Money Matters
athomas2424
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Will you still get Social Security if you are currently in your 20s?
My DH and I both just turned 30. I keep hearing that by the time we are of age to receive social security, we basically will not see any of it. Or else we will be too old to ever enjoy it because they plan to increase the age you can even receive it at.
Just wondering your thoughts on this. I noticed we are both paying a lot into SS from our paychecks and I sure would like to see some of that early enough to enjoy it later on!
Re: Will you still get Social Security if you are currently in your 20s?
All I have to say is that I'm very happy I do not pay into this system. I am a public school teacher in Texas and so we pay into TRS instead.
The problem with SS is that Congress has considered it a piggy bank from which they can borrow money and never repay it. So the money you are paying in today is actually paying your Grandparents SS because their money was taken out by Congress. That system will only continue to work if benefits are significantly slashed, they raise the tax, or Congress finds a way to return the money they took. So no, I do not expect it to be there for me or anyone in my generation.
I would not plan for it to be there! If it is still around by the time you retire consider it a bonus, but do not depend on it.
There has been a lot of talk about this. Me personally, I think it will be there, just not in the same form it is currently or has been in the past. Meaning, our generation shouldn't rely on living off it like our grandparents could/are.
We are setting up our financial goals to not rely on it. If it is there, then it is an added bonus.
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What's TRS stand for? I don't think we pay into SS either
I think it stand for Texas Retirement System. It's not unusual- I know my dad had something similar to this and he worked in MN in a state job- if you are working for a school district, the state, police, fire a lot of those will pay into other systems but it depends on your state. (Just based on my experience- can't speak for all 50 states, only lived in 3!)
I can't say if it will be there, but the one thing I will recommend is to 1) pay attention to the debates in DC as to how to resolve the future of Social Security, and 2) vote according to your beliefs/interests.
It really doesn't matter what political party you support, basically no one wants to touch Social Security benefits. It's an entitlement program that has not taken in enough to support the population into the future. There's enough now, and for maybe the next 20 years, but not into infinity. There have been many discussions about ways to increase the intake, and reduce the outtake; still talking, LOL.
Pay attention to politics. Vote. Vote. Vote. I'm not saying any of the posters here are non-voters, but everyone needs to look out for all the issues and form an opinion on what's important to them.
I'm usually conservative with financial decisions, so I am not planning on it being there by the time I retire.
You can't have a meaningful debate about Social Security without taking about Medicare. The problem is they are entitlements.
I didn't look this up so some of the #s might not be perfectly accurate but the basic problem highlights are as follows.
* When Social Security was created life expectancy was in the high 50s / low 60s so they set the entitlement at 65, an age most people were not expected to reach. Life expectancy today is about 80 so the majority of people collect for about 15+ years. So instead of a system where few people were expected to ever live long enough to get the benefit now almost everyone collects.
If they want to "fix" this they have to raise the age of eligibility but so many people think this a right to get it at 65 & groups like AARP scream that the country is abusing seniors if the government even talks about rasing the age.
* When SS was created, the young people (workers) outnumbered the collectors. You had about 5 people paying in for every 1 person collecting. It's almost oppposite now because the Boomers far outnumber the Gen X, Gen Y & Millenials put together
* Medicare -- the health insurance portion that becomes your primary coverage after age 65 is not need based. The single grandmother who never earned more than minimum wage in her life will get the same coverage as Bill Gates & Warren Buffett. For truly high earners (& I'm talking assets of at least $5 - $10 million), maybe there should be ceilings on their elegibility.
Pretty sure if you have $5 - $10 million you aren't too concerned about medicare.
Really like your take on it though. That's a very nice way of looking at it.
my grandparents had to get rid of a lot of their "assets" in order to get on medicare several years ago when my grandpa was in a nursing home with alzheimers.
Are you sure that wasn't Medicaid? Medicare does not pay for long term care. Medicaid does, but only for the indigent. Medicaid also recovers assets after death, and which ones (e.g., life insurance vs. savings accounts) depends on the state.
For OP, you will have to decide what you guess your likelihood of getting a meaningful amount of SS money is and whether you want to plan on it. With my specifics, I don't plan on SS being a notable amount.
I'd say that it will be greatly reduced. Something will need to be done to ensure its solvency. It's not feasible that there will only be two or three workers working for each retiree.
I will not have SS because in our state teachers don't get it.
Yes, she did do a good job explaining it. I feel that even if the person makes a lot of money, he or she paid into it just like everybody else. In that respect it is not an "entitlement" per se, but something that was promised and should be paid back. (just for argument's sake)