I am generally a low-tax proponent, but recent tax cutting by Congress is getting me a little worried about Social Security. The employee’s portion of the payroll tax has been cut from 6.1% to 4.1%. What can that mean for future retirees?
That may be acceptable to 20-year olds but not to baby boomers like me. Our retirement plan includes income from Social Security retirement benefits, as estimated in the annual statements we receive. If those estimates end up being wrong because of changes to the benefit schedule ……
I have to think that if the payroll tax cut is extended beyond 2011, any future changes to Social Security benefits will not be applied to those of us who are close to retirement. It would be unconscionable otherwise.
Nevertheless, I intend to bank the extra money in my paycheck, just in case. This will not be a spending stimulus for us. What about you?