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Nobody should rely on SS in their golden years. If your not saving while your young, thats laziness on your part.
Depends how people wanna live later on. Comfortably or month to month SS check?
Why not? My defer-to-70 Social Security benefit is almost $44K and it's largely tax-free. Inflation-adjusted, my employers and I have contributed far more than I'll ever get back. The impact of progressive payout when you're high income. I'm 60 now. Why shouldn't I just stop working and spend much of my retirement savings now while I'm healthy and active? It's not like I'm going to be using my ski condo or my sailboat when I'm 80. At 80, my father was sitting on the sofa in Florida with vascular dementia watching Baywatch reruns. At 80, my mother's life had contracted to pretty much never leaving town and she was in assisted living with dementia by age 82. I'd rather spend most of it now while I can enjoy it and live on a COLA-protected $44K when I've hit geezer-dom where I'm collapsed down to just my house and the early bird buffet. I still have my house as my long term care policy if I do the assisted living to memory care to nursing home path.
It is simply user funded , no different than most of Medicare or any insurance .Incoming money pays benefits for previous users .User funded is not a ponzi scheme
Medicare isn't insurance. It's socialized medicine where the recipients pay for a very small slice of it. I'm not saying that's bad. It's just that it's inappropriate to refer to Medicare as insurance because it's not. It's heath care coverage for the elderly.
At that point in time, inflows will be insufficient to cover outflows.
We're already there. The Social Security program is no longer cash flow positive. There's a charade where the "trust fund" is earning interest so everyone pretends the program isn't cash flow negative yet. Payouts exceed revenue from payroll taxes/self-employment taxes. That's cash flow negative in any sane use of the term.
In my opinion, what will happen is that Social Security taxes will eventually become variable to cover expenditures. Over the next decade or so, the taxes gradually will go up by 20% to 25% to cover cash flow. It won't happen with the current President or Senate who are bought and paid for by the special interest groups that would be paying much of the tax hike (rich people/stockholders). Until the political stars align, we'll continue to borrow money to fund Social Security payments calling it "Trust Fund repayment". We can't do that indefinitely without doing a Greece to the economy.
Medicare isn't insurance. It's socialized medicine where the recipients pay for a very small slice of it. I'm not saying that's bad. It's just that it's inappropriate to refer to Medicare as insurance because it's not. It's heath care coverage for the elderly.
Some users pay up to 80% of the cost of Medicare . The highest income levels are at 80% of the costs . But besides that ,both us and our employers pay in to Medicare all our lives while working too
Last edited by mathjak107; 11-11-2018 at 11:35 AM..
Why not? My defer-to-70 Social Security benefit is almost $44K and it's largely tax-free. Inflation-adjusted, my employers and I have contributed far more than I'll ever get back. The impact of progressive payout when you're high income. I'm 60 now. Why shouldn't I just stop working and spend much of my retirement savings now while I'm healthy and active? It's not like I'm going to be using my ski condo or my sailboat when I'm 80. At 80, my father was sitting on the sofa in Florida with vascular dementia watching Baywatch reruns. At 80, my mother's life had contracted to pretty much never leaving town and she was in assisted living with dementia by age 82. I'd rather spend most of it now while I can enjoy it and live on a COLA-protected $44K when I've hit geezer-dom where I'm collapsed down to just my house and the early bird buffet. I still have my house as my long term care policy if I do the assisted living to memory care to nursing home path.
Some 80s something in my bridge club still ski, they often brag about the discount seniors get in Utah. But they are Swiss, very independent, reasonably healthy.
If both my parents were showing effects of dementia by 80, I’d be spending the crap out of my nest egg and do the same as Geoff. Heck, I might still do that.....
SS is too generous with benefits, especially for those able bodied that haven’t contributed. That’s it main down fall. The entire federal government is a giant Farce of kick the can of economics. Which is pretty much the same for most governments. No government program can survive with diminishing population paying in.
Greatly amused at the simpleton thinking that “excess SS” could have been put in to an interent bearing account. Big laugh on that one. The logistics alone are mindboggling.
If both my parents were showing effects of dementia by 80, I’d be spending the crap out of my nest egg and do the same as Geoff. Heck, I might still do that.....
SS is too generous with benefits, especially for those able bodied that haven’t contributed. That’s it main down fall. The entire federal government is a giant Farce of kick the can of economics. Which is pretty much the same for most governments. No government program can survive with diminishing population paying in.
Greatly amused at the simpleton thinking that “excess SS” could have been put in to an interent bearing account. Big laugh on that one. The logistics alone are mindboggling.
What the heck is an interent bearing account? is it a interest bearing account or internet bearing account which I am not familiar with.
Interesting article that illustrates how social security can still survive the upcoming baby boomer retirement. But I think the point should still be that millennials shouldn't depend on SS to save them.
The article states:
Quote:
As long as Americans keep working and Congress doesn't remove the payroll tax as a source of revenue, the payroll tax will remain the program's heavy hitter, so to speak. In 2017, the payroll tax generated $873.6 billion of the $996.6 billion collected.
If the system is dependent on working Americans & there aren’t enough Americans ... the system becomes unsustainable. Social Security is stable with 3 workers per every 1 beneficiary. This flipped after 2009; in 2010, there were 2.9 workers per every 1 beneficiary. There are 2.8 today & in 2030, there will be 2.2.
What the heck is an interent bearing account? is it a interest bearing account or internet bearing account which I am not familiar with.
Most likely, it’s a typo. I had no problem figuring out what he meant by context.
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