Questions about the USA - 01

[David48atTD]

I lived stateside for 6 months when I was in my 20's and a lot has changed since then.

Reading an article about the Social Security Funds in the USA and the headline was that
for the first time, the Fund is paying out more money then it takes in.

To a point that, in the decades ahead, the Fund will actually run out of money.

How does the Social Security Fund obtain it's income?


Also so that there is no 'means' test^* ... millionaires can and do receive the government pension
due having passed the retirement age?

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The 401k ... basically saving money for your retirement.

Is it compulsory when you work?

Does your employer contribute?

Or is it self funded?

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How do the food stamps program work?

Is it still around? State or Federally funded?

Who is the usual beneficiary of Food Stamps?



^* Basically you have the means to support yourself with out a financial contribution from the Government.

[baldrick]

nah - they're fcuked

[David48atTD]

Thanks Ray ... thanks Ray



You really are a Tosser.

[harrybarracuda]

The reason there is an imbalance is because there is an imbalance in the population. People are living longer, so the more is being spent keeping the old coffin dodgers going than they expected.

They could increase contributions or raise the retirement age. Or there is euthanasia I suppose.

Be even worse when baldy orange cunto and Mitch the turtle try and raid it to give yet more tax cuts to their owners.

[bowie]

Social Security Funds in the USA

The latest on USA Social Security is it will run out of it reserves in 2035. Talk is benefits will then be reduced to about 80% of today’s rates.

It gets its money from payroll taxes, I think 15.3%, half paid by the individual and half paid by the employer.

USA Pensions are a dying entity (along with unions). Whenever someone over the age of 50 was fired they would claim they were let go so the company didn’t have to pay their pension (age discrimination). Enter the birth of the 401k (and its brethren), aka a self-funded individual pension plan that you take with you when you leave or are fired – ended/stopped/prevented many, many age discrimination lawsuits.

As 401k plans are company sponsored plans many companies do contribute to the employees 401k plan, many flavors to the employer contributions, certain percentages, certain limits, certain vesting, incentives to keep employees.
401k plans are tax deferred with relatively high contribution limits. This makes them a most attractive and beneficial retirement tool. However, as 401k plan contributions are voluntary and Americans are miserable fcuks when it comes to saving money, although there are damned good at spending it though, the 401k plans are not utilized as they should be. Latest numbers I saw was 55-65 year-old households in the US have only saved USD $165k for retirement. Equates to about a $400-500 monthly payout. Added to the average SS payment of $1.3k/month = pretty bleak retirement in the USA living on less than $2k/month. Yup, these folk can probably qualify for food stamps – don’t know for sure the qualifying monetary formula. Food stamps help put food on the table, not medicine, won’t pay utilities, rent or taxes. “Bleak Retirement” for the non-savers. A real shame.

Now, for the savers, I put 10-15% of my and mrs. Bowies USA earnings in a 401k and ignored it. It grew quite well and we, at retirement age, are, “cashed up” adequately. Good to go to the ripe old age of 110+. We’ll see. If SS benefits are cut significantly, well, only cashed up to 100.

The real tragedy of this is we are the exception – not the rule. A slew of old folk in the US are forced to selling everything or worth, bankruptcies, living in slums, or vehicles, soup kitchens, charities, really quite a bleak existence that is becoming a familiar norm.

[David48atTD]

^ ^^ Thanks for that ... much better then what Google could offer

[fishlocker]

https://en.wikipedia.org/wiki/Roth_IRA