Workers in the beginning of the program did well, receiving multiple times the amount they put in, but future beneficiaries will not receive the same ratio of benefits as those in the past or those of today.
The so-called Social Security trust fund has no money in a trust, having paid out more than it received in annual payroll taxes last year and having to borrow money from the general fund to make up for the lack of tax revenue, thus contributing to the burgeoning national deficit.
Most of today’s beneficiaries will not even get back the money, they and their employers, “invested” in the plan through payroll taxes paid typically for a minimum of over four decades. This is a typical Ponzi scheme – last out of scheme gets less than first ones in!
If you retired in the 1960′s, you could expect to get back seven times more in benefits than you paid in Social Security taxes, and more if you were a low-income worker, because the system pays progressively, as long you lived to 80.
Even as late as the mid-1980s, workers at all income levels could at least expect to get back what you paid into the system.
You could have done just as well putting your money under the mattress – to equal the investment return of this government retirement system – the government does nothing well except collecting taxes and spending the money.
As recently as 1985, workers at every income level could retire and expect to get more in benefits than they paid in Social Security taxes, though they didn’t do quite as well as their parents and grandparents.
How can you get a better return on your Social Security taxes?
Live longer. Benefit estimates are based on life expectancy. For those turning 65 this year, Social Security expects women to live 20 more years and men to live 17.8 more.
But returns alone don’t fully explain the value of Social Security, which has features that aren’t available in typical private-sector retirement plans, said David Certner, legislative policy director for AARP.
Spouses can get benefits even if they never earned wages. Children can get benefits if they have a working parent who dies. People who are too disabled to work can get benefits for life.
These new benefits were added without sufficient revenue and the new benefits are currently depleting the original intent of Social Security, which was retirement.
The lie perpetrated by the Social Security Administration is that there is a trust fund that will last until 2033, at which time beneficiaries would still get 75% of what they project.
The Social Security trust fund, which never really existed because all the money was borrowed and spent each year for decades by Congress – only non-negotiable bonds remain – IOUs – pieces of paper that were created when the government spent the money off budget each year .
Younger beneficiaries are now realizing that they are not contributing to their retirement but to someone who is currently retired - a Ponzi scheme.
“The money that I put aside now, it’s not like that money is going to be waiting for me. That money is going toward someone else,” a recent college graduate said. “If I wanted Social Security 50 years from now, when I wanted to retire, I would have to hope that someone else is still working and putting money aside in their paychecks to pay for my Social Security at that point.”