Are Social Security “catch-up contributions” an answer to retirement income worries?  What do you think?

4 thoughts on “Forbes post, “Social Security “Catch-Up Contributions” And The Quest For The Holy Grail”

  1. It is, as you say, a “muddled system”…but, then again, so is yours…the place to start to save SS going forward is to eliminate the income cap on SS taxes, then to see how far that gets us in the years ahead (if that alone were done a decade or two ago there would be no SS crisis (or upcoming crisis) now,,,

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  2. The people that the proposal most want to help are those most likely having difficulty paying health care costs. . Studies show many lower income individuals have reduced contributions to retirement plans to pay for health care. People don’t make financial decisions in a vacuum… other factors come into play.

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  3. I am one of the authors of the study, and also a fan of Jane the Actuary. Jane doesn’t have to take our word that the program won’t increase the Social Security shortfall. The Urban Institute ran it through the respected DTYNASIM model and confirmed it wouldn’t. And as we point out in the paper, catch-up would be attractive to high earners notwithstanding the low rate of return, because it enables them to buy lifetime income on terms far more favorable than those obtainable from an insurance company

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