The Simple Social Security Fix No One is Talking About (No Tax Increases or Benefit Cuts!)
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- เผยแพร่เมื่อ 6 มี.ค. 2024
- Fixing Social Security is NOT DIFFICULT.
With two simple tweaks, we could put the system in a surplus and move on to more important issues (although that may not suit the needs of politicians who will never waste a crisis).
These two small changes will not only ensure Social Security's 100% solvency but also create a significant surplus over the long term.
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⚠️I am not an attorney, SSDI advocate, or affiliated with the Social Security Administration or any other entity of the US Federal Government. I am a practicing financial planner, but I’m not YOUR financial planner and since I don’t really know you, I can’t give you advice. So please don’t take this video as specific advice for your specific situation. Consult your own tax, legal and financial advisors. 🙇🙇🙇🙇🙇
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Lots of comments saying there's no way my wife and I will ever collect $5,500,000 from Social Security. Should I do a video where I detail the math?
First, stop Republicans from cutting taxes on the obscenely wealthy and adding them to the deficits. Then, repeal all the "Trickle Down" that Republicans have enacted for the last 40 years. Finally, enact a tax structure for the wealthy that has them paying a higher percentage of their total income in taxes than an average family that works for a living. They currently pay as little as one eighth as much. POOF! no deficits, and Social Security/Medicare are all set with plenty left over for programs that actually help the people of America, not just the wealthy. And for Republicans, who love to clutch their Bibles, this is even Biblical, Luke 12:48.
84,000 A YEAR IF YOU BOTH GET THE MAX...TIMES 24 YEARS IF YOU USE 24 YEARS,,84X24....2 MILLION.....AND i would bet even that is a one in 100,000 recipients!,,5.5 million is plumb silly....yes...prove it!...tge real cure would be to raise the 132,000 max it is paid on per year to 250k,but leave those (someday) payees,at the current high mark(3776 a month).This playing with inflation numbers is silly!
@@metalrooves3651 He calculated up to age 95 for both he and his wife and likely used average COLAs for that period.
"A smaller raise in the future" -is disingenuous. It is, in effect a failure to keep up with inflation and becoming run over by the "the train", your head sinking below the surface of the water and drowning. An interesting angle would be to take this "excess" as you perceive from yourself and those who benefit more than need, and shift it to those that are struggling due to low benefits from disability and the very real -effective negative wage growth since the 70's. This money would be directly poured into the economy creating overall economic growth rather than sit in the accounts of the wealthy. Inflation is still a factor, no matter how you try to ignore it and "factor it out".
Your situation is an outlier, the vast majority are barely at or well below livability. The programs original intent and spirit was not to provide an exponential benefit to those that are comfortable, obviously it was to help the bottom rungs. It could be solved easily be raising or eliminating the cap on the wealthy, no real problem -they would not even notice, other than the next yacht would be a few inches shorter. They are not paying their share of tax burden relative to benefit either. Thank you for speaking to the issue!
Let see the details on how much you would have if you put your SS taxes into a 401k for 40 years.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
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Mind if I ask you to recommend this particular coach you using their service?
Vivian Jean Wilhelm is her name. She is regarded as a genius in her area and works for Empower Financial Services
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
I fully agree and place great value on my advisor's role in guiding my daily investments. They excel in both long and short strategies, managing risk for potential gains and protection against market downturns. Their access to exclusive insights and in-depth analysis makes exceeding expectations a regular outcome. In the two-plus years I've worked with my advisor, I've gained over 1.2million dollars.
@@ThomasChai05Mind if I ask you recommend this particular professional you use their service?
*Gertrude Margaret Quinto* maintains an online presence. Just make a simple search for her name online.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
It’s amazing you were able to save that much during your active years. Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital, so you are not left devastated during a market crash or recovery. To simplify the process, you could allocate your resources with the help of a financial advisor.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’COLLEEN ROSE MCCAFFERY” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I barely survive on under $1100 a month on SSA payments. I'm disabled and not able to work. Just what cuts do you think I can afford. When I do get a raise they take it all but $5 back by reducing my EBT benefits. I worked all my life paying into social security the whole time and this is what I get.
I've lived overseas for the last 15 years after I retired and I get the $158 taken out each month for Medicare even though there is no way I could have used the benefit. Thank god where I live is very cheap (or was).
The way to save Social Security, is to have the government stop using it as a personal piggy bank.
The irony, consistent with your comment, is that SSI is taxed. And, where does that tax revenue go? The general budget.
I sacrificed lifestyle along the way to increase my retirement savings plan expecting there would for whatever reason be no SSI.
I now have enough passive income, and it doesn't take that much, to be in the situation where I lose close to 40% of my SS benefit.
If the amount of SSI I lose through excess taxes that goes into the general budget would instead go back in the SS bucket, I'm sure there would be a significant improvement in solvency. And I like you would be much much happier if congress would be prohibited from "borrowing" it. Sorry too long.
Amen to that!
The government cannot fix the problem-the government is the problem!
I deserve to be on SSI but am not. I only get SS benefits.
"Lifestyle"? I rarely go anywhere other than to my mailbox & back. By the time I get half way back the pain is getting so bad. @@wdm213
The way is to realize that GenX is tiny and it should be super easy to pay for. Demographics will fix SSI without any changes at all and anyone who says otherwise is just setting the stage to allow massive cuts.
We can't talk about making changes to SS without also talking about making changes to the public pension system-starting with congressional pensions.
Oh no, we can’t talk about their pension that will always be funded
... or their Health insurance . They sux@@randyjerrett3385
Well said.
1 second ago
First, stop Republicans from cutting taxes on the obscenely wealthy and adding them to the deficits. Then, repeal all the "Trickle Down" that Republicans have enacted for the last 40 years. Finally, enact a tax structure for the wealthy that has them paying a higher percentage of their total income in taxes than an average family that works for a living. They currently pay as little as one eighth as much. POOF! no deficits, and Social Security/Medicare are all set with plenty left over for programs that actually help the people of America, not just the wealthy. And for Republicans, who love to clutch their Bibles, this is even Biblical, Luke 12:48.
The best guarantee that SS will always be solvent is for Congress to never enact legislation that will kill jobs. That's where the funds come from. Congressmen's base salaries should the same as the average American worker, with bonuses for high wages, high employment, high GDP growth, and lower medical costs.
From what I read somewhere, Because of the way the Social Security COLA has been calculated, and is not adequate to keep up with inflation even as it is, Seniors have lost over a third of their inflation adjusted buying power since Y2K alone. In essence, seniors income from SS has already been cut, and continues to be cut, significantly. High income seniors of course aren't really affected by this, it's just a little less pocket spending money. But it is absolutely slowly crushing low end seniors, the ones SS was created to help, who are scraping to pay the bills.
$940 doesn't go far.
Absolutely correct... and nobody wants to talk about it.
Removing the income cap would be a great start. And then tax the rich more.
@@branch_ranch remove the cap on income that is s.s. taxable, but leave the cap on maximum monthly benefits..after all. s.s. only purpose is to keep retired seniors out of POVERTY.....not to pad your million dollar 401k.
@@billw8476 that sounds great to me!
It is not the seniors collecting what the deserve, but the age working people abusing the system and living from American Tax payers. The system is corrupt and needs to be overhauled.
The old people are the greediest generation imaginable, I'm one of them. We have destroyed the American dream and are handing our children a massive deficit. Shame on us. I try to tell everyone to stop voting for Democrats and fake Republicans that keep voting for more government spending, but noone listens to me.
It would be interesting to see what amount actually goes to the retired.
Problem is... Congress would never resist dipping into any surplus.
Exactly, over my lifetime (65 yrs) Congress has considered SS as their own little piggy bank, and they almost never replace what they took…
@@glennmorrell4907and it will never be replaced because the Fiat money has to be paid back to the Fed reserve plus interest.
AM A IMMIGRANT TOO BUT PLEASE MENTION ALSO IN YOUR NEXT SSS VIDEO ABOUT THIS ISSUE WHY ARE THE IMMIGRANT GRANDPARENTS ARE RECEIVING SSI WHICH THE GRANDPARENT NEVER AT ALL OPUT IN A SINGLE CENTAVOS ??? CAN YOU RESEARCH ON THAT SSI BENEFIT BEING RECEIVED BY IMMIGRANT GRANDPARENT WHICH NEVER WORK IN USA NEVER CONTRIBUTED IN USA SOCIAL SECURITY SYSTEM .. I HOPE THEY GET RID OF SSI BENEFIT TO PEOPLE WHO ARE NOT ABLE TO CONTRIBUTE OR WORK IN THE USA.. SO WE CAN PROLONG THE SSS TRUST FUND .....
Biden will give it to ujraine
SS was never intended to run a surplus. That was a created as simple poor tax. When you borrow money at negligible interest rate, you're just taking it.
That is ok for people who are getting a lot of money. The average guy getting $1700 for the month would get crushed by getting $1400.
50k benefit is almost the max benefit you can receive as well.
Those people who are ‘getting a lot of money’ understood the purpose of SS and saved their money. The people who didn’t, either misunderstood or made poor choices.
@@toreckman8899 Or had to deal with situations that made saving a lot of money for retirement impossible.
@@toreckman8899 Or had the great time of getting MS when they were 15, but thanks jackass
Some of "those people getting a lot of money" worked a lot of hours, overtime, weekends, holidays, swing shift, more than one job, etc. to prepare for a comfortable retirement.
This man is crazy. Screw the younger people is his answer. Notice how big of a check he's going to get. Doesn't seem to care about the average worker. His average wage gains include the rich. Average worker did not recive that much of the wage gain.
One of the fastest increasing costs for seniors are medical costs that are a becoming an ever increasing percentage of total income. The rate of medical care cost increases is higher than either base inflation or wage rate. This guy is nuts if he thinks it won't affect seniors. It is essentially a cut
Younger people keep voting Demonrat. They think bigger government and deficit spending will make U.S. a wonderful fantasy land. Try hyperinflation, overpopulation from uncontrolled immigration, and increasing crime. The endless people from the third world cesspools are neither wonderful nor your friends. They will undercut your next job and bid up the price of everything else. But such humanity isn't so wonderful when you're not ready to compete.
Somebody is going to get screwed. I would expect that SS benefits will be cut by 25%, the age to qualify for benefits will be raised to at least 70 years old and the people on disability benefits will be significantly reduced.
You are the ONLY person that I have heard that has said wages have gone up more than inflation, so I don't know what information everyone is using. Also , when SS was last adjusted in the middle 80's 93% of wage were FICA taxable, now that number is around 83%, so if I was looking at some changes, that is where I would state looking!
The last 3 administrations? Not Congress?
Congress makes the laws, it's Congress that needs to act
You the president has very little to do with it. He can’t introduce bills, he can only give his recommendations. And your clip showed him saying to do just that. Do something to fix the problem
The POTUS Owns the conversation.
@@paullampert6990and there have been suggestions. Like Bush and privatization. Congress needs to act
If a President wants a bill introduced, there are always multiple congressmen or senators in his party that will introduce it, so that's just ridiculous@Markazoid6041
This is fucked up. We know that a republican congress will cut benefits and a republican president will sign it. We know this. We do. This is a fact.
Nothing will correct the social security problem until the federal government stops the spending madness. I am not confident.
YES!!!
When you or if you ever learn just who is actually running this country you will understand better.
Reaganomics was a disaster and Bushes stupid wars costs trillions for nothing. The way is to realize that GenX is tiny, much smaller than the boomers and WWII generation they managed to pay for all by thier tiny baby bust generations back and it should be super easy to pay for. Demographics will fix SSI without any changes at all and anyone who says otherwise is just setting the stage to allow massive cuts.
And they never will 😢
Reaganomics was a disaster, Billionaires wanted tax cuts so they attacked our democratic institutions and created propaganda machines like Fox "news" to brainwash the masses into supporting an oligarchy.
Social Security benefits have been shrinking - REGARDLESS of which of those metric you use for inflation - for several decades.
I've been on it since 2010 and it's gone UP every year based on the cost of living
My full retirement age is 67 years and 11 months. Yes, I'm a baby boomer. The most I'll draw from social security based on my current salary is $4,873 per month if I wait to retire until 70. Between full retirement age at 67 years and 11 months, I'm told that there is no limit to the $$$ I can make and not be penalized.
Your FRA is 67 years old.
It is either 66 8 or 10 months or 67.
Born 1958 1959 or 1960 and later.
But you CAN WORK and make $22,360 a year in addition to your social security. My benefit is less than half of yours is, and I do quite well. I paid the house off just before retiring.
Must be Railroad retirement. Which is higher than S S.
@@Hugh_Manitee Once he reaches FRA he can make as much as he wants The $22K refers to people age 62-66 this year 66-67 he can make $59K with no penalty.
I don't know what your effing income is but after a lifetime of work, my wife and I (both 77) live on 25,000 a year social security and that is before $340 is taken out every month for medicare. You need to use reality numbers.
Well said!
Poor planing on your part. Why should that be my problem?
@@Toomanydays WTF? I was just stating a fact and that fact being that there are a helluva lot more people like us that the ones getting 70 grand a year from social security. I was not bitching. We had very few years making over 30,000. Everything is paid for, 4 kids thru college (and paid for). We are healthy and comfortable.
THis Man is an IMBECILE!!!!
@@Toomanydays Poor planning? Have you considered the possibility of unforeseen medical catastrophes? I mention this because it happened to my wife, and now we're living with the consequences. We both worked all our lives, but she was taken out of the workforce early due to the aforementioned medical problems.
If you are decreasing COLAs then you are cutting benefits.
Back in the 1980s when the FRA was increased and SS started to be taxed- that was a cut.
I didn't think he was talking about decreasing COLA's (which only kick in after 62) as much as decreasing "wage indexing" for your previous earnings that make up AIME. That all occurs before age 60.
Also have the federal government end taxing SS benefits
@@cceerr11 A change in the computation is a cut to income benefit no matter how it is termed. The cap on wealthy contributions needs to be raised significantly or eliminated.
@@cceerr11 six of one…..
YEP, It should be tax free.
Hats off to you if you think you are going to live to 95, however that would be significantly defying the odds. While my financial planning is out to 90 I realistically expect to live to approx 80 based on my family history and overall health.
Don't bet on it. My Dad thought he'd die by 80 based on his family history. He lived to 94. My mother, whose parents died in their 70s, is now 98.
Replace the payroll tax with a national sales tax. It would provide a larger tax base and need a much lower tax rate.
Peter de Luca: Economist
Now that people are retired and done paying high levels of income tax you want to shift from income tax to sales tax so you're highly taxing retirees again.
The way government calculates inflation is not realistic. They calculate 3%, while the real inflation is 15%.
not even close.
@@brianjones7660 Yep. The Government calculation is not even close. In theory I should be living as well as I was before FJB 'Reduced Inflation'. I'm not.
@msimon6808 inflation is a global problem. At least we're doing better than most countries. If Trump was in charge inflation would still be a problem, and Ukraine would be in Russia, and Europe would be next.
@@Michael-Joseph123 Trump was very hard on Iran and delivered the first lethal aid to Ukraine. Obama sent band aids. Trump STRENGTHENED NATO - by making them spend the required amounts.
Trump is pro-Ukraine. He wants more from Europe. He did the same for NATO. The Germans laughed at him. Currently the laughter has died down considerably (Germany is rearming). Senate MAGA Republicans are pro-Ukraine (according to a recent Scott, Cruz, Republican Senate Press Conference). They want a clean Ukraine Bill. Not an "open the border" Bill.
MAGA 2024. Did you hear Chicago Blacks are stumping for Republicans/Trump? CHICAGO BLACKS !!! MAGA 2024.
Inflation would be a smaller problem because there would be no 'Inflation REDUCTION Act" to increase inflation and he would not have restricted energy production for his green wet dreams. Or drained the strategic reserves.
obama changed it to hide how bad he was doing. Just like they changed the DOW in the stock market.
Fixing Social Security is a great idea. We’ll have to wait and see what type of government we have after 20 Jan 2025. Social Security reform may be the least of our problems.
Whoever is in charge, not much will change. Did much change when bush was in charge? No. Obama? No. Trump? No. Biden? No. The politicians are the ones who control everything and they are all bribed, oops my bad, lobbied for by the same people. Don't hold your breath.
the migrants will get benefits and not have to do a thing.
@@youngyeller Try living like a migrant and your arrogant, lying tune would change in a hurry.
@youngyeller you need to do some research ss does not pay out any money to ANYONE who does not have 40 credits period, no matter what rumors you hear, it does not happen, the ss administration has reported that illegals have used stolen and fake ss numbers to get employment, but are unable to collect any benefits that they, or their employers have paid in, the ss administration has said illegals have actually paid more into ss then they will ever collect by a lot
@@youngyeller- Wasn’t it the migrants who actually built the US?
DevinCarroll
I think i speak for the majority watching. Where are you getting your data that shows U.S. wages are outpacing inflation?
Are you taking average or median wage data etc?
Mr. Carroll deserves an Oscar for being able to give that dissertation with a straight face.
He’s a hack.
This is exactly what Paul Ryan wanted to do! It is a huge benefit cut.
Try working and taking care of yourself rather than expect others
A true win win for everyone.... Except the people who will get much less in the future.
I'm one minute in and hear, " ... if you want to know, subscribe to this channel ... " and now fear I may not last the entire 15 or so minutes of this just to confirm what I know.
You seem to work for above average retirees many don't get a pension or have a 401 k
What they waste on air jorden tennis shoes they could have opened a 401k. I remember buying gold at $300 oz.
Should have bought seer bolts at $25 back in the 80's. they sell for more than $22K now.
@@robertsmith2956 👏👏👏👏.
He works for anyone who will pay him. He’s a hack
This is what ignorance looks like..
Modern "let them eat cake" idiot.
WHEN I STARTED WORKING, I HAD NO 401K AND NO PENCHIN, SO I STARTED A ROUTH IRA! AND I AM GLAD I DID! I WAS TOLED TO TREET PENCHINS AND SS LIKE IT WOULD NOT BE THERE! SO IF IT WAS IT WOULD BE LIKE THE GRAVER ON THE BICITE. NOT ALL I HAD. I WAS ALSO TOLED TO SET IT AND FORGET IT SET 15% IN THE SKTS AND NOT TO TUCHIT IT WAS NOT FOR ENEY ONE ELLS BUT ME! IT WAS NOT A SAVING ACOUT IT WAS JUST NOT THERE!
I heard a story that there are over 2 million individuals over the age of 100 collecting Social Security. How about the SS Administration search those people out to insure the grandchildren aren't draining the bank account monthly after the SS check is deposited with grampa long since buried out on the back 40?
Very good point!!!
5.5 million divided by 28 years retired is 196k$ per year divided by 12 months is 16k$ per month, y'all had a good formula.
The problem with this method is most Americans depend on SS as their only income in retirement, so yes they are getting a cut, try and sell that to people.
I don’t know anybody who thinks that.
Then ‘most Americans’ can’t read.
@@Toomanydays
A lot of people do and rightfully so. The government decided to spend their money that they were stealing from them instead.
"They" have been talking for years about Social Security running out of money. People planning for their future today should be pretending they won't get any Soc. Sec. and plan accordingly. That's what we did and I'm in my 60's.
@@lindawilluweit-joy4705 👏👍.
How would all of this figure into a dictatorship?
I think we unfortunately all know the answer to your question.
Germany got the tragedy, America got the farce. For all their evil the Nazi Party had a jobs and highway program - the Republican Party just want to ban books and deny the country has a racist past.
Why do you ask? Are you moving to Cuba?
You mean Joe Biden’s dictatorship? It’s destroying the country!
We currently are. That's the only way to keep ignoring Congress or the Supreme Court when they tell you something or don't pass a bill you wanted. Just do it anyway.
The current method for calculating benefits is designed to hold the replacement percentage of a worker's wages constant across generations. Changing to price inflation would steadily lower the replacement percentage. So future generations would have less and less of their income replaced by Social Security in retirement. It's a benefit cut, but one that hits future workers much harder than current workers. If cutting benefits is the right approach, we should probably do it equitably.
The maximum a 67 year old can collect today is $46,932 per year. The average cola for the past 28 years is 2.6%. Over 28 years that would equal $1,848,485.57 total money collected for one person. Collecting the max is a real outlier in the general population.
The uncertainty of SS future probably has people taking SS early when they should wait. I’m in that crowd.
Doesn't really matter. People taking it early is actually good for the trust fund's balance.
Yes people have been taking SS early for DECADES because they think SSs future is uncertain. So.
That's what I've read, that 2 out of 3 people live past the break even point, and when they continue working part time to make ends meet, or so they are not taking as much out of their nest egg, they are still paying into ss and medicare. I see some argue they are taking it early just in case it is reduced in the future, which is a stupid reason, do you want 80% of your full benefit, or do you want 80% of your benifit that was already reduced by 30%😮
I financial planner once remarked you can pay the money back, and get the higher amount still. So take it, invest it, and keep the money you make, and move up to the higher amount when you are old enough.
@robertsmith2956 you have to contact ss before you have been collecting for a year to stop collecting and pay it back.
The 90% of us who don't have over 1 million in retirement are highly dependent on SS. Any cuts or failure to keep up with inflation would be devastating. Seems to me that increasing the maximum taxable earnings subject to SS taxes (currently 168.6k) would help a lot.
We don't get to keep the COLA. They take it from us as soon as we get it via increases in Medicare premiums, cuts in food stamps, increases in rent, etc. The government takes it back. Don't you feel their hand in your other pockets when that COLA hits your account?
HOW OLD ARE YOU 401K AND ROUTH AND IRA HAVE EXISTER for 40 years! You don't get to tax us to tack Cear of you.
Certainly wouldn't help the self employed making over the cap. That's a 15.3 percent tax on every dollar over the cap, plus fed and state taxes. Easily over 50%. Why is the government allowed to keep more than half of what they earn?
How about we increase the payroll tax by 2% on everyone? That would help more and be fairer.
@@jeansullivan3869 How about just raising the arbitrary cap to 400000 dollars, oh wait that would affect big business and wealthy donors only. can't marginalise the top 5 percent wage earners for the benefit of all 95 percent who made them money
@@jeannettesilva4242 And money grubbing employers who have a 401K to claim they have one to interviewees, but don't match or pay employee enough to put anything into one are plentiful.
When social security program was first created, the overall average life span of Americans was 62 years of age.
That means that the people who work the hardest at the most strenuous jobs and lived in the lower income level, and would need social security benefits the most, were suppose to pay into social security all of their adult lives and then die before they ever collected social security benefits.
That means that the people who worked the easiest and least strenuous jobs and lived in the higher income level, and would need social security benefits the least, were suppose to pay into social security all of their adult lives and then maybe never think about collecting social security benefits and the rich would probably never think about it since the income limit on what social security taxes were collected on would make it not worth applying for.
There is a reason why all unused social security taxes are invested in federal government bonds, which puts money into the federal treasury, which congress spends.
So to keep social security viable so the federal government does not have to actually honor all of those federal bonds in the social security "lock box," they need to raise the retirement age so that the people who need the benefits the most start dying before they ever collect any benefits like when social security was first established.
The 1% of rich people think of how to invest their money to increase their wealth during the recession. While 99% of struggling hard-luck people think of how to survive without food and daily necessities in the recession and the coming hyperinflation
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
@@rodgertim2881 you have never dug a ditch or hammered a nail to earn a living
@@rodgertim2881 No, financial advisors mostly take more of people's money and leave them poorer than when they started. My brother needed some work while looking for a real job so he became one... meaning he called and badgered older people for investment programs, while knowing nothing of finances. What a farce though at least he kept his family housed and fed for a few months. You can read the horror stories of regular folk that even paid a "financial advisor" thousands over a few years to watch the "investments" tank.
Instead, you can put money into index funds with proven track record with one of the huge companies that do that, whether the retirement type or not. And no I'm not going to recommend which ones, I'm not a #*($# scammer or financial advisor. Just saying it's been working for me for decades.
Which is why we should vote for people who prioritize worki ng families and not the top 1%.
Yes stop giving money to other countrys
That has nothing to do with social security.
It could if applied to Social security.@@ws775
You would later be surprised at how much more expensive it becomes to live in and defend an isolated country.
Yes there are some blunders with foreign policy and the associated spending. But overall, in the bigger picture, over many decades, foreign aid is less expensive than all that would happen without it.
@@MrGoodaches "is less expensive than all that would happen without it." Ukraine funding really saves us money??? Come on man
@@gups4963free would be taken at some point, you really think they will stop at Ukraine? You ever look at what's west of Ukraine, we have given more money than any other country, but together the European Union has given more when combined, but they are small compared to the US, but they would be next in line to be taken, and they are some of biggest customers when it comes to arms purchased from us.
Why do you think you're going to live to 95 ?? The average man lives to approximately 82. Social Security is not paying out too much money to those that work.
They why are we having conversations about Social Security running short of money?
One of the reasons that SS is running out of money is that it covers people other than the worker who is paying in every week. @@johngill2853
The average retireee collects social security for way too long. It was only meant to live on for a few years until death. You have retirees living on this for years and Years and even decades.
@@michael7054 It is a 12 year plan, and it needs changed to a 14 year plan.
@@michael7054 20% of men never make it to 65.
Switching back to price inflation only carries the purported benefit if wage inflation continues to stay above price inflation. Otherwise, the change would be increasing benefits rather than curtailing them.
Kudos for investigating longterm and incremental improvements.
There is a legitimate proposal used in other countries that doesn't require cuts or higher taxes. It was discussed in the Wall Street Journal on Feb 29, 2024 titled "How to Save Social Security Without Privatizing or Cutting Benefits". Suggest everyone read this if they can. Beats other suggestions I've seen.
Wow, I don’t know where those numbers come from but let me tell you something. I am 70 years old. I’ve began collecting Social Security at age 65 and this is approximately what gets deposited into my bank account every month and Social Security is all I have to live on so look at this number $1250. That’s all folks.
I get 1040.00 a month. Slow starve.
Fortunately, I bought my first house in San Diego for $46,000 after the crash and 82. It’s our daughters home now with a detached granny flat. On the coast of Oregon,$107,000. Taxes, insurance $200 per month. Have room for your parents, living with parents, or retiree’s, demand Social Security’s Trust Fund is fixed, or make them think you’ll withhold your vote. A letter represents 10,000 votes. When your at the store, buy a post card, write FiX SOCIAL SECURITY on it. Now you’re a Lobbyist, and you didn’t even have to fly to Washington!
The only time I have even gotten contacted was when I said I was dropping by the DC office with my gun. Phone rang off the hook for a week on what a bad idea that is, dc is so safe...
They rambled so long I never got the phone number before the message ran out. I came home from work and wife asked me what the hell I did this time LOL
What kind of babble is that? WTH are you trying to say ?
Is that a Stream of Consciousness. Seriously, I can't figure out what you are trying to say.
Someone who was fortunate enough to make the max amount in all thirty five years and paid the 6.2% FICA vs someone that has made double that amount each and every year will receive the exact same benefit….Even with the higher earner making double they only ended up paying half the amount percentage wise due to fact that they were not charged any FICA after they hit the cap each year. 🤔
The wage figures provided by the government that show that it's increasing much faster than inflation is inaccurate I am in Human Resources working for a Fortune 500 company. My company is constantly eliminating full-time positions replacing them with temp positions that have no benefits (cost 35% less at the same wage as a permanent position) or eliminating the position by outsourcing to a low-cost country. Since 2006, the US has created many new jobs but 95% of the new jobs are temp jobs with the 5% being highly skilled jobs that most Americans won't qualify for. We should not reduce the annual increase as the Average American can't live on Social Security and do not have savings to maintain a minimal lifestyle. What we should do is eliminate all income taxes and have a national and state sales tax. The rich hardly pay any taxes so even a flat 15% sales tax would result in the rich paying a lot more taxes. We can get rid of tax deductions and get rid of the IRS and we would not need to file income taxes.
When Social Security first came out there were 10 workers per retiree. Now it's around 4 workers per retiree. Also we are living longer on average. Something has to be done with spending or nothing will matter anyway. Good luck with changing anything in DC.
You’re correct on all but the living longer. American life expectancy has dropped by 2 years over the last few years.
@@slickar2752when social security first started the life span was around 62 years so people only collected for just a few years if they lived long enough. Now people are receiving social security for some people 20 years or longer. Depending how long you live you could get 2 to 3 times more then you put in. That is where the problem is our government never planned for that.
Its NOT just a spending issue, and where the spending IS an issue and could be reaslistically hit, it would hit areas you probably wouldnt want. Its going to take people the realization that the tax code AND the spending need changes, and yes that means more tax in some places, to some people. But its not an HONEST conversation if you dont have that as a tool in the toolbox.
The problem with taxation is it reduces money to the treasury. That's because people chage their financial habits when taxes go up. If businesses are taxed more, they will pass as much as they can to the consumer, causing a higher cost of living.
@@donwilson1307 That isnt borne out in the data, historically....yes some costs get passed on, but its not quite as dramatic as one makes it out nor is it the only factor. As for taxing individuals, there IS data that shows even very high mariginal rates for top earners wont change much...that said, I am NOT in the camp of insane tax levels. I AM saying that the only RATIONALE approach to actually fixing a bad fiscal sheet is to reduce spending and increase revenue. BOTH have to be on the table, and they have to be intelligently done.
For instance making capital gains be normal income would simply make the system more fair....it shouldnt matter where you earn the money, it should be taxed at the same rate as everyone else, in whatever tax bracket your total monies put you in. Its a dumb loophole. And it only benefits really wealthy people. But I dont think the top rate should top more than 40%. So I keep saying that an all in approach with rationale limits, see what that does, and then we can consider more radical ideas. But doing nothing year over year is idiotic.
Social Security tax base was $35k in the late 80’s, and now it’s $168,600. Thats a big increase in Social Security revenue!
But that’s merely inflation difference.
I worked in the skilled trades back in the mid eighties it was possible to make that 35k by November or early December. No way I would make 168k now in 2024 at the same position.🤔
Tax base late eighties was around $45K
@@July.4.1776 And that's because wages have not kept up with inflation since the 80s. Throughout my 40+ year industrial career I took on progressive levels of management positions, earned college degrees and professional certifications. Nearing retirement the buying power of the salary from my respectably advanced career was only a little ahead of the buying power I earned as a Journeyman Tool & Die Maker with modest overtime in the 1980s.
My talented colleagues who stayed in shops and factory floors building and maintaining the increasingly sophisticated tooling and machinery that makes industry run....they were being paid way less buying power nearing the end of their careers.
This is NOT a comment on career choices. I'm providing a somewhat specific example of what occurred across most skilled and professional middle class occupations from 1980s through to 2020.
@@Satjr35031 thanks for the correction, you’re right.
If wage increases had come anywhere near productivity increases, the SS fund would be brimming, overflowing money. Since wealthy earners have gained most from the system, SS should be taxed on higher incomes.
And, yes, this is a cut to benefits that will eventually cause hardship to low earners.
SS is given to more people that are not 65. It is given to people who have not paid into it at all. For various reasons the majority of SS is given to people who are not over 65.
Also, SS is cut all the time. The cost of living raises to SS do not keep up with actual cost of living increase. So over a 20 year period of time your SS payment becomes too small to do what it did 20 years previous.
They fixed it in 1982, and it will be fixed again. Politicians like their jobs.
Agreed. Letting SS fail would be political suicide.
What Reagan did in 1982 was tax a tax while dropping the top marginal tax rate for the very wealthy. What Reagan did in 1982 (and Bill Clinton did in the 1990s) was neoliberal anti-working class savagery.
it was NOT fixed. they doubled the tax, and then raised the benefit amount even higher. That made it WORSE.
From my peropective, it is fine for Devin Carrol and other high income earners. Perform the same calculations for low and medium income workers and you will see how it affects them. Not everybody makes $100,000 plus wages.
I NEVER got a huge raise like he's showing. I was always nickel and dimed to death. I wouldn't know what a 4% or 5% increase looked like. Inflation is outrageous and they have changed how it is calculated for SS purposes. They don't include heating oil, insurance and a slew of other items we've been blasted with. Now they want to give illegals SS and Medicare. Millions of them.
Forget everyone, the average american is only making about 40k a year after taxes right now. back in 2019 it was around 36kish meaning that's only a 10% or so wage growth. I don't need to tell you how bad inflation is and that growth is heavily shadowed by said inflation. . .
I’ll add in that making $100,000 a year is far from an affluent life.
$60-80k in SS is nothing more that a comfortable life.
Social Security is calibrated with the cost of living. The amount of benefit is not changing relative to inflation. The dollar has been significantly shrinking. As you pointed out, the calibration could be wonky. It seems that all that should be important in retirement is price inflation since you're becoming solely a consumer in retirement. That said, it's important to consider how price inflation is determined. Different goods and services have different inflation rates.
During my last 4-6 years of working, the wage increase didnt come close to the high inflation of prices. This was an interesting video.
I don’t understand your calculation. You said you would receive 5.5 million over 28 years from ss. Dividing 5.5 million by (28yrs * 12m) gets me over $16k per month. Since $3800 is the max per person, I am confused on this number
I’m confused too. The max a couple at age 70 this year is $109,000. After twenty years with COLA maybe receive $2.3 million.
20 years away from filing + 28 years in retirement * 2.5% inflation + my benefit*50% payable to my wife
@@DevinCarroll Are you sure a 3% inflation was not loaded?
I think it was done by assuming 3% inflation for 20 years before filing and then drawing for 28 years with 3% inflation. Thus today's $68,796 ( max under those conditions ) will be $120,634 in 2042 and will be about $276,000 in 2070.
The problem is that they are adding people to get a check that has not paid in to the program. We that have been paying in needs to be taken care of
Not true, if you never paid into ss, and have 40 credits you can not collect ss.
Edit, I did forget about minor children and spousal and survival benifits, but out of the 3, they could get rid of spousal benifits, why should someone collect benifits because their spouse paid into it.
@@Michael-Joseph123 Don't neglect SSDI.
@andhisband you can not collect ssdi if you never paid into ss, but you do not need to have 40 credits, if you never worked, then you could get ssi, which is not funded by ss taxes.
@@andhisband hear hear. That’s the problem. Fraudulent ssdi claims.
@@Michael-Joseph123 you are wrong.
People that don’t pay into or don’t have 40 quarters “= 10 years of work history” and are eligible for or qualify for disability get Supplemental Security Income. It comes from the annual or by annual budget not Social Security. It currently maxes out at 934.00 a month.
One solution would be is not let the Federal government borrow from the Social security trust fund at interest rates below the inflation rate. As the social security trust fund is invested in T-bill's as we all know the Fed held interest rates at around zero from 2010-2022 and Inflation during that time was low it wasn't zero. After the Inflation of the 1970's social security also faced big problems and Jimmy Carter raised the amount employee's and employer's contributed each month, Carter made Paul Volcer Fed chairman to whip inflation now
Effectively a cut. Thumb down, and don’t run for office.
@susanrushin7002, Love your answer!
Your example of your personal benefit going from $7243 under the current law to $6203 under the new law sounds like a cut to me. I'm not saying I'm against it, but call it what it is.
Yes, and it's not a case of a reduced future raise not being a cut. The terms are spelled out, people are planning their retirement strategies around those terms. If you reduce that, it's a cut. Dress it up with all the folksy language you want but it's still a cut. And like you I'm not against a cut, I'm just against weasel wording it to say it isn't. Whenever you hear the phrase "a common sense approach" hang on to your pocket book and your rights because someone's coming for them.
The government also favors solutions that stockpile money in advance so they can try and use it for other purposes that the funds were not intended for.
Yet, the government has never used SS for any other purpose.
This is correct. Slowing the increase in benefits will resolve the problem. Then on the reverse side they need to raise the income levels for social security to be taxable. These income levels haven't changed since 1993. Adjust them for inflation so a majority of ss recipients do not have to pay tax on their benefits.
The 400k payroll tax cap NEEDS to be raised so that the numerous U.S. millionaires pay more into the trust fund than a doctor or nurse or Walmart worker!
Why should they pay more if their benefit is caped.
@@heltonja uncap the benefit to that level. The system is all progressive anyway so they'll always make less than what they put into it.
From each according to his means, to each according to their needs? You are talking pure transfer of wealth. No thanks.
@Lolatyou332 I agree. If you are going to uncap contributions, then you should also uncap the benefit and use the same calculation that you do for everybody else.
@@heltonja And if it's done this way, it'll only solve 56% of the solvency issue. The fall out from employers and highly compensated employees having to pay the SS tax on all earnings would cause a myriad of problems.
During my first and only visit to the visit to the local SSA office in 2022, I estimated only one in twenty people in the waiting area were retirement age. If the program would have stuck with Roosevelt’s original goal, we wouldn’t be running out.
I agree. The program in 1940 took up less than .5% of the federal budget. Its over 20% today.
Social Security Administration has been administrating SSI welfare payments since 1974. Many people in the waiting area are on SSI welfare....SSI payments are part of the overall Federal Debt. SSI payments are NOT Social Security Payments. That said Federal welfare payments from SSI, SNAP(Food Stamps), Medicaid, TANF, LIHEA, HUD section 8, Free welfare cell phones & free welfare cell service, free welfare internet, blah, blah, blah......pump a lot of make believe inflationary dollars (Federal Debt) into the economy making your Social Security payments worth less (worthless?). BTW, Roosevelt's version of Social Security had no worries about running out of $$$ but it also had NO COLA's and NO MEDICARE...I doubt many Social Security recipients would appreciate NO COLA's and NO MEDICARE.
@@DevinCarrollit should be separate from the budget, in its own growth fund and paid from there so the politicians keep their hands off it. It is a separate fund on our paychecks and should not be considered a part of the Budget.
I am curious what you think could have been done thirty years ago to better plan for the projected shortfall. They saw it coming long, long ago.
SS is a forced gov program, we have no option to participate or opt out. It is paid for by recipients their entire working life, it was originally meant for retired people as a supplement. Now it covers many people that are younger & not traditionally retired, so yes, benefits have increased. This, in my opinion, if the math is correct is a viable & acceptable change to remain viable. Gov spent the trust fund years ago. Send this video to your FED reps to help get this conversation going, our reps should be responsive, if not don’t vote for them in 2 years or 6 for senate.
???? a 14% decrease in yout planned benefit sounds like a cut which may make you need to work longer? Also, I thought we needed cash in 2032 and no future changes would keep the coffers filled in that year which is why immediate fixes like increased taxes were needed.
Buddy . The 14% decrease would happen to people like me. Not seniors currently collecting benefits. Please watch the video before making a comment with no substance.
I’ve been hearing the “other guy” is going to end social security and Medicare for 50 years.
MEDICARE IS OBUMER 💩SHIT CARE STEALING U SS TO PAY IT !
Maybe that is because it was years ago that Quid Pro Joe said on TV that he would be willing to cut Social Security "if it would balance the budget."
SS benefits grow at the rate of inflation. Raise retirement age based on increased life intendency , increase max age to collect SS benefits, increase ss taxes by a .25% on all income not just income to 168,000, tax all forms of income including capital gains, any questions?????
Devin, how would that change affect people at the very low end of social security on a monthly and a lifetime period?
I don't know where you get your figures from but I know that I worked for the post office starting in 1986 for$9.92 an hour. We got contract rises, cola's, and step increases that were superior to most jobs that are out there. I retired in January of 2017 at just under 60K a year. If I averaged 4.28% a year I would have been making
over 75K(36.37 an hour). If I had stayed there till now I should have been making over 101K a year ($48.76 an hour). I know people that are still working there that started when I did and they are not no where near that kind of money even with the large cola's of the last few years. From what I could find on the internet the average wage has gone up less then 18% over the last forty years. The top wage for a level 6 clerk in the post office is 74K. That is a lot less than 4.28% a year. As far as living to 96? It must be nice to decide how long you will live but from what I can see only about 16% of men live that long.
This. The claim in the video that wages have outpaced inflation is complete BS. We all know better than that. Sure, you can measure things in such a way that you can make that claim, but reality is that it just isn't so.
Life expectancy overall after the CV19 Response is Less than before. This is playing Hob with all sorts of actuarial & insurance numbers :-|
MY GRANDFATHER RETERD BE FOR THAY CHANGED THE POST OFICCE PENCH HE ALSO RETER AS A POSTMAST NOT A WORKER! THE PENCHIN WAS DIFERINT THEN! THIS IS WAY YOU CAN'T COUT ON A PENCHIN OR SS. THAY WILL CHANG THE ARMY PENCH CHANGED TOO! IT USTO BE PAYED THE MOUNTH AFTER YOU GOT YOUR PAPPERS 20-25-30 NOW YOU DONT GET IT TILL YOU ARE 67! THIS IS WAY YOU NEED TO SAVE YOUR SELF ! I WAS IN THE ARMY!
MY GRAND PA WORK FOR THE USPS AND HE WAS A PAST MASTER He retread in 1975 HE MAD A LOT YOU! You Started 1986 You Have to Account for inflation, And I don't think when you left you had 36 years. HE DID! I Also don't think you had military time to. I KNOW HE HAD NICE PENCHIN TOO! I AM SAS FOR YOU THAT YOU DID NOT DO AS WLLAS HE DID BUT THAT IS THE WAY IT IS! IT TOOK BIT BUT TO EQULL 100.00 WHEN My GRANDPA WAS A Postmaster You Would Have to Make About 700.00 For Each Hindered. So, His Doller When Farther!
I'm told is that the cost-of-living increases are formulated for the senior's lifestyle.
Solving the social security issue is a simple actuarial fix with many combinations of levers to pull. The problem is that there is no consensus nor desire to fix it until we get down to the 11th hour like it was done in the 1980’s. The much bigger problem is Medicare and Medicaid. That’s what retirees should be worried about, not social security.
One way to save Soc Sec is to increase wage tax to 50%, increase full retirement age to 99 and increase early retirement age to 89. Simple, but it will work for sure...
I was being heavily recruited to run for Congress, but turned down the opportunity. IF Social Security isn't FIXED (your proposed solution is fantastic and simple)...then I may actually run in 2026...as a single issue candidate! Fixing Social Security!
Changing the inflation calculation is a method that ultimately must cut benefits, just not explicitly saying "cutting". Want to save SS? Three components: benefits outflow, contribution inflows, and investment earnings. EARNINGS! Currently SS funds are by law invested in US Treasury instruments, earning interest at something near the very lowest risk-free-rate of return. Invest in something more profitable, like US Equities. Or if you don't mind the pain: raise the cap, or raise the SS tax rate, or cut benefits.
Terrible idea for people on tight budgets unless you guarantee the cut will be more than made up for by reductions in living costs. Good luck.
It's just a terrible idea. Don't think he even considered the negatives of it.
CPI literally follows wages. The income from SS would basically be 1 year behind inflation forever, inflation comes from demand, when people get wage increases it increases demand for that year.. This approach is basically retroactive and may 'match' the rate of change of CPI, but it actually is compounding-ly making SS have less and less buying power.
Took me literally 2 minutes to decipher what he was saying to see how bad of an idea it is.
@@Lolatyou332 You do realize he was talking about changing the "wage indexing" that is applied to your 35 years of wages and takes place before age 60, right? Has nothing to do with when you are collecting SS.
Well such a simple solution. You’re right why is this not being discussed? Frankly way too much drama in politics now a days. We all should call our representatives and let them know about this idea. Thanks Devin. Keep up the good work.
AM A IMMIGRANT TOO BUT PLEASE MENTION ALSO IN YOUR NEXT SSS VIDEO ABOUT THIS ISSUE WHY ARE THE LEGAL IMMIGRANT GRANDPARENTS ARE RECEIVING SSI WHICH THE GRANDPARENT NEVER AT ALL OPUT IN A SINGLE CENTAVOS ??? CAN YOU RESEARCH ON THAT SSI BENEFIT BEING RECEIVED BY IMMIGRANT GRANDPARENT WHICH NEVER WORK IN USA NEVER CONTRIBUTED IN USA SOCIAL SECURITY SYSTEM .. I HOPE THEY GET RID OF SSI BENEFIT TO PEOPLE WHO ARE NOT ABLE TO CONTRIBUTE OR WORK IN THE USA.. SO WE CAN PROLONG THE SSS TRUST FUND .....
Could you please just list the " two simple tweaks" that you are talking about? Maybe one is changing the index that is used to determine the yearly cost-of-living adjustment in Social Security, and which index are you suggesting should be used, but what is the other simple tweak?
Just raise the SS and Medicare taxes sightly as people live longer, have new medical care and drugs, and we increase who gets SS. The Problem with CPI is that it excludes food and energy. But can modified to average Food and energy increases over a 2-to-3-year average moving forward. I sometimes don't understand economics as some solutions seem so simple.
Interesting thanks, I'm 72 and retired, been following you for years. I waited till 67+4 to take SS. That helped my spendable income in retirement. I also accelerated my mortgage payoff which saved 1200$/month in expense. I paid the mortgage off with life insurance proceeds. Best move I've made for financial security. Now I;m worried about the massive debt the politicians are stacking on us, will the SS last through a currency and debt reset?
67+4 would be 71 . . . you have to claim at 70, there are no advantages to waiting longer.
@@OroborusFMA I think he was saying 67 years and 4 months.
Want to solve SS long term, teach our children effective investing and cash flow principals. They will be far less likely to be dependent on SS when they retire.
What does price indexing include? Does it include price of food, housing or medical? The details are important, every little one of them.
One thing to think about is that the CPI vastly underestimates the actual inflation rate right now is really about 7% and not a little over 3% shown in the CPI.
If he cuts the ssi payroll tax and just funds it with oil and gas revenue. The oil dries up, so does your ssi paycheck. (Solution) Continue the payroll tax and add the oil revenue to fix the shortfall in Social Security and Medicare. Then use the oil revenue to lower the national debt.
Since mortgages were removed from inflation calculations in 1983 comparing the 1970' to now is misleading. Are rents still included in rhe calculations or were they removed @ 2009?
The price inflation calculation also don't include volatile yet essential items like fuel, fruit and vegetables.
No We should just end it by phasing it out.
1. People who havent started working yet would not have to pay into it
2. Those who've been working, but are far from retirement wil be refunded whatever they paid into it plus interest. They could take it in the form of a regular payment or have it directed into their 401k.
3. Those near retirement can chose to continue paying into it and then collection full benefits when they retire, or direct the money to their 401k or stop paying completely and only collect partial benefits when they retire.
4. Those who are in retirement would continue to collect their benefits.
You must be friends with Paul Ryan:
Rep. Ryan’s indexing proposal imposes the greatest reductions on those with the highest earnings, and it exempts those with the very lowest earnings, so it is sometimes called “progressive” price indexing. Nonetheless, it would affect fully 70 percent of all Social Security beneficiaries - everyone with earnings above $22,000 in today’s terms. Over time, price indexing would turn Social Security into a program that provides only a small retirement benefit - and one that is largely unrelated to prior earnings.
This SS change very proposal is already in the platform of the No-Labels party. However, they also want to eliminate the capital gains tax break, so that would be a serious issue for retirees.
I don’t really favor a separate capital gains tax . But that’s another topic.
I really, really hope they don't mess with capital gains. That would be a nightmare for so many people!!
I dislike capital gains taxes in general. Why should I be taxed AGAIN just because I made a bit of money? The money I used was already taxed 2-3 times before I even got it. So now I get taxed again?!?!?
Sounds like a benefit cut to me.
he has since said he is open to cuts to social security. It is not fair that 96% of the workers pay SS, on 100% of there income and others pay on 20% of there income. He will not live till 95. It used to replace about 40% of your income now it replaces about 20%. Higher income earners need to pay more period. I am one.
Where are you getting your numbers? When I became disabled years ago, I was awarded 1/4 of my previous monthly take-home and afforded a small apartment. Now, several years later, the manufactured COLA's haven't come close to keeping up with inflation. My yearly payment is now less than the federal poverty amount, AND I have to pay for Medicare premium and drug insurance premium and 20% Co-pays. Also, getting SSDI disqualifies me from getting medicaid, so I also need to pay for dental and eye exams. What's left isn't enough for food, let alone rent, insurance, or utilities.
How is it they can raise the premiums at a faster rate than what they calculate inflation at???
Are they really giving the wealthy 1/2 of what their wage was and the poor 1/4?
Also, they round your new payment calculation DOWN each year, which I'm sure the loss compounds over time as well.
Your not cynical, just spot on, kinda like your fix for the CP- E vs the CP- W, that no politicians want to hear. Thx for the vid Devin
Invest 25% of the trust fund in the SP 500 instead of all of it invested in Treasuries and no more borrowing against SS for the general fund. There, I fixed it. What's next?
There is nothing left to borrow. They borrowed it all
I'm about 3 years from collecting social security. The reality is, I don't care is SS keeps up with wages. I only care that my spending power stays the same throughout retirement. So, I'm totally fine with a so called "cut" in SS. Much better than raising my taxes.
I was in the 5th grade back in the 1960s when my teacher said, " by the time we're ready to collect social security, there won't be any money left." I didn't think much of it at the time, but now I'm collecting social security, so I don't believe that it will run out by 2032. Just keep the governments hands out of our pockets, and we'll be fine.
t-bill rates is what's killing the Soc Sec fund......if the fund could capitalize a 6% rate of return, it would never run of funds
This was great information, Devon. Thank you for sharing this and I loved your sense of humor at the end of the video. It was awesome. You made me laugh a great deal. 😂😊
Thanks for watching!
Hold it. Instead of quickly scrolling the wage and price inflation over the years, compare those numbers to benefit increases over the same years.
The price inflation (right side) are the benefit increases.
SS should be put into interest bearing accounts, and we should get the FULL base amount we put it, and the government can use the interest gained as their tax collection off it.
It can be fixed,#1, abolish the emergency funds act, repay social security, by taking that amount for foriegn funds,&put it in social security. #3 revamp social security by going through those who have played the system to get social security disability, who are NOT entitled to get it, also abolish the addiction disability act, drug addicts&alcoholics are not entitled to get social security disability..they belong in dry out centers with intense counseling. Plus, make it possible where they have access to work. It can be done
The plan you advocated was based on some numbers you provided but never sourced. Where did you pull your figures from?
I am missing something!? If the maximum SS benefit payable today for someone retiring at age 67 is $3822, how are you going to collect $7243 or $6203????? I realize you have a few years before "Full" retirement but even with increases to SS payments your monthly benefit estimate seems to be high......
Yes, I posted a similar question. Where does he come up with his calculations?
The price index doesn't include food and fuel. Would wage growth exceed price growth if these were include in the latter?
If wages are increasing at a higher rate than inflation, then the workers are paying a higher nominal amount of SS taxes into the Trust Fund. The issue is SS is a pay-as-you-go system where there were over 30 workers for each retiree in the 1930s and now there are about three workers for each retiree."When wages are increasing at a faster pace than inflation, workers are contributing a higher amount of Social Security taxes into the Trust Fund in nominal terms. However, Social Security is a pay-as-you-go system, meaning that there used to be over 30 workers for each retiree, but now there are only about three workers for each retiree. This presents a challenge for the system's sustainability."