"David S. Meyers, CFP(R)" <
mi...@meyersmoney.com> wrote in message
news:95526996-6995-4295...@googlegroups.com...
>
> Wrote this about a month ago and thought folks here might find it helpful:
>
> <
https://meyersmoney.wordpress.com/2015/03/14/how-are-social-security-benefits-computed-and-what-are-wep-and-gpo/>
>
> Debunks a few myths about Social Security up front, then demonstrates how
> basic benefits are computed. (Folks are often shocked by how steeply
> /progressive/ the benefits are -- SS replaces most of the income for
> lower-earning folks, but a much lower percentage for higher-earning
> folks).
>
> Also discusses WEP and GPO -- the Windfall Elimination Provision (which
> typically affects teachers and others who had non-SS-covered earnings -
> i.e., folks with separate pensions) - and why the WEP isn't nearly as
> unfair as certain organizations keep trying to paint it; as well as the
> GPO - the Government Pension Offset - which, similarly, is often painted,
> similarly, as highly unfair.
>
> Any feedback always very much welcome.
How will the "substantial assets" of the system be "sold off" when needed?
The assets are bonds held by the federal governement. Who would buy these
assets? Where will the cash come from? Higher taxes?
Where will this system evolve? One politician has proposed ZERO benefits
for high income people. Bummer for the bigger contributors, who already have
a lower benefit ratio, as you point out, and who have their SS payments
taxed heavily.
I suggest your next blog discuss the alternative systems, such as used by
Australia. They realize much more must be collected from all to have a
meaningful system.
The biggest problem with our SS system is that it is portrayed as magic.
You don't have an account, they are not your assets, it is "insurance" which
people think will pay them plenty. So not only do they not understand the
limitations of our SS system, they get dumbed down to thinking there is
financial magic, and pay less heed to their own finances, especially for
their retirement.
I predicted 50 years ago that there will not be any money for me from SS. I
am seeing how wise a young lad I was indeed.