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Posted on 7/11/26 at 9:08 am to DownshiftAndFloorIt
quote:
It has to go away right now. Im in my 30's and willing to forfeit everything I have paid in right now under 2 conditions: 1) I never have to pay into it again 2) my kids never have to pay a nickel for whatever kind of shitty replacement the government rolls out immediately after. Social security is a fricking revenue stream for the government and it needs to be taken out back and shot right now. Its going to be ugly for someone. Id rather it be me than my kids.
How noble of you. All of us old farts were saying the same thing 30 years when we were in our 30's too. My guess is you won't be so willing to forfeit everything when the 10's of thousands that you put in becomes hundreds of thousands over the next 30 years.
Posted on 7/11/26 at 9:36 am to Sho Nuff
quote:
I'm getting behind this more and more. I won't need it, so I would just invest it but a part of me feels like if it's still fully there for me in 11 years then I want to get in on it before it diminishes.
Taking it early just to invest it sounds good on paper, but the math usually works against you for a few reasons:
The Tax Drag: If you don't 'need' the money, you likely have other income. That means up to 85% of your Social Security check will be taxed at your ordinary income rate before you even get to invest it. You're fighting a double tax hit once those investments grow.
The 8% Hurdle: For every year you wait past Full Retirement Age until age 70, your benefit increases by a guaranteed, inflation-adjusted 8% per year. You'd have to take on market risk to consistently beat a guaranteed 8% return after paying taxes on the money upfront.
The Earnings Test: If you're still working and earning a good income when you claim early, the IRS will withhold $1 for every $2 you make over the annual limit anyway.
The system is set up to penalize early drawdowns. Unless there's a serious health/life expectancy issue, letting that guaranteed 8% compound growth ride is almost always the mathematically better move. Your CFP should have explained this to you otherwise she is right, you probably need to wait.
This post was edited on 7/11/26 at 9:39 am
Posted on 7/11/26 at 9:37 am to GeorgePaton
quote:
Social Security benefits will NOT be there for you when you decide to retire.
Would you like to place a wager?
Posted on 7/11/26 at 9:50 am to armytiger96
quote:True perhaps.
My guess is you won't be so willing to forfeit everything when the 10's of thousands that you put in becomes hundreds of thousands over the next 30 years.
But more importantly, because of the unique debt obligation structure of Social Security, I am not sure the government has the ability to take Social Security away from retirees or near retirees, even if it wanted to. It is what it is.
Certainly, we would all be far better off had W's plan for partial privatization been implemented in the early 2000s. However, Congress, even at the lower debt levels we were running at that time, had no desire to get rid of the Social Security debt vehicle. Ironically, Democrats, who claim to represent the common man, engaged in a massive and successful ad campaign undercutting W's plan.
The problem is people then, and people now, have no real idea as to what Social Security actually is, and what it is not. We see that fact manifested clearly in this thread.
Lincoln said, "You can fool some of the people all of the time; you can fool all of the people some of the time; but you can't fool all of the people all of the time." FDR proved him wrong with Social Security.
Posted on 7/11/26 at 10:00 am to armytiger96
quote:
How noble of you. All of us old farts were saying the same thing 30 years when we were in our 30's too. My guess is you won't be so willing to forfeit everything when the 10's of thousands that you put in becomes hundreds of thousands over the next 30 years
This is always the problem. No one wants to be left holding the bag. Someone, inevitably will.
And the other hard part it is reconciling that it was never your money once it was withheld; it was paid into to support a system. As in, it’s not a separate account for anyone person held in trust.
Posted on 7/11/26 at 10:03 am to La Place Mike
quote:The equation as I see it runs something like this:
If you don't 'need' the money, you likely have other income.
• If you don't need the money, take it early.
• If you feel you will need the money in retirement, it is best to continue drawing a paycheck as long as you can, and then when you draw your Social Security check, receive the larger monthly payment to help with expenses.
The entire premise of SS payout is actuarial. Meaning it is calculated based on anticipated longevity. If I recall correctly, the "crossover point" hits at around age 81.
In other words, if one takes payout at age 62, vs 67, vs 70, the sum totals will be equivalent at the crossover point. But that assumes the 70 year-old does not die prior to the crossover, and it assumes the 62 year-old does not invest any of the money. With investment, the 62 year old's crossover point is pushed toward age 90.
Posted on 7/11/26 at 10:07 am to SparkyWilson
quote:Uniquely, with Social Security, that is not exactly true. Every penny contributed is immediately converted into a US debt obligation. An obligation is just that, an obligation. In the case of Social Security that obligation falls under the premise of the 14th amendment. No other program in our government is set up that way.
And the other hard part it is reconciling that it was never your money once it was withheld
Posted on 7/11/26 at 10:10 am to Ramblin Wreck
I’m probably between 600-700
K paid in if employers match which I think that’s how it works
I will currently get 2,800 monthly if I punch out at 62
4800 if I wait until 67
K paid in if employers match which I think that’s how it works
I will currently get 2,800 monthly if I punch out at 62
4800 if I wait until 67
Posted on 7/11/26 at 10:14 am to La Place Mike
quote:Right.
Would you like to place a wager?
Unfortunately, he would lose that wager.
I say "unfortunately," because it's a virtual certainty that Congress will ""fix"" Social Security by simply raising the payroll tax, and pushing back age of eligibility.
Translation: Congress will expand the most reliable, cheapest debt vehicle (which is what Social Security is) it has it it's disposal, by increasing the payroll tax burden and taking more of our money.
When one understands what Social Security is, that eventual outcome is as predictable as sunrise.
Posted on 7/11/26 at 10:39 am to La Place Mike
quote:
Even if you count the employer match AND your Medicare taxes, your math is completely full of it. You’re 59. That means you started working in 1983. If we look at the absolute Maximum Total FICA Tax (Social Security + Medicare + Employer Match) a person could legally pay in the 1980s and 1990s, it was tiny. In 1983, the absolute max total FICA tax anyone could pay (combining both you and your employer) was $4,783 for the entire year. In 1990, it was $11,848. In 1995, it was $14,352. Even if you were somehow a 16-year-old CEO making six figures in 1983, and you maxed out every single year of your life for 43 years, your combined Social Security totals only hit about $490,000 today. And since we know you weren't hitting the absolute maximum wage cap as a teenager in 1983, your real Social Security track isn't anywhere close to that. You are misreading an estimated projection or a grand total, because the actual tax caps from 1983 to 2005 literally don't allow the math to add up to $500k. Quit making up numbers.
I’m close to 400k at 45 between my contributions and employer for Medicare and Social security. Wife is right there with me. Didn’t start maxing until 2014.
Posted on 7/11/26 at 11:48 am to SparkyWilson
quote:
And the other hard part it is reconciling that it was never your money once it was withheld;
Well not quite. I can go to the SSA website and click the "my social security account" link, log in to "my account", see every penny that I have paid and when I paid it. I can also see that Uncle Sam acknowledges his obligation to me since I have earned over 40 credits "qualify for full benefits" along with my projections of payouts. I'm going to go out on a limb here and say that my SSN is my account number.
It may not be "my money" once it was withheld but it was definitely my premium payment into a government forced pension plan that I have had no interest in participating in for the last 30+ years.
No one needs to be left "holding the bag". They can let the younger generations off the hook by letting them completely opt out or go to a George Bush type program where it becomes a true individual account with their money that they can pass on to their heirs. The Govt would need to shore up any shortfalls from the general fund before sending out foreign aid or funding other pork projects.
At the end of the day its an obligation of debt and should be treated as such.
Posted on 7/11/26 at 12:01 pm to Old Sarge
quote:
I’m probably between 600-700
Sarge I hate to be the one to break it to you but this is mathematically impossible. Especially, for an "Old Sarge"
This post was edited on 7/11/26 at 12:08 pm
Posted on 7/11/26 at 12:14 pm to armytiger96
Let’s see
47 years working 40+ hours per week when I am 64
Average probably 9000 (I’m maxed out at least 31 of those years
That’s 423,000 from me
Doesn’t the employer match?
That’s over 800 k
My post said including the employer match
47 years working 40+ hours per week when I am 64
Average probably 9000 (I’m maxed out at least 31 of those years
That’s 423,000 from me
Doesn’t the employer match?
That’s over 800 k
My post said including the employer match
Posted on 7/11/26 at 12:15 pm to armytiger96
quote:
Yes, employers are required by law to match your Social Security contributions. Under the Federal Insurance Contributions Act (FICA), you both pay 6.2% of your gross
Posted on 7/11/26 at 12:24 pm to Old Sarge
quote:
Average probably 9000 (I’m maxed out at least 31 of those years
Here's your problem you didn't average $9000 over 40 years. The first year the maximum contribution of $9000 was in 2023. Its $11K in 2026. Based on info you've provided your avg is probably closer to $5,000.
If you trust co pilot the total maximum anyone paid from 1980 to 2026 with employer contributions just over $500K
You're likely somewhere between $450 and $500K including employer match. I'm just busting your balls! Thanks for your service.
This post was edited on 7/11/26 at 12:44 pm
Posted on 7/11/26 at 12:58 pm to NBR_Exile
quote:
Go to SSA.gov, create an account and can see all of your info. Don’t need a mailer. Saves money.
Gigantic pain in the arse, and there's no way that saves money.
Posted on 7/11/26 at 1:04 pm to armytiger96
No thank you for your service, my user name is just Texas A&M’s mascot
Posted on 7/11/26 at 1:06 pm to armytiger96
quote:
If you paid the maximum Social Security tax every year from 2001 through 2026, you will have paid approximately $194,152 as an employee.
That’s almost 400 k for just 25 years
Posted on 7/11/26 at 1:10 pm to faraway
quote:
if you're 30, that's a terrible deal.
How can a 30 year old have contributed that much to SS at 30 given the cap??
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