I copied this quote from the blog cited. Do you see anything that is misleading … and may perpetuate the wrong ideas about Social Security?
The monthly payout depends upon a) how much the citizen input through taxes across their career, and b) when they initiate payments (between ages 62-70). Once started, payments end the longer of when they or their spouse dies (only one active plan per person).https://oldwiseguy.com/retirement-income-plan/?fbclid=IwAR0x7kckFeqBvasHD2VbTAnXAf2Z8-
WELL, the monthly payout does not depend on the taxes paid. That myth perpetuates the idea that “I paid for my Social Security benefits, I earned them.” You didn’t‼️ You paid taxes, just like any other taxes you paid, that’s as far as it goes.
Then look at this point of view from another advocacy group. They don’t know the difference between a pension which is a defined benefit plan, a defined contribution plan (401k) and a retirement plan which is a generic term which used used to include both DB and DC. AND, they don’t seem to know that the retirement savings withdrawal strategy retirees use (such as the 4% rule), does indeed index for inflation.
Roughly 70 percent of people age 65 or older have some sort of pension other than Social Security, which means, of course, that 30 percent of households have no private pension at all. Most benefits are not large. The median value of all defined-contribution pension accumulations for people over age 65 in 2013 was $118,000, enough to pay an annuity of $581 per month to a 65-year-old woman. But such benefits are not indexed for inflation.https://prospect.org/infrastructure/keep-social-security-secure/
Then, of course, they ignore non-employer based investments and savings or assets. Employer “pensions” are far from the only way to save.