Re:Moody’s strips U.S. of triple-A credit rating
by s1artibartfast on Saturday May 17, 2025 @01:36PM
(#44015765)
I see. I think there is a lot of baggage with the insurance analogy, like probability and conditional payout which are absent.
The money isnt held in a dedicated account with your name on it. However, how much you pay in is rigorously tracked and used to directly to determine how much you get.
The closest thing is a pension. Like a pension, SS pays out X% of your taxable salary. X is progressive with high earners heavily subsidizing low earners.
SS starts by paying out 90% of taxable salary in the lowest bracket. As income goes up, this reduces to paying out 15% in the top bracket. The brackets are referred to SS bend points.
Re:Moody’s strips U.S. of triple-A credit rating
by margalabargala on Saturday May 17, 2025 @04:23PM
(#44016734)
> I think there is a lot of baggage with the insurance analogy, like probability and conditional payout which are absent.
I agree; it was a poor choice of analogy on my part.
My analogy to insurance was more about whether you pay into "your" account with your name on it or if you pay into a big fund directly pays out to recipients, and nothing is held aside for you.