Social Security Trust Fund will be empty by 2032

[MaxPC]

This not a political thread. It is a Query for Practicing Anabaptists only:

This headline is according to sources who administer SSI. They predict SSI checks to the elderly will be reduced by 25%.

What suggestions can Anabaptists provide to address this situation?

[barnhart]

I find the income ceiling for social security tax rather regressive, taxing all income below the cutoff and none above it. In effect lower middle class people are taxed on all their income while top earners are only taxed on the first 150,000$. Why not tax every one on the same percentage of their income.

[RZehr]

Many, if not most, of the plainest practicing Anabaptists, are exempt from paying SS tax. And they then can’t collect it either.
So it’s another one of those things that doesn’t directly affect them. Sort of like public schools.

[ken_sylvania]

Many, if not most, of the plainest practicing Anabaptists, are exempt from paying SS tax. And they then can’t collect it either.
So it’s another one of those things that doesn’t directly affect them. Sort of like public schools.

And then there are those like myself who have worked for non-exempt employers and so have paid in thousands but will not collect any of it.

I didn't realize that Ken considers himself Anabaptist.

[ohio jones]

I didn't realize that Ken considers himself Anabaptist.

Posts have been moved pending examination of credentials.

[Josh]

I find the income ceiling for social security tax rather regressive, taxing all income below the cutoff and none above it. In effect lower middle class people are taxed on all their income while top earners are only taxed on the first 150,000$. Why not tax every one on the same percentage of their income.

Barnhart,

What suggestions can Anabaptists provide to address this situation?

What are you suggesting Anabaptists do?

[mike]

This not a political thread. It is a Query for Practicing Anabaptists only:

This headline is according to sources who administer SSI. They predict SSI checks to the elderly will be reduced by 25%.

What suggestions can Anabaptists provide to address this situation?

Not depend solely on SSI income in retirement.
Prepare to aid and assist the elderly among us where needed.

For those Anabaptists who have been SSI exempt, it's not that big a deal, because they are already independent of the system.

[Neto]

Some people (in government) say that SS will never be allowed to fail. But governments have made all kinds of promises to us (I'm thinking specifically of Dutch Mennonites in Russia, for example, but probably applicable to those here as well), then have changed all of that when it was convenient for them. But this is different in that it doesn't apply to just one group or demographic. We will not, however, have any choice if they DO significantly reduce or terminate this program, so we should always be conscious of the fact that no earthly power or promise is reliable.
If the question regarding advice is intended for the government, then I do not have any. If it is intended for us ourselves, then I'd say don't depend on it. They already tell you that it will not be enough to rely on as a single source of retirement income, and allowable taxable reductions are built into the tax code to help with this. To anyone who is NOT participating in SS, I'd say you ought to be saving that 15% yourselves. If you do that, some will say that you'll be ahead financially in comparison to SS participants. Some non-participants are critical of those who are paying in, but those people should not be just spending all of that 15% of their income every year, and then think they can just expect everyone else to bail them out later. I'm not saying that no such person should be helped when in need, but just that it is inconsiderate to not prepare in any way, then expect lots of help from those who have been diligent savers and who have limited their spending for their entire lives. Yes, I know, selfishness goes both ways, so that's a warning to both groups.

[Josh]

I would posit you should be giving that 15% away, including to your children to help them get started in their young lives. The only thing that takes care of an old person too old to work is a younger person.

Back on topic, Social Security is raising the retirement age to 70, even as U.S. life expectancy continues to decline. Originally it was supposed to be Old Age, Survivors’, and Disability Insurance - it “insured” people who lived into old age past the age they could work, which was not the norm. Perhaps it should return to being such a thing.

[mike]

I would posit you should be giving that 15% away, including to your children to help them get started in their young lives. The only thing that takes care of an old person too old to work is a younger person.

Back on topic, Social Security is raising the retirement age to 70, even as U.S. life expectancy continues to decline. Originally it was supposed to be Old Age, Survivors’, and Disability Insurance - it “insured” people who lived into old age past the age they could work, which was not the norm. Perhaps it should return to being such a thing.

The way I've seen it work in family members (Amish and others) who are SSI exempt is not that they stashed away 15% of their income in cash for retirement. Rather they owned real estate or businesses that could be liquidated to provide for them in retirement, or that could be passed on to children who then cared for them until their death. There definitely are instances where SSI exempt persons experience some level of poverty in their older years, but still are fully cared for and supported by their family. Needs are met.

Both of my sets of Amish grandparents were SSI exempt but well provided for in their old age (my grandfathers lived to 89 and 92) and even had a little money to pass on to their children.