I just received my annual Social Security Statement in the mail. How depressing. Since pastors are considered self-employed for social security purposes, I get the privilege of paying 12.4% in SS taxes and 2.9 % in Medicare taxes. If I work until full retirement age (67 years for me), I may receive about $1,500 a month. What a lousy return on investment. Right on the cover of this publication from the Social Security Administration is this:
Social Security is a compact between generations. For decades, America has kept the promise of security for its workers and their families. Now, however, the Social Security system is facing serious financial problems, and action is needed soon to make sure the system will be sound when today’s younger workers are ready for retirement.
In 2017 we will being paying more in benefits than we collect in taxes. Without changes, by 2041 the Social Security Trust Fund will be exhausted and there will be enough money to pay only about 75 cents for each dollar of scheduled benefits. We need to resolve these issues soon to make sure Social Security continues to provide a foundation of protection for future generations.
If you will allow me just a few sarcastic comments:
- A compact between generations? Does AARP know this?
- The promise of security? Who are they kidding? $1500 a month doesn’t make me feel secure, which is why I am saving like mad for retirement.
- Who is this “we” they keep referring to? They are spending more than they are taking in, not me.
- Again, “we” need to resolve these issues? How about the legislative branch? Do they even read the stuff that’s being printed by the Social Security Administration?
- Foundation of protection? It goes from the promise of security, to foundation of protection, and probably next year it will read “a token of appreciation” for all that we taxed you on.
Okay. That is my rant for today. Feel free to add your own comments. Keep it clean though!
{ 4 comments… read them below or add one }
We have a military veteran friend who was honorably discharged during the Vietnam era. He served in the US Navy while having dual citizenship (Canadian/US). He was born in Canada and his family moved to New York when he was a child and became dual Canadian and US Citizens.
After discharge my friend worked in the US for over 3 decades, paying US taxes and Social Security. When it came time to retire and apply for his pension he was informed that the US Department of Homeland Security had revoked his US citizenship and did not recognize his Canadian citizenship.
The Social Security Administration will not begin his pension payments until his citizenship issue is resolved. He has been trying to work this matter through the VA, his local representatives in government (congressional level) and directly through the Social Security Office. No one seems to know what to do, who should take action and who has responsibility. The DHS will not reply to his inquiries. Any ideas?
I NEED A STATEMENT FOR THE YEAR 2005-2206
I hope that Social Security will send me a check every month once I’m ready to retire.. but I don’t expect them to. That’s precisely why I’m starting to save as much as I reasonably can for retirement on my own. If Social Security hasn’t gone bankrupt and does pay me then, well that’s so much the better.
If I was older and hadn’t yet established a solid 401(k) or Roth IRA, I’d likely be freaking out right now. I feel for those who are in that situation.
You fail to mention that as a pastor you had the opportunity to opt out of the social in-security system altogether, something the rest of us don’t have as an option. I would jump at the option and yet not one clergy member I have ever known has opted out…is there some explanation for volunteering to participate in a system that most everyone else wants out of??