by Alyssa Oursler | August 6, 2012 9:56 am
Today’s generation of retirees are making history — and not in a good way. They are the first people that have paid more in Social Security taxes during their careers than they will receive in benefits after they retire.
But they won’t be the last.
If you turned 65 in 1960, for example, your lifetime Social Security benefits came to $259,000, in return for $36,000 in lifetime Social Security taxes. If you turned 65 twenty years later, both those numbers went up: Lifetime benefits were $452,000, lifetime taxes were $192,000.
But, once again, for those who turned 65 in 2010, the amount paid was more than the amount received. Lifetime Social Security benefits come to $555,000, while taxes total $588,000.
And that discrepancy is growing. For those who will turn 65 in 2030, benefits will only be $699,000 on taxes of $796,000.
On top of that, the trustees who run Social Security say its funds are on pace to run out in 2033.
And — assuming funds don’t run out — there’s really only one way to get more bang for your Social Security buck: Live longer. Estimates are based on average life expectancy, so out-living the rest means your benefits will keep adding up.
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