home | banking | car | college | credit/credit card | economy | home/mortgage | insurance | investment | retirement | spending | tax | et cetera

December 6, 2004 04:25 PM

Social Security Reform: A Guide


Excerpt: Social Security operates primarily as a pay-as-you-go system: the Social Security taxes taken out of your paycheck are used mostly to pay today's retirees their benefits.


Overhauling Social Security is on the Congressional agenda. You know what that means.

There will be much wrangling, consternation and spin. The words "crisis" and "trillions of dollars" will be used ... a lot.

You will be tempted to reach for the Advil.

So here is a primer on some of the key issues that will arise.

Money in, money out
Social Security operates primarily as a pay-as-you-go system: the Social Security taxes taken out of your paycheck are used mostly to pay today's retirees their benefits.

Each worker must pay in 12.4 percent of wages up to a certain income limit ($87,900 this year; $90,000 in 2005). If you're self-employed, you pay the whole amount. If you work for someone else, your employer kicks in half (6.2 percent).

Until now, Social Security has taken in more money than it has had to pay out. The surplus is loaned to the Treasury and in exchange Social Security receives Treasury bonds.

At the start of this year, those Treasurys were worth $1.5 trillion and paid more than $80 billion in interest annually, according to the Social Security Administration (SSA).

Read Full Story ...



What To Do With A Dud Gift (December 07, 2004)
It's bound to happen every time the holidays roll around: You get a gift that is great, but a little off (wrong size, unflattering color, etc.); way off-base (Omaha steaks for a vegetarian); or just awful (trophy plaque with a plastic rhinoceros head). Before you ...
Putting Your Financial House In Online Order (December 07, 2004)
Getting your finances in shape is a tall order. Faced with a sea of paper -- bills to be paid, check statements, brokerage transaction records, mutual fund reports -- most people want to abandon ship. Instead, look online for help. Provided that you're comfortable with ...
The Disparate Consensus on Health Care for All (December 06, 2004)
IN Washington, the phrase "universal coverage" is rarely mentioned as the way to provide health insurance for the 45 million uninsured Americans. It evokes memories of the Clinton administration's sobering failure to forge a national health care plan. Yet among health care experts there is ...
Giving Children Funds As Gifts (December 05, 2004)
If you're tired of fighting traffic, can't find the right thing for your kids online or simply want to try to give a gift with a purpose this year, go fund shopping. There are no lines, no congested parking lots and a huge selection, but ...

Read all 32 posts in the same category of Anything Else:

‘Tis The Season For Wall Street Bonuses - Dec 17, 2004
Coping With Rising Rates - Dec 14, 2004
Financial Resolutions - Dec 11, 2004
IBM Cash Balance Plan Ending - Dec 09, 2004
John Snow Staying On At Treasury - Dec 09, 2004
Topping Off the Biggest Gas Tank - Dec 07, 2004
What To Do With A Dud Gift - Dec 07, 2004
Putting Your Financial House In Online Order - Dec 07, 2004
The Disparate Consensus on Health Care for All - Dec 06, 2004
Giving Children Funds As Gifts - Dec 05, 2004
Bank Machine Dispenses Fake Money - Dec 02, 2004
Account Aggregation: All-In-One Convenience - Dec 01, 2004
A Life Fulfilled - Nov 30, 2004
A Seal Of Good Giving - Nov 28, 2004
More Are Saying It With Plastic: Gift Cards The Holiday Present Of Choice - Nov 26, 2004
Use Open Enrollment To Review Health-Insurance Plan - Nov 25, 2004
The Pitfalls of VOIP - Nov 23, 2004
Business Airfares, Down 11%, Might Be Lowest Ever - Nov 22, 2004
International Lottery Scams - Nov 22, 2004
Work-at-Home Schemes - Nov 22, 2004
Medical Billing Opportunities: Worth a Second Opinion - Nov 22, 2004
The Lowdown on Chain Letters - Nov 22, 2004
The Bottom Line About Multilevel Marketing Plans - Nov 22, 2004
Get-Rich-Quick & Self-Employment Schemes - Nov 22, 2004
Could 'Biz Opp' Offers Be Out For Your Coffers? - Nov 22, 2004
Costly Coupon Scams - Nov 22, 2004
8 Lottery Winners Who Lost Their Millions - Nov 22, 2004
Ranks of U.S. Millionaires Surge - Nov 16, 2004
What Wal-Mart Knows About Customers' Habits - Nov 14, 2004
How Much Are You Really Worth? - Nov 06, 2004
What the Bush Victory Means for Consumers - Nov 03, 2004