As some may know, for this year everyone will be paying less on social security, 4.2% down from 6.2%. In the long run all this will do is make social security more likely to collapse and less likely for our generation to be able to rely on it. Therefore my plan is to increase my retirement savings by the amount I am "saving".
The IRS gives companies until Jan 31 to get their payroll computers set up and until March 31 to get the excess money back to you but that still gives everyone time to up their 2010 contributions.
Hey Frugal Student,
ReplyDeleteI bet you'll make more saving the 2% payroll tax cut outside of Social Security. Using this calculator at Political Calculations: http://politicalcalculations.blogspot.com/2007/01/approximating-social-securitys-rate-of.html you can find what your expected Social Security return will be with the system in place now... then attempt to beat it. Luckily for our generation, it shouldn't be that hard!
Good Luck!
-Paul