How long do you think Social Security will last in your country?

[_Apple_]

One of these days, SS will be privatized, and once that happens, its days are numbered. A few people will get filthy rich... or the plutocrats will increase their wealth by billions, which is the more likely scenario. They'll run it into the ground, laden it with massive debt, and then phase it out.

Because private enterprises are subject to competition and consumer pressure, and government-run agencies aren't, I expect a privately owned and operated SS system would be more efficient and a lot more friendly.

Hasn't the government "run it into the ground"? They keep saying they have, though not with those exact words.

 

[MACKTEXAS]

When I was a working girl (don't take that the wrong way) the average woman earned about half what the average man earned. Women were rarely hired for high-paying positions and positions with great responsibility or that demanded a lot of her time because of children and pregnancy, whether she was single or not.

I forgot where I was going with this, so I'm just going to point that out.

I'm not sure where you were going either. My wife earned far less than me, consequently her benefit was smaller than mine. However, had she outlived me [which she did not] she could have applied for my benefit.

SSA

 

[_Apple_]

I'm not sure where you were going either. My wife earned far less than me, consequently her benefit was smaller than mine. However, had she outlived me [which she did not] she could have applied for my benefit.

SSA

You reminded me of where I was going. An unmarried woman who worked between the 50s and 2010s isn't likely to receive enough SS benefits to keep a roof over her head and groceries in the fridge. Far too many of them are homeless right now.

I know 2 women who married not long before retiring from their jobs mainly because of social security. Wait...more accurately, mainly because of the income gap.

 

[MACKTEXAS]

You reminded me of where I was going. An unmarried woman who worked between the 50s and 2010s isn't likely to receive enough SS benefits to keep a roof over her head and groceries in the fridge. Far too many of them are homeless right now.

I know 2 women who married not long before retiring from their jobs mainly because of social security. Wait...more accurately, mainly because of the income gap.

Yes, that's sadly true, since the benefit is based on what was paid into the system during their working years. They will not likely have enough money in savings to offset the shortfall from SSA. I strongly believe in saving for retirement, while at the same time recognizing that there are people not earning enough to do so.

 

[OneEyedDiva]

I don't know how this will eventually play out, but believe there would be massive political repercussions if there were a 23% reduction for current SS recipients.

My guess is it will be a combination of a small cut (maybe 10%) for some, a dramatic raise in the earnings cap, a raise in the contribution percentages paid by current workers and employers, change in the percentage of benefits given to early filers, making SS benefits fully tax-free, and perhaps other adjustments, as well.

Look for America's Social Security to be heavily discussed in the 2028, 2030 and 2032 elections, presuming they aren't addressed before then.

The possibility of a dramatic reduction in SS benefits reminds me how fortunate DH & I are to still be working part-time at something we love doing. We continue bringing in earned income and padding our retirement accounts, even at age 73.

In December, I had to take my first IRA distribution, but because of my earned income I could plunk that same amount into a different IRA. While I paid taxes on the distribution, the contribution was tax deductible. It all evened out, tax-wise.

I certainly hope you are right Star! It will be interesting indeed to see how this plays out. It's good that you and your husband are able to still work, continue to contribute to your nest egg and manage your RMDs the way you do. I've been retired for 28 years, yet still continued to fund my retirement nest egg.

Because I had the presence of mind to ignore "experts" about who should convert to a Roth, I did a conversion a couple of decades ago. One of the best financial moves I ever made. Since a good portion of my investments are in that account and since I've been sending my RMD distributions to a qualified charitable organization (St. Jude) for the last six years, those distributions are also tax free, Therefore, I pay very little in taxes on my investments.