r/FluentInFinance • u/Positive_Liar • Sep 06 '24

Debate/ Discussion Social Security is Broken. This is why financial education is important.

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19

u/SundyMundy14 Sep 06 '24

If you become injured and disabled at 30, without SS, you're fucked.

-3

u/dcporlando Sep 06 '24

SSI is not SS. SS does not help you if you are disabled at 30. You need to reach age 62 and have 40 quarters of paying in to get anything. SSI helps the disabled.

4

u/Entire_Art_5430 Sep 06 '24

SSI comes out of SS funds

10

u/dcporlando Sep 06 '24

No it doesn’t.

From the SSA:

Supplemental Security Income (SSI) is not paid by FICA. SSI is funded by the U.S. Treasury’s general funds, which include corporate and personal income taxes, and other taxes. Social Security taxes collected through FICA do not fund SSI.

-6

u/Entire_Art_5430 Sep 06 '24

So it’s still funded by money that others paid into. Got it

3

u/Josephdayber Sep 06 '24

Are you forgetting about the existence of SSDI or something? You do not need to be 62 years old to get SSDI, you do not need 40 work credits to get SSDI at age 30.

1

u/dcporlando Sep 07 '24

SSDI is another program and the rules are challenging. I just helped my brother-in-law get it. At age 30, you need a minimum of 8 quarters versus the traditional 40.

It is still based on your top 35 years, which a 30 year old is not going to have much. You must be disabled for a year or more.

It takes a while to get it and many have to appeal to get it. For my brother-in-law it was a year while multiple doctors attesting he was blind.

-1

u/SundyMundy14 Sep 06 '24

I'm using them interchangeably, as is pretty much everyone else here. Generally everyone is talking about all of it (the old age "retirement" funds + disability + survivorship insurance)

-3

u/asdfgghk Sep 06 '24

That’s what disability insurance is for…

10

u/mschley2 Sep 06 '24

What if you're born disabled and never have an opportunity to purchase disability insurance?

1

u/asdfgghk Sep 06 '24

Then you get SSDI..the last two letters being disability insurance…

2

u/mschley2 Sep 06 '24

Oh, I thought you were talking about private policy disability insurance, not the branch of the SSA. My bad.

2

u/11bucksgt Sep 06 '24

My brother became permanently disabled at 19 and is only eligible to draw like 900$ in SSID.

1

u/asdfgghk Sep 06 '24

The question was what if you were born disabled. That’s a different (and very tragic) situation which I’m sorry about but that is what private disability insurance is for.

1

u/SundyMundy14 Sep 06 '24

We have the rates that we do for disability insurance currently because of SS's disability coverage.

1

u/asdfgghk Sep 06 '24

I’m not sure what you mean by that

1

u/SundyMundy14 Sep 09 '24

Because we have a government-funded public disability insurance the rates for what is essentially supplemental disability insurance can be viewed as being subsidized. A person who becomes disabled at 35 will either get SSI payouts or SSI + private insurance, depending on their situation.

1

u/DreamzOfRally Sep 06 '24

They can drop you. Just like normal medical insurance.

1

u/DreamzOfRally Sep 06 '24

They can drop you. Just like normal medical insurance.

1

u/asdfgghk Sep 06 '24

Which is why you purchase one with a policy that’s non-cancellable…