Quote:
Originally Posted by lordscarlet
I still don't understand this. How is it a disproportionate burden? If I stop putting in money, I stop contributing to the amount I will receive from Social Security. This math is not correct, but to oversimplify it (both for simplification and because I don't know how it actually works), if I put in $100,000 to social security over my life, I get $1,000 a month in retirement. If I put in $50,000 to social security over my life, I get $500 a month in retirement. Is this not the case? Why do people need to keep contributing to Social Security beyond $103,000 in income? If they don't contribute past that, they're not taking money away from anyone but themselves. Correct?
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this is incorrect. most people get far more out of the social security system than they ever put in. the money you contribute today is used to pay benefits for people receiving them now. it is not held aside in your name for when you retire.
example would be someone who starts collecting at age 65 a benefit of $1,000 a month ($12K per year. let's say they live to 85, so 20 years x $12K per year = $240K that they receive from the system. over that person's lifetime, they would have contributed far less than $240K to the system through payroll deductions.