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  1. #11
    Join Date
    Jun 2014
    Posts
    3,045

    Default Re: On the Death of a Single Person with No Kids What Happens to Ss Benefits

    The mistake a lot of people make. Is believing social security will keep them in the lifestyle they have become accustomed to. This is especially true of many receiving SSDI. Many do not realize they have to pay monthly Medicare premiums, deductibles and co/pays.

  2. #12
    Join Date
    Jan 2008
    Location
    Baltimore, Maryland
    Posts
    19

    Default Re: On the Death of a Single Person with No Kids What Happens to Ss Benefits

    Quote Quoting Janke
    View Post
    Nothing happens to your Social Security benefits. There are no benefits. The taxes you paid are not sitting in a bank account with your name on them.

    If you think of Social Security as a retirement savings account, then this seems unfair. However, Social Security is not a savings or investment account. It is more like retirement insurance. You pay car insurance, homeowner's insurance, etc. If you don't have a car accident or damage to your house, then the insurance never pays. Not really unfair when you consider that if you do have a total loss, the insurance is paying out a heck of alot more than you paid in. Similar to Social Security.

    Arguments for privatization of Social Security don't always take this into consideration. With privatization, you have a finite amount of money and if it runs out, so do your benefits. Not so with insurance or with Social Security.
    I admit to thinking of Social Security as a retirement savings account. That was my mistake. I realize the SS taxes paid are not sitting in a bank account with my name on them. But they are obviously sitting somewhere based on the Social Security Statement that I receive showing my earnings record and "estimated benefits".

    I never thought of the SS tax as insurance as I had no choice in the matter. As a rule, I like to choose my insurance. Based on my last SS statement I have paid well over $100,000 in SS tax which will just go Poof if I die tomorrow, and they won't even cover the burial expense. What a great plan.

  3. #13
    Join Date
    Jan 2009
    Location
    California
    Posts
    1,036

    Default Re: On the Death of a Single Person with No Kids What Happens to Ss Benefits

    The other issue that is not addressed by privatization is survivor and disability insurance benefits. Who will support the widows and orphans? Well, in this era, the widows (and widowers) should be able to support themselves. And what happens to people who worked for years or decades and then became unable to hold down a job due to spinal cord injuries or cancer or the body just has gotten too worn out, to support themselves? Do they all end up in poorhouses?

    But the need for more younger workers to pay the FICA taxes to support the retirees actually is a good argument for relaxing immigration rules. The oldsters need the youngsters to pay the FICA taxes to support the outgo from the promised benefits...

  4. #14
    Join Date
    Oct 2016
    Posts
    3,149

    Default Re: On the Death of a Single Person with No Kids What Happens to Ss Benefits

    Quote Quoting Janke
    View Post
    The other issue that is not addressed by privatization is survivor and disability insurance benefits. Who will support the widows and orphans? Well, in this era, the widows (and widowers) should be able to support themselves. And what happens to people who worked for years or decades and then became unable to hold down a job due to spinal cord injuries or cancer or the body just has gotten too worn out, to support themselves? Do they all end up in poorhouses?

    But the need for more younger workers to pay the FICA taxes to support the retirees actually is a good argument for relaxing immigration rules. The oldsters need the youngsters to pay the FICA taxes to support the outgo from the promised benefits...
    Most privatization plans I've seen make no change in the benefits for anyone. It simply moves some of the money to investments into the private sector. Which had it been done since day one of the program would have, by some estimates I've seen, would have the program funded the program a century or two into the future.

    Simply adding more work age people isn't going to help because it would simply add more people to retire in the future. More jobs are what is required.

  5. #15
    Join Date
    Jan 2009
    Location
    California
    Posts
    1,036

    Default Re: On the Death of a Single Person with No Kids What Happens to Ss Benefits

    Does privatization make Social Security voluntary? And at the point that someone meets the requirements, how are benefits computed? And what happens when one's own contributions run out? Do they get to tap into someone else's saved contributions? And how does privatization affect the original poster's concern, what happens to the contributions who die without filing a claim? Are they considered an asset that can be passed on to a designated person? And what happens during a recession when the value of the contributions has dropped by 40% (remember 2008)? Do they get less per month because they filed during a bear market than they would have if they filed during a bull market? And who trusts Wall Street investment companies more than elected officials? I don't trust either, myself. At least I have some small input into elected officials but no input into who Fidelity hires to manage my money.

    However, right now we have legislators who have been avoiding addressing the looming SS crisis just as they avoided solving the ongoing immigration issues. It is why my voting strategy has changed. My first voting choice is to always vote out the incumbent. Maybe we can find legislators willing to do the hard work because they are no longer concerned with re-election.

    Privatization would solve some problems but would create a whole new set of problems.

  6. #16
    Join Date
    Oct 2016
    Posts
    3,149

    Default Re: On the Death of a Single Person with No Kids What Happens to Ss Benefits

    There is not currently an active bill to privatize SS. None of the ones I've ever seen floated in the past (and I don't think any of them have ever made it out of committee) made it optional.

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