The Future of Social Security...a Socialistic calamity that can destroy the American
citizen's belief in the Capitalist system
The "future" of Social Security from the Social Security website itself!
The "four basic alternatives for modernizing and reforming Social Security".
1) INCREASING payroll taxes (FICA TAX)
From a current rate of 6.2% (12.4% including company match) to 8%/16%; 9%/18%; 10%/20%....
If you earn $40,000 per year, 6.2% confiscated from your salary is $2,480 per year and $206.66 per month.
When including the Employer's "match", this means $4,960 per year and $413.33 per month.
Let's try this:
Using the calculator linked below, assume you are 18 years old, just out of High School.
In the "YEARS" field, enter 37, as you will work 37 years until you are 55. This is 12 years before one
can collect their meager "Social Security benefits" (currently age 67 for those born after 1960 - the age
to collect Social Security may GO higher in an effort to thwart the inevitable bankruptcy of Social Security) .
In the "PERCENT YIELD", enter 8.0, as one can easily attain this return on investments in stocks, bonds,
and/or mutual funds. (the increase in stock/bond/fund prices, along with reinvesting dividends, and a constant
increase in worker's contributions over one's work life, add up to well over an 8% return).
The initial balance is "0", as most of us start out with zero savings to our name (unless our parents assist us or
we inherit a large sum of money!).
In the "MONTHLY CONTRIBUTION" field, let us enter the INDIVIDUAL'S monthly FICA TAX from the
$40,000 per year example above ($206.66 per month).
The result is: $561,371.28
NOW; In the "MONTHLY CONTRIBUTION" field, let us enter BOTH the INDIVIDUAL'S and the
EMPLOYER'S MATCH amount from the example above ($413.33 per month). Keep the other fields the
same.
The result is: $1,122,769.72 (over one million dollars and retirement at age 55!).
If you take 10% of that out per year, that is $112, 276.97 per year, and if you continued earning
8%, you would barely touch the principal..
$112,276.97 divided by 12 months is $9,356.41.
This is a potential retirement at age 55 for a HIGH SCHOOL GRADUATE!
Social Security offers a worker a paltry $1,000 or so per month...IF you LIVE to collect it!!!
POLITICIANS DO NOT WANT WORKER'S TO KNOW THIS BECAUSE MOST WORKER'S
WOULD BE MILLIONAIRES AND THEIR "GOLDEN YEARS" WOULD INDEED BE GOLDEN.
NOW DO YOU UNDERSTAND WHY I SAY SOCIAL SECURITY IS A SCAM???
IT IS A SHAME WHAT IS BEING DONE TO AMERICAN WORKERS and their families.
THE PROMISE OF THE UNITED STATES OF AMERICA IS REDUCED DRASTICALLY BY THE
SOCIAL SECURITY SCAM...
Calculate the POTENTIAL WEALTH you are LOSING!
2) DECREASING benefits.
This is interesting because as life spans INCREASE, your "benefits" will be DECREASING, so you will slide into
poverty as you get older. IF your money was actually invested (as in a PERSONAL SAVINGS ACCOUNT), your
PRINCIPAL would be so large, that you could withdraw the interest (such as dividends or sell small amounts of
shares of stock for your monthly or annual income)
3) Using "general revenues".
This means more taxes but from a different source then the FICA taxes.
4) Pre-funding future benefits through either personal savings accounts or
direct investment of the trust funds.
Personal Savings Accounts = INDIVIDUALLY OWNED by the Worker, NOT the Government. (YES!)
Direct Investment of the Trust Funds = Better then the current "NON-Investment" of today's Social Security, but
this still leaves YOUR money in the Government's CONTROL. (ehhhh...do NOT settle for MEDIOCRITY!)
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