Social Security will not go away entirely. About 77% will be funded by general tax revenue. However, the government’s historically poor choice of investing in overly safe low yield government bonds and too low cap on how much income level is taxed is resulting in depletion of the Social Security Trust Fund. That funding source is predicted to be exhausted in 2033. At that point, based on long ago passed legislation, the payout will be reduced by 23% to help make payments last the rest of this century. Part of the problem is the low birth rate. Currently at only 1.62 babies per woman, that is not enough to replace workers. That is not enough for zero population growth. I guess we should tell our kids to start getting busy
If SS is no longer taxed (note: the employer half of FICA was pretax dollars) and if costs of living increases continue to occur, then the year of depletion could be earlier than 2033. The good news is the 77% will remain by law.
You may want to read and re-assess if a ROTH makes sense for you. If your income will be lower in retirement, then you may be paying taxes on that ROTH at current higher rates than you would pay in retirement. You could be saving more per year in a Traditional 401K or Traditional IRA though you then pay taxes possibly at a significantly lower effective tax rate later than you do now. Talk to your tax person about whether a ROTH is making you pay more taxes in your situation rather than less over the long term.
This is an article to understand what will happen though I do not endorse their obvious ads. Hope this helps you.
. But… but… not all are willing.
Seriously, looking from historical perspective, it’s the poverty that results in increased procreation. So, as a nation, we still look okey-ish.
I was RIF’d nine years ago by a company I put 25 years into. I just didn’t feel like finding another employer that would just do the same. Took it as a message from the Universe to accept this unsolicited retirement.
It will be 3 years this June since I retired from USPS. I was a letter carrier for 37 years. Retired @ the ripe old age of 58! Best thing I ever did! The way the PO is being run now, it’s only a matter of time before it’s run into the ground & there’s no pension left for the newer employees.
Just read about a father ordering a formal tuxedo for his daughter’s wedding. The daughter is a great dane.
The article seemed to be serious, as in ‘not a joke’ . But the craziness is real.
Sorry - forgot to include the link. Here it is. It’s a very fascinating site, though it does not readily explain what it happening and why. That’s complex but worth reading about too. And I hope it affects social policies for the better for those nations that are literally predicted to run out of People (includes South Korea) or have unsustainable retirement. Or those unable to feed their population even now such as Somalia.
Social Security will be there in some form. Its money you put in, so youll have something. The problem is that payments are made out of it when money wasnt put in to offset thise payments. I began dumping money into my retirement accounts when i was in my early 20’s, with a good paying job (busting my but working swingshift in a coal power plant) and I was single. That was the seed that grew to a large amount today. I was forced to make a career change many years ago and dont make what I used to and now I’m married with 2 kids. But that early savings continues to grow and now I’m looking at generational wealth for my kids when I’m gone. My social security will just be icing on the cake.
The key is to start early and save what you can. It will grow.
Social Security History
Contrary to myth, age of collection was set at age 70 years. He was 69 years old at the time. Not 65 much less 62 years. It was intended as a safety net and to quell social unrest by workers over destitute seniors in his era.
When considering SS running out of its trust fund, may want to consider that average life expectancy in Prussia in 1889 was not much more than age 40!! Meaning most people were not expected to be able to collect!!!
I’m retired for many years now and due to amazing planning by my wife, we’re making about what we did when we worked & everything is paid for (Thank God). Living the Florida Retirement life!
? Sooo cuute 
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. But the craziness is real.
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