oversimplified
Posted By: cj on 2009-05-05
In Reply to: That is not the case - AnudderMT
okay, you are correct in that benefits are paid out by what you have earned historically, but obviously that is a direct tie to what one would have paid in, i.e., the more you earned the more you paid - unless you worked for the government or the railroad! And, yes, the program came into being and began paying out at the same time. However, there have been countless amendments, etc., along the road, and no matter how you slice it, the program was intended to be a savings acct for retirees. The govt felt people would not be able to save for their retirement so they decided to do it for us - expect they didn't do it. There used to be a huge surplus in SS funds because there were many, many more people working than retired. Longer life expectancies as well as the baby boom generation reaching retirement age now have changed that demographic. What happened to the surplus? Did the govt save it in anticipation of larger numbers of retirees, like they were supposed to do? No. They spent it. The funds were used for other purposes. This is fact. He or she who pays in is supposed to be paid back. Period. That is how your credits are figured.
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oversimplified
Keep in mind, however, that for many people who do now quality this "credit" has to be paid back anyway so.....
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