Social Security and Medicare are NOT going broke, my friends.
This doesn’t mean there aren’t issues to contend with but please, for the love of all that is good, do not fall into the trap that you shouldn’t use Social Security in your planning.
Now, with that said, I will not be shocked in the least if you pay more in taxes for your benefits, or even worse, more taxes ON your benefits.
In fact, buried well in the Trustees report that say they say “An increasing fraction of all earnings will be subject to the higher tax rate over time because the thresholds are not indexed. By 2092, an estimated 79 percent of workers would pay the higher rate.”
Hmmmm….a tax that is NOT indexed for inflation. Ever heard that before?
Of course you have! Social Security taxation of benefits.
So, prepare accordingly.