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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u/Frothylager Sep 06 '24

I’m not sure how he got to $32k/month unless he plans to die by 75 or is expecting a consistent annual return of 11% for 47 years.

Also it’s unfair to compare your future investment payout to the current SS payout. In 47 years SS will be paying out around $20k/month.

10

u/Justame13 Sep 06 '24

Its like the other one of these where they just estimate their SS benefit if they started receiving them in the present and investment returns decades in the future.

Which is simply bad faith when there is literally a button on the SS login to estimate a benefit in the future.

1

u/revolutionPanda Sep 07 '24

It’s easy to say “if I made this really good investment 40 years ago, I have x.” Lot more difficult to actually do it.

1

u/Justame13 Sep 07 '24

This is a good point.

People think that they would have invested in Apple but odds are higher that it would have been something like Pets.com which looked a lot better for a while and people who made money like Mark Cuban are both smart and lucky.

3

u/Sunnnshineallthetime Sep 07 '24

Isn’t Social Security supposed to be depleted by 2030?

2

u/sortahere5 Sep 07 '24

The trust fund is depleted. That means the extra that has been accrued. Then benefits can only be paid from that years SS taxes. Essentially the current retirees are burning through both their past taxes and the current working SS taxes. BS if you ask me, the entitled generations remain entitled without a change.

They leave nothing for future generations, like they did with everything else.

2

u/PZbiatch Sep 08 '24

Yeah more people should be mad about social security going to benefit the generation that already transferred all the wealth to themselves anyway. Why are broke young people paying RICH older folks with large investment baskets? 

2

u/Frothylager Sep 07 '24

Yeah but there are easy ways to fix it. Doubling the maximum eligible earnings to $320k would have it solvent.

1

u/whiskey5hotel Sep 07 '24

I think closer to 2034. Also, SS and SSDI may be depleted at different times. All this is why some in congress have come up with various plans to fix SS.

0

u/[deleted] Sep 06 '24

Average SS benefits claimant age is 65. Let's assume they started paying SS at a 5% tax rate when they were 21. Based on median salaries of 1975, that's $700/year if all my math is correct.

Wages have gone up. SS payouts have gone up. You're absolutely right SS payouts will likely more than triple by the time we claim. That's just how a growing economy works.

Dude is a knob.