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Once again I think we are missing the role of inflation in all of this. I am soon to be 65 and as of now will be taking SS at age 70. I know as of today what my benefit at that point will be. The 8% annual bump is built in but the role of any COLA is not. However when you add the Cola and 8% with the adjustments of how the COLA is applied I am getting an amount greater than our current inflation. However if inflation rears its ugly head and the COLA is not proportionately increased(it won't be) than the value of that payouts buying power will be diminished from its current buying power. That is the greatest issue. It isn't just a matter of getting a check with a dollar amount attached to it is the relative buying power of that payout. That is what will kill SS beneficiaries now and tomorrow. The diminished buying power of that benefit. It is the same with pensions and other fixed benefit payouts. Absent investment accounts that can increase greater than the rate of inflation seniors today and tomorrow can find themselves in a world of bankrutpt hurt if inflation becomes ugly enough. Doesn't need to be hyper but after a decade of artificially low interest rates we have multiple generations of folks who either have forgotten or don't know what 7-9% inflation can do.
Look at the period once again from 1973-1982 and oh yeah all you young whipper snappers tell me how great we Early Boomers had it then trying to establish a family, buy a house etc. You don't know how good you have it. Do we get to enter our early years of retirement under the same mess as many of us endured starting out.
Disclaimer: Many in the public sector also made out like bandits in salaries as we got permanent raises that were higher than normal because of inflation that stayed with us even when inflation went down. Oh yeah and now are SS and pension benefits are based on how inflation helped our base salaries back then in which years of step and cola increases were based on. Hmmm it is always the best of and the worse of at any given time for any of us.
Wow....what a series of posts. The level of irresponsibility suggested by seniors and others here is almost mind boggling.
I remember a few weeks ago we had a discussion about the modest reform of computing future benefit increases for social security by using "chained CPI" instead of using the current CPI formula. This would result in modest reductions in social security benefits over a long period of time. Yet, by golly, people just came out of the wood work to oppose it. I was startled at the level of opposition.
The fact is that if we can't even make modest changes like that than dealing with this whole "entitlements" issue is probably hopeless. Might as well just rearrange the deck chairs on the Titanic and watch the ship sink with that attitude.
How about some honesty here? How many seniors believe its acceptable to bankrupt medicare and social security as long as they get all the benefits they believe they are entitled too until they die? How many believe that future generations are no concern of theirs? Who at least has the integrity to admit that which is becoming an unspoken truth?
When I grew up, people still had a sense of shame. There were some things you just didn't do. Wanting nice things for yourself was fine. Competition was fine. All of us accepted the notion that society rewarded performance and ability with income and benefits. Even so, no one would have thought that depriving future generations of social security and medicare to achieve some short term benefit for one's self was acceptable. Most of us were taught things like "stewardship". This is the simple concept that you manage resources in such a way that they are there to do you good and do good for the generations that come after you.
I am tired of some of the things that are const
antly brought up in this discussion. For example, Congress has spent money int he social security trust fund to meet budgetary needs. So what? That money wasn't stolen. The Social Security Trust Fund receives government bonds in return. Those bonds are the safest security or investment vehicle out there. They pay interest. Even if all that weren't true, its still irrelevant. What has been done has been done. If we were to execute the Congressmen who voted to do this it still wouldn't fix the shortfalls that are coming down the road.
Younger generations are having to accept . Than we might take look at modest tax increases to be implemented gradually.
Sadly, I see this country as becoming little more than a nation of whiners. At this rate, we'll whine our way right into our total destruction.
Younger generations also accept a much increased start of the working age -- they want to pile on huge debt before they ever begin to work a job which might be 26 years of age, many seniors have been working since they were 15 years old.
And far too many people under age 65 are not working but living the good life on SSI -- many able bodied are living off the government --- it cannot be only the retired who have to pay everything.
we already paid for it and it was stripped by the politician - they need to waive their wages to repay it back.
TIRED OF PAYING FOR STUFF WHEN IT WAS RIPPED OFF BY OUR EMPLOYEE'S
the Politicians who use tax money taken from you and I so they can take a wage off our labors.
Can someone explain to me why spouses who have never worked get to draw social security benefits under their husbands social security without any penalty to the husband????? That does not help and why should anyone contribute more when this is going on?????
Can someone explain to me why spouses who have never worked get to draw social security benefits under their husbands social security without any penalty to the husband????? That does not help and why should anyone contribute more when this is going on?????
Why? Because it was passed into law quite a long time ago. Why was it enacted? Because back in the day relatively few women worked outside the home for pay. It was designed to prevent elderly widows (who normally outlived their husbands) from becoming destitute after the death of their husbands.
Now, as we all now, the two-earner household has become the norm, not the exception. I agree with your implication that some changes are probably in order, but I do understand the genesis of spousal benefits.
I know a few that have worked under the table doing catering work (worked up to making $30 per hr plus tips) so never of course paid taxes on it - never reported it. Yet as soon as they were eligible filed on their husbands social security. They are not poor by any means. Have 2 newer autos, house paid for (last year), no family money or inheritence either. They are constantly doing reno's on their home. Yet, they don't even file federal income tax. Something is so very wrong with this picture.
There is a remedy for tax cheats. You can turn them into the IRS for Income Tax evasion. Yes, people cheat the system and continue to cheat the system. But I believe that God has revenge on those who do evil. Some call it Karma. Whatever, they ultimately will not get away with anything.
I sure hope they get caught. This has been going on for years so I wonder why they get away with it. What is really sad is they don't think old people should have to pay taxes. I said what are you talking about - I'm old and I pay taxes. Needless to say I have nothing to do with this person anymore. The nerve!!!!!
And I wonder if the IRS just goes after the rich people and leaves the little ones alone. But if millions of people do this then it isn't just a small amoun of money. I know so many who do this and I don't know that many people so I'm sure there are many thousands who do this.
I know a few that have worked under the table doing catering work (worked up to making $30 per hr plus tips) so never of course paid taxes on it - never reported it. Yet as soon as they were eligible filed on their husbands social security. Yet, they don't even file
Water under the bridge now, unless they still have substantial (over $20k/yr) unreported income. See below.
Quote:
Originally Posted by pnwretired
I sure hope they get caught. This has been going on for years so I wonder why they get away with it. What is really sad is they don't think old people should have to pay taxes. I said what are you talking about - I'm old and I pay taxes. Needless to say I have nothing to do with this person anymore. The nerve!!!!!
Fwiw, SS is not taxable for a married couple unless other income plus50% SS exceeds $34,000. Say hubby gets $30k/yr, wife $15k/yr. Total SS income $45,000/2=$25,000. They are well under the $34k threshold. Chances are these people don't have SS income that high, but the principle remains the same. They would need other income in excess of $20,000 ($12,200 standard deduction plus $6800 personal exemptions) at the minimum to have any tax liability at all.
Quote:
Originally Posted by Prairieparson
There is a remedy for tax cheats. You can turn them into the IRS for Income Tax evasion. But I believe that God has revenge on those who do evil. Some call it Karma. Whatever, they ultimately will not get away with anything.
I knew someone who reported a neighbor to the IRS for writing off his personal parties as a business expense. The whistleblower was audited for years afterwards. Karma is a b*tch.
Last edited by Ariadne22; 02-08-2013 at 09:33 PM..
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Not from me.
