Social Security basics -- and WEP and GPO

Wrote this about a month ago and thought folks here might find it helpful:

Debunks a few myths about Social Security up front, then demonstrates how basic benefits are computed. (Folks are often shocked by how steeply /progressive/ the benefits are -- SS replaces most of the income for lower-earning folks, but a much lower percentage for higher-earning folks).

Also discusses WEP and GPO -- the Windfall Elimination Provision (which typically affects teachers and others who had non-SS-covered earnings - i.e., folks with separate pensions) - and why the WEP isn't nearly as unfair as certain organizations keep trying to paint it; as well as the GPO - the Government Pension Offset - which, similarly, is often painted, similarly, as highly unfair.

Any feedback always very much welcome.

Thanks

--David

[Yes, sorry, moderation has been somewhat slack lately -- a couple of posts took me a good while to approve. But mostly, the newsgroup has just been /very/ quiet for a while. Certain regulars are auto-approved. Pretty much anyone who's demonstrated to my satisfaction that he's not a spammer or a 'bot will get added to the auto-approve list. You all would be shocked at how much spam gets filtered out...]

How will the "substantial assets" of the system be "sold off" when needed? The assets are bonds held by the federal governement. Who would buy these assets? Where will the cash come from? Higher taxes?

Where will this system evolve? One politician has proposed ZERO benefits for high income people. Bummer for the bigger contributors, who already have a lower benefit ratio, as you point out, and who have their SS payments taxed heavily.

I suggest your next blog discuss the alternative systems, such as used by Australia. They realize much more must be collected from all to have a meaningful system.

The biggest problem with our SS system is that it is portrayed as magic. You don't have an account, they are not your assets, it is "insurance" which people think will pay them plenty. So not only do they not understand the limitations of our SS system, they get dumbed down to thinking there is financial magic, and pay less heed to their own finances, especially for their retirement.

I predicted 50 years ago that there will not be any money for me from SS. I am seeing how wise a young lad I was indeed.