re: The Coming Social Security Crisis

quote:

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Something tells me people tend to over estimate how much they pay in to social security

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Agreed
As of last year, I paid in $116,675 and my employers paid $130,154.
I'm mid 40s.

The maximum income (not tax... income) available for social security tax in 1990 was $51,300.
The max income in 2000 was $76,200.
The max income in 2010 $106,800.
The max income in 2020 $137,700.

I've pretty much been around that max from 2000 to 2020 (my taxable income hasn't continued at the inflated pace the past 3 years. And my bussing tables/waiter wasn't at that pace in the 90s).

Edit to add: if I stop working now and retire at full retirement age, I get what I and my employer paid in with almost 6 years of benefits.
Keep in mind that my wife is eligible for an additional 50% of what I get and there is no "pay in requirement" for the spousal benefit.