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!
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.
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 donut hole for medical prescriptions 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.
ENTITLEMENT???? NO! PONZI SCHEME? Maybe. RIP OFF, YES!!!
Just My Humble Opinion.
As a middle aged (Gen X) working professional male, with a 25 year record of voting conservative and libertarian, and a salary approaching the maximum taxable earnings for SS, here’s my .02.
The boomers knew there was no trust fund, they knew their SS taxes weren’t being set aside to pay them later. They knew the government was paying current SS recipients out of current SS taxes collected from the working, and spending the rest. They knew the ‘trust fund’ didn’t exist. They knew that current workers (their children and grandchildren) were going to have to pay them when they retired later. They knew that the number of workers to retirees was projected to fall drastically, and that there’d be fewer workers per SS recipient than at any time in history when they began to retire. They knew these things, and did nothing as a group to change it. Now in retirement, they want their money. But it was spent, it’s gone, and as a country we’re broke.
So what do we do now? Raise taxes on the working, borrow the money and further indebt future generations, or just print it and let inflation destroy it’s purchasing power? What other choices are there?
I don’t see getting much of my SS taxes back when I retire, even less with inflation factored in. I’m planning on not getting any. I do see (figuratively speaking) generational warfare over the problem in years to come.
Ash, I agree with you on the aspect of generational warfare. Prior to the ‘Old Age Pension’ extended families lived very close to one another if not together, caring for the elderly in their final days. Gram and Gramps contributed as much as they could to the benefit of the whole for as long as they could. With the invent of Social Security and then Welfare, families have been atomized perceiving this financial safety net as financial freedom. In the 1990’s it was not uncommon to see retirees in a Winnebago with a bumper sticker reading, “I’m spending my children’s inheritance”. In 1958 AARP was founded and in the 80s and 90s that organization really grew creating a phenomenal lobby that got legislation enacted that expanded the programs. This lobby shot down any and all legislation that suggested means testing to determine how much, if any, assistance individuals could receive. All of this resulted in people worth millions, receiving retirement pensions from employment or investment income, getting as much or more from Social Security than a farm laborer who literally could not do a thing to prepare for the day when he could no longer work. But as John from Iowa points out, the politicians were looking out for themselves and their contributors.
Through financial mismanagement on the part of our government but more importantly those who manipulate our banking and financial policies, individual earning power is severely compromised, taxes have been raised and exorbitant loans have been taken to attempt to maintain the facade of “everything’s still good”. Furthermore, there has been a pitting of people against each other going on since WWI, the genders, races, religions, political ideologies, generations and economic status. This what Johnsobo 100 is referring to when he says we need a national revival, a spiritual awakening so that we can all identify the REAL enemy.
Also contributing to the generation gap is the decay of the country’s moral fiber. Many in your generation blame baby boomers for this as well, imagining everyone born between 1946 and 1962 attended Woodstock, smoked hash, protested the Vietnam war, lived in communes and burned their bras. We are all pretty quick to point fingers while protecting our own sacred cow but the problem is far bigger than what most are aware of. There will be warfare, alright, and people will participate for their own individual motivations.
Ash. welcome to SCP, and welcome to the fray! I am not sure what my generation is called, born just prior to WWII, but we sure have a mess on our hands with what is now called Entitlement Programs.
It is like a huge ball of yarn that fell off the table, and finally some people have noticed this huge mess laying on the floor and are trying to figure out how to get it untangled.
You may be right when you say that the Boomers knew about all the things going own with SS, however, I think they were too busy living the so-called American Dream, and that they didn’t find out until it was to late. They were “blinded by their own light” and as Bev stated, by then the great Ponzi scheme was in full force.
Most of my adult life, I have owned my own small business, and as many of you who have owned a small business know, you wind up paying double, and like Bev, I too resent being made to feel like a moocher off the “Federal Benefit Payment.” You are so right Bev, WE PAID! and our leaders stole and started spreading the so-called wealth. Sorry,forgot about no political ranting.
Ash, I hope and pray that you are wrong when you speak about “generational warfare over the problem in years to come.” But, you also may be right. We know what that does to a country, we don’t have to look very far back in our own country’s history
to see the terrible price that was paid on both sides of the battle.
In my humble opinion, what we need is a National Revival, a Spiritual awakening to open our eyes. Whether you believe or not, the evidence is clear. “….Your enemy the devil prowls around like a roaring lion looking for someone to devour.”
I have always been unhappy with our legislators and how they deal with Social Security and Medicare. They are aloof because they are exempt from all of it! They have their own retirement plan and medical plan that is completely separate from ours! They even get it for life, after serving just one term! What a crock!
If they had to depend on what us folks had to depend on, there would be no problems! It would be fixed in no time. But as it is, they could care less! It doesn’t affect them, only their re-election chances.
Politicions should never be able to set themselves up better than the people they serve. Sadly, this is not the case. They give themselves raises, only work when they want, travel free, and pad their pockets as they please. I don’t see any answer, as it would be a case of cutting their own goodies out to make themselves honest.
Thank you Ash for your comments. When I was in my 40s with my homestead bought and paid for, both my kids graduating from college, a business, and a healthy IRA, I thought a lot like you.
But life happens… By the time I was 55 I’d been through a flood (actually the hill behind me collapsed after 17 inches of rain in 20 hours–$100,000 SBA disaster loan to repair.); lost my retirement savings and business and in the Great Recession; two strokes and a car accident disabled me; add a house fire and a crooked contractor; and a divorce… And even though I did everything right–saved, scrimped and paid my bills I have ended up dependent on Social Security.
And I am not alone! I know soooo many boomers who planned and scraped so that they would have a wonderful retirement, and everything is gone for a variety of reasons! Many are working for minimum wage to supplement their Social Security.
I agree with J100 and John from Iowa. The politicians who can bail out big companies with out money, but now look at us as being a drain! And I think that John hit it on the head that if they had to work and live like we do they would fix it.
But we voted them in, both sides are responsible in my humble opinion, and now here we are.
What is the solution? PREPARING for the inevitableness of CHANGE!
Class warfare? I think the Boomers invented it!
However, I think the real warfare will be between those who are trying to prepare for change and those who are doing nothing and just going along like nothing will change–the SHEEPLE!
I salute you for being here! You see that change is coming, whether we like it or not.
Bev
Bev I am following in your footsteps so to speak. I just hope I don’t have the bad luck you have had. Bless your heart. I am 42 I have my homestead paid for and I have a Taxidermy business at home. I did the divorce thing several years ago luckily all this was not what she wanted lol. I am married again to a like minded woman and we have a 4 year old daughter. I may not be able to give her all the material things her brothers got now 19 and 20 but I will make every effort to teach her the simpler things in life. I drove a tractor trailer for 17 years so I have definitly paid my share of social security and I am pretty sure I won’t get a dime back. I prep for my retirement. That includes building materials for home repairs. Fixtures for plumbing and electrical repair. I put back many years of staples rice wheat etc. I only plant heirloom seed. I could write all day about what I have and why but I will stop here. But if the SHTF happens today my family will do just fine.
Bev, I hear and echo your angst, but we can’t address a problem we inadequately comprehend:
There are many who think “we all paid in our whole life”. But the Social Security Trustees publish SS is TODAY net present value unfunded $23 trillion! And the empty SS trust fund of $2.7T is barely 12% of the problem.
Further, to adequately fund the $23T Social Security is net short EVERYONE would have to IMMEDIATELY send in 33 years of their Social Security taxes.
So, we all need to comprehend that yes we’ve been paying in all our lives, but since we’re 33 years short, not nearly enough.
And we should also know that’s the good news. Because Medicare is 4 times worse. And Obamacare intentionally didn’t even spit at it.
Add in the Federal Debt and according to the GAO, the net amount our nation is short TODAY to meet its CURRENT commitments is equal to 50 YEARS of ALL Income AND Social Security taxes. That amount we’re short exceeds the net worth of the whole country.
Accordingly the world’s purchasers of our nation’s debt quit making significant additional purchases in 2011. So ever since the Federal Reserve has bought >60% of all the debt issued by the Treasury, with money created out of thin air.
And even though these are near-term nation imploding facts, no elected official or media outlet will speak the truth.
GOP2,
WOW! I think YOU should do a post! You are obviously way more knowledgeable than I am concerning the debt, etc.
Bev :)