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It doesn’t add up where the money went in Federal Government?

January 6, 2013

12.4% of your pay is going into Social Security every year.  Most folks work 40 years.  Do you know what your money earns in Social Security account over 40 years?  According to the federal government of Obama that’s their business.  You may or you may not collect anything from your 12.4% TAKEN OUT OF YOUR PAY EVERY YEAR! 

You have saved enough in your own retirement planning, so some folks in federal government might decide you don’t need any of the Social Security money taken out of your pay every year.  You are paying 6.2% and your employer is paying 6.2%.  If you actually  had 12.4% of your pay every year for 40 years, then that would be a tidy sum.  About $240,000 if it didn’t earn one single dime on interest.  What are we earning on our Social Security money?  Nothing, because all of it has been used a long time ago and we got a nice IOU in the Treasury from our government.  The government never pays this tab, because the government just takes more money from the working stiffs.

You have saved $240,000 but the method of calculating your income by the government for retirement is interesting.  Socialists say we are not paying enough to the government now.  If we were earning 2% interest on our 12.4% money deposited for Social Security, then you would have $480,000 from your $240,000 by earning an average annual pay of $40,000.    Let’s say you only worked at Wal-Mart so you made only 50% of that income.  So you should have $240,000 in Social Security savings.  If you died right at retirement, your family gets a few bucks that might pay for a dinner at The Waffle House.

It’s exciting to think how well our money will be managed in the new Health Care taxes we are paying now.  Just look at how well the government has the United States Post Office going bankrupt, too.

We can't find where the social security money went!

We can’t find where the social security money went!

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2 Comments leave one →
  1. January 6, 2013 6:07 pm

    Whoa, when I first entered the workforce it wasn’t anywhere near 12.4% and are you including employers share in that? I haven’t done a payroll in many years so I don’t know what the rate is for employee, but it was a slow creep up from when I began working, something like 3.2% back when I was pup.

    • hoboduke permalink*
      January 6, 2013 6:12 pm

      Correct, the employer is obligated to pay in 6.2% of your pay into Social Security for you, and deducted from earned pay is 6.2% taken from our income. 12.4% of our earnings is contributed into Social Security. That is a lot of money.

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