Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<<Is that a retirement system or welfare system? >>

Neither actually. It's an insurance "policy". I don't believe you "pay" in to the welfare system in order to get a check. If you don't pay in to SS, you don't get a check (not welfare under that definition). You don't need to have ever worked to draw welfare. No work, no SS (not welfare under that test as well).

I don't think anyone should consider SS welfare. It's really not a lot different than your auto insurance. If you have auto insurance, you pay in and pay in and pay in (and maybe never draw out). When you have an eligible event (i.e. car crash), you get a check. With SS you pay in and pay in and pay in, and when you have an eligible event (i.e. attain age 62/65) you get a check, mainly because you paid your "premiums" (i.e. FICA tax). With auto insurance, if you never wreck your car, you never get a check. With SS, if you don't attain retirement age you don't get a check (but your spouse and/or kids might).

It was never intended to be welfare, it isn't welfare. It's a retirement system that was set up in the same manner as insurance (and is called Retirement INSURANCE Benefits, Disability INSURANCE Benefits, Widows INSURANCE Benefits). It's a retirement system that has grown and grown and grown (medicare, widows, disability, survivors, wifes, death benefits, etc., etc., etc.) as the needs of the people have grown. Don't call it welfare because it's not.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.