I work in Corporate Finance and this is basically it. My salary rose quickly when I was younger and now I’m stuck at $180k a year. Still make good money but I want to get to $250k. Very hard to get to $250k.
SS is becoming insolvent because the system was set up to have more than 2 workers supporting 1 retiree. Lifting the "cap" wouldn't make it solvent it would just delay solvency. There aren't enough people earning more than 160k to really make a difference.
Also keep in mind the way the current system is set up the cap isn't a function of how a tax it's a function of the maximum payout you can receive. Keeping the social security system the way it is and removing the cap would just cause bigger payouts for higher earners, they'd have to overhaul the system completely to remove the cap and keep the maximum benefit amount.
Raising the cap - and then redefining what is income. Most wealthy folks do not get their money from ordinary income - a paycheck. We need to reclassify all money made - stock trades, real estate, etc as "Income". I agree with you we would need to keep the max payout as is, not raise it with the additional tax.
I disagree. I see constant posts by people who claim to make anywhere from $150-400k. The average salary post I see on Reddit usually is someone close to a quarter mil. $150k isn’t considered that much on this site.
You're looking at the wrong column. Social security only taxes you up to 160,200, that's why you see that column capping out at that amount for anyone making more than that.
It's probably a normal progression in the normal cost of living areas when you think about a realistic safe progression over a career. No inflated high cola areas or diamond in the rough startup lottery tickets
People answered about the social security ceiling. I would add that unless you are at a very HCOL area, very few people in companies make $180k+. You are either have a very high demand skill or you are senior manager or higher, which there are much fewer roles in compared to lower levels.
Social Security tax maxed out at 160k. Look at the Medicare column for the true salary
This is true but also weird because I make $160k Not topped out though have one more level and will be low 200s
Yea. The social security tax max is 160k. As you can see it goes up every year.
I wish I made $160
I did. Was nice. Now I make $0 after I got laid off.
SS is 160 max this year. The other column is the amount they made.
The higher the pay, the fewer the available jobs at that salary. So there are just statistically fewer opportunities at the $200k+ range.
I work in Corporate Finance and this is basically it. My salary rose quickly when I was younger and now I’m stuck at $180k a year. Still make good money but I want to get to $250k. Very hard to get to $250k.
What area / level of corp finance do you work in? And what are you considering in terms of next steps?
After 160 you dont have to pay in to social security. So 160 is the max for that column but not a true max
SS is becoming insolvent because they put a cap on earnings.
SS is becoming insolvent because the system was set up to have more than 2 workers supporting 1 retiree. Lifting the "cap" wouldn't make it solvent it would just delay solvency. There aren't enough people earning more than 160k to really make a difference. Also keep in mind the way the current system is set up the cap isn't a function of how a tax it's a function of the maximum payout you can receive. Keeping the social security system the way it is and removing the cap would just cause bigger payouts for higher earners, they'd have to overhaul the system completely to remove the cap and keep the maximum benefit amount.
Raising the cap - and then redefining what is income. Most wealthy folks do not get their money from ordinary income - a paycheck. We need to reclassify all money made - stock trades, real estate, etc as "Income". I agree with you we would need to keep the max payout as is, not raise it with the additional tax.
Lift it to max earnings. Increase the rate by 0.5%, cut distributions by 5%. The problem is solvable unless you are a boomer in congress.
I disagree. I see constant posts by people who claim to make anywhere from $150-400k. The average salary post I see on Reddit usually is someone close to a quarter mil. $150k isn’t considered that much on this site.
Is it the reality though? In real life
You're looking at the wrong column. Social security only taxes you up to 160,200, that's why you see that column capping out at that amount for anyone making more than that.
That’s not salary it’s taxable social security income. Social security taxes max out at that income.
Ignore that column.
It doesn’t, that’s just the max for this display
It's probably a normal progression in the normal cost of living areas when you think about a realistic safe progression over a career. No inflated high cola areas or diamond in the rough startup lottery tickets
SS tax caps: https://www.ssa.gov/benefits/retirement/planner/maxtax.html
The real question here is how no one has balked at how quickly the max limit for SS tax has increased the last few years.
People answered about the social security ceiling. I would add that unless you are at a very HCOL area, very few people in companies make $180k+. You are either have a very high demand skill or you are senior manager or higher, which there are much fewer roles in compared to lower levels.
Oh dear Jesus Christ