FUEGO
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 13, 2007
- Messages
- 7,746
Similarly, note that Ryan's proposal makes SS solvent partially by reducing benefits. So it would be 60-70% of the reduced benefit. The big reduction is the "progressive indexing" which hits high income workers but not low income workers.
I think I will look like a "low income worker" to the SS formulas. I'll have probably 14-15 years of moderately high earnings when I FIRE (but still not close to the ~$106000 annual limit) plus maybe 7 more years of piddling incomes. But the way I understand their formulas, they will increase my salaries over the years for inflation, then sum them and divide by 35 to figure out my hypothetical average salary over my career. Since half of my 35 highest earning years will be $10,000 or less, many being zero, my "average" salary will probably be around $30,000-35,000 or so in today's dollars. So the fact that progressive indexing hits the high income workers the hardest may not really impact me that much. Another advantage to having the government think you are poor!