When I talk to clients about social security tax, I always hear the same response. “I probably won’t get social security benefits anyway.” Now, that is becoming reality.
According to an article in the Washington Post, President Obama has hinted that maybe everyone will not receive social security benefits. As he calls it, “entitlement reform.” That means hundreds of billions of cuts in social security, Medicare and Medicaid. The social security fix will be “relatively easy”, combining a means test that will scale back benefits for the wealthy with an increase in the retirement age.
What this means is, if you have been prudent and have saved money in your pension plan or in outside savings, don’t plan on receiving full social security benefits. The government has to pay for the one trillion dollar deficits somehow.
Larry Kopsa CPA
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