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I have been paying into SSI since 1972, full time since 1976. The sum total of my payments is around $120,000. Over the next 7 years, that will probaly rise to around $170,000. If I were to retire as soon as I hit 62, it will take less than 9 years even at the reduced payments to be paid back every cent I put into the program. If I were to wait another 4 years for full retirement, It would take less than 7 years. After that, someone else's money will be paid covering my benefits.
The sad truth is that SSI is top-heavy now, and will only get more so as the number of retired baby boomers increases. It won't level off for about 30-40 years, when most of the boomer generation will be taking the dirt nap. We have to work on getting the program through that time period in fiscally sound condition. Even raising the cap won't cure it. It needs to be restructured as well, so that it is there not only for us, but for my children, grandchildren, and beyond. That's why I say I would rather see a small hit now, even if it's as simple as decreasing COLA's while raising the cap. In addition, Medicare and Medicaid need work - but that's a future post...
Another thing - I think it's almost criminal to reduce the SSI tax rate as has been done for the past year or so. Yes, it put more money in my pocket, but it also cut down on the amount of money that was collected, which in turn will lead to more borrowing by the government. The short term pleasure of having a bit more cash in our pocket will cost quite a bit more in interest on what was borrowed.
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