Patathome01 Asked November 2022
Social Security benefits cut. What are your opinions?
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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.
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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
Depending on your health one never knows what old age will bring.
Even eating healthy and getting lots of exercise is no guarantee. Because life happens and the reality is the masses don't earn enough to save millions needed to live into your nineties or hundreds.
Don't vote Republican if you're worried about it.
37% for incomes over $539,900 ($647,850 for married couples filing jointly)
I think those rich people with over $500k in annual incomes should not be eligible to collect any Social Security benefits unless their income level falls into an annual $500k or less, or their care level expenses exceed what their income is bringing in at $500 or more. That will also help with Medicaid eligibility. Make Congress think!
Now, will the program fail eventually down the line? I suspect we will all be dead first, but it may if our country gets into trouble. So let's do all we can to keep her strong.
I hope the admins will move your question to "Discussions" because it will last longer there, and it is interesting question for sure.
"pension money is paid for everyone else who don't get pensions"
You pay into a pension you get a pension. You do not pay into the pension you do not get the pension.
Add to that that anyone that has worked and paid into Social Security if they also have had a job with the Government and paid into a pension generally they do not get Social Security. OR if they worked and paid into a pension and had a spouse that worked and paid into Social Security if that spouse dies they do not get any of that Social Security.
There is a pension off set that pretty much takes dollar for dollar from the Social Security check.
Which brings me to the other part everyone working gets billed for. Medicare. It aggravates the population big time to see ads for free stuff that they the working people don’t get with their health plans if they have one. They would go into orbit were they to discover how much it costs to keep a “feisty fighter” alive through medical intervention.
My situation back in 2012 was that I couldn't find any more better paying or even clerical work because I could no longer compete due to my autism disability and anxiety, yet SSDI denied me because I had too much employment experience and education. I got so frustrated between that and my late mother's care I had to see a therapist to get me through those tough times.
If Congress does threaten to cut benefits, I can be assured that many "bells" will ring, and "whistles" will blow to get their attention come 2034.
It's federal employees who do not pay into Social Security, so they do not care.
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.
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.
If you have at least $5,000,000.00 today in assets and now need care in an NH or whatever, you are likely to be cared for sufficiently in your lifetime, Social Security benefits or not.
If you can afford long term care insurance and the service finds you eligible, go for it. Unfortunately, many people cannot afford to pay the premiums. The service also looks at family history for health risks and may deny benefits to those interested. Best good luck and prayers.
My senator -.i didn't vote for him-wants SS to be voted on every year. Fl Republican senator wants SS to end in 5 years.
And for the next 2 years we r safe from that as president Biden will not sign such thing and there is not enough in Senate to override a veto. And there will not be for a long time as this last election generation z made their voice heard.. they do not like being the ones that will have to live or die through climate change and they r sick of active shooter drills they have to do if they want to survive going to school. Those 3 issues go together ss, active shooter drills and global warming there won't be enough political will to end ss for longer than ur lifespan.... Fyi Japan or China I forget which one doesn't have work based SS only need base ss..so it will never be going it alone.
In 80s there was obvious population decline for a while they set up a trust fund for the population glut to pay into as there wouldn't be enough paying into it during their senior years.. it is this trust fund that is running out.
It was never meant to be permanent the trust fund was suppose to run out at time it is..
And the birthrate decline has resolved so ss is not at risk..
Just politician millionaires using the trust fund to scare u.
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.
The Rs have always been adverse to social safety nets and have made cruel cuts in the states that they control.
Conversely, the Ds are in favor of increasing SSA bens, esp to the low income elderly and the disabled.
I am personally in favor of trimming SSA bens to upper income Americans who have no need of it, even though they have paid in throughout their working lives.
Vote for pols who favor social programs and lessen your worries.
I grow, wild harvest, can and preserve as much as possible of my family's food, incl raising chickens and feeder pigs. And we eat a lot of local bounty, like wild rice, venison, and buffalo - when I can get my hands ion the latter. We use minimal processed foods and buy in bulk to cook from scratch as much as possible. All of this adds up to greater food security and cost savings. I've simply continued, throughout my adult life, to do as my Mom and extended family did when I was a kid. I've taught my daughter and now my grandkids the same skills.
I, personally, would be unable to remain in my home of 27 yrs without them living with me and I think that many of us need to pool family resources and that those of us who own a home can provide our adult kids and grandkids with the security that they would otherwise not have if having to pay ever-increasing rent costs, etc.
We drive used cars and bring the kids up to value what they have and not expect the material things that are beyond reach. I said goodbye to credit cards decades ago; it's a terrible waste of money. I use debit instead and we live within our means.
My biggest concern about becoming too old and frail to live without supportive care is that the current shortage of health care personnel will deepen as more of us Boomers age, a frightening reality facing us.
Be careful how you vote, that is the key determinant of the future of SSA bens.
I had my first savings account when I was 5 years old, so every dollar I got for my birthday and Christmas went into that account. Yep, back when grandparents would send a $1 for a gift, and it was a big deal. I had saved enough for that required 20% down-payment on a house :)
I worked until I was 74, had to quit because the business had closed up during covid. I worked there because each day was an adventure, never knowing what my boss would be up to. I miss working so much, it kept my brain active.
I remember in 1980's when banks had 17% interest rate on savings accounts. Of course, home interest rate were also high back then, but house prices were lower to balance it out.
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.
If a Congressperson has a high income, it doesn't mean it comes from the taxpayer. If a Congressperson writes a book or gives speeches, the taxpayers doesn't pay. If a Congressperson does well on the Stock Market with their own funds, the taxpayer doesn't pay. If the Congressperson's spouse does well in their own non-government career, the taxpayer doesn't pay.
Lot of these Congressperson's had employment before going into politics and did well. Many were Attorneys, Professors, Businessmen, Doctors, Mayors, Governors, etc.
Retirement and health insurance of someone in Congress is the same as any Federal employee. Congress doesn't have anything special.
I was a bit surprised because it speaks of systematic problems. We would be inmates if we had any financial gain from insider trading.
I know the thought that our government is corrupt is gut wrenching but, it is a sad truth.
I thought that federal employees' incomes come from all workers who pay federal income taxes. If I'm wrong about the federal tax spending, I apologize and will take that back. OK, I will spend less time reading and wait for national news to happen come 2034, if any at all. I will relax and enjoy life for now. Thank you for all your support.