I am not much a new year’s resolution maker, and this year is particularly difficult. As all of you savvy Gen Xers know, the new tax bill has been signed into law. I am a blue state resident and are concerned about the inevitable fallout from this.
More problematic than my own selfish tax issues, are the additions to the deficit and absolutely no positive fixes in place for Social Security and
Medicare, two issues that should concern you greatly if you are an Xer.
Whatever your political persuasion, I simply do not think it is fair to force us to contribute when there is so much uncertainty as to whether, and what amount, we will collect.
Just for fun, I went on the Social Security web site to plan for my retirement and found a link called Retirement Estimator. About halfway down the page, it notifies us as follows:
“Your estimated benefits are based on current law. The law governing benefit amounts may change because, by 2034, the payroll taxes collected will be enough to pay only about 79 cents for each dollar of scheduled benefits.”
So, if you are born in 1968, as I am, Social Security, as of now, will be paying less than the full benefit when I turn 66. I may be able to collect the full benefit for one year. After that… well, no promises. Of course, I contributed the full amount since, around 1982. I guess that’s my reward for hard work and honest tax compliance.
Approximately 3 million other people were born here in the United states in 1968. All of you, like I, will not be collecting what we are entitled to.
Sobering thoughts for a sobering time. Happy New Year!