Social Security is set up so that, during retirement, recipients get back approximately what they put in. It used to be they'd get back quite a bit less. Not long ago it became break-even. Now they receive, on average, somewhat more than they put into it. Now that they are just beginning to get more out of it than they put into it, everyone is declaring that it must be reformed.
Okay, I'll say at the outset that I agree it needs to be reformed. It IS costing more than retirees have put into it and, therefore, it will bankrupt the country if benefit payments stay on this course. We all know the reason for this situation has everything to do with our elected representatives mismanaging the program and stealing the money we put in but that's not what I want to get into in this blog. But it IS worth this aside: we retirees didn't create this problem ... our and your(!) representatives created this mess by mismanaging and outright stealing the money they TOOK from us. We didn't create the SS program and we aren't the ones who screwed it up. So give us a break when you feel like criticizing us! Now to the reason for this blog.
I have to ask the following because common sense begs the question. What about all the unaffordable (non-SS) pension plans across the country? Those on social security already have to wait until age 67 to retire and they end up collecting only slightly more than they put into it. What about the other retirement plans around the country? On those plans one can retire at age 50, some with very generous medical and other benefits included. Oh, and most of them can ALSO collect social security. So those on pension plans can collect a bigger retirement check for twice as long as SS recipients. I invite you to do the math on which person collects more of other people's money ... those on SS or those on other pension plans.
Will the average (non-SS) pension plan employee contribute into their plans anywhere close to what THEY collect in retirement? Hardly! After 30 years of employment, their monthly pension income will be relatively close to what they were earning while employed. Will SS recipients collect anywhere close to what they were earning during their working years? Hardly! And SS recipients collect retirement money for half as long as pension retirees. Bottom line: private and public retirement plans pay way more in benefits to their retirees than those retirees contributed. Those retirement plans are FAR more underfunded than SS is (vis a vis the retirees' own contributions).
So, who pays for all the benefits paid to non-SS pension plan retirees above what they contributed? In the end, it's the rest of us one way or another .. in increased product costs, decreased product quality and, worst of all, direct bailouts from taxpayers to prop up bankrupt pension plans.
I agree that SS needs to be reformed but without apologies I have a big problem with people who have pension plans being so critical of the SS program when their own pension plans are less well funded by them to begin with. That's not 'free money' they are getting once they begin getting more back in benefits than they contributed.
Social Security is easy to pick on because it has an actual, rather simple balance sheet at the national level that's clear to everyone in the country. What other pension plans would stand up to such a balance sheet examination? Answer: NONE. Our country needs reform of ALL pension plans, not just social security.
Next time you feel like ragging on Social Security recipients as unfairly resisting deep reforms, please consider that we're getting way less 'free money' (ie, that we didn't put into the system) than retirees who also have a pension plan. Most of those who have non-SS pension plans are very hypocritical for complaining about SS.
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