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Old 06-09-2014, 02:20 AM
 
71,946 posts, read 71,997,171 times
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that is just how things work including our tax system.
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Old 06-09-2014, 09:02 AM
 
Location: Los Angeles area
14,018 posts, read 17,769,401 times
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Quote:
Originally Posted by CSRSJim View Post
I don't like the way SS is structured. In many ways it is a raw deal. The more you pay in, the lesser percentage you get paid out in "retirement". That isn't insurance it is a ponzy scheme.
No, it isn't a Ponzi scheme - it's a way for higher earners to subsidize lower earners, a form of welfare if you will. In my view it's one of the less objectionable forms of welfare, however. There are lots of women who took time out of the work force to raise children and now find themselves dependent on their own work record for Social Security retirement benefits.

It still is insurance. You pay your FICA taxes (which can be regarded as premiums) and you are entitled to benefits if you live to a certain age. It's just that the benefits are modified to favor low wage earners over high wage earners. But the high wage earners still get benefits.
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Old 06-09-2014, 11:03 AM
 
29,837 posts, read 34,918,975 times
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Quote:
Originally Posted by CSRSJim View Post
I don't like the way SS is structured. In many ways it is a raw deal. The more you pay in, the lesser percentage you get paid out in "retirement". That isn't insurance it is a ponzy scheme.
Many in your neck of the woods agree with you. Maryland is becoming a wealth redistribution model in many ways.
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Old 06-12-2014, 09:48 AM
 
Location: Hiding from Antifa?
6,435 posts, read 4,194,424 times
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I just looked at my earnings that SS uses to calculate my benefit, factored the index and sorted by the indexed earnings. I am currently making enough money that each year I continue working, I knock off a year where I made about 70% of what I am making now(indexed for inflation).

Is there a model that would show how that would affect my benefit at FRA(or at 70) for each year of continuing to work?
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Old 06-12-2014, 11:20 AM
 
Location: OH>IL>CO>CT
5,256 posts, read 8,438,675 times
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There are 4 calculators at SSA's site at Calculators

I generally used #2, The Online Calc. You can play with the retirement date and 2014 and later earnings to see any effects.
You input your "raw" earnings from a recent Earnings Statement.

I did this over the past 5 years,, and just now applied for age 70 benefits. My estimates were within $50/month of what they told me my benefit will be come August.

Have fun......
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Old 06-12-2014, 12:50 PM
 
Location: Hiding from Antifa?
6,435 posts, read 4,194,424 times
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I just wanted to see what higher earnings over the next 6 years would do to the monthly amount if I waited until I am 70, while making more money. Using #2 Online calculator, it told me I could expect about $24 per month increase, if I average about 10,000 more per year than I am making now, which would be optimistic. Not hardly worth consideration as far as I am concerned.

So, knocking off the 6 lower income years won't make that much difference at this point.
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