Hi, All.
I've read from AARP and from other relevant sources that Congress threatens to cut Social Security benefits 20% to all retirees and future retirees in the year 2034 to balance their federal government budgets. If this should happen, what will happen to the millions of our USA citizens who rely on this as our only income? It's bad and cannot happen to us who have worked all our lives for these vital lifeline benefits.
I will turn 79 that year and am scared I may struggle to pay my bills if Congress cuts 20% from my annual income of only about $29,000. Please help with your opinions.
I was taught that way.
Add in that I am a former New Englander (frugality is second nature) And I have Scottish heritage. (frugality once again)
I have saved. I have a pension. I also put money into an IRA (sadly the Roth IRA was not available when I started and would have cost to change)
I also purchased Long Term Care Insurance. I did that when I was caring for my Husband and I figured I would not want anyone to do what I was doing.
The Work and Save, method works.
Not living beyond your means is important.
Pay off credit cards each time.
the only debt I have is Auto and Mortgage, both are being paid off early.
BUT What is scrimping and saving if you do not enjoy life.
So allow yourself enjoyment but keep it within your means.
It wasn't because of your Scottish heritage or old New England values about spending and earning.
Now, my husband is a Jew. A natural-born one. Not a convert for love like myself. He certainly fits the Jewish stereotype and is also a business guy.
He took a bath on his 401k. He doesn't live like a king spending like it's the end of the world. Not at all. He's a very responsible person. It wasn't his fault that the company folded and he was broke. This is what it is today. Unless you've got a government or municipal job, there is no more pension.
Why should someone earning a billion a year only have to pay on 147k?
It's simple math to solve the potential crisis.
Nobody wants it to end but, if there is no money, there is no money. That's what needs to be addressed, the unhinged spending from Washington.
I do agree with you, I just don't see it happening, they are ALL both sides to arrogant and entitled.
I think removing the income cap is a more likely solution, honestly.
The reality is social security payments were based on life expectancy of seniors so most seniors would never live long enough to get social security or only be on social security for a few years before they died.
Many seniors are living into their nineties or hundreds and this makes social security unsustainable as these seniors are requiring and get expensive medical interventions to keep them alive and warehoused as the living dead in nursing homes. You have elderly with dementia getting cancer treatments and pacemakers just as examples.
Something has to give and since seniors offer no real value from a financial standpoint in our society and to the government it makes sense that they would cut funding in this area. This entire world is about money.
Our veteran expenses r also going up as more of them r likely to survive it cost less money to bury them after war... The obvious problem is medicine, medicine has surpassed the economy and greed.
I wish you luck for your future welfare. Just hang in there with prayers.
In addition, if anyone does not work for the same employer long enough for a decent(?) pension or saved enough while earning wages, more trouble comes down the road.
With over 40 years of employment, I never worked 30 years anywhere, and the average job lasted about 3 to 4 years until in1987 I landed a good banking job way before the Great Recession in 2008. I got laid off from that good banking job in 2012 after 25 years of service, 5-plus years short of my 30 year goal. I was forced to take some of my 401(k) contributions at age 56 because of long unemployment to just pay my bills for a single person household, even with family contributions. I had finally landed a minimum wage job in 2015, got laid off from it in 2020, then worked a temporary USPS plant processing job in 2020 and another minimum wage job in 2021 until I retired late last year with mostly SSA for my income.
Social Security was not intended to be the only source of income after retirement. It is/was to be a Supplemental Income.
We are also outliving what the "normal" life span was back when it began. (August 1935)
Life expectancy in the 1930's for men, late 50's and women, early 60's.
Now we have people living WELL past 50's and 60's, probably add another 30 to 40 years to that.
Population of the USA in 1935 was 127,250,232
Population of the USA in 2022 is 332,403,650
People can not and should not rely on Social Security for their retirement.
Cutting benefits is one option or increasing the contribution that one pays is another.
And there is a great number of people that have paid into the Social Security pool and will NOT get payments.
Editing this..
contribution to Social Security in 1935 was 4.21% of taxable income in 2022 it is 6.20%
The first payment was for $0.17 in Jan 1937
The average now is $1,657 per month in 2022
My sig-other and I both learned from our parents to save, save, and save some more. Unfortunately his advice to save has fallen on deaf ears of his grown children.
When I was working it was during the glass ceiling time, so I earned less than a man doing the same job who had less seniority and less education.... the company offered 401k dollar to dollar match, I took the max that I could. When I left that company after 20 some years, I couldn't believe how much was saved in that account :) Chances are today the company doesn't have that match option as employees prefer a higher salary instead, too easy to spend.
Both sig-other and I have each a 26 year old Jeep [both bought used] and will keep driving them until the wheels fall off, we loved those vehicles. Hardly any major repairs.
When I see my social security amount hit the bank, I need to remember that the check was higher as Medicare took a percentage out to add to my Medicare account.
It's not a fear tactic, it's a reality. Just do a bit of net research on the cuts made to social programs under R control. It's absolutely factual.
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