"Just Work Harder!" Why Americans Are Getting Screwed
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- čas přidán 16. 06. 2024
- The United States Is Running Out Of Social Security - My Response to @Vox -
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Isn't caleb's acorns deal 20 bucks as well
I got an idea. When the person receiving the benefits passes away. The spouse doesn’t keep reviving the benefits. 😎
Imagine having someone 70 busting wrenches or roofing for a living. There is no way I could be doing this at 65, much less 70. It's easy to say work longer working indoors on a computer but a lot of people do manual work and the body will break over time.
My mom was a home health care CNA until she retired last year at 72 only because she wants to help me out to take care of her grandson. It’s highly possible and since we’re taking better care of our bodies, who knows how longer we can work. Shouldn’t but ya know..
@PurpleStarsaver Most of us doing manual labor don't take care of ourselves. Basically, we medicate and push to keep going.
they can work at $20/hr fast food place until they drop
Long term thinking should be taught to elementary children and on
@@matthewsmith197 This lol you know who does all the opiates in this country? Ever stopped to think about it? They have to have money to do those pills 24/7, it's not bums, who is buying all these pills? It's the working class.
Raising the age limit sounds like a good idea from someone hasn't done hard labor. When social Security was first introduced, more people were farmers.
I was told when I was in grade school that social security was running out of money and that I shouldn't plan on seeing a penny of it. That was 1967. Get my point here?
I just pretend like Social Security doesn’t exist, I don’t factor it in at all to my retirement planning.
Me either. I have a Roth, 401K stocks and silver
I agree, but I can’t help but notice a mysterious 6.2% disappearing from my paycheck, never to return
Not to worry, no Congress or President will ever allow SS to default or be reduced anytime. They will tap general revenue if they don't raise the actual SS tax. Also the full retirement age will be phased in to age 70 but you can still get a lesser amount at a younger age.
@@ryanstevens2722 keep telling yourself that. we won't have money to pay politicians let alone elderly people
I hope they don't raise the SS tax. These jackholes have already proven their way doesn't work. Last thing I need is for them to pull and squander more than they already are.
I wouldn't be surprised tho. Unkraine and Israel need funding.
Most people get older and their bodies can't do what it used to do when at a younger age so you can't work these people forever.
I'm 68 and I'll tell you that's absolutely correct.
I dislike the argument of raising the age of social security due to life expectancy. Yes we are living longer however our average “healthy years” has not risen the same. Most people by the time they get to 65-67 have some form of disability hampering their ability to work. Not to mention we have a huge group of blue collar workers who can’t work in there later years due to their bodies breaking down
This is such an important point. Modern people can spend the last 30 years barley functional. For people who's job is centered around physical ability the fact you live till 90 has nothing to do with the length of your career. Americans in particular have been reducing their health span while increasing life span for years.
I've just been treating that money taken from my check as another tax that I'll never see again. Makes it a little easier to sleep at night
Living to an old age and working to an age are two completely different things asking a 65 year old to work and a 58 year old to work is a big step. Just because we have things that can prolong life doesn’t mean our bodies don’t deteriorate before then.
You are referring to quality of life, not just chronological age.
OK so then invest more for retirement instead of complaining
Majority of people will not invest their money if they opted out of SS. I cant get any younger coworkers to even consider investing.They are just thinking of the now, not 30 years from now.
Most definitely. It would be a scary world when all those people who opted out tried to retire.
@@sliceofpay maybe there retirement plan is euthanasia
There is a possiblity that the younger ones are more realistic than we are. Not much hope for better times now.
@@c7042 When Warren Buffett started investing it was 1941. I bet if you asked anyone then if it was a good time to start investing they would've said no. This highlights the difficulty of investing over a long period of time. Would you have stayed invested through WW2, The Cold War, Cuban Missile Crisis, Korea, Vietnam etc etc etc? I agree that the average person wouldn't invest if we abolished Social Security, but we could force workers to invest much like we do now with social security, except give ownership of the investments to the individual making the contribution and that is their retirement. This could work nicely considering it would start workers saving for retirement the moment they begin working. This also means saving a small amount of money would lead to a nice retirement, due to being invested their entire working career and allowing compound interest to do its magic. Plus if you died your family would receive an inheritance vs nothing when a loved one dies with social security and it's not a spouse/spouse makes less than survivor.
I disagree. Although I’m financially literate and am prepared for a future without SS, I can’t help but think about all the lower income families that not by choice, are struggling financially. It’s like a punishment. They’ll have to reach old age and still work because they come from disadvantaged backgrounds? So sad to imagine a 70+ having to work due to necessity not by choice. I hope there’s a better solution for the sake of people that are less fortunate. ✨
"They should of worked harder"
If SS is your only or main source of retirement income. you REALLY failed in your financial life.
The gov't reminds people that SS won't pay for everything retirees need, but there's nothing wrong to rely on SS to cover a majority of one's expenses.
@@ozzierabbit587 Actually I don't use SSI to pay for any of my needs and I'm 75, retired for 16 years. I do use my self-funded pension money to live on. $767.06 per month. Usually don't spend it all. So it works for me so far and I do know how to hunker down on spending. Also I have $500K saved and invested which might help too.
The thing that blows my mind is if the government just required everyone to contribute the 6.2% of their paycheck into a retirement account that’s invested into the stock market, everyone would retire a multi millionaire. Instead we all just throw away 6.2% of our paychecks to MAYBE get social security down the road 🤦
Screw that. The 6.2% our employers pay into the fund is part of our salary as well. That's 12.4% we should get directed into our own private accounts.
@@bvoyelr and that type of thinking is why no one has money for retirement
The problem is that while people have come to view SSI as a retirement plan or account, it was and is an insurance plan. It's like a whole life policy where the terms of the payout aren't written in stone and can be changed at any time by the government. This was done to solve the problem of old and disabled people literally starving to death or eating pet food to survive. To do that it had to start paying out benefits in the very short term, so from the start it has been a wealth redistribution system. When SSI was generating an excess the money was "invested" in treasury bonds. This was good for the government because it gave them more money to spend on enriching legislators families and friends. It also kept that money out of the public stock exchanges, which is probably a good thing, as otherwise the SSI administration would likely have become an incredibly huge hedge fund. If you think people cry about the government picking winners and losers now, just imagine if they controlled huge shares in every publicly traded company. People might suggest that the money people contribute should go to a fund that they control, but that would go right back to the point that people have traditionally sucked at financial planning and so this would just lead to old people starving to death again.
Did no one subscribes to this nonsense it's forced on us were monkeys and guinea pigs cuz no one matters they manipulate our money however they steam fit cuz they think we're stupid they manipulate the markets and they clearly don't know how to manage money right because they're all selfish and would rather care about other countries than us
Let us opt out.
We have no problem coming up with billions for foreign countries. There should be no problem with funding SSI.
Cancel social security.
Most boomers are already rich AF from their houses and stocks. They don't need to also milk young struggling people who are living paycheck to paycheck and can't even afford to have kids.
This is exactly where Ramsey and crew are missing the point. The average person can’t just work and achieve like in previous eras. One man used to work regular hours and easily afford a home and comfortable life. Now, even both parents working multiple jobs are struggling.
Dave Ramsey is the Dr. Phil of finance advisors.
That's your opinion. The ramsey plan is working for me. I'm debt free with 60k in retirement.
@@celularphonehis debt free plans are great. But it doesn’t alter my point. I don’t know if you’re married, but somehow I doubt you’re supporting an entire family on your one job alone.
@@Sjmirando wife and child
@@Sjmirando I live in the Midwest in a rural area
My grandma who is 78 was telling me that when she was in her 20s she remembered thinking that social security wasn’t going to be around for when she was retired. So it’s been a concern people have had for awhile
The checks get smaller, but don't appear to change due to inflation.
But same as any other tax, not everyone gets proportional benefit on how much tax they contribute. Its not an investment!
Tax are meant to redistribute wealth. You still have to pay public school taxes even after your kids are out of school. Social security should be no different. The 150k limit should not exist, trust me.
Wherever did you get the idea that taxes are "meant to redistribute wealth." That doesn't sound very American at all.
@@drcatrinaking america is supposed to be free, so why can’t I be free in my mind? It has always been a way to redistribute wealth, and make what people cannot do on their own possible. Look at our infrastructure, public school systems, and roadways.
The taxation system should be used to identify our shared needs, and have them addressed for all. Instead, bad people use it to make it look like we are not upstanding citizens if we ever need help.
Of course, there are people who abuse systems like these (look at what happened with PPP loans during Covid), but I believe if people with the right intentions were making the decisions, people would see taxes differently.
I’ve never factored social security into my retirement planning and won’t start now lol
When SS was creates, there weren't long-term care related expenses like dialysis, occupational therapy, and surgeries like hip replacements, not to mention all the Rx. Plus older people may not be physically or mentally able to work till age 72-
Great video
Oh man, This is such a sad truth. Thank you for covering this growing issue and bringing such an important issue to light!
If only I could opt out of contributing to SS, and rather send that to my IRA and high yield.
As a nurse I’ve seen many people pass in their 60s. Shocking amount of people. Had a guy have open heart surgery in his 30s. I hope I’ll make it to 70 to retire. I feel the standard should be to increase retirement time, not age. How to do so idk not my job. People should have plentiful years left to enjoy retirement. Not retire and next year they hit average life expectancy age. That’s just wrong.
Agreed. The whole system is legalized wealth distribution. If people could opt out, where would the money come from to pay current beneficiaries of retirement and disability? Better idea is to let the retirement position dry up and preserve the disability piece to protect those who through no fault of their own got backed into a corner.
@@stevenporter863 Then folks will start faking injuries. Happened all the time when manufacturing plants closed.
@@sanman1188 Disability benefits aren't just 'I want them'. Doctor visits and letters, forms, waiting periods, etc. Basically they make it easier to just work.
@@stevenporter863 I am aware of the process. Look at the change in disability claims over the last 20 years. Particularly for back pain and mental health. When there are no benefits or good jobs, people do what they have to do. There is research and news articles on this. Take a read.
I hate the fact that I have to pay into this knowing in 30 years I probably won't get anything out of it.
You'll likely get SOMETHING - I doubt they'd let it go completely insolvent
Rest assured, we have an unlimited money printing machine. And in 30 years, I'm sure Jerome Powell will have come up with a solution
I did (and am still doing) the same for almost 40 years so far.
Just get some cash flowing assets and don't save any money for retirement.
It is an extremely popular program politically among both sides of the aisle, which almost never happens. There are also several ways that funding short falls can be addressed, each of which are preferable to letting the program just die out. Don't get caught up in the sensationalist headlines.
Fun fact: the life expectancy when social security was actually 63 ish, not 72. It was created as insurance just in case people lived longer than they “should” not as a retirement plan
The Graham Stephen Show, Only in a perfect world could this be so, the family I came from had health issues at early age. So, this would not turn out well for many people. Thanks for your videos.
That “it’s already been taxed” but was almost memeworthy hahaha
Please talk about target date index funds and your thoughts on it.
Also, not make the government a place where a group of retirees runs the whole country.
In the Netherlands, the age of retirement is currently 69 and they plan on raising it to 72 in the next couple of years. Nearly anyone who is in a financial space to retire early is doing so. It still doesn't work.
I know pretty much everyone would opt out of it and millions would be destitute from not saving enough towards retirement- Americans are some of the worse to save or even invest for their future…seniors now are the worse! They just thought for some reason prices would stay the same and many 70 and 80 year old are having issues with affordable housing and food and utilities and even car payments etc…I see it everyday doing what I do. Medicare for seniors
Let the Hunger Games begin.
I would say the company should pay social security taxes on everything paid to employees or owners including stocks. We will have to have social security. Everyone does not make enough and would not save enough left to their own responsibility. Life is tougher on some people and this is a way for society to try and help everyone.
What about families/individuals with a short life expectancy. Raising the retirement age is not an option really.
Social Security is a misnomer: it originally was created as a temporary backstop-not retirement program.
As it is many people, who have paid into it, are routinely disqualified from receiving any benefits.
I believe everyone should be able to choose whether or not to opt out.
Social security will be insolvent in a few years but that doesn't mean there won't be any money left. It means that they will only be able to pay out roughly 80% of the benefits they are currently paying out. They need to raise the cap. Period.
Haha. Always money for war though
@@sky37blue oh, always and forever. The money for war is essentially going straight to American weapons contractors. It stays here for the most part. The big corporations who buy our elected representatives get all the money and then use it to influence the government more. It's a terrible cycle.
This is the worst investment I’ve ever made
Sorry. It's the best one I ever made.
@@ozzierabbit587your only other investment was bitconnect?
It’s already a wealth distribution system. It’s been terrible from the start and adding any new money to it will just be throwing good money after bad.
There is no such thing as an effectively or efficiently managed government system.
They already raised the retirement age for full benefits to 67 for anyone that is currently 62 or younger. But you can retire earlier and get partial benefits.
Raising the age is based on the concept that the entity is functioning at the same level. They are not. Raising the age on a group that is in functional decline is only going to cause other problems. There needs to be a happy middle ground that is not entirely reliant on the age increase and nothing else.
That is what the disability position is in part for.
Really enjoy this kind of video, thanks.
If I'm not mistaken Bezos doesn't pay SSN on shares that he issued himself. That is how his salary works. 150k in base salary but $200M in vested shares. That $200M isn't subject to SSN if im not mistaken.
I was reading this right when Graham mention it.
That would be because of the cap though right?
I consider any FICA tax paid as a forced charitable donation that I don't ever get to see again.
I was told 45 years ago to be sure to invest because there won't be any SS. Now I'm retired, I have my SS, and also have my investments savings. It's all working out well.
@@ozzierabbit587Yes but what about 45 years later? Thats 45 years ago.
@@ozzierabbit587yeah but now we have a 30 trillion dollar SS liability. Literally funding the SS gap today would double the national debt.
I think they should just phase out social security all together. They could just make it a 6.2% mandatory non-withdrawable (until age of retirement) contribution to your employers 401k/ IRA if self employed. In order to phase out the Social Security you would have a combination of the Social Security Tax and 401k contribution adding to 6.2% depending on how close you are to retirement when the phase out begins. More Social security tax and SS benefits if you're at the end of your career, no security tax or benefits if you're at the begin of your career.
0.5% federal sales tax.
Tourists etc will pay to the social security system
Exports (like tourist) dont pay federal “sales” taxes. Otherwise exports would be reduced… exports like tourism.
Fun fact. The word mortgage is derived from the Latin "Mort" and the french "gage".
It basically translates to death pledge. Or death forfeit.
Video idea ‼️ you should make a video telling us all the tricks you have learned for best engagement with the CZcams Algorithm. Considering you study it like a religion, I’m sure you have so many insights. I think it’ll be very useful to people and interesting to watch
Young people are not lazy. More bosses want more for nothing and hard work goes unrewarded
I think what you are describing is increased efficiency and that is nothin new. Nobody owes you a pat on the back. Your reward is a paycheck. If that check isn’t big enough take your talents where you will get what you believe you are worth. If that job doesn’t exist the market decides for you.
@@rohans1789If you think thats how that works you are oblivious
Social Security should just be done away with. We aren’t going to see any of it and I’ll rather buy bonds instead
Graham, how much did you pay for that coffee?
I would gladly forfit anything I've ever paid in if it were possible to oppt out.
I been working since 16 and I turn 23 this year. The amount of money stolen from me makes me want to vomit. It should be something you can opt out of cause I know damn well ill never see that money again
Great headline! The more people think its impossible, the more opportunities for the rest of us! That's the point right?
That’s how I see it 🤷🏻♂️ people just want everything handed to them
It's no longer a social security. It should be ended.
False, and I can tell you how much mine means to me.
We need to stop thinking that everything we put into the government needs to only benefit us. This what's mine is only mine attitude makes things worse. We complain about homeless but don't want to expand the social security income threshold? The program was created so we don't have seniors on the street. We should not allow people to opt out. People are horrible at investing. They only think about now. Unless we want a bunch of seniors on the street dying miserably keep the program. We have robots and A.I. coming, we need to continue to support a base standard of living. Before someone comes and attacks me instead of my point. I am doing financially fine.
I don’t plan to rely on SS. In fact I wish I didn’t have to pay good money after bad just to run this thing.
I am making my retirement plans without it, but I am old enough, I might still get something.
Why is Social Security even needed
If I had the option to opt out of SS and just have that tax money go right into my company’s 403(b), I would jump at the opportunity. 💵
Everybody who has paid into SS, has paid for the previous generations. I hope somebody figures out something.
To me, the main purpose of SS is to hold the bag of the US treasury. They could have bought s&p 500 like we all would like to do.
At the very least, I feel good knowing that my mom will be able to get a cut of Social Security, seeing as she's nearing retirement herself. I have plenty of time to let my investments grow and set myself up for a future where I won't need Social Security to get by.
We are living longer, but due to our diet and lifestyles, we start breaking down even earlier. Many people start becoming physically inept in their 50s, some in their 40s. If you work a physical job, good luck making it to 65, let alone 73.
People maybe living longer, but theyre unable to either physically or mentally work for longer too...
Don't rely on the government. My parents are getting their ssc and they legit can't even afford to upkeep the house we grew up in. Forget food n cars, not even the basics like gas and water. Im forced to split the majority of my paycheck to help them survive. Our country has failed the elderly. Protect yourselves by investing and having multiple streams of income before its too late.
Social Security was never meant to be a sole support- it was insurance against poverty
It was intended to be part of a retirement plan along with other investments.
It's easy to say don't rely on government. Unfortunately, when you have something, they will come after you even when you don't rely on them.
This is quite possibly the most important conversation you’ve had on this channel. Once again, GREAT content, *Fiola!* 🤗
Who is Fiola? His name is Graham Stephan . You are a idiot 😊
It is funny how rich people want to talk about wealth distribution. They never talk about how the wealth is distributed from working people to the wealthy. When you point it out, they immediately try to shame them by telling them to work harder, pull yourself up by your bootstraps, learn a trade, etc. We've gotten to a point where the ultra-rich are idolized like gods and we should all aspire to be them. The more money one has the more they benefit from the system. Legal systems protecting their property, real and intellectual, naval protection of shipping lanes, interstate highway system, etc.
Graham brings up ideas about what is mentioned in the video except for the very end. "A compact between generations to take care of each other", is conveniently ignored. Things happen outside of our control. How many people were effected by the '08 crash, the pandemic, natural disasters, etc?
Lastly, a lot of people pay in without ever reaching retirement age. Some people, "illegals", pay in with fake SSN's and will never receive benefits. The tax system has been changed over the decades to protect capitol more and earned income less.
I feel like andre and grahm are just 2nd channels of each other at this point but Andre has magic
Instead of raising the annual cap, they should allow voluntary contributions to make up for years that you didn't hit the cap... allowing a person to maximize their benefit. Benefits are calculated based on the 35 best years of working, so if you don't work 35 years or you had very small years in there, contributing more now on an individual basis to raise your average would benefit everyone without these universal increases or age hikes.
If they gave us a choice between paying into SS and investing on our own, most of us would choose to invest. That's exactly why they'll never give us that choice.
Most people would choose it, but not many would actually do it. Something came up… I am picturing several people who couldn’t save but are happy for it being deposited monthly. Something always comes up.
Can we get $20 if we already have acorns?
Graham with a soul patch makes me think we're in an alternate universe
Before we can talk about people working to 70 and beyond we would have to address the large number of people who retire at 62 now, either by choice or otherwise.
All they have todo is remove the cap and it will fix everything.
just another reason i don't have a 9-5 job
If only I could put that 6.2% towards my Roth :/
I know that would be great.
either tax money coming in or money going out not both. id rather pay tax when i spend vs when i get paid
I better get a check when I retire for the thousands ive been forced to contribute to SS.
Or tax increased productivity on companies, tie the rate to ss shortfall. It’s deflationary by reducing interest rate with more bond demand as well as slowing company growth a tiny bit. It’s also fair as it hits everyone the same and shifts money to the future
Yeah I am assuming social security won’t exist by the time I get access to it (40 years). I just will be investing aggressively to the point where it won’t matter.
Graham really made me hit the like button with a picture of a puppy 😂
This was a problem 20 years ago! No one wanted to do anything about it then, we don't want to do anything about it now! It was only meant to supplement your retirement anyways, it will just supplement a smaller portion it did for the boomer generation for generation X and beyond! With inflation it might pay for a monthly Sunday afternoon meal at a retiree discount at IHOP!
I feel like the wage gap is the biggest problem that Graham seems to have glossed over. Living expenses have increased significantly more and as people get older, companies don't want to hire older people. I'm in my 40s and I've recently started to experience this problem. Finding ways to tax where the money has gone is the only real solution and it will never happen as long as the wealthy get to control the government.
i did hear something that the social security funds get put into government bonds but whether that's true who knows
Meta I know, but if we could get the cost of living down the pressure from this would be decreased quite a bit
We put a lot of importance on individual success and “climbing the ladder” here where a lot of the world is focused on more balanced quality of life over the whole population
It would be cool to see more practices from other places in act in the US. I know I’m a dreamer, but I love the way life is abroad and would sacrifice some of my wealth to make sure everyone around me has a good life, “the rising tide” theory comes to mind.
If everyone had a good quality of life, even the wealthy would be happier
3:50 it’s worth noting that SS contributions are redistributed. Those that contribute the most get proportionally the least and vice versa.
Graham you are nuts with this one
Seems more like a pension than a Ponzi
I'm always annoyed that so many people give retirement savings such little thought and people just believe the government is going to take care of them.
maybe they give little thought because they have nothing left over after paying their bills with the average wage
Those allowed too little, in life, know better than to fear death much. ~Chuang Tzu
Everyone saying "just raise the retirement age!" Seems to forget that in bygone eras families would come together to take care of the elderly. Every job in general paid you well enough on average that when you retired, you weren't still saddled with crippling debt. Companies were aggressively hiring instead of aggressively looking to replace workers with AI. Ageism is still alive and well too. Furthermore muscular degeneration didn't just decide to delay because life expectancy went up. Tradesmen just can't at 70. "Delay the retirement age" is propaganda spewed by the wealthy because they know the alternatives come at them in taxes
Isn't it also wealth distribution to pay into at all if we all agree we'll never see the benefit?
Gotta love how Jeff’s salary is technically only $80,000 🙄
The answer is so simple phrase. The amount detected by a tiny amount because all of the millions of illegal immigrants will soon be added to the contribution.
I’m not delaying retirement WTF. I’m retiring at 65
You definitely can put a tax on a tax! Just ask Justin Trudeau hahaha
If you are a minister you can opt out of social security and of course you do not get any $ when you retire.
Singapore's CPF > USA's SS
We also need more children to be born in order to have the workers into the future.
7:06 No, you only pay tax on the gains not the original investments!