So why am I taxed for social security on my paycheck if I can't have it when I retire?

Question

Where is my money going?

Thanks!

Answer 1

Unfortunatelyy, the social security you are paying in is paying for the senior citizens and by the time you reach their age, all the money paid in will no longer exist. Sorry....unfair but true. So start investing now and take care of yourself...your government won't.

Answer 2

You can have it when you reach a certain age...if you retire earlier you will have to live on something else for awhile. However, the social security system is in financial difficulties and who knows if it will be there when you are old.

Answer 3

It is going to the people currently on social security.

Unfortunately for those of us who are younger we pay into the fund, but will most likely not reap any benefits.  

The social security fund is going bankrupt fast.

Answer 4

How do you reckon you won't get it when you retire?  If you pay in 40 quarters or more under the system you're eligible.  That works out to roughly 10 years of full time employment.  And you don't even have to be a citizen to collect it.

All earned income is subject to Social Security and Medicare taxes with extremely rare exceptions.  There is no way around them.

Answer 5

Who says you cannot have it when you retire?  

Answer 6

To people who are retired now.  That's how it's always worked.

Answer 7

The social security your paying now is used for the old people that are retired as of this moment. So when other people are working and your old their social security is going to you. Then again it might change due to the fact that people are living longer now.

Answer 8

You will have it, the whole going broke song and dance is a scam.  Any political party that would let SS go broke would disappear next election.

Answer 9

you do get money for ss when you retire, the only reason you don't is if you make more money then the avr person.... meaning you have enough money saved for retirement  

Answer 10

The news always says there wont be social security when we retire...which more than likely isnt true. We pay in, the more we pay in, the more we get when we are older. I had a great uncle who hardley ever paid in (he farmed) and his check was TINY, where as my grandma gets a nice check, cuz she and my grandpa always paid in. Every few years the gvt mails out a letter stating how much you would get monthly if you could get social security right now, if u were of age to retire...or get disabled....ect. So don't worry, it will still be there. :)

Answer 11

youre currently paying for other peoples social security. . .

but when you get old, younger kids will be paying for you.

apparently whoever thought of that was NOT smart, i agree.

Answer 12

Your money is going to the people that are on social security now

Answer 13

It's the law.  There would be a revolution if social security benefits we done away with.  So much of the population has become or soon will become eligible to receive social security benefits and people are saying there won't be enough younger people paying into the system to pay for the benefits of the older people on benefits.  Social security money was supposed to be held in a "trust fund" so that the SS taxes would earn interest, etc., and there would be enough money regardless.  However, the Government has dipped in and "borrowed" the money and used it for other purposes.  Nonetheless, I wouldn't worry about it.  Your employer has no choice but to withhold the money.  Make sure to take advantage of any 501K retirement plan that your employer has and put in as much as you possible can, especially if the employer will match it.  That money is tax deferred.  That mean you don't pay federal income tax on that many until you take it out of the plan--I think you have to be 58 and presumably you'll be in a lower tax bracket.  Also, if you would become ill or injured at a young age and unable to work for 1 year, you may be eligible for disability benefits.  If you would die young, your children would be eligible for benefits on your record until they are 18.  And it happens all the time.  One of my neighbors lost her husband in a freak accident, and now gets $43,000 a year clear for herself and 5 kids.  That may not sound like much, but to her it's the world because he didn't have much life insurance.