Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-19
SECURITY. FOR YOU
Poyees
NowGet
WindfuII
By RAY HENRY

rev people now drawing social
Security old-age benefits have
paid into the system anywhere
near what they're getting back
in payments.
From January /, 1887 = the
date Social Security payments
started - until January /, 1857.
the most anyone could have paid
into Social Security is 1887.
Yet, in eight months, a S.
year-old person who started
drawing the maximum payments
on January /. 1857, will have re-
ceived back 1868, at the rate of
$108.50 a month.
An employer has to pay into
the Social Security system - for
each worker covered by it a
tax equal to that paid by the
employe. So, if since January /,
1887, the employees tax was 1887,
the employers tax was the same.
Total: $1,674.
Thus, a 65-year-old man who
began drawing payments January
/, 1857. will in 16 months receive
back all the tax paid by him and
his employer, and be $62 ahead.
With allowance made for diff :
fering circumstances, the same
kind of example could be worked
out for every person now receiv-
ing old-age payments. In almost
every case, the total Social Sc
curity tax paid by the person and
his employer has been or will
shortly be recovered.
System Explained
These facts, standing alone,
may surprise you. And, you may
wonder about the soundness Of
the Social Security system.
But the Social Security people
have an explanation:
The situation is only temporary
and will be ironed out completely
in another 80 years. BY that
time. the people reaching retire
Iment age--and their employers
will have paid in amounts some
what equal to what they can
Iexpect to receive in payments in
their lifetime.
And. the Social Security people
have made allowance in their
financial calculations for the Sys-
tenn to cover the "windfall" for
persons now drawing payments.
They've done so by making en-
.ployers and workers pay more
tax than they would ordinarily
have to pay if the "windfall"
payments weren't being made.
This also is only temporary and
will stop after the system has
been in operation a few more
years.
Case Illustrates Plan
Here's a rough example Of how
the Social Security system will
eventually work. for which you
can get an idea of the temporary
mature of the present situation:
Assume that a 25-year-old man
paid his first Social Security. tax
January /, 1851. and that he paid
the maximum tax. If he con-
tinues to pay the maximum tax,
by the time he's reached IS and
retired. he'll have paid about
$4,000 in tax and his employer
will have paid the same-for a
total of about $4,000,
This $4,000, plus the interest
the Government will collect on
Int. will be enough to pay him the
maximum monthly Social Secur-
ity payments until he reaches at
least 76.
The alternative to making full
payments to people now would
be to pay them nothing or very
low payments-thereby, baSing
the payments on what they've
paid in tax. The result would be
10 postpone for many years a
really effective retirement sys-
TEN.
And. without the full payments
many millions of people would
need other Government help to
take care Of them in their old
age.
In any event, the gains in in
dividual dignity and self-respect
which result from the higher So
cial security payments would not
have been possible for many
years.
you may wrtte RAY Henry in
care Of The Star about your opn
Social Security or retirement
problem. Please enclose a
stamped. Self-addreSsed enrelope
and rs cents in coin.J
From AP NeWsteature0
The next Security For You column will
appear Thursday.