Social Security now called ‘Federal Benefit Payment’ Entitlement!

Article by Robert Stedman

Have you noticed your Social Security check is now referred to as a “Federal Benefit Payment?”

The government is now referring to our Social Security checks as a Federal Benefit Payment. This isn’t a benefit, it’s earned income!

Not only did we all contribute to Social Security but our employers did too.

It totaled 15% of our income before taxes. If you averaged $30K per year over your working life, that’s close to $180,000 invested in Social Security.

If you calculate the future value of your monthly investment in social security ($375/month, including both you and your employers contributions) at a meager 1% interest rate compounded monthly, after 40 years of working you’d have more than $1.3+ million dollars saved! This is your personal investment.

Upon retirement, if you took out only 3% per year, you’d receive $39,318 per year, or $3,277 per month.

That’s almost three times more than today’s average Social Security benefit of $1,230 per month, according to the Social Security Administration (Google it – it’s a fact).

And your retirement fund would last more than 33 years (until you’re 98 if you retire at age 65)! I can only imagine how much better most average-income people could live in retirement if our government had just invested our money in low-risk interest-earning accounts.

Instead, the folks in Washington pulled off a bigger Ponzi scheme than Bernie Madoff ever did. They took our money and used it elsewhere. They forgot that it was OUR money they were taking. They didn’t have a referendum to ask us if we wanted to lend the money to them.

And they didn’t pay interest on the debt they assumed. And recently, they’ve told us that the money won’t support us for very much longer. But is it our fault they misused our investments?

And now, to add insult to injury, they’re calling it a benefit, as if we never worked to earn every penny of it. Just because they borrowed the money, doesn’t mean that our investments were a charity! Let’s take a stand.

We have earned our right to Social Security and Medicare. Demand that our legislators bring some sense into our government.

Find a way to keep Social Security and Medicare going, for the sake of that 92% of our population who need it.

Then call it what it is:

Our Earned Retirement Income


“Views expressed and put forward are not endorsed by Turning Point USA.”


  1. I’m still trying to find out if it is actually true. I have my check direct deposited so don’t see it. We are entitled to our SS checks, since most of us worked all our adult lives for it, but has this actually changed? If so, don’t agree with the change. After all, we did pay for it. Actually 49 years coming out of my checks.

    • Lawrence Fessler says:

      I started working at 16 years off age and hope too work till I am 70 but will collect at 66 so I figure that is 5 years I guess for the little we will get before we retire and they want to raise the age more It is not fair at all than they have too raise taxes so the government workers and state workers and school teachers can have there raises and medical paid when they retire let them all live on medicare and pay like we have too We were all created equal

    • Nobody gets checks any more. They were discontinured to reduce cost. Obama wanted to use the money to find ‘Affordable Healthe Care’, but the Social Security Administration had a back bone and told him NO! (That’s a joke, but I bet you can tell my opiniion of Obamacare) Everbody gets direct deposit.

  2. nancy berg says:

    Sort of true. The state “now referred to as a “Federal Benefit Payment” is true but the NOW is misleading as social security has been called a benefit payment since it started. The article goes deeper into misleading the public or rather exploiting that 1) most Americans know surprisingly little about government including SS and 2) most Americans have a poor grasp on mathmatical concepts.

    SS is and always has been a benefiti program. It was never intended to be self-funded (ie you put in a buck today and when you retire, you get it back). It was set up with the belief that the working generation would be earning and contributing enough to support the retirmeing generation.

    The math suppositions in this commentary are outrageous for a number of reasons. Grossly over-simplified. To even begin to talk about what your benefit would look like if you had invested the money your self, you would have to start with the facts on social security withholding (and take the huge leap of faith that your employer would have paid you their part of SS withholding as real wages which i pretty unlikely).
    If you took someone who is 65 today and went back to the maximum social security withholding 45 years ago (2% on a cap of $3000 annually – $60 a year), then started doing the math at the proposed 1% return, then adjust the max withhold each time it changed, well you will see it is a lot more complicated. You can’t apply the average $30,000 earnings at 15.4% (and SS withholding has never been that high-think it was 12.4 and is now 10.4) and expect to come up with a number anywhere close to the real number.

    And, hard to believe but $30,000 a year in 1947 would have put you at the very highest end of the wage earners!

    Of course, then you have to combine this with human psychology and recognize that almost no one would have done this. You just have to look at the information on how well the average guy saves and manages in a 401k plan.

    People putting out information like this are just creating outrage in people that do not have the education, time or perhaps intellectual ability to understand that an article so fact based can be so misleading.

  3. Interesting! Its been like that since the 30s though, how do you explain this. Might try Snopes next time.

  4. Using the same figures in this article, if you make $30 thousand per year for 40 years, only 7.5% is taken out of your check for Social Security—not 15%. Your employer pays half of your Social Security tax. Therefore over a 40 year period you pay out of your own pocket $90,000 into Social Security. If you retire at 65 and live to 85 and receive $1,230/month over a 20 year period, you will collect Social Security benefits of $295,000. What fool would see this as a bad investment–$90,000 paid in and $295,000 given back. Social Security is forced saving to insure that the majority of people who would save nothing if they were not forced to and would therefore become in their old age wards of the government and therefore by default a burden on those who did save.

    What’s wrong with the word Benefit. Surely Social Security is a benefit to millions. Only minds perverted by government hatred try to construe the word as some sort of welfare. The benefit is paid from a trust fund administered by the Federal government and funded by individual workers and employers—not the federal government. For 77 years Social Security has payed earned benefits to American workers without once missing a check and in the process amassed a surplus of 2.6 Trillion dollars for payments to future workers. Compare that with the private pension plans of American corporations that are in crisis with reduced benefits and requiring a government bailout program to salvage some of the benefits promised by the private sector.

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