If Have A Government Pension And/Or SS... (retirees, support, benefits)
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I do support a form of means testing, primarily as rate of return of what you get back. The two examples that push me that way would be my grandmother and my father. My grandmother worked as a dressmaker for 35 years and when she retired, SS was her only income. My father worked for a huge corporation with good benefits, including an excellent pension and retiree medical. His SS check, which was MUCH larger than hers, was a fraction of his monthly income after retirement.
There are other programs for people that fall in your grandmothers plight;SS was not a program designed for that purpose.That is what food stamps;SSI etc are for.SS is a supplement to a retirement ;not a welfare program.Likely your grandfather paid alot more into general revnues which pay for those programs also while your grandmother likely did not.SS by law cannot draw on general revenue funds like thsoe programs which is why we are looking at reductions.
One of the two major parties in their platform wants to eliminate dividend, interest and capital gain taxes for all low and middle income Americans. If folks were allowed and encouraged to save tax free and to withdraw their savings tax free in retirement wouldn't that go along way to easing the burden on SS as the sole source of income?
Better yet, just raise the standard deduction for those over 65. Something similar to the Earned Income Credit. If people can get rewarded for having kids (which is a defacto qualification to get EIC), then reward seniors as well for being old.
I've never understood why SS income is exempt below a certain level, but pensions and distributions from retirement accounts are not.
The standard deduction for > 65 is already higher. In 2012 - it's an extra $1150 for a married couple - an extra $1450 for singles/heads of households. Robyn
The standard deduction for > 65 is already higher. In 2012 - it's an extra $1150 for a married couple - an extra $1450 for singles/heads of households. Robyn
Better yet, just raise the standard deduction for those over 65. Something similar to the Earned Income Credit. If people can get rewarded for having kids (which is a defacto qualification to get EIC), then reward seniors as well for being old.
I've never understood why SS income is exempt below a certain level, but pensions and distributions from retirement accounts are not.
That helps but we have to help people to generate and build wealth over the years so they have a better nest egg in retirement.
That's $1150 per person for a married couple - or $1450 for a single. Not a marriage penalty IMO. More a recognition that although 2 can't live as cheaply as 1 - it doesn't cost them twice as much either. Note that the standard deduction for those < 65 is $11.9k for a married couple - $5.95k for a single. Robyn
And while we're talking about taxes - note that under the ACA - the deduction for medical expenses for those < 65 will rise to amounts in excess of 10% of AGI - while the old deduction limit (amounts over 7.5%) will remain intact for people > 65. Robyn
Many in the same situation worked part time jobs to be sure they also had SS.
You're kidding, right? I have no time nor energy for a part-time job. I have all of my 40 quarters.... i have worked forever. But with the SS windfall modification working for a governmental entity that doesn't pay in - you need to have a substantial amount of those years work over a certain salary amount. I do not. Even tho I've worked fulltime most of my life.
My husband will get SS.
My employer has put what the SS contribution would be - toward the state retirement system.
You're kidding, right? I have no time nor energy for a part-time job. I have all of my 40 quarters.... i have worked forever. But with the SS windfall modification working for a governmental entity that doesn't pay in - you need to have a substantial amount of those years work over a certain salary amount. I do not. Even tho I've worked fulltime most of my life.
My husband will get SS.
My employer has put what the SS contribution would be - toward the state retirement system.
It was the ponzie scheme of the 1980's.
I plan to take the money and run.
I take it that since you replied to this post, but not my response to your initial post, that you don't want to acknowledge the fact that you were completely misinformed about your Social Security being reduced by 60% on account of WEP?
And you apparently have no idea why WEP was enacted and why it is completely appropriate for your situation.
I would be willing to reduce my Congressman's pension by 50%.
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