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SOCIAL SECURITY FOR NUMBSKULLS & KNUCKLEHEADS

I’m getting tired of all the bellyaching about Social Security. Below is a chart that shows the MOST any 65 year older could have contributed into Social Security. This is only if they made the SS limit from the time they started work until today. This is highly unlikely. Even in this case, the most anyone has contributed to SS is $130,000. The average American 65 year old has contributed $50,000 to $60,000. Now here is the rub.

It appears that there are millions of numbskulls who think this is their money. WRONG. The money you paid was an insurance premium. If it was a retirement account there would be a limit to what you could collect. The 65 year old who paid in $50,000 over their lifetime is likely to live 19 more years to the ripe old age of 84. In that scenario they would collect about $300,000. If they beat the odds and live to 95, they would likely collect $700,000 or more depending on the CPI adjustments. If they get hit by a bus tomorrow, they’d end up with squat. Complain to the Lord.

Do you get it now? It’s an insurance plan. You might win or you might lose.

Now for the best part. The insurance company that you paid your premiums to was run by crooks, idiots, and liars. They were supposed to take your premiums and invest them in bonds to insure that there would be money to pay out. They also needed to understand the basic actuarial concepts of insurance. In 1935, the life expectancy was 62 years old. Today it is 79. The men who ran the insurance company never adjusted the premiums to reflect the fact that people live 17 years longer. You elected these crooks, idiots, and liars to Congress. Not only did they not know how to run an insurance company, they looted the premiums and spent the money on wars, bureaucratic salaries, and useless projects, to get more votes.

So there it is in a nutshell. This is how you can easily create a $17.5 trillion unfunded liability for the American people.  

Year SS Limit Rate Max SS Contribution
1965 $4,800 3.625% $174
1966 $6,600 3.85% $254
1967 $6,600 3.90% $257
1968 $7,800 3.80% $296
1969 $7,800 4.20% $328
1970 $7,800 4.20% $328
1971 $7,800 4.60% $359
1972 $9,000 4.60% $414
1973 $10,800 4.85% $524
1974 $13,200 4.95% $653
1975 $14,100 4.95% $698
1976 $15,300 4.95% $757
1977 $16,500 4.95% $817
1978 $17,700 5.05% $894
1979 $22,900 5.08% $1,163
1980 $25,900 5.08% $1,316
1981 $29,700 5.35% $1,589
1982 $32,400 5.40% $1,750
1983 $35,700 5.40% $1,928
1984 $37,800 5.70% $2,155
1985 $39,600 5.70% $2,257
1986 $42,000 5.70% $2,394
1987 $43,800 5.70% $2,497
1988 $45,000 6.06% $2,727
1989 $48,000 6.06% $2,909
1990 $51,300 6.20% $3,181
1991 $53,400 6.20% $3,311
1992 $55,500 6.20% $3,441
1993 $57,600 6.20% $3,571
1994 $60,600 6.20% $3,757
1995 $61,200 6.20% $3,794
1996 $62,700 6.20% $3,887
1997 $65,400 6.20% $4,055
1998 $68,400 6.20% $4,241
1999 $72,600 6.20% $4,501
2000 $76,200 6.20% $4,724
2001 $80,400 6.20% $4,985
2002 $84,900 6.20% $5,264
2003 $87,000 6.20% $5,394
2004 $87,900 6.20% $5,450
2005 $90,000 6.20% $5,580
2006 $94,200 6.20% $5,840
2007 $97,500 6.20% $6,045
2008 $102,000 6.20% $6,324
2009 $106,800 6.20% $6,622
2010 $106,800 6.20% $6,622
       
Total Amount Paid In     $130,025
       
Maximum Annual Payout      $28,152
       
Life expectancy of a 65 year old     19
       
Likely Payout of benefits     $534,888

 

Table 1: Life Expectancy for Social Security
Year Cohort Turned 65 Percentage of Population Surviving from Age 21 to Age 65 Average Remaining Life Expectancy for Those Surviving to Age 65
 

Male

Female

Male

Female

1940
1950
1960
1970
1980
1990

53.9
56.2
60.1
63.7
67.8
72.3

60.6
65.5
71.3
76.9
80.9
83.6

12.7
13.1
13.2
13.8
14.6
15.3

14.7
16.2
17.4
18.6
19.1
19.6

 

Table 2: Americans Age 65  or Older 1880-1990

Year

Number of Americans Age 65 or Older

1880
1890
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000

 1.7 million
2.4 million
3.0 million
3.9 million
4.9 million
6.7 million
9.0 million
12.7 million
17.2 million
20.9 million
26.1 million
31.9 million
34.9 million



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