Thinking More About Social Security

When I was 30 I didn't think much about Social Security (SS) except that I assumed that it would not be there when I retired.  So I started saving for retirement as if SS would not be there, or that the government would start means testing and deny benefits to anyone who had even a modicum of assets.

Over two decades later I can see the retirement light at the end of the work tunnel, and I find I want my  #)($*%# Social Security money!  Yeah, I planned ahead and I could live without it fine, but I've paid a lot into it for over three decades and I want back what was taken from me.  I am also tired of the free loaders who either never put in or took out a lot more than they put in, so I think it just fair that I at least get back what was stripped out of my paycheck for my entire career, plus interest.

But at this point I am actually not afraid of it not being there or being denied.  SS is too politically loaded for "major" changes for people already in or near retirement.  There would be old people riots and all sorts of politicians losing their jobs.  As usual the democrats are pulling out the scare tactics in an election year, but no one with any common sense believes there will be major changes.

Zman commented a bit on SS today, more about how Republicans basically allow themselves to be beat upside the head on this topic.  When democrats say the other side is going to "eliminate SS!", the Republicans don't say "LIAR!".  They say "well, you do know that the trust fund does need some minor changes to help solvency blah blah blah for ten minutes".  Retirees and near-retirees don't want nuance and statistics, the want assurances that they will keep getting their money, even if younger generations have to be screwed.

Which was my point in the comment section.  SS will be forced into some changes within ten years. What will happen is that anyone over 40 won't see any changes, but anyone younger than that will have a year or so added for "full retirement", then there will be a bump in social security withholding.  Note that the max income they take SS goes up every year WAY over the inflation rate, so a SS tax increase is already baked in to income, they will just raise how much it is.

I agree with the lunacy of even bringing this (SS) up in an election year as the discussion is nuanced. But SS will have automatic cuts in benefits starting about 2033. It’s written into law. And apparently this is not hand wringing BS, it’s going to happen if not addressed 

Like my own SS benefits way back when, the typical answer is to raise the age for full benefits for people under 30 by a little and raise the withholding tax a bit. This of course makes everyone on or near SS feel no pain and puts the problem on the young. It’s the baby boomer solution to everything and what will happen.

But there is time to do this after the election and have it done in the back room. Or kick the can to 2030 when cuts are imminent and everyone panics.

The general response to my comment is that nothing will happen until midnight before the automatic SS cuts start in 2033, so in a bit less than 10 years.  I will be eligible to take SS then but probably not taking it yet as each year you wait, the greater the monthly payout.