Social Security

I didn't realize that 31 percent of Social Security payments go to the disabled and survivor children. Represenative Steny Hoyer of Maryland, the House Democratic whip said that cutting Social Security benefits to these two groups should be considered as options for improving the programs finances along with raising the current retirement age from 67 as well as the amount of income subject to taxation which is currently capped at $90,000.

This would directly effect me as my husband receives disability payments. His payments were cut last year when he became eligible for Medicare and that hurt us. Another cut in his benefits would hurt as well. I personally have no problem with raising the income cap. I don't know why it was capped at $90K. I'm not being argumentative or saying that the "evil rich" (a group to which I aspire) should pay more, I honestly don't know how that figure was chosen instead of, say $100K or $125K, $150K, or even $200K (I like round figures).

I would also be effected if the retirement age were raised. I've discussed this before, but because of rules of the Florida Retirement System, I have to decide within the next seven years whether I will retire under the DROP (deferred retirement option) or not. If I chose to "DROP", I can work for another 5 years with my retirement pay going into a special account where it will accumulate interest. I will have approximately (depending on interest rates) $115K in that account which I will gain control of when I terminate the DROP after five years. So, you bet I will "DROP" unless I win the lottery in the meantime, that is. But since I don't remember to buy lottery tickets, I guess I can't depend on that option.

As it stands now, I will have five years between retirement from my job and being able to collect whatever Social Security payment I am due. If the retirement age is raised, that will add more years. I am anticipating taking a part-time job after retirement simply because I have a need to have periodic human contact. Any extra money would be nice, but I would rather work because I need it emotionally or mentally rather that needing it to live on. And no, I don't want to count on Social Security, but I am of the generation that was encouraged to max out credit cards. And I always was an overacheiver in some respects. My husband and I both made poor choice and we are paying for it now. The money that would have been invested for retirement is now going to pay off those "tools of the devil."

I did some number crunching the other day, and if I could put my Social Security into a private account that compounded monthly at 3.5% (not sure where I got that interest rate) and got some very nice figures for the next 12 years. I won't reveal what the figures are (mainly because I am sure that I must have made a mistake somewhere!), but they are very nice. If they are anywhere near correct, Dale and I could live very nicely for many years on just my Social Security payments.

Private accounts? Bring 'em on!