What it started as and what it is now, and has been for a while, are two different animals. The life expectancy was somewhere around 62 when it was started in '35.
Retirement Targets
- Thread starter yowza
- Start date
6.2% out of the employees check; company pays additional 6.2%
12.4% if you are self employed
FDRs original proposal was for private accounts. I think a compromise between his idea and the current one would have been best. 1/2 goes into your account and 1/2 is general funded. It would have accomplished more in the long run I believe.
The employer still logs that 6.2% they pay as employee benefits. If they weren’t paying that, it would be made as a benefit or additional pay to the employee. Every company I’ve been at as factored it in as a benefit and calculated when COL raises and other benefits are brought up.
The system was well designed and planned out…. but the government just couldn’t keep their filthy hands off the surplus…. which is desperately needed now.
Call it whatever you want, why does it matter? From day one the program FDR set up was to take money away from people that are working and give it to those that are retired. Then when you retire, people that continued to work would pay yours. The program was never meant to be a savings account, tied to what you put in and kept only for you when you retire. The program was then expanded to include disabled people, aid to dependent children, both of which takes even more money.
Throw in that people are living longer, then add in the largest group of Americans the "baby boomers" are hitting retirement age and everyone could see that we were going to have problems down the road years ago, and both sides did little to nothing to fix the looming problem. Well now the problem has hit us, and we have few choices, increase the age till retirement, which is going to be hard on many people, enlarge the amount that you have to pay in, which again hurts a lot of people or take the cap off, which hurts the fewest people and brings in the most money.
The good point is the as the baby boomers are retiring, that also means that they are dying off, once that group is thinned out, the overall system should be back in line to what it has been for a number of years, workers to people retired.
Correct. The multiplier I used was around 1.25X base salary to factor in benies, health, taxes (ss), etc. Cars were approximately a $12,500 benefit - all fuel, maintenance, capital cost, etc.
I was talking to a good friend just two days ago and his multiplier is now 1.45× the base. He has profit sharing and pays 100% of health (self insured plan).
They log the 6.2% as a payroll tax expense. Every company I work for doesn’t factor SS with a COL increase. Why would they? It’s a fixed percent.
Most companies will increase annual wages 2-4%. Lately that’s been below inflation rates.
Exactly. It’s a tax being funded by the current working class who likely won’t be able to recoup their money when they reach retirement age. Instead, the younger working class has to deal with huge rent/home prices, wages not corresponding to COL adjustments, planning for their kids college tuition (which has sky rocketed) and still trying to set aside money for their own retirement.
See where the younger people aren’t happy with this tax?
I not sure where u get "most companies are 2-4%...." The minority would be at this level.
“In 2022, the Conference Board expected compensation costs (which generally include salaries, raises, and benefits) to jump 3.9%. This was the highest level reported since 2008”
Source
The younger people have never been happy with the system. You could make this same statement in the 60's, 70's, 80's, etc. Same story different time.
Briefly read who they are. I couldn't tell if these numbers come from their 2000 members across three countries or are actual numbers of just companies in the US. Salaries and benefits are up more than 3.9% Talk to any business.
They were all from US companies. the average salary increased 3.9%, the highest in nearly 15 years.
Where is your data to suggest otherwise?
The original proposal was to help the elderly stay out of poverty, after researching the plan, the first 3 to 5 years people were paid out in a lump sum payment, only after 5 years, was there enough money in reserve to start the first monthly checks. The first monthly check received paid only a couple hundred dollars into the system over 3 years when she retired at age 65, she lived to be 100 and received over $22,000 dollars from her $200 contribution.
The problem with putting 1/2 into an account for each person is that be doing so there would not be enough money in the reserve to cover disabled or aid to dependent children.
SS is a total crapshoot, most pay into the program their entire working life, and if you are lucky, draw it out for many years, while others pay into the system, pass way, and get nothing. Privatizing the program sounds great on the surface, but does not provide enough money to those already ready getting SS or will be getting it shortly, and then you have the problem down the road how to fund checks to the disabled or aid to dependent children. This system is far from perfect, but considering everything, it's the best we can do, and we have to strengthen the system for everyone.
Take the damn cap off of it!
And so did I and every American that has been in the program since 1935. You act like this "tax" was just sprung on you, and the rest of us did not have to pay it.
I have paid into this tax since 1980, I have yet to collect a dime out of it, but hopefully I can start in January. I am not asking anymore out of you, then what I had to do myself. As to whether SS will be there for you to draw, it's a crapshoot, there is no guarantee that you are going to make it to retirement age, but there is a guarantee that if something happens to you, that your children can collect under SS until they reach the age of 18.
Last edited:
Actual conversations with owners and employees of restaurants, grocery stores, furniture manufacturers, steel fabrications, truckers, airline workers, trailer manufacturers, kill factories for livestock, car manufacturers, fertilizer plant workers, country club employees, software developers, convenience stores, spray device assemblers, IT workers, spice bag manufacturers, cheese manufacturers (provolone and cheddar), wealth mgmt firms, bankers, and country club managers.
Simple solution. Treat is what is really is: a tax. Once a person reaches “retirement age” or are disabled, they will receive an amount each month. Everyone eligible will receive the same amount each given year. This is basically a monthly stipend paid to retirees/disabled which is funded by current taxpayers. This stipend amount will change annually based on COL changes.
Is it still perfect? No… COL isn’t same from State to State, City to City. But it’s better than the current program
So you don’t have any actual data, just first hand accounts. Show me data
Are you not describing what we currently have just with a fixed amount instead of differing amounts based on what you paid into the system? I would be fine with what you are suggesting, but I am sure people making larger amounts would like to have their SS adjusted to that amount.
According to my statement, I will be getting pretax right around $1600 a month. It's not like I am rolling in 5 grand a month here.
