Monday, August 06, 2012
AP opinion piece shows where Social Security benefits stop breaking even
The Washington Times is carrying an Associated Press op-ed by Stephen Ohelmacher, “Social Security is not a good deal”, link (August 5) here.
According to the writer, most middle to upper class people who retired from the mid 1990s on will not recover the actuarial value of their (and their employers’) FICA contributions. That’s partly because Social Security benefits, while based on personal or couple earnings, are still somewhat progressive for low income people, and in earlier times, FICA taxes were much lower, relatively speaking, to the point that many wage earners maxed out during the year and did not have to pay any FICA in the fall months.
Also, Social Security is a better deal for one-earner couples.