Social Security Complaints

I think what makes people angry is that the system was designed specifically to fool them (for their own good of course.) Social Security is a welfare program (maybe a good and necessary one, maybe not) that was disguised as a Ponzi scheme to make is palatable to the voters. That's because in the 1930's people liked to think that they did not get welfare. The SS system was brilliantly designed to make people think it that what they get is based on what they contribute but that's not really accurate, the system is fairly progressive. That is low earners get much more back based on what they contribute (I think that is a good thing) see here. Here is spreadsheet that I made. 

Here is how the Social Security Administration calculates how much you get.

All taxes including FICA and Medicare taxes are supposed to exist to fund public goods.  Providing money to retirees has been considered a public good since the creation of Social Security until now. What is spent where and how is always up to the current voters and their representatives in congress. The current voters and congress cannot obligate future voters and congress to spend money on what they want. It cannot be any other way.

When you buy an annuity from a life insurance company, it is guaranteed by their assets. That is if they renege you can sue and get their assets driving them in bankruptcy if need be.  

But when Governments tax you to pay for things they consider public goods any program that they make can be unmade by congresses.  They really have no mechanism to guarantee you anything. How could congress guarantee anything like that? There are no courts or enforcement above them to enforce the guarantee and the congressmen themselves do not have enough money personally to be significant guarantures.

As far as Social Security goes you are relying on future voters continuing the program, which has been changed in the past and can be changed at the whim  of the voters and congress. It's like all the other welfare programs in that way.

IMO we in the USA should slowly move toward a system like Australia has, where all retired citizens get the same monthly payment from Government portion of the retirement system. Under such a system the needy would get more and the wealthy would get less.

BTW when debating taxes if FICA is a tax rather than forced savings then SS is welfare, if it is forced savings then you cannot really include it when talking about how much taxes wage earners pay verses the rich.