According to economists at the Urban Institute, an average-wage, two-earner couple earning a combined $89,000 per year will have paid $114,000 in Medicare payroll taxes during their careers, assuming a 2011 retirement. However, that average couple can expect to receive medical services worth $355,000. What this means is that the taxes we pay now aren't being saved for our retirement, but to pay for those already retired.
Social Security is in a bit better shape. The same couple would have paid $614,000 in Social Security taxes, while collecting a predicted $555,000 in benefits. However, that math will change as more baby boomers retire and live longer.
I'd actually really like to write more in depth about these, but it's New Year's Eve and I have food to drink and drinks to eat. Happy New Year, readers.
I would also agree that this is a complicated issue.
ReplyDeleteThis is Heath by the way.
ReplyDelete