Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think cutting SS checks through means testing wouldn't be such a bad idea at all. Rich people don't need that piddling little amount.
What are you defining as rich? A Person that made just enough to pay the max into SS, (which was like $25k/yr in 1980, and adjusted up for inflation today) paid in the same amount & gets the SAME EXACT BENEFIT as someone that makes a million a year. And pays tax on 85% of it. I will get the max, worked a lot of overtime to get it, do not consider myself rich, and not getting my expected $36k/yr at FRA IS A VERY VERY significant amount. Not piddling by any stretch of the imagination.
I agree. They would have to phase this in so people could plan for this.
Then again all this talk of SS changes is just coming from Presidential candidates.
Congress has done nothing regarding SS. SSDI is already operating at a deficit.
Full retirement age has already been increased for those born after 1959. I wouldn't call that nothing, but certainly that alone does not solve the problem.
It is my belief that I was means tested in 1995 when I applied at age of 62 for my SS benefits as my dad died at 64 after collecting for less than two years.
Unless you feel that $68 per month is adequate compensation for my 39 years of withholding. I am rich according to some posters on here from my $1550.00 per month teachers pension. So my point is that means testing has been on going for a long time. IMHO
If you want to save Social Security then maybe lets change how it works.
Here is what I would propose.
Let people have the option of opting out.
If that never happens then lets index it to the average death rate of elderly people. Not sure what that is but if people live to be 75 years old then don't allow any pay outs untill 75 years of age. For those that want to retire earlier? Save up for it or get a government job.
Cuts in the present law are automatic as SS is a stand alone system. Its a pay go system. .Lack of funding to equal out flows means automatic across the boards cuts in the law itself. The trustee reports and the last response reported by presidential commission is available on line. It as was the Breaux commission .IMO; what we are likely to see from past response is shift retirement by age or actual years require work required as France did. Basically kick the can down the road as always.
The 2015 Trustee Report will be issued Tuesday.
BTW, the automatic "across the board cuts" does not necessarily mean every recipient will receive a 25% cut (or whatever it will be in the future). It may mean that those who have the lowest benefit will continue to receive the same benefit while those receiving the higher benefits will take a larger hit. IOW, everyone would receive the same amount up to the 1st bend point and the remaining funds, if any, would be distributed among the retirees in a similar manner (2nd bend point?) until there are no remaining funds. (At least, according to comments by Social Security's Chief Actuary).
If you want to save Social Security then maybe lets change how it works.
Here is what I would propose.
Let people have the option of opting out.
If that never happens then lets index it to the average death rate of elderly people. Not sure what that is but if people live to be 75 years old then don't allow any pay outs untill 75 years of age. For those that want to retire earlier? Save up for it or get a government job.
It is my belief that I was means tested in 1995 when I applied at age of 62 for my SS benefits as my dad died at 64 after collecting for less than two years.
Unless you feel that $68 per month is adequate compensation for my 39 years of withholding. I am rich according to some posters on here from my $1550.00 per month teachers pension. So my point is that means testing has been on going for a long time. IMHO
Please explain yourself better. How, exactly, were you "means tested" when you applied at age 62? Do you understand what "means tested" means?
If you paid FICA taxes for 39 years, then your benefit will be orders of magnitude more than $58 per month. I'm afraid you are very confused.
I think cutting SS checks through means testing wouldn't be such a bad idea at all. Rich people don't need that piddling little amount.
So what is rich? Is rich "you own your own home and have $300K in your 401-K"?
Means testing Social Security is a symbolic gesture. There simply aren't many rich retirees. The maximum benefit is $41K and those high income people dumped an enormous amount of money into the system that is already being redistributed away from them. When I did the math, my employers and I have dumped an inflation-adusted $1.3 million into the Social Security system. I'd have to live to age 100+ to get that money back.
Other than people with government jobs, few of the late-boomers have any pension and virtually none of the Gen-X people. Corporate pensions are gone forever. Their Social Security check is going to be their dominant source of income. If you want to means test, I'd say to means test the few who are receiving pension income. Other than government employees, that has mostly gone away.
Its really no different from any pool System. Its based on average pool's risk as to funding benefits. In most pensions a person chooses a retirement a option of payments over workers life time to other options for survivors over survivors that effect benefits. It also often requires person to join pool when a permanent employee .The same thing happens when you opt out by career choice not in system from old of the supreme court decision which gave choice to local and state government workers not to. France just increased the number of years one has to work under their system to qualify. I would have loved choice to work and contribute mine and companies funding to pension then switched mid career and the gains. That was scheme used by some until the loophole was closed. Medicare does same for not joining arts and funding pool when 65. After all SS is a pay/ go system. Your fathers was based on his spouse and survivors benefits like all in system. Same as single person benefits are stopped once he/she dies and a spouse with own account suffers losses. Its the system pool as setup.
So what is rich? Is rich "you own your own home and have $300K in your 401-K"?
Means testing Social Security is a symbolic gesture. There simply aren't many rich retirees. The maximum benefit is $41K and those high income people dumped an enormous amount of money into the system that is already being redistributed away from them. When I did the math, my employers and I have dumped an inflation-adusted $1.3 million into the Social Security system. I'd have to live to age 100+ to get that money back.
Other than people with government jobs, few of the late-boomers have any pension and virtually none of the Gen-X people. Corporate pensions are gone forever. Their Social Security check is going to be their dominant source of income. If you want to means test, I'd say to means test the few who are receiving pension income. Other than government employees, that has mostly gone away.
For retired folks..probably income other than SS that puts them at poverty level.
You see no one ever defined "rich" for retired folks.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
