes like so many others.

Who is FICA and why did it get a percentage of my pay check before my Federal and States taxes?

They absolutely do not get a cost of living increase (raise) every year.
Most recently these years had no increase

The same way à person who has never worked gets a raise and "gets money back" when they file income taxes.

I have no idea but look at all the extra money in the kitty from the people that died before receiving SS.

You don’t but one should have the opportunity to roll out the lump sum over 40 years with the ROI included so you can take control as I did with my pension took it in a lump and the that with my 401 rolled into all kinds of stuff

The money does not exist. The funds are collected each month and paid out each month. There is no individual account. If everybody made a run on their ss contributions they would not be able to cover them.

Our whole economy/ dollar system is a balancing act. I don't have a crystal ball but it is certainly possible that another depression could happen. Will gold and silver have value? Who knows. We may devolve into a trading society with very little manufacturing going on if there is no means of compensating employees.

While it's possible that doesn't happen either. I do not understand cryptocurrency. Seems like another ponzi fiat scheme to me but that could also happen.

FICA is the federal law that mandates the payroll deductions for SS and Medicare. Your portion.

Unless you're self employed and you get to pay on both sides.

And if your self-employed with employees you get to pay both sides for yourself (15.3%) plus match the 7.65% that is deducted from their paychecks.