August 6, 2012
When Social Security was enacted in the 1930s, it was a better deal than it is today, reports CBS News.
If you retired in the 1960s, you could expect to get back seven times more benefits than you paid in Social Security taxes if you lived to be 80 years old.
Even in the 1980s, you could expect to get more benefits than you paid into Social Security taxes, though you would not do quite as well as your parents or grandparents.
But all of this has changed in the 21st century. People retiring today are the first generation of workers who have paid more into Social Security taxes during their careers than they will receive in benefits.
How can you get a better return on your Social Security taxes? Simply put, live longer. Benefits are based on life expectancy.
But returns alone do not fully explain the value of Social Security, said David Certner, legislative policy director for AARP. Social Security has features that are not available in typical private sector retirement plans.
Spouses and children can get benefits even if they have never earned wages. People who are too disabled to work can get benefits for life.
“It protects your spouse, protects your family, and protects you from disability,” Certner said.
If you or someone you know needs help with disability claims, contact the disability lawyers at Fleschner, Stark, Tanoos & Newlin.
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