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My Mom Worked Her Whole Life, But Only Gets My Dad's Social Security — Feels Like a Scam
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Anonymous
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OP, I have health insurance. Over the years, I have paid much more into it than I use. Maybe tomorrow I will drop dead and never get to use everything I put into it. Woe is me!! I guess health insurance is just a scam….
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Anonymous
The rest of the world pays for all of that with significantly higher taxes. |
Anonymous
Your mom had fifty years to actually read about social security. If she doesn't know until now, it's on her. SS is not for the UMC. It's a bare minimum safety net, not a retirement plan and certainly not one that will maintain an UMC lifestyle. You also don't have to "want it" or not like it's a choice -- you don't get to opt out of paying for social security when working. The only choice is whether to apply later for money you qualify for. Not applying ever is beyond stupid, but you do you. |
Anonymous
oh, I get it. Married to someone who was a green card holder when we got married. It is costly and time consuming to navigate the process. |
Anonymous
Not me, I'm getting my money's worth. I grew a brain tumor, so all you fools are paying out the nose for my care! It's the bargain of the century if you are lucky enough to get a massive disease like mine! |
Anonymous
There are also interactions between SS and Medicare--both the Medicare premium calculation and the actual payment relate to your SS check. And Medicare premiums go way up if you don't start it at 65 and it would be practically impossible to get on it in your late 70s, yet OP doesn't mention it. If OP's mom is in her late 70's, and her dad died 15 years ago, then she must have been widowed before Medicare eligibility age. Does she not have Medicare now? Or did she go on Medicare at age 65 and not pay any attention to Social Security? Something is not adding up, and it's not the anticipated SS payment. |
Anonymous
This basic information has been readily available for years. I think that is what is baffling people. |
Anonymous
There's a big difference between not being exactly sure how much you'll get (I'm not sure and I know a lot about Social Security, because it depends how much I earn over the next few decades and how would I know that now?) and not understanding that it's bad to wait until age 79 to apply for any benefits. You can see at p.24 of https://www.ssa.gov/oact/presentations/ocact_20220617.pdf that nearly everyone insured for Social Security claims it within a few months of age 70. What your mother did--leave hundreds of thousands of dollars on the table over close to a decade--is simply not a common error to make. And it's not like SSA fails to share this information. https://blog.ssa.gov/are-you-age-70-or-older-and-not-yet-getting-your-social-security-retirement-benefits/ is from a few years ago and is pretty clear. Also, SSA sends the Social Security Statement to people age 60+ who don't have mySocialSecurity accounts (see https://www.ssa.gov/myaccount/statement.html), so either your mom got it in the mail or made an account she could have logged into. Either way, this fact sheet would have gone with it, since it accompanies the Social Security Statement for all people age 70+. https://www.ssa.gov/myaccount/assets/materials/workers-70andup.pdf |
Anonymous
Exactly, if you open up the SSA website, this is in the middle of the page, in the biggest lettering, clearly the place they want people to start: "PREPARE Check eligibility for benefits Get a benefits estimate Plan for retirement" Just to the right of that is "APPLY". There is something so disingenuous about acting like this information is somehow not publicized more (as if you and your mother don't get periodic statements mailed to your house every few years), and then making broad policy suggestions based on your specific circumstances. It's like barging into a bank and just yelling "where is my money? Why don't I see my money so I know you have it?" |
Anonymous
Good luck getting an annuity that can start as early as 62; has a COLA for your entire life; includes a survivor benefit for minor children plus lifetime survivor benefits for spouse, ex-spouse, and adult children with disabilities; and includes a long-term disability component that goes through retirement age. If you find one, see if it costs more than 6.2% of your income. |
Anonymous
Nobody can "easily" expect a 7% return on investment for decades on end, let alone 10%. If you become disabled before retirement, your SS contributions would help you in a way your investments would not. |
Anonymous
If you expect to live to 80+, it is better to wait. |
Anonymous
Totally agree--just saying there is a private sector annuity option. SSA should make a marketing brochure that compares the private sector options to Social Security, with big check marks, for all those people who think they don't get anything from the government 
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Anonymous
Ok, call me stupid if you want, but you're still not showing the actual value of Social Security, just repeating how it works and saying I should accept it or move. That doesn't answer the questions. Let’s say my mom took my dad’s survivor benefit for 15 years before retiring. Does that really equal what he paid into the system over decades? Maybe I’m misunderstanding, and maybe it balances out for people who live a long time, but it’s not clear. The payout seems to depend a lot on timing and life expectancy. What if both spouses worked their whole lives, collected benefits for just 5 years, and then died? Where does all the money they paid in go? It’s just gone? I’m a millennial. Most of us don’t have pensions and will likely work into our 70s. If both spouses do that and only live a few years after retiring, do we actually get back what we put in? Or are we funding a system that won’t return nearly as much as we contributed? If the common norm for my generation, as it seems happened with my mom, is that both spouses work into their 70s and pass not long after, will the mandatory draw from Social Security even equal what we put in? I wanted to run some actual estimates based on updated Social Security info (like the 2025 max benefit cap) to see if my concerns hold up. This is based on my parents’ situation, and I used chatgpt to help crunch the numbers using public sources. Scenario 1: Dad worked until age 73, started collecting at 70, passed away at 73 Worked from age 20 to 73, with high earnings (above the taxable wage cap most years) Estimated total lifetime Social Security contributions (employee + employer): ~$795,000 Max benefit at age 70 (2025): ~$5,108/month = ~$61,296/year Collected for 3 years before passing: $61,296 × 3 = ~$183,888 total payout Shortfall vs. what he paid in: ~$611,000 Scenario 2: Mom worked until age 78, earning around $75K/year, subject to mandatory draw at 70 Worked from age 20 to 78 Estimated lifetime Social Security contributions: ~$372,000 By law, Social Security benefits must begin at 70 (mandatory draw), even if you’re still working Estimated monthly benefit at 70 (with delayed retirement credits): ~$3,500/month Collected from age 70 to 78 while still working: $3,500 × 12 months × 8 years = ~$336,000 Shortfall vs. what she paid in: ~$36,000 (She came close to breaking even due to the 8 years of mandatory draw) Scenario 3: Mom collects Survivor Benefit (Dad’s) instead of her own Receives Dad’s benefit of $5,108/month instead of her own, because it’s higher Files at age 70 and collects for 5 years after retiring at 78 Total payout: $5,108 × 12 × 5 = ~$306,480 Her own ~$372,000 in contributions go unused Combined contributions (Mom + Dad): ~$1,167,000 Combined payout (Dad’s 3 years + Mom’s 5 years on survivor benefit): ~$183,888 (Dad) + ~$306,480 (Mom) = ~$490,368 Combined shortfall: ~$676,000 Please correct me if my numbers are wrong. |
Anonymous
If you need the money to live, then of course. But if you are still working, then your SS benefit will be reduced until you hit Full Retirement Age (FRA) -- so less money to invest. (Will people really invest it? Will they invest badly and end up with less? If you are a good investor and in a long bull market, then sure take at 62.) Moreover, when you hit 65 and you have to sign up for Medicare (whether you are going to use it or not until later) then your Medicare premium will be higher due to your increased income. So, paying out more. You really have to run the numbers before deciding. |