The payroll tax cap has been raised 26 times in the history of Social Security, but this time it will REALLY work.
FOR FUCKS SAKE
I predict that nothing new and different will be implemented and that we will get the SOS. I have read articles claiming that the problem is the rash of boomers who have retired or are now retiring. That tends to ignore the fact that people (like us) are retiring earlier than anticipated and taking S/S earlier, because Congress passed the laws that allow it. I wonder about the likelihood that Congress will reduce those taxes when that bulge is passed, or just raise benefits.
Ya, I could wait until my “full” retirement age of 67, but i will start drawing at 63. Why let the Feds keep my money?
I ran some calcs a few years ago based on the output from mysocialsecurity. It simply didn’t make sense to wait. Take the money as early as possible. If you don’t need it, then invest it and preserve wealth (401K funds) for the next generation. I think the breakeven for me was late 80’s.
Tax implications are worth considering when making these decisions.
I’m saving a ton for retirement and was dumb enough in the past to put a significant percentage into traditional 401k (fortunately not anywhere near a majority).
As a result, I will very likely be putting off socialist insecurity claims until the age at which benefits stop increasing, while in the meantime drawing down my traditional accounts before the RMDs turn them into a nasty tax bomb.
And that is even before taking into account the inevitable increase in taxes on the horizon thanks to our completely irresponsible and despicable political class in Washington over the past several decades.
Obviously, these are highly individual circumstances that will vary from person to person.
You’re right to consider those factors. Roths were not available when we were working, so we only got one year because of income limits. That $4k ($2K for each of us) now totals about $56K. Rollovers from 401k and IRAs to Roths were not allowed until 2010. I ran the numbers then, and was a painful tax screwing to rollover or to wait, so we waited. Now, our IRAs have become pools for donations and a method to withhold income taxes.
When an executive has an annual compensation in the tens of millions of dollar, but his salary and bonuses are $1 million, why not raise the cap to one million?
I don’t worry about the Feds keeping my money, it was extra money taht allowed me to retire “early” and enjoy the hell out of life until the effects of aging start chipping away at it. And even though I bike like crazy, I can tell you that I have noticed some effects of aging between 62 and 67. Sure, I might be able to get a bigger check if I waited, but - it quits when you die and to “break even” I’d have to live into my 80’s, and given my family history, that’s not likely to happen.
I will say again, this has been done 26 time, it has never worked.
The definition of insanity is doing the same thing over and over and expecting different results.
I dunno…doing that 26 times yet only having a cap of $185,000 didn’t give them much room to work with. Instead of rasing the cap by 10%, give them some room to work with - raise the cap to $1 million. AND…it still won’t be “taxing the rich” I mean the CEO of Microsoft has a pay package of $94 million per year. His cash and bonus pay is around $9 million of that, so having him pay an additional 6% on $1million of his base pay (less than 50% of his cash salary) would go a long way to help social security and is literally a drop in the bucket compared to the rest of his pay.
I agree, I’ve been doing some retirement planning and both my wife and I will start Social Security at 62. We will be receiving over $4,000 a month between us, that’ll be $50,000 a year less we will have to withdraw from our retirement accounts which will let them grow.
Will that executive also get 5 times more of a monthly social security payment when he retires?
BTW poor people aren’t poor because rich people are rich.
The original cap was $3000, adjusted for inflation if we went with the original cap it would be $66,800 today.
So not only have they raised the cap 26 times, they also have almost tripled it in real dollars.
When you find yourself in a hole, quit fucking digging!!!
So, is this with our without sprinkles?
I wasn’t talking rich vs poor. I was talking about a realistic cap on Social Security. IMHO, $186,000 after 26 increases is insanely low.
No, it is almost 3 times too high compared to the original legislation.
AI machines and robots will not be paying into SS or taxes for sure.
Nor will they be collecting
what was your salary when the original legislation was written? Wait…were you even alive then?
Has math, data, or statistics changed since then?