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URL:  https://boards.fool.com/thank-you-for-the-link-from-it-quot-they-32160442.aspx

Subject:  Re: Attitude Question - SS Date:  3/15/2016  1:15 PM
Author:  JAFO31 Number:  79343 of 97388

Thank you for the link.

From it - "They found that every age group received a positive return. Among current workers and retirees, the rates of annual return varied by about two percentage points - from a high of 6.52 percent (for single-earning couples born in 1920) to 4.52 percent (for their counterparts born in 1985).

. . .

That is because Social Security's design includes valuable spousal features that pay benefits to nonworking spouses and surviving widows.

. . .

Lower-income workers come out ahead. Low-income workers enjoy higher rates of return by design, because Social Security's benefit formula is weighted toward lower-earning beneficiaries and their payroll tax contributions will be relatively lower."

"A projection by Favreault of Social Security data found that 82 percent of individuals who live to age 85 get back more in benefits than then pay in taxes; about 52 percent of those who die between 75 and 84 come out ahead. Meanwhile, just 21 percent of those who die between 62 and 69 get back more than they put in to the system."

So even if one lives to 85, there is still an 18% chance (slightly worse than 1 in 5) that one would get back less than the taxes paid.

And I suspect, that those making 85 and in the 18% would be dual career, high income persons.

It was not clear to me how the employer's portion of the taxes were counted in the analysis in article you linked. I am never (or rarely) willing to assume that those employer paid taxes would necessarily and automatically be paid to workers as earned income.

And if the winners under the current system are SAH spouses and lower income workers, to re-design the system to assure that everyone got back at least as much paid (as you seemed to argue earlier), without tilting the system even more, would mean "taking" from those who currently benefit most.

Regards, JAFO
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