Social Security

The Good, Bad and Ugly

You could say that here at Higgins & DeYoung November is “Social Security Awareness Month.” We are holding three separate events to highlight the history and opportunities with Social Security. Here are some interesting tidbits that hopefully get your wheels turning. For those between 50 and 66, you should reserve a spot at our event, you’ll leave much smarter than your friends!

You Mad at me Bro?
Get over it. Social security wasn’t meant to be fair. It isn’t insurance which is based on equity and contractual obligations. It’s technically “social insurance” which is statutory and based on social adequacy. An Individual who was a lower income* earner born in 1964 will realize a 4.41% return on their contributions. The same individual with a high income* will realize .67% return.

And you thought a gallon of milk went up?
In 1936 the maximum amount an individual could pay in in Social Security tax was $30. Based on U.S. Government inflation statistics since 1936 the maximum tax would be $513.74 today. Currently, the maximum social security tax is $14,508. The maximum tax has increased 28 times faster than actual inflation. In addition the maximum tax has increased more than 8 times faster than the average benefit.

Can’t live with it, can’t live without it
Social Security benefits are a critical component to a financial plan. An individual who is 50 years old, earns $125,000 per year, planning to retire at age 65 and currently has $1,0000,000 invested for retirement is 40% more likely to meet their retirement goals than an individual without Social Security benefits.**

Attend our Social Security “Lunch and Learn” events in November to learn how you can squeeze the most of this orange.