this post was submitted on 25 Jul 2024
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The go-broke dates for Medicare and Social Security have been pushed back as an improving economy has contributed to changed projected depletion dates, according to the annual Social Security and Medicare trustees report Monday.

Still, officials warn that policy changes are needed lest the programs become unable to pay full benefits to retiring Americans.

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[–] [email protected] 0 points 3 months ago (1 children)

The average person makes 65k

Social security is 12.4%

Medicare is 2.9%

Social Security is 8.19k

Medicare is 1.885k

Average person pays 10k a year to SS and Medicare.

Retirement age is 67

Start work at 18, 49 years of work.

S&P500 has returned an average of 10.64% apr for the last 100 years. 16.5% last 5 years.

30-year morgage is ~7.5%

Let's just assume the person could put extra money towards their mortgage, gaining 7.5% apr.

10k/12= 833.33 per month

833.33 a month at 7.5% apr for 30 years is 1.02M

833.33 a month at 10% apr for 49 years is 10.41M

Government takes 1-10M from the average American retirement account to give them SS and Medicare.

Let's say you live until 80. Average life expectancy is ~77.5. Means you have 13 years in retirement.

Average SS payment is 1,864.52 a month. 22,374.24 a year.

13 years of 22,374.24 is 290,865.12.

Average person is losing 750k-9.75M for retirement.

Medicare is a whole other beast but unless you're going to pay 750k+ on medical expenses in retirement, it's not going to benefit you.

Even with Medicare you have to pay premiums, deductibles, copayments, and coinsurance. So it's not like it's all covered for "free".

SS is a government ran ponzi scheme. Anyone else doing it would be a crooked investor.

I get that minimum wage is $7.25 and that's 15k a year. They are paying 2k a year for SS. They will most likely benefit from the system.

But the average American shouldn't be footing so much of the bill and not seeing any benefits.

It's crazy

[–] [email protected] 6 points 3 months ago (1 children)

You're simply describing the skewed tax burden placed upon the middle and lower classes. Rich people should be paying more. Social security isn't an investment fund and shouldn't be an investment fund.

[–] [email protected] -1 points 3 months ago (1 children)

We administer retirement, disability, survivor, and family benefits, and enroll individuals in Medicare.

Social Security provides retirement income for almost every American worker.

Ssa.gov

An investment fund is a supply of capital belonging to numerous investors, used to collectively purchase securities, while each investor retains ownership and control of their own shares.

Investopedia.com

The only thing not making it an investment fund is that the government forcefully takes the money and you don't own the money after it is taken.

The average person gets the majority of their retirement income from SS.

Ask the average person what SS is. They will say that it is a retirement fund. What is a retirement fund? An investment fund.

Social insurance, as conceived by President Roosevelt, would address the permanent problem of economic security for the elderly by creating a work-related, contributory system in which workers would provide for their own future economic security through taxes paid while employed.

Ssa.gov

[–] [email protected] 1 points 3 months ago

Ask the average person what SS is. They will say that it is a retirement fund. What is a retirement fund? An investment fund.

Sorry but asking random people what something is might make for funny late night TV but it's not how you define things.