Quote:
Originally Posted by Stu from NYC
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.
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Correct. The maximum salary you need to pay the Social Security tax on is $137,700. But, there is no income limit on the 1.45 percent Medicare tax. If you make the income maximum, and collect your benefit at age 62, you will only receive about 20 percent of that income in a SS retirement benefit. However, my point is that those in the lowest income bracket can receive about 90 percent of their pre-retirement income in SS retirement benefits. I am not saying it is wrong, but SS retirement benefits are greatly skewed in favor of low income workers. And the Medicare benefit is even more skewed.