Do you pay into Social Security at work?

[The Iron Giant]

At my job we don't pay into Social Security - instead I pay into a state pension plan.

I was having a discussion with a coworker who thinks its bad that we don't pay into Social Security because we'll get less money in retirement.

I tried to explain that I preferred to invest that money that would otherwise go to Social Security in a deferred compensation plan so that I can control it and have some assurance that it will still be there for me in 30 years.

Does anyone else not pay into Social Security and prefer it that way or am I missing something here?

 

[Irin997]

#1 - I would NEVER even think about social security as retirement income. It was never designed to be a person's sole source of income. I consider it a government tax that I'll never see (I'm 28).

#2 - This is the exact reason that I contribute the maximum matchable amount into a 401k plan.

 

[HM]

I contribute to both SS and my state pension plan. I have no say in it.

 

[DawnM]

I always paid state teacher's retirement plan and no SS.

DH pays SS.

 

[scrapquitler]

I wish that I had the option to pay into a pension fund rather than social security....I'm pretty sure that all the money I'm paying to social security is like cash down the drain which I will NEVER see again.

 

[wdwfan16]

Honestly I wish I could have control of the money my company and I put into SS. I would be retired by 50.

 

[bettymae1121]

I guess I'll be the lone voice saying I'd rather have SS. First of all, it will be fixed simply because it's too popular a program for the politicians not to get it straightend out. It might be a last minute patch, but I'm confident it will be there in retirement.

Now of course one should never rely on it for their sole source of income, but then it was never designed for that anyway. It's purpose was to supliment one's own savings and to be a safety net incase one's pension or other savings gets wiped out in an economic collapse. You can be a really good investor and still have a bad year, or a bad run of years, and I feel better knowing that if my own investments get wiped out, I'll have at least one guaranteed source of income.

 

[terrier72]

I thought everyone had to pay ss taxes, I thought it was automatically deducted.

 

[benolathe]

Really? I thought EVERYONE had to pay SS. Had no idea that some employers could choose a different option.

 

[mrudman]

Working at a county-owned hospital, I don't pay into Social Security, but I do pay into OPERS (state retirement plan).... overall, it's a much better retirement plan anyway, so I'm hoping I can stick with it till I retire. Get 100% of retirement benefits after 30 yrs of working (no matter your age).

But on top of that, I do put money into a deferred comp program as well, so by retirement age, that account should help out a great deal also.

 

[kellia]

Dh and I are both thowing our money away into SS. We are mid-30's, so we'll never see it, or at least enough to actually help us in our retirement.

 

[KevGuy]

I don't see how anyone can NOT pay into SS, since it is not an option but a requirement for employers including states.....never heard of that one before.....

 

[kellia]

I don't see how anyone can NOT pay into SS, since it is not an option but a requirement for employers including states.....never heard of that one before.....

There are some who are exempt- some state employees, clergy, etc. I think it has something to do with they are usually given a retirement plan through work, so wouldn't need SS. Or at least that was the plan...

 

[Kay1]

I've had to pay into SS at every job I've had as has my husband. No matter what your age you may end up needing it someday. It's not just for retirement but there if you become disabled.

 

[wdwfan16]

Really? I thought EVERYONE had to pay SS. Had no idea that some employers could choose a different option.

Not everybody. Teachers, Federal and State workers have always been exempt.

 

[mrsklamc]

I WISH I could opt out of SS. That is money I will never see.

The person who thinks it will be fixed- only by borrowing more. Contrary to what our government seems to think, the line of credit WILL be cut off eventually and they will HAVE to stop spending somewhere.

Anyone under 30 ( optimistically) who is counting on having SS when they retire is kidding themselves.

 

[Jen_in_NH]

I don't see how anyone can NOT pay into SS, since it is not an option but a requirement for employers including states.....never heard of that one before.....

In NH, firefighters and police do not pay in. They pay into state retirement instead, so no SS taken out. Of course, the way NH retirement is right now, they'd have a better chance at collecting from SS than their retirement...

 

[rickdeni]

I worked in Illinois for a library district and paid into the IL Municipal Retirement Fund and Social Security. Police, Fire and Teachers do not pay SS but have larger pension benefits. It evens out in the long run. I now collect both and am pleased that I have both.

 

[bradyloganmom]

Not everybody. Teachers, Federal and State workers have always been exempt.

Been a public school teacher for 19 years and have NEVER been told I was exempt. It's always been required PLUS I am paying into a state retirement plan!

 

[The Iron Giant]

Been a public school teacher for 19 years and have NEVER been told I was exempt. It's always been required PLUS I am paying into a state retirement plan!

That's odd that some people pay it and some don't - I would think since you have a retirement plan through the state you wouldn't have to pay into it.

I really hope they get SS straightened out for everyone's sake. But I'm glad I have the option to put my money elsewhere until they do.