No, you didn’t pay for your Social Security. Here’s why.
- The Social Security taxes you paid are unrelated to the benefits you collect.
- For example, two workers with identical earnings and identical taxes paid can receive substantially different benefits based on marital status.
- The earnings used to calculated your benefits are not your actual average earnings, they are adjusted for inflation.
- Taxes collected prior to 2010 were more than enough to pay benefits and the excess was invested in US Treasury bonds.
- Since 2010 all incoming taxes have been used to pay current retiree benefits.
- Congress can and has increased or decreased future benefits unrelated to tax rates.
- Self employed individuals pay twice the amount in taxes for the same benefits
- If your taxes alone were related to your benefits, your benefits would stop when that taxes your and you employer paid were exhausted.