Saving Social Security: SS Pension vs. SS Welfare

17. April 2008 by Da Fu.

Many believe that Social Security (SS) is a pension fund when in reality it is both a Pension and Welfare fund.

The reason Social Security is a pension fund is because workers contribute to the fund in return for getting returns after retirement. The expectations are payments with interest.

Unfortunately, the cost of living and SS Payments have long ago depleted many individual’s contributions plus interests. Therefore, continued SS payments are unfunded by the recipients and instead funded by current worker’s contributions making these payments charity or welfare.

Few would argue that workers should be paid their SS Pension payments (SSP). Yet, once these personal pension funds run out, continued payments should have some sort of means test for receiving continue payment as SS welfare (SSW). Welfare should not be provided those who do not merit it.

Finally, while a person is alive they should be allowed to contribute their SSP to the reduction of the national debt or back to SS program for SSW payments. These contributions would be allowed to be deducted as charity.

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