If social security will be gone by the time I am eligible, why do i have to pay?

Question

23 y.o. male. Why am i throwing MY MONEY away?

Answer 1

Don't listen to anyone on here. GO AND SEE YOUR BANKER. HE/SHE WILL ASSIST YOU IN ALL MATTERS CONCERNING THIS SITUATION. YOU ARE TO BE COMMENDED.

C'ya

Answer 2

The underlying assumption in your question, that "social security will be gone by the time I am eligible", is almost certainly false. According to current projections, the SS trust fund is expected to be exhausted in 2041, at which time payroll taxes would be sufficient to fund only 75% of benefits. But of course 75% of benefits is a lot higher than no benefits at all. Even if gridlock persists in Washington until 2041, the politicians of that generation could (and almost certainly would) continue to fund SS benefits at a rate no lower than the 75% of benefits that could be paid out of current payroll taxes.

If, on the other hand, today's politicians actually get their act in gear and enact a long term fix, there are a variety of ways to fund SS at (or close to) current benefit levels. Take a look at this excerpt from the most recent report of the SSA on Social Security's long term solvency.

"Social Security could be brought into actuarial balance over the next 75 years in various ways, including an immediate increase of 16 percent in payroll tax revenues or an immediate reduction in benefits of 13 percent or some combination of the two."

Answer 3

Because social security is based on the rob Peter, pay Paul system of finance. They rob you to pay for someone else who is currently retired. The people who originally got social security never paid in a penny. And, the US has been playing "catch up" since then. We'll take from this generation to fund the previous generation.

And, as the entire US is learning (credit cards, mortgages, social security, the $trillion US deficit), that system doesn't work for very long.

Unfortunately, the reason most Americans are in the financial bind they are in is because they've learned from the US government that the rob Peter, pay Paul system is the way to live.

Start a Roth IRA and don't even expect to get a penny from social security. Watch out for yourself. Just accept the fact that you are going to get screwed and prepare for it.

Answer 4

You have no choice. I paid social security for many many years and now I am a teacher and pay into a state teacher's system for retirement. So I can never claim my social security because that's "double dipping". Isn't that my money??? And there is plenty of talk about my state retirement being gone before I retire as well. Our politicians want to take it over to help the social security "crisis". I have started my own Roth IRA just to be sure I have something when I retire!

Answer 5

First of all, it's very unlikely to be gone, since no politician is willing to risk that - but it probably will be different than it is now.

You are required to pay into the fund, that's why you pay. Consider it just another tax.

Answer 6

Your contributions go directly to someone collecting SS. If you didn't pay, some poor granny would be homeless.

Answer 7

Because the law is still on the books, and you have NO choice in the matter.

Answer 8

tell him to leave