No. of Recommendations: 60
Over the years, I have agreed with almost every post by Ralph, but I could not disagree more with his suggestion that we limit someone’s social security payments based on income. Often called “means testing”, this approach completely undermines the foundation of how SS was sold to we participants and that is “you put your money in and you get it back out based on a standard formula for all participants”. Using “means testing” while seemingly a fair approach is exactly the wrong approach IMHP.

My strong opinion is best supported by an example of fairness shown by neighbor A (saver & investor) and neighbor B (spendthrift & debtor). A & B, having identical income choose to live completely different life styles prior to qualifying for SS retirement. At retirement neighbor A had accumulated a nice investment account that would make their final years more comfortable. So with “means testing” the government will tell A, sorry your SS will be cut or diminished due to your lifetime of deferred gratification. Neighbor B, on the other hand, will be awarded full SS payments for living a frivolous life.

In my opinion this is not fair, but also sends the wrong message to “we” Americans as to how to conduct our lives.

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