Policy Basics: Top Ten Facts About Social Security

[TruthOut10]

Fact #1: Social Security is more than just a retirement program. It provides important life insurance and disability insurance protection as well.
In June 2012, 56 million people, or about one in every six U.S. residents, collected Social Security benefits. While three-quarters of them received benefits as retirees or elderly widow(er)s, another 11 million (19 percent) received disability insurance benefits, and 2 million (4 percent) received benefits as young survivors of deceased workers.[1] (See figure below.)

Workers earn life insurance and disability insurance protection by making Social Security payroll tax contributions:
◾About 96 percent of people aged 20-49 who worked in jobs covered by Social Security in 2011 have earned life insurance protection through Social Security.[2] For a young worker with average earnings, a spouse, and two children, that Social Security protection is equivalent to a life insurance policy with a face value of $476,000.[3]
◾About 91 percent of people aged 21-64 who worked in covered employment in 2011 are insured through Social Security in case of disability.[4]

The risk of disability or premature death is greater than many people realize. Of recent entrants to the labor force, almost four in ten men (37 percent) and three in ten women (31 percent) will become disabled or die before reaching the full retirement age.[5]

 

[TruthOut10]

Fact #2: Social Security provides a guaranteed, progressive benefit that keeps up with increases in the cost of living.
Social Security benefits are based on the earnings on which you pay Social Security payroll taxes. The higher are your earnings (up to a maximum taxable amount, currently $110,100 and slated to rise automatically to $113,700 in 2013), the higher will be your benefit.

Social Security benefits are progressive: they represent a higher proportion of a worker’s previous earnings for workers at lower earnings levels. (See figure below.) For example, benefits for someone who earned about 45 percent of the average wage and then retired at age 65 in 2012 replace about 55 percent of his or her prior earnings. But benefits for a person who always earned the maximum taxable amount replace only 27 percent of his or her prior earnings, though they are larger in dollar terms than those for the lower-wage worker.[6]

In recent years, fewer employers have offered defined-benefit pension plans, which guarantee a certain benefit level upon retirement, and more have offered defined-contribution plans, which pay a benefit based on a worker’s contributions and the rate of return they earn.[7] Thus, for most workers, Social Security will be their only source of guaranteed retirement income that is not subject to investment risk or financial market fluctuations.

Once someone starts receiving Social Security, his or her benefits automatically increase each year to keep pace with inflation, helping to ensure that people do not fall into poverty as they age. In contrast, most private pensions and annuities are not adjusted for inflation or are only partly adjusted.

 

[TruthOut10]

Fact #3: Social Security provides a foundation of retirement protection for nearly every American, and its benefits are not means-tested.
Almost all workers participate in Social Security by making payroll tax contributions, and almost all elderly people receive Social Security benefits. The near-universality of Social Security brings many important advantages.

Social Security provides a foundation of retirement protection for people at all earnings levels. It encourages private pensions and personal saving because it isn’t means-tested — in other words, it doesn’t reduce or deny benefits to people if their current income or assets exceed a certain level.[8] Social Security provides a higher annual payout for a dollar contributed than private retirement annuities because the risk pool is not limited to those who expect to live a long time, no funds leak out in lump-sum payments or bequests, and its administrative costs are much lower.[9]

Indeed, universal participation and the absence of means-testing make Social Security very efficient to administer. Administrative costs amount to only 0.9 percent of annual benefits, far below the percentages for private retirement annuities.[10] Proposals to means-test Social Security would undercut many of those important advantages.[11]

Finally, the universal nature of Social Security assures its continued popular and political support. Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

Policy Basics: Top Ten Facts about Social Security ? Center on Budget and Policy Priorities

 

[Toddsterpatriot]

Fact #2: Social Security provides a guaranteed, progressive benefit that keeps up with increases in the cost of living.
Social Security benefits are based on the earnings on which you pay Social Security payroll taxes. The higher are your earnings (up to a maximum taxable amount, currently $110,100 and slated to rise automatically to $113,700 in 2013), the higher will be your benefit.

Social Security benefits are progressive: they represent a higher proportion of a worker’s previous earnings for workers at lower earnings levels. (See figure below.) For example, benefits for someone who earned about 45 percent of the average wage and then retired at age 65 in 2012 replace about 55 percent of his or her prior earnings. But benefits for a person who always earned the maximum taxable amount replace only 27 percent of his or her prior earnings, though they are larger in dollar terms than those for the lower-wage worker.[6]

In recent years, fewer employers have offered defined-benefit pension plans, which guarantee a certain benefit level upon retirement, and more have offered defined-contribution plans, which pay a benefit based on a worker’s contributions and the rate of return they earn.[7] Thus, for most workers, Social Security will be their only source of guaranteed retirement income that is not subject to investment risk or financial market fluctuations.

Once someone starts receiving Social Security, his or her benefits automatically increase each year to keep pace with inflation, helping to ensure that people do not fall into poverty as they age. In contrast, most private pensions and annuities are not adjusted for inflation or are only partly adjusted.

I can do much better with 12.4% of my income.

Social Security will be their only source of guaranteed retirement income that is not subject to investment risk or financial market fluctuations.

LOL! You just have to worry about politicians stealing it. No risk? That's funny!

 

[Oddball]

 

[Toddsterpatriot]

Fact #3: Social Security provides a foundation of retirement protection for nearly every American, and its benefits are not means-tested.
Almost all workers participate in Social Security by making payroll tax contributions, and almost all elderly people receive Social Security benefits. The near-universality of Social Security brings many important advantages.

Social Security provides a foundation of retirement protection for people at all earnings levels. It encourages private pensions and personal saving because it isn’t means-tested — in other words, it doesn’t reduce or deny benefits to people if their current income or assets exceed a certain level.[8] Social Security provides a higher annual payout for a dollar contributed than private retirement annuities because the risk pool is not limited to those who expect to live a long time, no funds leak out in lump-sum payments or bequests, and its administrative costs are much lower.[9]

Indeed, universal participation and the absence of means-testing make Social Security very efficient to administer. Administrative costs amount to only 0.9 percent of annual benefits, far below the percentages for private retirement annuities.[10] Proposals to means-test Social Security would undercut many of those important advantages.[11]

Finally, the universal nature of Social Security assures its continued popular and political support. Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

Policy Basics: Top Ten Facts about Social Security ? Center on Budget and Policy Priorities

Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

It's true, lots of Americans are really bad at math.

 

[TruthOut10]

Fact #3: Social Security provides a foundation of retirement protection for nearly every American, and its benefits are not means-tested.
Almost all workers participate in Social Security by making payroll tax contributions, and almost all elderly people receive Social Security benefits. The near-universality of Social Security brings many important advantages.

Social Security provides a foundation of retirement protection for people at all earnings levels. It encourages private pensions and personal saving because it isn’t means-tested — in other words, it doesn’t reduce or deny benefits to people if their current income or assets exceed a certain level.[8] Social Security provides a higher annual payout for a dollar contributed than private retirement annuities because the risk pool is not limited to those who expect to live a long time, no funds leak out in lump-sum payments or bequests, and its administrative costs are much lower.[9]

Indeed, universal participation and the absence of means-testing make Social Security very efficient to administer. Administrative costs amount to only 0.9 percent of annual benefits, far below the percentages for private retirement annuities.[10] Proposals to means-test Social Security would undercut many of those important advantages.[11]

Finally, the universal nature of Social Security assures its continued popular and political support. Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

Policy Basics: Top Ten Facts about Social Security ? Center on Budget and Policy Priorities

Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

It's true, lots of Americans are really bad at math.

And what would you suggest? What would be a better and safer investment vehicle?

 

[C_Clayton_Jones]

Fact #3: Social Security provides a foundation of retirement protection for nearly every American, and its benefits are not means-tested.
Almost all workers participate in Social Security by making payroll tax contributions, and almost all elderly people receive Social Security benefits. The near-universality of Social Security brings many important advantages.

Social Security provides a foundation of retirement protection for people at all earnings levels. It encourages private pensions and personal saving because it isn’t means-tested — in other words, it doesn’t reduce or deny benefits to people if their current income or assets exceed a certain level.[8] Social Security provides a higher annual payout for a dollar contributed than private retirement annuities because the risk pool is not limited to those who expect to live a long time, no funds leak out in lump-sum payments or bequests, and its administrative costs are much lower.[9]

Indeed, universal participation and the absence of means-testing make Social Security very efficient to administer. Administrative costs amount to only 0.9 percent of annual benefits, far below the percentages for private retirement annuities.[10] Proposals to means-test Social Security would undercut many of those important advantages.[11]

Finally, the universal nature of Social Security assures its continued popular and political support. Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

Policy Basics: Top Ten Facts about Social Security ? Center on Budget and Policy Priorities

Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

It's true, lots of Americans are really bad at math.

And what would you suggest? What would be a better and safer investment vehicle?

Assuming middle and low income workers have the ‘extra’ income to invest in the first place.

 

[Toddsterpatriot]

Fact #3: Social Security provides a foundation of retirement protection for nearly every American, and its benefits are not means-tested.
Almost all workers participate in Social Security by making payroll tax contributions, and almost all elderly people receive Social Security benefits. The near-universality of Social Security brings many important advantages.

Social Security provides a foundation of retirement protection for people at all earnings levels. It encourages private pensions and personal saving because it isn’t means-tested — in other words, it doesn’t reduce or deny benefits to people if their current income or assets exceed a certain level.[8] Social Security provides a higher annual payout for a dollar contributed than private retirement annuities because the risk pool is not limited to those who expect to live a long time, no funds leak out in lump-sum payments or bequests, and its administrative costs are much lower.[9]

Indeed, universal participation and the absence of means-testing make Social Security very efficient to administer. Administrative costs amount to only 0.9 percent of annual benefits, far below the percentages for private retirement annuities.[10] Proposals to means-test Social Security would undercut many of those important advantages.[11]

Finally, the universal nature of Social Security assures its continued popular and political support. Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

Policy Basics: Top Ten Facts about Social Security ? Center on Budget and Policy Priorities

Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

It's true, lots of Americans are really bad at math.

And what would you suggest? What would be a better and safer investment vehicle?

An index fund, over an extended period, will return multiples of what Social Security will give me. And if I die before retirement age, my heirs would have hundreds of thousands to inherit, instead of a pittance from Social Security.

 

[Toddsterpatriot]

Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

It's true, lots of Americans are really bad at math.

And what would you suggest? What would be a better and safer investment vehicle?

Assuming middle and low income workers have the ‘extra’ income to invest in the first place.

That's easy, take the 12.4% they currently have to hand over to Social Security.

 

[TruthOut10]

Large majorities of Americans say that they don’t mind paying for Social Security because they value it for themselves, their families, and millions of others who rely on it.[12]

It's true, lots of Americans are really bad at math.

And what would you suggest? What would be a better and safer investment vehicle?

An index fund, over an extended period, will return multiples of what Social Security will give me. And if I die before retirement age, my heirs would have hundreds of thousands to inherit, instead of a pittance from Social Security.

So basically what you're saying is that you don't have the money yourself and hope to inherit it. Now that's a smart retirement plan if I ever heard one.

 

[TruthOut10]

https://www.youtube.com/watch?v=anwy2MPT5RE

I find it laughable that you're so quick to pm me accusing me of "spam" and when you post for the most part you're not saying nothing, but "spamming" with this lame ass link to youtube.

SPAMMER!!!

 

[Oddball]

And what would you suggest? What would be a better and safer investment vehicle?

An index fund, over an extended period, will return multiples of what Social Security will give me. And if I die before retirement age, my heirs would have hundreds of thousands to inherit, instead of a pittance from Social Security.

So basically what you're saying is that you don't have the money yourself and hope to inherit it. Now that's a smart retirement plan if I ever heard one.

He didn't say anything even remotely like that, you fucking retard.

 

[TruthOut10]

An index fund, over an extended period, will return multiples of what Social Security will give me. And if I die before retirement age, my heirs would have hundreds of thousands to inherit, instead of a pittance from Social Security.

So basically what you're saying is that you don't have the money yourself and hope to inherit it. Now that's a smart retirement plan if I ever heard one.

He didn't say anything even remotely like that, you fucking retard.

My other stalker has arrived. What took you so long? For a moment I was getting worried I lost you.

 

[Oddball]

Irrelevant to the fact that Toddster didn't say anything anywhere near what you said he said....That, and you're still a fucking retard spammer.

 

[Toddsterpatriot]

And what would you suggest? What would be a better and safer investment vehicle?

An index fund, over an extended period, will return multiples of what Social Security will give me. And if I die before retirement age, my heirs would have hundreds of thousands to inherit, instead of a pittance from Social Security.

So basically what you're saying is that you don't have the money yourself and hope to inherit it. Now that's a smart retirement plan if I ever heard one.

No, I'm saying if I didn't have to give 12.4% of my income to the government, I'd be able to save a decent amount on my own.
I'm saying I'd have a big chunk of change to leave to my kids.

 

[Grandma]

An index fund, over an extended period, will return multiples of what Social Security will give me. And if I die before retirement age, my heirs would have hundreds of thousands to inherit, instead of a pittance from Social Security.

So basically what you're saying is that you don't have the money yourself and hope to inherit it. Now that's a smart retirement plan if I ever heard one.

No, I'm saying if I didn't have to give 12.4% of my income to the government, I'd be able to save a decent amount on my own.
I'm saying I'd have a big chunk of change to leave to my kids.

That is, unless we have another crash like 1929 or 2008.

 

[Toddsterpatriot]

So basically what you're saying is that you don't have the money yourself and hope to inherit it. Now that's a smart retirement plan if I ever heard one.

No, I'm saying if I didn't have to give 12.4% of my income to the government, I'd be able to save a decent amount on my own.
I'm saying I'd have a big chunk of change to leave to my kids.

That is, unless we have another crash like 1929 or 2008.

We just had a crash in 2008.
And my private money will still return multiples of Social Security.
Which soon enough will return even less than promised.