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Rich has nothing to do with SS remember it has an earnings cap and that amount is hardly rich, Those at the cap are not considered rich. The concept is accurate
The people paying the most into SS are those making over 113K over 35 years adjusted for inflation.
All those people pay the same amount in relation to their benefit. I call these well off people.
The poor making <10K per year adjusted for inflation get a huge SS payoff relative to their taxes. This is just a fact of the SS benefit formula.
The people paying the most into SS are those making over 113K over 35 years adjusted for inflation.
All those people pay the same amount in relation to their benefit. I call these well off people.
The poor making <10K per year adjusted for inflation get a huge SS payoff relative to their taxes. This is just a fact of the SS benefit formula.
Agreed, I was capped for a number of years prior to retirement and based on my income alone few in a high COLA area would consider you high on the hog. Well off in some areas comfortable in others. Where we are now it would be well off.
I see people buying homes when they should be renting. I see them driving new or nearly new cars. I see them taking vacations/cruises. I see them buying season tickets to professional sporting events (those cost thousands of dollars each, usually). I see them buying ipods/pads every other year. I see them spending tons on cell phones. I see them buying coffee products at Starbucks at $5 a shot. I see people who forget to pay themselves first and sacrificing wants - to save for retirement.
Quote:
Originally Posted by TuborgP
Out of curiosity do you know their annual income and do they individually do all of these or just some?
Ah, come on TuborgP! They (the ubiquitous 'they') post and whine all over the Personal Finance forum.
I see people buying homes when they should be renting. I see them driving new or nearly new cars. I see them taking vacations/cruises. I see them buying season tickets to professional sporting events (those cost thousands of dollars each, usually). I see them buying ipods/pads every other year. I see them spending tons on cell phones. I see them buying coffee products at Starbucks at $5 a shot. I see people who forget to pay themselves first and sacrificing wants - to save for retirement.
How do you know these people aren't also saving for retirement? Or that they have other sources of income or assets that you don't know about?
Rich has nothing to do with SS remember it has an earnings cap and that amount is hardly rich, Those at the cap are not considered rich. The concept is accurate
With SS, lower income people who paid less in to the system get a higher % of their payments back compared to higher income people who paid more in to the system. It's just how the formula works.
For Medicare there is no income cap. And the poor are likely to use it as much as the well off. In fact, poorer retirees might even use it more since they are more likely to have certain health related issues than higher income folks. And Medicare is in much worse shape financially than Social Security, especially if health care costs continue rising faster than the economy grows.
With SS, lower income people who paid less in to the system get a higher % of their payments back compared to higher income people who paid more in to the system. It's just how the formula works.
For Medicare there is no income cap. And the poor are likely to use it as much as the well off. In fact, poorer retirees might even use it more since they are more likely to have certain health related issues than higher income folks. And Medicare is in much worse shape financially than Social Security, especially if health care costs continue rising faster than the economy grows.
There are medical expenses beyond what Medicare covers and many can't afford supplemental and or co-pays so they self ration their medical services. Some states have recently lowered their Medicaid eligibility thresholds. There are discussions in the retirement forum about our out of pocket costs with Medicare. I just went to a podiatrist the other day and Medicare/secondary covered the Podiatrist but not the the custom inserts at about $250 a pop. I could handle that many at lower incomes wouldn't. My secondary insurance gives virtually unlimited acupuncture etc etc. The poor are less likely to have health benefits from former employers. The least able are more likely to fall behind in paying medical bills and have to find a new doctor or pay money up front prior to being billed. Medicare already differentiates your payment based on income.
What is preventing Americans from saving for retirement?
while raising a family .. you work hard to do just that to give them what they need.
By the time you focus on retirement .. you're in your 40's or 50's and it's
too late to come anywhere near 50% of your working income
For every 50,000 that you want for annual income in retirement ..
you'll need 1,000,000 to 1.5 million in assets .. for 25 plus years
after you retire
And most will not get there with a 401k. Fact. I suspect a wave of insolvency in retirement for a lot of boomers. Long term I fully expect legislation plusing up Social Security or creating a government run pension/annuity pooling for most workers to rely on. It's the only way they're gonna get a semblance of a traditional retirement income absent employer funding (A or B fund) retirement. DIY retirement was designed to fail the majority..and it did. Nobody can save 20 times their salary on 1970 inflation adjusted money. Check that, they could, but they can't afford a house, cars, education for the children. You know, those evil things that motivate the whole Country to wake up in the morning and actually go to work for....
Each affecting about a third of those unable to adequately save for retirement.
4. Racking up too much student loan debt
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It's hard
real numbers for retirement
