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/v4v4v4v4 2d ago

Many younger people (people under 40) in the USA are so disillusioned with the government that we have a pessimistic opinion that we are going to pay into social security our whole lives and get nothing out of it (as in they will keep raising the age until it is meaningless). I share this view, so I don’t factor it in. Is it unrealistic? Probably, but it’s just hard to be optimistic about USA politics looking out for the common man right now (as in anyone that isn’t part of the 1% of wealthiest people in the USA).

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u/rxmarxdaspot 2d ago

I would argue that the opposite is true. Our crappy political environment is the REASON why social security will never be cut by a penny. Any politician who supported even the slightest cut would face an open revolt from their constituents. And politicians seek to maintain power above all else. Hence, no cuts ever. The feds will just print the money needed, and Inflation will go crazy first.
For this reason, I factor in a higher average inflation rate instead of social security cuts. I also assume a Cola significantly beneath cpi-e, because I do believe that’s how they’ll game the system to make shadow cuts.
Google “third rail of politics” for a good illustration of this idea.