Quote:
Originally Posted by M2inOR
RE: Social Security running out of money
Looks like 2034 is the tipping point if nothing is done.
Easiest thing Congress could do is raise the upper limit for the FICA deduction.
Something does need to be done as population growth is slowing and with baby boomers retiring, less workers to contribute.
Back in the late '70s when my working years started, there were warnings that SS would likely not be there when it was our turn to retire. My wife and I decided to max our IRA and 401K contributions. We worked in high tech, so there were no pensions.
So we saved. A lot!
Now that we are retired, and that we deferred our SS benefits until we turned 70, we got the 8% per year increase for our benefits and are now getting nearly the max monthly benefit offered. And we have our IRAs boosted because we converted our 401K funds.
As we don't know exactly what the future holds, we are also slowly converting those IRA funds into ROTH IRAs and paying the taxes now.
No chance that federal taxes will be lower in the future.
Those ROTH funds will make our estate simpler, and our heirs will not have to worry about taxes on those funds.
We now have Gen X and Y who probably not prepared for their retirement years.
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I don't think that US population is slowing if you count the illegals that don't want to be counted. Personally, I would like it to slow and then maybe the roads in Florida would catch up with the population growth.