Is Social Security “insurance”? No, it’s not. Published by Jane the Actuary View all posts by Jane the Actuary
7 thoughts on “Forbes post, “The New ‘Expand Social Security’ Caucus Says That Social Security Is Insurance. No, It’s Not.””
We worked hard all these years .for this were retired and count on this don’t change anything we have already have money taken from us because rate had gone up.old people depend on this money.as normal nobody care for old people this is our lively we need this mrs Elizabeth Vega and I was born here my maiden name was Lawson
well, we do have a “right” to SS benefits in that we’ve been promised these benefits, so until there’s a change these benefits are a “right”…SS continuing as it is, with the elimination of the the cap on which SS taxes are paid (along with one or two other minor tweaks), would be my choice do insure SS lasts for decades to come…
Only income up to a certain threshold is subject to the Social Security tax, correct? When you talk about certain people subsidizing others, I think you need to keep in mind that the very wealthy do not pay any more than the somewhat wealthy (those making approximately 115000 a year). In fact, the very wealthy pay a much lower percentage of their income. It is troubling that you find fault with the term insurance, but you use the term subsidy so haphazardly. The actual definition of insurance matches perfectly with the truth of what Social Security Disability Insurance Benefits are. There are premiums, there is risk and there are specified losses and damages. The only difference is that consumers of this particular insurance do not get to choose to sign up for it, like with private insurance. They are required to participate by the federal government through FICA, which if anything, makes it more important to protect and recognize as an earned benefits.
I find it disconcerting to read an article with so many grammatical errors. You may want to proofread your writing with more care. It will help everyone understand your point of view.
What about all the contributions? – A simple interest calculation of the approx. 7% deduction from very modest earnings of $ 25000/year, invested over 35 years with just 2% interest would have grown to almost $90000.00.
What about that? – Sure, most people may not have invested it that diligently, but neither did our governments, and they need to be held accountable for that, do they not?