No. of Recommendations: 0
>> So if I have paid SS for over 40 years but have an income over $100,000, I would get nothing ? Huge disincentive for private savings and continuing to do some work(which would put money into the SS coffers). <<

Well, you can plug in different specific numbers, but in any event it doesn't seem to me that a $50,000 phaseout range would discourage private saving when at most SS would probably pay out about $20,000. I'm not going to blow all my money and fail to save so I can earn $69,000 in retirement ($49K plus $20K in SS) instead of $100,000.

Make it a dollar-for-dollar phaseout, though -- you make an extra dollar, you lose a dollar in benefits -- and the equation *does* change to one of significant disincentive to save. Make the phaseout 3-to-1 or 5-to-1, and not so much. This goes back to what I said before; the phaseout, if any, would need to be gradual enough to avoid creating an incentive to blow all your cash and live off of government (read: taxpayer) largesse.

The bottom line is that this can't be fixed without someone's ox getting gored. And it has to be fixed. I'd prefer to see something that distributes the pain of the goring fairly equitably across generations and economic classes.

#29
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement