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Originally Posted by retiredguy123
You are referring to the taxes paid on income while working. That has very little to do with the monthly Social Security income that a retiree receives when they retire. A low income worker can receive as much as 90 percent of their pre-retirement income as a SS retirement income benefit. But, a high income person will only receive about 15 or 20 percent of their pre-retirement income as a retirement benefit.
Also, both low income and high income workers will receive the exact same Medicare benefit, even though the high income worker paid a lot more in Medicare taxes while working. And, after you turn 65, you have to pay a monthly premium for Medicare Part B. But, that premium is based in your income. Low income people pay about $140 per month, but high income people can pay about $400 per month for the same health insurance benefit.
So, high income workers pay more SS and Medicare taxes while working, pay a higher Medicare premium when they retire, and receive substantially less money, on a pro-rated basis, in benefits than low income workers. That is just the way math works.
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It is even worse if still working after collecting SS. Get to pay into SS and medicare while paying for part B and a supplemental policy.
One thing I think you are overlooking. Higher income folks pay into SS up until a certain salary and than it stops. So if someone is making say $ 300,000 a year they only pay into SS for the first 150,000 or so in salary. (do not remember the cutoff as it changes year by year and no long in that category.