Question for those who live in California

[jyoutz]

I have paid in for 55 yrs. I have just begun drawing out. Your argument holds no water.
It will take 7 yrs for me to get what I put in back at face value. Imagine how much more money it would be today had the govt invested that same $250,000 starting 55 yrs ago. Unfortunate the govt. borrowed the money I put in and spent it on foreign wars and other frivolous crap. Not my problem.
I certainly don't feel like somebody else is working to support me - I'm still working and still contributing to the SS fund.

Show me the money

I think the money you contributed went to fund your parents retirement, and your children are funding yours. There are no individual accounts set up with our names on it. This is how the program has operated since inception. The current problems are largely because of less people in the workforce due to the aging of the baby boom generation and lower birth rates. SS has never been a retirement investment account.

 

[jyoutz]

A family member of mine worked for the State of CA for 30 years, making zero contributions to Social Security.

It used to be that way for a lot of state and federal employees. Since 1983, all federal employees contribute to social security. And I haven’t heard of any current state employees who also don’t contribute. Maybe there are still some states with exempt employees?

 

[Oaktree]

SS payments are taxable income.

Depending on your total income, not all of SS income is federally taxed. Some states tax it, others don't.

My wife and I are both self employed. We know the pain of SS contributions. Punishment for creating your own job. Plus you get to provide yourself with health insurance.

Which is tax deductable.

 

[scootr]

Mr govt is reprimanding us
Not an acct with my name on it - Really. Gee I thought they had a little pink piggy bank with my name on it

 

[jyoutz]

Mr govt is reprimanding us
Not an acct with my name on it - Really. Gee I thought they had a little pink piggy bank with my name on it

You sure sounded like you believed that. And I don’t believe I have ever made a snide remark about you.

 

[California]

It used to be that way for a lot of state and federal employees. Since 1983, all federal employees contribute to social security. And I haven’t heard of any current state employees who also don’t contribute. Maybe there are still some states with exempt employees?

Many schoolteachers here are in CalSTRS, "largest educator-only pension fund in the world, and the second largest pension fund in the U.S.The market value of the CalSTRS investment portfolio was approximately $331.4 billion as of February 29, 2024."

Instead of SS.

 

[KennyG]

In most states teachers and state workers pay into social security. In others they do not. I don't know if the California pension system is solvent, but in the Midwest, Illinois stands out as about the only state that has a state pension system instead of social security. For years the state has "bribed" the employees with promises of high retirement pensions and diverted the funds to other purposes, leaving the system, by any reasonable measure, bankrupt.

 

[California]

I think the money you contributed went to fund your parents retirement, and your children are funding yours.

But that's socialism, no?

And we appreciate all you guys paying in to fund ours.

Has anyone considered that the deductions from undocumented workers paychecks will never be paid out to them. That money just sweetens the pot. Helps keep your SS rate a little lower.

 

[jyoutz]

In most states teachers and state workers pay into social security. In others they do not. I don't know if the California pension system is solvent, but in the Midwest, Illinois stands out as about the only state that has a state pension system instead of social security. For years the state has "bribed" the employees with promises of high retirement pensions and diverted the funds to other purposes, leaving the system, by any reasonable measure, bankrupt.

A lot of states I’m familiar with treat employee retirement like the federal government. Employees pay into and collect from both a retirement system and social security.

 

[garry1p]

A lot of states pension plans are underfunded and will be looking for the federal government to bail them out.