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Post by preraph on Jul 22, 2007 10:20:01 GMT -5
Social Security!!!! It only works if the population increases. What I'm mad about is that our population is increasing, mainly due to illegal immigrants, who aren't paying taxes -- and Congress can't agree on a freaking immigration plan. It might save Social Security if we got them all signed up like they're supposed to be.
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Post by sweetnsour on Jul 22, 2007 12:01:56 GMT -5
In order to deterine what impact illegal immigration will have on the future of social security, many factors have to be taken into consideration. Here are some hypothetical numbers:
1. Assume that a legal resident in the US will begin working at age 20 full time and will work until age 62. Assume that his annual average gross income over the 42 years is $30,000. Assume that he will pay 6.2% of his gross income to social security taxes and his employer(s) will match that with another 6.2%. Over the 42 year period, he will have earned $1.26 million and 12.4% of that will have been contributed to his social security account. Assume that the funds have been exclusively saved in his account for retirement only and that no interest or royalties have been paid on the savings. Assume that none of this money has been used for periods of disability. Theoretically, at age 62, there will be $156,240 left in this account that could be distributed to him over a period of years. Assume that he will live another 33 years beyond age 62 to age 95 and he will have no survivors. If the money is exclusively distributed to him in equal payments each month for 33 years, he would receive approximately $395/month. Of course this is not a whole lot of money to live on and this is why other retirement income strategies are being encouraged. However, he will have saved some for part of his retirement, right?
If it was really that simple, each person would be able to finance his or her own social security retirement, regardless of the size of the population. However, there are many other variables at play.
Here are a few:
Some people don't work 42 years
Some earn less than the average hypthetical amount
Some tap into social security earlier for disability
Some people work for cash only, not subject to social security contributions. (Prevalent in illegal immigration)
Some people start paying into social security late
Is social security being used for social security only?
Some people die before age 62 with no survivors. Even if there are suvivors, the law is very specific about who the funds can be distributed to. Where does this money go?
In order for illegal immigration to benefit the social security system, it would have to be shown that a larger population will some way bring not only more money into the pot but that the additional money that will be paid out in the future will not produce an additional strain and burden on an already struggling fund.
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Post by preraph on Jul 22, 2007 14:51:33 GMT -5
Hey, any contribution to it that we're not currently getting, all the while paying OUT money for their free healthcarea and education would be an improvement and step in the right direction.
All I can tell you is if after paying through the nose my entire life into Social Security, it goes away while I'm old and I end up on the street, I am going to buy an automatic weapon with my last $500 and take some politicians who voted for that out with me.
P.S. - No, SS is NOT being used only for that, and that is actually why it has failed. That information was made public on a limited basis a few years ago.
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