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Public-sector workers should retire later, so that full benefits kick in at the same age as applies to Social Security payouts.
The U.S. unemployment rate has stalled at 9.5 per cent, and Social Security payouts will exceed pay-ins for the first time this year.
CPAG also cited a recent warning from the International Monetary Fund that struggling countries which cut social security payouts and housing subsidies risk doing further damage to their economies.
In ten years or so when Social Security payouts exceed the pay-ins from payroll taxes–Uncle Sam will either have to raise taxes or borrow money to pay off those IOUs.
By paying living expenses partly with Roth withdrawals rather than just with withdrawals from their pretax ira and taxable accounts, they can hold their base amount at or below the $32,000 level, thereby protecting their Social Security payouts from taxation and paying only a small amount in federal tax.
Increased longevity is not a valid argument for changing social security payouts; it's phony.
Similar(51)
Mr. Laido asks if the maximum Social Security payout should increase since the amount of taxed income — earned plus unearned — would increase.
The Social Security payout should provide a reasonable standard of living to those who have little, not a supplementary payment to those who have much.
For more on how to get the biggest Social Security payout, click here.
The table shows the total Social Security payout a high-earning husband and his wife would get in net present dollars, assuming average life expectancies.
If the nation thinks a modest program of redistributing income is legitimate, then it uses a social security payout formula that gives disproportionate return to low wage-earners over high wage-earners.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com