patrick.net

Well unless we culturally change how we view elders, we're going to keep SSI around or make changes necessary to keep it around. I doubt culturally we're going to change much. We are used to our individual freedoms. When we are young we try and move out fast. When we're old, we try and hang onto our homes for as long as possible. If we cut SSI that burden moves to the children. #1 parents don't want to move in with their children, #2 children don't want their parents moving in with them for the most part.

So I see us keeping that promise in some form. The benefit will be there, how it's done is unknown today, as it's a problem 15-30 years out. Or more.

I never understood the "hanging onto the house" thing. My Dad is doing it right now, despite his heart condition and Mom's creeping into....you know, forgetting things. Why do 2 people at 80+ cling to a 2 story (3 counting garage underneath) house? It's not the one any of the children grew up in. Every time I talk to him it's well we'll think about putting it on the market after I do this and that and paint the place. Just SELL the thing as-is I say. I suppose I'll never understand, except for needing more space for Little Vicente, we were perfectly happy in our prior 900-square foot 2x1 cottage. I wish like heck I could afford to own a house in california and put an inlaw cottage out back for them. Can't due to the screwed up real estate situation here.

Payoff2011 says

pkennedy says

…The idea of SS is a promise that isn’t written in $’s. It’s a promise to give a stipend at retirement which will be a minimal cost covering for you. So regardless of where the economy is, or what is happening, you’ll have some basics when you retire.

Promise is a good way to put it, but it’s not just for retirement. I wish people would recognize that.

I have always considered SS an insurance policy. It is actually titled SSI (Social Security Insurance). SSI replaces some of our lost income in retirement, or disability or to dependants of retiree (spouse) or disabled (minor children).

SSI is a subprogram within social security called Supplemental Security Income (SSI). It's basically welfare for poor or disabled seniors that don't have the work history to qualify for regular SS. I remember it being passed sometime in the early 70's. I'm pretty sure SSI is funded under general tax revenues not FICA.

bob2356 says

Payoff2011 says

pkennedy says

…The idea of SS is a promise that isn’t written in $’s. It’s a promise to give a stipend at retirement which will be a minimal cost covering for you. So regardless of where the economy is, or what is happening, you’ll have some basics when you retire.

Promise is a good way to put it, but it’s not just for retirement. I wish people would recognize that.
I have always considered SS an insurance policy. It is actually titled SSI (Social Security Insurance). SSI replaces some of our lost income in retirement, or disability or to dependants of retiree (spouse) or disabled (minor children).

SSI is a subprogram within social security called Supplemental Security Income (SSI). It’s basically welfare for poor or disabled seniors that don’t have the work history to qualify for regular SS. I remember it being passed sometime in the early 70’s. I’m pretty sure SSI is funded under general tax revenues not FICA.

That's correct, and SSI is tiny compared to what FICA is paying for -- ~$55B vs $700B.

However, it's important to know that prior to the 1970s, SSI was paid out of the same funding as FICA. The legislation simply moved to make the main fund more of a retirement program / pension replacement and less of an 'insurance policy'.