Proposals for cutting future retirees Social Security
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So it’s like a government run pension plan that people pay into while they are working rather than an old age benefit.
Elbows up!
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So it’s like a government run pension plan that people pay into while they are working rather than an old age benefit.
@Renauda said in Proposals for cutting future retirees Social Security:
So it’s like a government run pension plan that people pay into while they are working rather than an old age benefit.
Right, but then they talk about cutting it as thought it's a benefit, which essentially turns our previous contributions into a tax. Which is bullshit.
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@Renauda said in Proposals for cutting future retirees Social Security:
So it’s like a government run pension plan that people pay into while they are working rather than an old age benefit.
Right, but then they talk about cutting it as thought it's a benefit, which essentially turns our previous contributions into a tax. Which is bullshit.
That is precisely why the Canada Pension Plan is kept arms length and separate from the Government of Canada. The Old Age Security benefit is exactly that, a scaled benefit paid out to all seniors whose annual personal income is below a certain threshold. I know at least two retired seniors whose six digit high annual income disqualifies them from the OAS benefit but they still receive the full entitlement amount of CPP they paid into while they were working. I think that is a fair deal as they continue to pay income tax on their retirement income from investments and family trusts.
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So it’s like a government run pension plan that people pay into while they are working rather than an old age benefit.
@Renauda said in Proposals for cutting future retirees Social Security:
So it’s like a government run pension plan that people pay into while they are working rather than an old age benefit.
It’s a hybrid. It is mandatory with a few exclusions, namely people who qualify for certain other government pensions. Putting them aside, everyone has to pay in (as does their employer) and everyone gets a check - even Michael Bloomberg and Bill Gates. The amount you get is loosely related to how much you paid in.
As Mik pointed out there’s also SSDI, or social security disability insurance, which pays the disabled. Also varies loosely on what you paid in.
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If SS is substantially reduced by the time I get there, I'll sue! Or maybe write a letter IN ALL CAPS. It's a breach of contract, sort of... to pay into something all your life only for it to change later?
Either way, all of this seems futile. Yeah it might save $100 billion over 9 years but that is less than 1% of the spending $15 trillion in just interest payments on national debt!
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I consider paying off my house entirely and devoting a large part of my paycheck to a Roth 401k.
@Horace said in Proposals for cutting future retirees Social Security:
I consider paying off my house entirely and devoting a large part of my paycheck to a Roth 401k.
You may be making too much to make that desirable, I don't know. We have done some conversion but it's pretty much a wash.
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If SS is substantially reduced by the time I get there, I'll sue! Or maybe write a letter IN ALL CAPS. It's a breach of contract, sort of... to pay into something all your life only for it to change later?
Either way, all of this seems futile. Yeah it might save $100 billion over 9 years but that is less than 1% of the spending $15 trillion in just interest payments on national debt!
