The Truth about Social Security
Social Security is so politicized, no one looks at the truth anymore. The
truth is that the Social Security system is going bankrupt. Many people believe
that there is money in a big"social security pot"--what the politicians
call the "social securty trust fund." That does not exist. In fact,
if you are currently working, the amount withheld form your check this week
does not go into any pot for you or anyone else. It gets paid directly to a
retiree (or another qualifying individual) as social security benefits: from
your check to their pocket.
Social Security is a cash-in, cash-out system and it should be obvious to
anyone that as the number of people working declines and the number of retirees
increases, there will be more money going out than coming in. It's true there
is currently an excess of social security income (the tax collected form paychecks)
and the US government actually spends the excess (borrows it from the social
security system and spends it on the war in Iraq and other purposes). The only
way that the US government can ever pay these funds back is by borrowing more.
Therefore, if you are not within 5 years of retirement, we don't advise that
you put social security into your retirement income plan because there won't
be any. Of course, the US Government may attempt to take a higher and higher
social security tax from those who are working, but how far can that go until
working people revolt?
Therefore, we have included tips here to maximize what you can get and work
the social security system to your best advantage.
Social Security Information -
How it Works
Social
Security Benefits - How to Maximize
Social
Security Income - When to Start Your Benefits
Social
Security Benefit for Spouses
Social
Security Taxes - How to Reduce Taxation of Your Benefits
Social
Security Retirement Income— Earn All You Want
Social Security Disability
Social Security Limits
Social Security Tax Rates
Social Security Death
Benefits
Summary
Knowing how to manage your finances, even your social security decisions,
is a challenge. You can find other related information in our blog Retirement
Income.
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