This is not the way to look at or assess Social Security. It is not an investment, it’s a form of insurance with unlimited benefits of various types.
There is no relationship between the taxes you pay and the benefits you may receive. This calculation makes no sense.
No, funds are not diverted. The taxes paid and the interest earned go to pay benefits and running the program.
In 1870, the year of birth for a 65 year old in 1935, life expectancy was 39.4 years. It wasn’t until 1945 that life expectancy was near 65.
In other words, unlike today, relatively few people lived to retirement and if they did it was pretty short.
The driver for Social Security was the hardships of the Great Depression.
QUINNSCOMMENTARY 
no actually there is a relationship between FICA taxes paid and your social security benefit amount – an INVERSE relationship when expressed as a percentage (monthly benefit/fica taxes paid) due to the formula bend points.
that’s the “Social” in Social Security – a wealth transfer program from higher paid workers to lower paid, and because of the funding scheme, a transfer to earlier generations from later generations.
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The bend points consider earnings. What about all the people collecting benefits having paid no taxes, or those of receiving a COLA, not paying taxes in 25 years. What people get is not based on what they pay in taxes.
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those who paid no taxes are not receiving social security but supplemental security income.
and the relationship is inverse when expressed as a percentage -as taxes paid increase, your benefit is a smaller percentage.
reductions to start early or increases post commencement maintain the relationship
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What about spouses and even current and ex spouse? A single worker pays the same taxes as a married worker, but the family benefit can be vastly different.
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all true, what you and your spouse get is not dependent on what you paid. But, you stated it has no relation to what you paid – and that just isn’t so. The relationship is inverse to taxes paid.
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he’s got the right idea although the monetary figures are suspect–a system where you pay into a plan like TSP would be a godsend to our grandchildren–I think he omits the % that would go to his account from the employer contribution–Galveston, TX opted out of SS in 1982 (?) and they have done quite a good job with disability insurance and an annuity as added benefits–you also get to select a beneficiary I believe.
Old fart lefties are opposed any changes which do not include an ominous big government presence–those low IQ voters you referred to Thursday are not to be trusted say our high IQ voters.
Al Lindquist
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More specifically, the driver for Social Security was the heat FDR was getting from Father Coughlin and Huey Long about a need for some old age assistance. The economy had been shifting from predominantly agriculture to manufacturing by the time of the depression and older people had no where to turn when employment dried up.
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