It's easy to earn Social Security

Discussion in 'Budget & Taxes' started by wgabrie, Aug 25, 2016.

  1. wgabrie

    wgabrie Well-Known Member Donor

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    Earning Social Security in the USA is so easy. It's a point based system, you can earn up to 4 points every year on your income, and it takes 40 points to retire. So you can earn your Social Security benefits in 10 years.

    Now here's the easy part, in 2016, you just need to earn $1260 for each point. So for your full 4 points per year you just need to earn $5040 in the 2016 year to make your score count in full.

    So even poor people can earn a retirement with a little effort. That's why you work and get those points in there. I don't see any down side, retirement wise, to earn the minimum amount you need to get your 4 credits and the reward is a full retirement without the extra tax on your income. True you aren't pulling your weight behind the benefits but it's an entitlement for you. Why worry, life is a bowl of cherries. :relax:
     
  2. wgabrie

    wgabrie Well-Known Member Donor

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    So when are we going to reform Social Security so it's sustainable???
     
  3. cjm2003ca

    cjm2003ca Active Member

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    social security for the older people is not the problem..it is the fraud...what fraud?..the workers with the fake back injuries and all the rest of the fake injuries...and the women with kids who husband died and has kids but living with some other guy now and receiving social security...and then the doctors who charge the elderly for medical care that really isn't necessary ...how do i know this?.. i have seen it with my own parents when they will old and only slightly sick..
     
  4. OldManOnFire

    OldManOnFire Well-Known Member

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    Excess FICA contributions are a cash-cow for the government so any revised FICA program potentially takes away some of their spending...I'm curious what percent of deficit spending is funded by excess FICA?
     
  5. OldManOnFire

    OldManOnFire Well-Known Member

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    I read recently there are about 64 million Americans receiving SS or SSI, in which about 40 million of them are actually retired on SS while the other 24 million are receiving SSI. I doubt the original intent of SS was to support 24 people out of 64 people with disability payments.

    I personally never understood why employers were forced to pay FICA contributions? Business simply passes this expense onto all taxpayers in the form of higher consumer prices...IMO it would be better to fund FICA out of general taxpayer funds and keep consumer prices as low as possible...
     
  6. wgabrie

    wgabrie Well-Known Member Donor

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    I thought the government didn't borrow Social Security money anymore.
     
  7. OldManOnFire

    OldManOnFire Well-Known Member

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  8. wgabrie

    wgabrie Well-Known Member Donor

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  9. OldManOnFire

    OldManOnFire Well-Known Member

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    All excess monies from FICA go into the general fund. In order to achieve this the government is required to buy Treasuries and pay interest...
     
  10. wgabrie

    wgabrie Well-Known Member Donor

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    From what I read the money doesn't go into the general fund. It gets gathered into a middle step between the deficit and the sale of treasuries to the general public where the Social Security funds are used to buy securities and then the deficit is reduced by the amount sold.
     
  11. OldManOnFire

    OldManOnFire Well-Known Member

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    My knowledge goes like this; FICA monies come pouring in all the time. This CASH goes into the general fund in exchange the government gives SS interest bearing treasuries. When SS needs cash to pay recipients, SS cashes in the treasuries. All surplus FICA cash is used to fund the general expenses of government. Regarding deficit spending, the only thing FICA cash does is reduce deficit spending...for example if during the year there is $1 trillion in deficit spending but surplus FICA provides $500 billion, then the actual deficit spending for the year will be $500 billion.

    I think one of the root problems with the federal government is they are not allowed to accrue large sums of cash. There is no such thing as the federal government saving trillion$ in cash for rainy day issues or emergencies. There is no problem accruing large sums of debt but huge problems saving large sums of cash. This is why ALL the FICA monies go directly into the general fund...
     
  12. FreshAir

    FreshAir Well-Known Member Past Donor

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    and your social security income is based on your highest 35 years of earnings.... and how long you wait to retire

    .
     
  13. CourtJester

    CourtJester Well-Known Member

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    When we actually manage to elect a responsible government. On the other hand why spend so much time worrying about Social Security when the entire government is massivly in debt.
     
  14. wgabrie

    wgabrie Well-Known Member Donor

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    Oh there's not a minimum benefit amount on Social Security. I must have been looking at SSI.

    Is There a Minimum Monthly Social Security Payment
    http://finance.zacks.com/there-mini...ment-regardless-retirement-earnings-6330.html

    - - - Updated - - -

    I don't know.
     
  15. wgabrie

    wgabrie Well-Known Member Donor

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    Because there's people's money at stake.

    And Social Security is going to eat up an ever increasing portion of the budget in the near future.
     
  16. Steady Pie

    Steady Pie Well-Known Member Past Donor

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    Ponzi schemes tend to do that, it's in their nature.
     
  17. OldManOnFire

    OldManOnFire Well-Known Member

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    As long as FICA withholding covers the cost of SS and SSI and Medicare there is no increasing impact to the federal budget. Remember the government takes the FICA cash in trade for interest-bearing treasuries. Whomever decides on FICA withholding simply needs to withhold amounts that keep the program going and going. Yes it is a Ponzi scheme type program but until the federal government is allowed to have trillion$ in cash in a fund, most of it invested for interest income, we must support the current program...
     

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