How many times have you heard people who accept Disability checks from FedGov declare righteously: It’s my money that I have paid in over the years…
Let’s examine the numbers for a second, and expose the fallacy. I’ll be very generous with the numbers.
Take the average guy who has worked 30 years and earned an average of $50k annually. (This is generous because the average guy doesn’t earn $50k for 30 years).
That is $1.5 million gross income for the career.
Now let’s look at FICA (Social Security & Medicare witholding). The rate today is 7.65%.
Let’s give our hypothetical worker the benefit of that tax rate for the full 30 years. (This is generous to the worker, because the rate has not been this high for all 30 years).
At $50k per year x 7.65% FICA, our guy paid into the system $3,825 per year.
Paying $3,825 each year for 30 years is: $114,750.
The average Title II Social Security Disability check today is $979 per month.
So: $114,750 paid in divided by $979 each month in pay outs = 117 months of disability.
That 118th month, and every month after, is free money for the “Disabled” worker.
That’s just under 10 years – and it does NOT include one single dime of the free medical care received. Factor in the free Medicare and we drop to far less than 10 years.
Our fictitious “Disabled” worker runs out of “…the money I paid into the system…” within 10 years, and that assumes not one, single medical visit under Medicare.
So, in the real world where our “Disabled” worker receives a check, and free Medicare, the money “He” contributed runs out in far less than 10 years.
Look around. Do you see anyone gaming the system this way? Does that person have the ability to earn income from legitimate sources? Does this person giggle like a little girl and boast about how he/she is f’n the system?
I’m all for getting the money you were forced to pay into the system back into your wallet. But if you accept one single dollar more than you paid, you are a parasite and part of the FSA.