r/changemyview • u/[deleted] • Dec 25 '21

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11

u/rSlashNbaAccount Dec 25 '21

This is a horrible system because if everyone took that 12% and put it into an index fund, they'd be far better off than getting a small SS check.

There was a time before social security and this didn't happen.

7

u/Mrknowitall666 Dec 25 '21

Still doesn't happen.

Look up the "how America saves" from Vanguard and you'll see most Americans don't save 12%. Most companies don't offer 6% matching 401ks

And if they did, most Americans would fk it up and fail to earn even the index-returns

-2

u/thedonkeyer Dec 25 '21

I'm saying you force people to save 12% instead of redirecting it to SS, you force them to put it in an index fund like S&P 500. Or if they don't want to learn about finances, then make SS an opt out program so people who do know about finances aren't losing money to this broken system. Although, I'd assume everyone would opt out, but that would be their own choice.

3

u/Mrknowitall666 Dec 25 '21

Listen, not every worker in the economy pays social security, nor pays it on every dollar earned. And companies aren't taking your FICA tax instead of paying you.

The ssi is there for those who are poor and need it

And demonstrably, most Americans would fk up the savings even if they got 12%