The Big SSA Announcement

The Social Security Administration made its annual gratis announcement this morning, giving us our COLA raise for 2027 of 3.6%. Yippee!

However, the Medicare Part B premium which is automatically deducted from your SSA payment is projected to be around $210 per month, which is an increase of about $8 per month over 2026. This will affect all recipients who sign up for Part B.

So, the average payment is expected to be around $75 more each month for each recipient. But then, we lose $8 for our health insurance, leaving a whopping $67 a month to live. That, friends, is a cool $16.75 a week, not even the cost of one large cheese pizza, with nothing else on it. Or one Wendy’s Dave Double with fries and a coke.

Yum! Something to not look forward to after all those years of paying into the Federal Insurance Compensation Act Program for forty years or more.

Think about this for a moment. This is the greatest Ponzi scheme ever devised and it is legal. Why?

When when you consider all the funds deposited to the “trust” fund on your behalf by you and all your employers over those forty years, you will never recoup even a small part of it.

Assuming you were fortunate to make $100,000 for those forty years, the total contribution between you and your employers would be $496,000 plus accrued interest. Then, if you retired at your normal retirement age of 65 to 67 years old, depending on your date of birth, and you live until eighty, you would never recover the funds paid on your behalf.

But there are a few concepts to consider, as well. Most people did not make anywhere near $100,000 a year for forty years. Instead, the average monthly payment is $2,088 less the $202 for Medicare, leaving net monthly income of $1,886 for 2026.

When you add the net increase of $67 ($75 - 8), you end up with a net monthly payment of $1,953 or $488 week. Not enough to pay the rent, utilities and food for one person. Plus inflation. And if you have to use a car?  You are done. For sure

And why is it a Ponzi scheme? First, when you die, your beneficiary will get a death benefit of $255. Any remaining funds will be kept by the “trust” fund. And then, there is the ongoing threat which claims the funds will be exhausted theoretically by late 2032.

Finally, the funds were also drained due to our government’s “compassion” by paying benefits to those who were not entitled to them. Hence, unregulated and mismanaged fraud.

All so that American seniors can celebrate and enjoy a big 3.6% increase to their meager Social Security “benefit”, while still struggling to get by each month.

 Oh, Happy Day!