Let’s all practice some social distancing with this topic and prevent it from being infected with Covid.
Let’s all practice some social distancing with this topic and prevent it from being infected with Covid.
+1
Not something I am going to worry about. Too many other things to think about like what flavor of ice cream I'm buying next.
Cheers!
Wait, I thought half of those over the age of 65 already died from COVID!!!! Aren't there fewer SS checks going out?
But right by whose books?
Raise tax rate - people who pay tax don't like it.
Raise retirement age - people who are relying on SS to retire don't like it.
Raise the cap - I like it because I am not working, but ask those who work. But I think this is the least painful option. However, in the current formula, if you raise the cap, it means that the total cap will have to raise to pay out more to the high income earners who contributed to the system for the full 35 years. Unless there is no change to the total cap, then they don't get more SS back despite paying more into the system.
Reduce COLA - it is already a problem for retirees because COLA is insufficient to cover their health care cost increase.
So, for me, raise the cap should be the way to go. But I am just a little person behind the screen with a keyboard here.
Great point. I'm one who never included SS in my retirement planning until the past year (I just turned 57). It was too much of an unknown earlier on. And far better to over-save than under-save. If we could manage fine without SS, than we'd be in extra good shape with SS. Now that retirement is close (within a year or so), I've started including SS in my projections.Looks like the general consensus here is that Ss is not going to go away or significantly reduced in the future. However, when we read about individual retirement plans, some forum members are not counting on SS being available. Are they being too conservative? Curious to know.
It would be political suicide for any politician to vote to reduce payouts to current SS recipients. Us old geezers vote big time.
Looks like the general consensus here is that Ss is not going to go away or significantly reduced in the future. However, when we read about individual retirement plans, some forum members are not counting on SS being available. Are they being too conservative? Curious to know.
Yes, some forum members are reflexively and habitually highly financially conservative, aiming for 100% confidence in the success of their projections, though 200 or 300% confident would be even better. YMMV.
Government will:
- continue to pay to current payees
Government may:
- raise the income cap
- slowly raise the retirement age (70)? for the young wage earners
- adjust the bend points
- (possibly) raise the payroll tax but most likely only on the employer side
Government will not:
- Cut benefits for recipients in pay status
Michael Kitces says that, "a maximum Social Security benefit of $2,642/month (for those who maxxed out the Social Security wage base for 35 years), the value of Social Security amounts to about $572,000 for men and $683,000 for women". Good for all the posters who aren't counting on SS in their retirement calculations, but we sure don't have the kind of savings to ignore SS amounts worth seven figures in our planning.
Government will:
Require current recipients to die and stop collecting when their accumulated received benefits = their lifetime contributions withdrawn at 4% + inflation rate.
Did you mean six figures? Or are you combining two benefits as a couple?
Michael Kitces says that, "a maximum Social Security benefit of $2,642/month (for those who maxxed out the Social Security wage base for 35 years), the value of Social Security amounts to about $572,000 for men and $683,000 for women". Good for all the posters who aren't counting on SS in their retirement calculations, but we sure don't have the kind of savings to ignore SS amounts worth seven figures in our planning.