Okay, like it or hate it (seems it breaks down a lot based on how old you are) there is a ~20% cut coming to all benefits in less than a decade. From my understanding that will leave it somewhat solvent for quite a long time afterwards.
My question is this: will this cut not solve a lot (not all) of the bitching about SS? Sure, everyone will still be paying FICA taxes but the program itself will take a 20% haircut. I can’t see any other government program taking a pre-programmed hit like that. For all those who complain about SS, you will be getting a partial wish in 2030, far more than you will see in any other entitlement program.
RRB is a federal agency. Due to high average incomes, and a lot more payroll tax for tier 1 and tier 2 RRB is solvent as far out as the actuaries can project.
Hmm. Was not aware, thanks. Learned something new. So do RR employers have retirement benefits on top of that, as with SS? Or is that a stand alone thing?
Stand alone, I have a private retirement account (401K) as well. No company provided pension though.
For reference a current married RR employee with 30 years of service and an average income over their best 60 months of about $120-$125K/year (averaged) would see about $90K year in RRB retirement benefits between the RR employee and spouse upon retirement at age 60.
I’m cautiously optimistic I’ll get out of this shithole a self made millionaire in my retirement accounts, and the RRB will be gravy on top.
I can see a number of ways to boost retirement funding.
Maybe someone in this Administration will pick up on it.
Nobody will cut SS. Any Politican who did might as well stand on Hollywood and Vine and cut their own throat.
They lack imagination.
While I can’t say I’m happy about it, something needs to be done. SS as it stands is a shitshow. They passed a tax increase and passed it off as a retirement plan. It’s been garbage from the outset, like all ponzi schemes. Trouble is that now that scheme is generationally ingrained into public expectations. Had they not blown through the capital (and then some) as it came in perhaps it could have been a truly spectacular program. Too bad that was never the plan.
Gotta admit this thread makes me a bit envious of that RRB system. My little bit of research leads me to believe that it was not looted as much by Congress as SS, was better managed, at at least since around 2000 has been utilizing investment for capital growth. Not gonna let jealousy get the better of me though. Just gonna say, “good for them”. They paid a higher rate, got a two tier system, and it looks like they are in pretty good shape.
Bottom line, I haven’t counted on SS for my retirement. If it was to collapse entirely I wouldn’t really suffer in a personal asset perspective.It would destroy a whole lot of people though, and decimate the national economy. So it can’t selfishly say “I’ll be fine” cause I wouldn’t be. It would probably be more like having a boat on a dry lakebed. I’d be stuck in the sand along with everyone else.
While I’m not sure what the definitive answer is, perhaps allowing the 20% cut to go into effect will ensure that people at least will get the 80%. Better than nothing I guess.
What I don’t want to see is it turned into another welfare program that incorporates means testing (I despise that phrase with a passion, it’s communist in ideation), i.e. Joe the Brokedick has lived frivolously his whole life so doesn’t have shit, then he will get your SS because you had the forethought and audacity to set something aside. Screw that shit. People also aren’t stupid; institute something like means testing and folks near retirement will dump or hide assets in order to be just below the cutoff. The rest will ensure that they only contribute to their 401K just enough to stay below that cutoff (or stop entirely when they reach it), which translates to more take-home pay throughout their working lives.
The fact, as you mentioned, that it has become ingrained in society sets up a very touchy situation: no one wants to be the guy left standing when the music stops. No one wants to be the one to “take one for the team” and get left holding the [empty] bag. When it comes to $$$ and livelihood, there ain’t no “team”! No “good of the country” when it comes to your wallet being empty.
Tough situation. Maybe just let the cut happen? I dunno.
I thought I’d never see SS survive until I retired, so I never planned on it. If it’s still there in 6 years when I’m eligible, it will simply be used to pay for fun stuff that I’ve put off for years… boat, snowmobiles, guns??? I don’t know yet, but I won’t need it for retirement.
