Social Security, Earned Retirement and Disability Income, and the Baby Boomers

Social Security, Earned Retirement and Disability Income, and the Baby Boomers


By Bev Sandlin, Executive Editor


You know, it is no surprise that the Baby Boomers contributed MORE to Social Security and have taken less than any other generation. We are barely getting to the age where we can collect! But now it is almost gone! This came across my email recently. I checked it out and it is true! Food for thought…

“The government is now referring to Social Security checks as a Federal Benefit Payment. This isn’t a benefit! It is earned income!
We all contribute to Social Security, and our employers did too! It was required; no choice. It totaled 15% of our income, before taxes.
If you averaged $30K per year over your working life, that’s close to $180,000 invested in Social Security. If you calculate the future value of your monthly investment in social security ($375/month, including both your and your employers’ contributions) at a meager 1% interest rate compounded monthly, after 40 years of working you’d have more than $1.3+ million dollars saved! This is your personal investment.

Upon retirement, if you took out only 3% per year, you’d receive $39,318 per year, or $3,277 per month.

That’s almost three times more than today’s average Social Security benefit of $1,230 per month, according to the Social Security Administration (Google it – it is a fact).

And your retirement fund would last more than 33 years (Until you’re 98, if you retire at age 65)! I can only imagine how much better most average income people could live in retirement if our government had
just invested our money in low-risk interest-earning accounts.

Instead, the folks in Washington pulled off a bigger Ponzi scheme than Bernie Madoff ever did. They took our money and used it elsewhere. They forgot that it was OUR money they were taking. They didn’t have a referendum to ask us if we wanted to lend the money to them.

And they didn’t pay interest on the debt they assumed. And recently, they’ve told us that the money won’t support us for very much longer.
But is it our fault they misused our investments?

And now, to add insult to injury, they’re calling it a benefit, as if we never worked to earn every penny of it. Just because they borrowed the money, doesn’t mean that our investments were a charity!

Let’s take a stand. We have earned our right to Social Security and Medicare. Demand that our legislators bring some sense into our government. Find a way to keep Social Security and Medicare going, for the sake of that 92% of our population who need it. Then call it what it is: Our Earned Retirement Income.”

Now, just take a moment, sip a cup of coffee or tea, and think about this. Most of us here are of the Baby Boom generation. Most of our grandparents didn’t contribute much to Social Security, but got some after 65. Most of our parents contributed to Social Security, but not nearly as much as we did and our payments are supporting them.

The Baby Boom generation has been followed from the beginning. The politicians knew we were going to get old someday and that most of us would need Social Security for our retirement—FACT. But basic math seems to elude our politicians in both Parties. I’m not going to go into that—no political rants on SCP.

BUT, I do resent being made to feel like I am a moocher, an entitlement brat sucking off the government teat. I paid Social Security all of my life! My employers paid their share for me! No choice—we paid!

Plus, I don’t think that people realize that once you are disabled or retired that you MUST continue (It is simply deducted from your Social Security check.) to pay for Medicare. Medicare only covers 80% of part B medical expenses. And there is the prescription donut hole which is about an additional $2,500 a year. Plus, you are almost (may be) required to carry some kind of Medicare Supplement.


That average $12,000 a year EARNED RETIREMENT BENEFIT just went down to about $7,000 a year to live on. Hmmmm, about $550 a month IF you averaged $30,000 a year all of your life–Under 30 y.o. and over 50 y.o. and you made it to 65 without becoming disabled by accident, health, or service to your Country.

And now you are probably at poverty level and Medicaid (Medical Assistance) kicks in to help out with home care and/or nursing home assistance. I don’t know the laws in other states, but if you own a home in Minnesota and use Medical Assistance at any time after the age of 55, that home will be CONFISCATED by the County when you die or go into a nursing home.


Just My Humble Opinion.


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