You obviously don’t understand the fundamentals of the social security program.

It is a mandatory savings plan, albeit a poorly managed one. The idea was not for some people to put in more than their share to pay someone else more than they themselves put into the plan.

That high roller that has paid in the max one month into the year not only has a limit of how much they put in, but also a corresponding limit to how much they will take out.

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2001 SLK 320 six speed manual
2014 Porsche Cayenne six speed manual

Annoy a Liberal, Read the Constitution

I don’t see it as a mandatory savings plan. I paid in while I worked so my parents generation could have something in retirement. I see SS as a way that the working part of society pays for the non-working part. The higher your countable earnings, the lower rate of replacement you get. (I researched how the benefit is figured out before I retired.)

The way the replacement rate diminishes can be adjusted in many ways. Add another tier to the last one, or create a ‘donut hole’ where, for instance, credit ends where max is now, but taxes start up again at twice maximum with no credit to the calculation. Or only the employer part has no maximum so that no additional earnings get included in the calculation.

In short, there are many ways to address any SS shortfall with increased taxes. And there are some cuts as well. I think that no spouses or children should get anything based on a retirement SS, and the limit on survivors should be what the worker should receive. The disabled person should get the amount someone would get at 62, not at retirement age. There are ways to amend things without killing the program.

SSI is not funded from SS. My late wife worked at SS and taught me well over the years before her death.

Survivors shouldn’t receive anything. Recipients should receive benefits based on what they put in, not based on a sliding scale based on income. I ran my personal numbers and it worked out very close. I think I described that process earlier in this thread.

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2001 SLK 320 six speed manual
2014 Porsche Cayenne six speed manual

Annoy a Liberal, Read the Constitution

The SS tax rate should have been raised twenty years ago, back when Bush was babbling about privatizing. If it had been done then, a few tenths of a percent might have fixed the problem and nobody would have noticed. But the problem grows exponentially with years of delay and crazy low interest rates.

The idea that "the rich" will pay for everyone else's social security shortfall is sure to lead to the demise of SS. The current system pays out based on what you pay in. If it becomes necessary for some to pay in more than they could ever receive, the blowback would end the system. We have ourselves to blame for not paying up these last 20 years. We can either pay significantly more now, or collect less in the not too distant future. Those are the only choices that really work.

One year to go. 8% compounding, guaranteed annually, by waiting.....

I'm still waiting for my covi-19 check, no one cares, I wrote my congress critter and received an 'okey-doke' reply and nothing since .

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-Nate
1982 240D 408,XXX miles
Ignorance is the mother of suspicion and fear is the father

I did then what I knew how to do ~ now that I know better I do better

I'm sure higher Social Security Tax withholding an higher FRI are in the future. Not sure about reduced benefits. I'm starting to lean toward taking it early. It's all the same in the end if one lives to the estimated life expectancy. There might even be tax advantages to the reduced early payment since the percentage of your benefit taxed depends on your income.

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Tony H
W111 280SE 3.5 Coupe
Manual transmission

Past cars:
Porsche 914 2.0
'64 Jaguar XKE Roadster
'57 Oval Window VW
'71 Toyota Hilux Pickup Truck-Dad bought new
'73 Toyota Celica GT

That is incorrect. Payment goes up by approximately 8% by waiting however, by definition, if you have enough money that you don't need the income, you can take it and invest it. This does at least 2 things. It turns a future promise by the government to pay that requires you to still be alive into an asset that goes to spouse other heirs. You could also pay yourself the increased income from what you invested. You'd go 12 years even if you had a 0% return.


People that can't or haven't saved are the ones that forego taking it early because a higher guaranteed income is preferable. Unfortunately, many work for 50 years and don't save anything.

edit: should I start a fight and comment on trump's trip to the hospital and my preferred outcome?

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85SD 240K & stopped counting painted, putting bac together. 84SD 180,000. sold to a neighbor and member here but I forget his handle. The 84 is much improved from when I had it. 85TD beginning to repair to DD status. Lots of stuff to do.

Yes to that, sans the last sentence. I have read that you can also pay back to the penny at anytime what you have received in SS payments each year and then your 8% increase will be yours.

Some people recommend converting assets into guaranteed lifetime income. Unfortunately, things like annuities especially in today's low interest environment use such a low rate of return that I can't make the numbers work even considering that I'm licensed and would receive the commission.

Some agents promote indexed annuities but neglect to point out that the return of the indexing instrument only captures return associated with price changes and doesn't capture dividend income.

Suppose for example that the S&P returns x% compounded - ie 6, 7, 8, 9 whatever. Dividend income fluctuates but is around 2-3% which is 25-30% of the total. Indexed annuity illustrations are based on some return pulled out of thin air for illustration purposes only. Whatever return is used, you have to decide how likely it is given $0 dividend income.

Even when annuities of whatever flavor make sense, you don't want to annuitize it because of the low return use for the calculations. Instead, simply take monthly or annual withdrawls.

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85SD 240K & stopped counting painted, putting bac together. 84SD 180,000. sold to a neighbor and member here but I forget his handle. The 84 is much improved from when I had it. 85TD beginning to repair to DD status. Lots of stuff to do.

I have never heard of one instance where it makes sense to "invest" in an annuity.

Things change. I would double check, and then get proof from the government in writing before doing stuff like that. I remember there were some changes a few years back that cut out some of these options.

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All lives won’t matter until Black Lives Matter too. Along with Asian lives as well.

“No, I don’t take responsibility at all.” - Don Trump

“The buck stops here.” - Harry Truman

Black Votes Matter.

If you have a good job, in clean air, with good medical and dental, then wait till you retire. If you labor, breathe machine shop vapor, sorry insurance or none, forced overtime, then draw at 62, chance's you won't make 66

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1999 w140, quit voting to old, and to old to fight, a god damned veteran

My perspective is each situation of individuals is different. Originally when pensions where established a very high percentage of people were just worn out at age 65. This has changed.


When you add in the extension of average life with modern medicine. Is at least in my case a real factor. To have a more level playing field some form of a true universal health insurance is a requirement.


If lack of funds had been an issue in my case. The probability of death even before 65 might have been a reality. If we had a high individual cost for treatment in Canada. With no decent insurance coverage.


At 78 I am not truly worn out yet. Perhaps a combination of genetics and good quality health care. I never was an advocate of not staying really active. The brain seems to need almost constant stimulation. My concern even though I do not dwell on it is living too long.

Geeze Nate ;

I've been inhaling asbestos and hydrocarbons since I was in short pants, way to make me nervous.... .

I smoked heavily until I quit @ 24YO too .

__________________
-Nate
1982 240D 408,XXX miles
Ignorance is the mother of suspicion and fear is the father

I did then what I knew how to do ~ now that I know better I do better