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When the Government says that they can only pay out 76 cents on every dollar owed to social security does that mean that if you put $1 in you'll get 76 cents out when you retire? Or is SS supposed to pay out some interest as well?

And if there is no interest being paid out then how can anyone could feel good about paying into social security when you're literally guaranteed a negative rate of return.

 
Erica_Smerica

Asked by Erica_Smerica at 6:48 PM on Sep. 9, 2010 in Politics & Current Events

Level 28 (34,798 Credits)
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Answers (7)
  • Oh and I might add, there is no such thing as interest when speaking of SS or Ponzi schemes. Interest only applies to entities that make money, and the U.S. government does not make money. Other than printing it of course.

    jewjewbee

    Answer by jewjewbee at 10:19 PM on Sep. 9, 2010

  • If you're lucky enough to retire within the next 5 years...or are already collecting. Everyone else can kiss whatever they DONATED goodbye!

    Bu the way, if you go to SSA.gov, you can request a copy of what your benefits will be when you reach retirement age, ASSUMING the program is still around at that point. They will send it to you annually for free. I'm keeping my statements for my scrapbook, since that's all they'll be worth!!
    LoriKeet

    Answer by LoriKeet at 9:48 PM on Sep. 9, 2010

  • That's a good question and what happens to the 14 cent and the interest?
    mamaofficer

    Answer by mamaofficer at 6:59 PM on Sep. 9, 2010

  • Sorry I meant 24 cents
    mamaofficer

    Answer by mamaofficer at 7:02 PM on Sep. 9, 2010

  • You speak (type) as if you actually expect to get ANYTHING from Social Security when you retire, LOL. It would be nice if people were paid out what they paid in, but you can still collect and never worked a day in your life, so how can there be anything when they are paying out more than they are collecting?
    slw123

    Answer by slw123 at 9:17 PM on Sep. 9, 2010

  • Depending on age you may not even get any thing by the time you retire.
    hot-mama86

    Answer by hot-mama86 at 10:16 PM on Sep. 9, 2010

  • The projections currently ( feb 2010) show that they will only be able to pay out 76 cents of every dollar that was promised. So, in reality you will get-if you get it-more than your dollar because of inflation. When people get their SS checks they actually receive more than what they paid into it. But in respect to calculations for inflation and cola adjustments it really should be about the same. So...when they say 76 cents it sounds scary, but dollar for dollar you may actually get all your projected benefits paid back to you. Assuming of course, you are over 40 now and SS will still be there in 27 years.

    jewjewbee

    Answer by jewjewbee at 10:17 PM on Sep. 9, 2010