The importance of Social Security
Via Mark Thoma comes this study of the financial status of many Americans in the last part of their lives:
Social Security works:
Study: Many Americans die with ‘virtually no financial assets’, by Peter Dizikes, MIT News Office: It is a central worry of many Americans: not having enough money to live comfortably in old age. Now an innovative paper co-authored by an MIT economist shows that a large portion of America’s older population has very little savings in bank accounts, stocks and bonds, and dies “with virtually no financial assets” to their names.
Indeed, about 46 percent of senior citizens in the United States have less than $10,000 in financial assets when they die. Most of these people rely almost totally on Social Security payments as their only formal means of support, according to the newly published study, co-authored by James Poterba of MIT, Steven Venti of Dartmouth College, and David A. Wise of Harvard University.
Given that to get Medicaid for nursing home stays one has to go below 10k in financial assets, one question that could be asked is of the 46% how many are on medicaid? Another metric would be how many end up being buried by the government because they do not leave enough to pay for the funeral? (Cremation about 2.5k burial 6-10k)
Lyle has a valid point, but it is difficult for any individual or couple to be able to foresee the need for nursing home care six or seven years in the future. That is the length of time that is reviewed by localities to assure that an elderly person’s family has not simply moved their assets of the books, so to speak, and make it appear that the senior is broke.
that’s why insurance is better than welfare.
and why universal insurance is the safest bet.
“that’s why insurance is better than welfare”
“and why universal insurance is the safest bet.”
At least we now know what anonymous does for a living. In case you haven’t been paying attention Social Security has a disability “insurance” aspect and a death benefit for the minor children and widow(er). And Social Security isn’t welfare or remotely related to the concept of welfare. In fact Social Security is the antithesis of welfare. It is the system which allows even the lowest paid people to have some retirement income after 66 years of age. Private insurance plans are expensive and prohibitively so to the average worker.
hard to tell what i do for a living. or why you think you know.
actually i think SS and Medicare-for-all are the models for how to handle insurance.
the DI aspect of OASDI troubles me because it is “needs based,” and a potential source of abuse both of clients and of the taxpayer.
i don’t have any good answers for DI. i don’t think it is also “means tested” like SSI, which would make it somewhat saner.
at least so far, if a rich man goes to the hospital for something covered by his insurance, they don’t refuse to pay for it because he has assets.
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Yes, social security is helpful when you have decided to take retirement. These monthly instalments can help you live your life easily.
When we see the benefits of social security for medicare purpose then we realise how important it is. You can get free medical services or services on some relaxation.