Saturday, April 11, 2015

It's Payback Time

Social Security is a subject that isn't given much thought most of the time unless you're in your late 50's or early 60's. Occasionally a politician will use SS to leverage attention in the media and it becomes news.

Discussion ensues and the SS debate rages. Is it solvent? Will it be changed? Does it need fixing? Will YOUR money be there when YOU are eligible? Will the entire concept eventually be scrapped? The dust settles, elections pass and all is forgotten again. The subject of SS soon fades away, kicking the can so to speak.

SS is NOT an entitlement like welfare or EBT Cards. We, as hard working Americans pay into a fund and at the age of 62 our wonderful benevolent government dribbles it back to us.

I must admit we were concerned when that pompous, ever bombastic blowhard Al Gore made it a campaign topic sixteen years ago. Being near the age of eligibility and considering all the money we put into it the thought of not having it back when we were promised caused us much concern. This was only one part of our retirement plan but essential to overall comfort late in life. Besides, it's OUR MONEY.

My eligibility confirmation came in the typical brown government envelope Friday.

I turn 62 in two months. We have read a lot of propaganda about how much more we would collect per month if we waited a few more years instead of claiming eligibility at 62 years old. Wait for 66? Not a chance. Our calculations conclude it would take up to six years beyond that before making up the difference. We wanted our money back and we wanted it ASAP, before someone or a group of someones change the rules.

Our wonderful benevolent government would like us to delay eligibility. This means they could hold onto my money longer or I could pass away before collecting. That would let them off the hook. No way.

It's no secret Social Security is a ponzi scheme, a gummint bamboozle. One generation pays for the next. When our parents and grand parents became eligible there were plenty of baby boomers to pay into the system. SS didn't begin that way but that is how it now works.

As baby boomers, Gen X'rs and the next younger generation will be providing us with our extra retirement income. Problem is there are far more of us than there are of them. WIll they contribute enough to keep SS afloat? Who will bail it out if it needs bailing out?  Maybe they can bring in some more hard working Mexicans to make up the difference. Until then at least we know we will be getting ours when originally promised. For the following generations? Not so sure.

She has already been collecting since she is older than I. When my deposits begin in two months I will be getting a considerable amount of cash and her deposits will double so this is no chump change. 

We have crossed the finish line. We will be getting ours.Thanks a Gen X'ers!


Dan from Madison said...

Will YOUR money be there when YOU are eligible? No.

WIll they contribute enough to keep SS afloat? No.

Who will bail it out if it needs bailing out? Nobody.

For the following generations? No.

We will be getting ours. Thanks a Gen X'ers! You are most welcome. You aren't the first boomer to thank me. Gens X, Y and the millenials will, however, clean up the mess that the boomers left for us. Present company excluded, of course. I don't like painting with broad brushes because it never makes sense.

Dan from Madison said...

And congrats on the checks. I would do the same thing as you and get the money now. Do you pay taxes on it?

Carl from Chicago said...

My father in law went to the social security office. He said he was like the only guy there who was collecting benefits that he's put into the system. Everyone else there was just collecting disability or something like that.

I think you get taxed on social security depending on your income levels.

Anonymous said...

Gerry, I am so much with you on that: it is OUR money, it is not a handout. Even though it IS a Ponzi scheme - but you, in the middle of the pyramid, just getting back what you have been putting there all your working life.
For me and those like me - I am closer to Carl and Dan's age bracket - the picture is not as rosy, we will experience significant shortage.
Who is getting screwed completely - it's my son's generation.

The situation with SS is the same as with Medicare: it is OUR money, extorted from us by the government, and it a stigma worse than a Ponzi scheme - because many people, for some reason, consider it a "welfare handout".
Reminds me of conversation on the topic I had @ CB 5 yrs ago. Where I was called all kinds of ugly names - for saying exactly what you said today, namely: we have been contributing into Medicare all our working life, and if all doctors quit accepting it due to government screwup with prices and paperwork, the only people who are wronged are the patients.

Gerry from Valpo said...

All good comments folks, thanks.

As of today I am unable to respond to specific questions with factual data until more information is confirmed.

As our Social Security Payback reality blog show unfolds and we gain more information look for more installments about getting old and collecting our SS payback here on LITGM.

Until then we will be busy planning how to spend this windfall profit suddenly flooding our bank account thanks to the most victimized Gen-X'ers on the planet.

Present company excluded, of course. Thanks again : )

Carl from Chicago said...

I think we will get our money back. But it just will be in wheelbarrows and we will be able to buy a nice loaf of bread with it.