is social security a good deal?
they deduct automatically to pay me in retirement. What if I die before retirement? Then, I would have paid into that system and got nothing out of it
- 2 months ago
Social security is a insurance.On average, recipients receive about $6.50 in benefits for every $1 the pay in.On average, recipients receive about $6.50 in benefits for every $1 the pay in. it's a good deal, because many people are hopeless at saving and/or investing. if you also have life insurance your heirs will get a windfall that didn't cost much. if you also have life insurance your heirs will get a windfall that didn't cost much., it doesn't mean that they invest it there. I don't know where they invest it.
- David 14Lv 72 months ago
That's the risk you take. Just like insurance.
- babyboomer1001Lv 72 months ago
It's like insurance. If you need it, you will get it. If you die young, then you won't need it and you won't have to worry about whether or not you will get it. Yes, it's a good deal, because many people are hopeless at saving and/or investing. And, with such a volatile economy, the government has taken our money guaranteeing it to us in retirement, and with the massive amount of money it gets from everybody, it can afford to buy options - invest the money where there is a lot of money to be made. Of course, it doesn't mean that they invest it there. I don't know where they invest it.
- Max HooplaLv 72 months ago
Social Security is insurance. On average, recipients receive about $6.50 in benefits for every $1 the pay in. If you die before retirement people who survive, including your spouse and any minor children, will benefit from your contributions. On the other hand, if you also have life insurance your heirs will get a windfall that didn't cost much.
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- RichardLv 72 months ago
The average age of death in the US is about 80, and most people retire before that age.
A few people will die at a young age, and will not receive benefits - but that's the way it is.
- STEVEN FLv 72 months ago
It is ALMOST as good a deal as burying the cash and forgetting where you buried it.
EVERYONE claiming people get more back than they pay in FICA taxes IGNORES the investment gains they would have received investing the same amount at the same time.
- SlumlordLv 72 months ago
Its a great deal for some, and lousy for others, but since its automatic and sorta unavoidable, why worry over something you cant change?
- curtisports2Lv 72 months ago
That's right. If you die before reaching age 62, the earliest that you can collect unless you become permanently disabled, you lose everything you put in. However, if you are married or have children, your spouse or children may qualify for a survivor benefit. Children can collect immediately and continue until they are 18, or up to age 19 if they are still in high school. If a child is over 18 and disabled and the disability occurred before age 22, then the survivor's benefit will continue. Spouses can receive a survivor's benefit at age 60.
So it's not necessarily a bad deal if you don't live to collect your own benefit.
- StephenWeinsteinLv 72 months ago
Yes, it's a good deal. If you live at least 7 or 8 years after retiring, then you get back more than you paid into the system. And the average person lives a lot longer than that. The average person gets back probably 2-3 times what they paid into the system. Yes, there's a remote risk that you could lose money if you die early. But on average, it's a really great deal, so good that they're probably going to have to make it less good soon, because they're going to be losing too much money being so generous with it.
- SlickterpLv 72 months ago
...and you in turn are likely to draw more out than you put in when you retire, so there you go.