North Texas Cajun
Dryer sheet aficionado
- Joined
- Jan 16, 2018
- Messages
- 31
I sense means testing is for the younger generation who has not contributed. The older population that contributed their whole life would throw a sh_t fit. I've contributed since age 14. DH, close behind. They need to raise the cap from $118K. What's wrong with that and save the entire program, right? Do kids know how to save better than we did? My experience says, not.
Not sure if we’re allowed to speculate on what the government might do. But I think we can talk about how economists’ proposals might impact our rtirement planning.
Here’s what I’ve generally seen proposed by economists for solving the SS shortfall (which is real today, not in 16 years):
1. SS full retirement age is gradually increased to age 70;
2. SS benefits are means tested - very soon - so that retirees with $500k non SS income receive $0, smaller sliding scale reductions for retirees with $499k down to $150K in non-SS income;
3. Income tax cap for SS tax eliminated.
For me - currently age 66 - that current retirees paid in all their lives is unimportant. Younger people will also pay in all their lives but will likely also see reduced benefits from current levels (in real, inflation adjusted $).