Privitized Social Security

[zymurgy]

Depends on how you define the words. Welfare = "well fare" the well being. That what SS checks are, payment for the well fare of the elderly.

Social security is a pyramid scheme that differs from true welfare programs. If you don't work enough, you don't qualify. So obviously the most needy don't qualify. Seems like a pretty poorly constructed welfare program when the most needy don't qualify.

Depends upon how long he lives.

Also depends on if you ever stop paying in, which he doesn't. He still has earnings that go into the fund that exceed anything he gets out in a given year.

 

[Iriemon]

Social security is a pyramid scheme that differs from true welfare programs. If you don't work enough, you don't qualify. So obviously the most needy don't qualify. Seems like a pretty poorly constructed welfare program when the most needy don't qualify.

Good point. They should change it.

Also depends on if you ever stop paying in, which he doesn't. He still has earnings that go into the fund that exceed anything he gets out in a given year.

Is that right? Elderly folks who are receiving SS still have to pay SS taxes? Even so, SS taxes are maxed at 12.4% (including the employer's half) of 90k, which is just over $11k, so he is still pulling out twice as much as he's putting in.

 

[zymurgy]

Good point. They should change it.



Is that right? Elderly folks who are receiving SS still have to pay SS taxes? Even so, SS taxes are maxed at 12.4% (including the employer's half) of 90k, which is just over $11k, so he is still pulling out twice as much as he's putting in.

Based on the current calculations, nobody is getting more back in a given year then they would of put in at the max. I assume you pulled your 20k figure out of thin air, no?

 

[Iriemon]

Based on the current calculations, nobody is getting more back in a given year then they would of put in at the max. I assume you pulled your 20k figure out of thin air, no?

Kind of, but I think max SS benefits these days exceed $20k ...

Here, I found it. Max SS benefit $1,939/mo. (Age 65 and 6 months). That is almost $24k a year.

http://www.ssa.gov/pressoffice/factsheets/colafacts2005.htm.

the table reports max contribution is 6.2, which if you add theemployer's half, is 12.4%. SS is taxed (in 2005) on earnings up to $90k, which sets the max contribution at just a little over $11k.

So assuming (1) you are correct that those over 65 have to pay SS tax, and (2) Warren Buffet receives the maximum benefit, he is indeed receiving about twice what he puts in.

 

[zymurgy]

Kind of, but I think max SS benefits these days exceed $20k ...

Here, I found it. Max SS benefit $1,939/mo. (Age 65 and 6 months). That is almost $24k a year.

http://www.ssa.gov/pressoffice/factsheets/colafacts2005.htm.

the table reports max contribution is 6.2, which if you add theemployer's half, is 12.4%. SS is taxed (in 2005) on earnings up to $90k, which sets the max contribution at just a little over $11k.

So assuming (1) you are correct that those over 65 have to pay SS tax, and (2) Warren Buffet receives the maximum benefit, he is indeed receiving about twice what he puts in.

The max of $1,939 would only apply if you are receiving benefits for yourself and a deceased spouse. I don't beleive this applies to Mr Buffett.

 

[Iriemon]

The max of $1,939 would only apply if you are receiving benefits for yourself and a deceased spouse. I don't beleive this applies to Mr Buffett.

Hmmm. The table doesn't indicate it is conditioned upon that. It says: "Maximum Social Security Benefit: Worker Retiring at Full Retirement Age"

If not that, what is the max SS benefit a retired person can get?