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I believe there are twelve state pension systems where pension recipients do not pay into Social Security. for example, the state where I do financial advising, Colorado, the 443,000 members of the Public Employee Retirement Association do not pay into SS, but the do pay into Medicare. They pay 8% into PERA, and their employer pays around 12%. Much bigger then the 6 and 6 by SS and their employers. Also much greater benefits. The catch is when you move into an area where you start paying into SS. Neither system will do very well then, when the benefits have been split.
As far as social security, it has been adjusted over twenty times to compensate for changes in the american population. Changes will be made again to ensure it's future benefits. Only America and Canada use a 70 year timeline in its SS planning. All of Europe and others with SS like benefits use a 40 year timeline. Lets see, 70 years, WW2, Korea, Vietnam, Iraq, Iraq part deux, computers, jets, collapse of communism, man on the moon, cell phones, baby boomers, yuppies, generation x, desegregation, oil embargos, Reagan, Clinton. Bush. A lot can change in 70 years.
Social Security was put in place because many of our elderly were destitute and SS pulled the elderly out of poverty. Maybe you have heard of the expression old age pensioner and pictured the toothless old man with his rubber coin purse. SS was to make sure that grandma was not eating cat food and could have a pork chop once a week. What other govt program has run for over 70 years and been so successful?
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