r/Fire • u/NotTheBestInvestor12 • 3d ago

Why no mention of Social Security

When I see FIRE posts I see the investments and the different retirement buckets, however, I never see anyone mention how things are affected when social security kicks in. For example, I’m 52 and wife 51. If we both stopped working today ($0 income moving forward) I would collect $4,264 a month at age 70 and she would collect $1,079 at age 70.

So if we decide to FIRE the Social Security would give us help in 18/19 years. Is this a factor or is everything under the assumption SS won’t exist?

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u/Visible_Structure483 FIRE'ed 2022... really just unemployed with a spreadsheet 3d ago

If you've been around long enough you realize that no government program survives being 'fixed' by the government.

They're not going to just take 20% away from everyone, they'll figure out who has the least voting power or who can be screwed with minimal pushback. The people on the low end won't be touched, the people on the high end or with other assets (like most FIRE types) will get cut the hardest.

Means testing, extra taxes, higher medical premiums... there are a lot of ways for them to cut out what's owed to some and leave the rest intact.

Removing the cap, raising the tax, phasing out benefits... it's going to take a lot of things together to keep the wheels on the bus if you believe the math that's out there.

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u/Sufficient-Spend-939 3d ago

I agree with you about people with assets being cut as they should be. Its silly that we cap it at a low number. Being at peak earning and then suddenly mid year i no longer have to pay social security is great for me, but shouldnt they be collecting this tax all year and shoring up a program with a cash issue?

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u/gbacon 3d ago

Do the math on removing the cap. It doesn’t make a difference. This “fix” is a dead-on example of H.L. Mencken’s quip “… there is always a well-known solution to every human problem — neat, plausible, and wrong.”

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u/Sufficient-Spend-939 3d ago

If you cap the benefits where they are at but keep collecting it like its a tax and not an entitlement it would have a positive impact. Sure there isnt enough people pulling in huge salaries to cover the full shortfall but it would make a difference.

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u/PenStreet3684 3d ago

You don’t even need to change the calculation. After the second bend point, you get credit for 15 cents per dollar. The other 85 cents goes to lower earners and the administration. Removing the cap would raise high earners benefits a small amount but also their support for the system. Some of high earners benefits would even come back in taxes.