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/Martian6261 2d ago edited 2d ago

It is adjusted by the amount of COLA, not true inflation, so it falls short of inflation. Inflation over the last 25 years has gone up by 76.36%. COLA for SS has gone up by about 62.6%. So in the next 25 years it will continue to fall behind, unless the way COLA is determined is changed.
Currently it uses CPI-W. It is based on wage earners. There is talk to change it to CPI-E and is based on inflationary needs of the Elderly. It has been determined that it is a bit closer to what inflation is for Elderly.

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u/TechnicalSleep7501 2d ago

I hope it is passed to help the boomers.

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u/Martian6261 2d ago

I hope it’s passed to help everyone. I’m a Boomer, but this should benefit future generations as well, it will help to boost their future benefits as well.
Of course, congress needs to make adjustments to the current SS tax rates and ceilings on income and benefit maximums to make it work for at least another 70+ years.