Quote:
Originally Posted by John Mercier
Well, if all goes as predicted by Greenspan for Reagan and O'Neil, the SS Trust Fund will go insolvent in the mid-2030s. So anyone on SS at that time, including those that are already receiving checks, will see about a 20% decline in comparable monthly checks as those currently being received.
Since the SS checks replace approximately 40% of pre-retirement annual earned income, that means that after the insolvency they should expect a replacement of on 32%. Using the 4% Rule - and that itself is questionably high as an expectation - they will need to save about 2.5X annual earned income just to be even with today's retirees.
With Medicare Part A Trust Fund slated for insolvency even earlier, lots of issues for those that are late boomers and everyone afterward.
Personally, I plan on following the tradition of my grandfather and great grandfather. They were farmers and loggers, with some time in construction and manufacturing (something farmers had to be to survive back then); they believed that we should work until we receive last rites.
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Rubbish. SS has been on the verge of "insolvency" for years-probably decades. Seniors make up an ever growing percentage of the voting public and it is crazy talk to suggest the politicians will disregard this group. There are plenty of solutions to this scenario almost assuredly involving raising taxes. The easiest one to imagine is raising or removing he cap that wage earners pay into SS on.