Is your idea to retire bigger and bigger? Watch it because your benefits may be getting smaller and smaller!

This used to be a much better deal

Today's workers — boomers, Gens X and Y — like to carp about Social Security, but it's not all sour grapes or skepticism about paying into a system with an uncertain future. Employees today pay more in Social Security taxes than previous generations did. They're also likely to get smaller benefits when it's their turn to retire.

Over the years, as the Social Security Administration has come to grips with the cost of its benefit program — and the ranks of eligible beneficiaries has swollen — taxes to fund the program have gone up and up, a trend that experts say is likely to continue over the coming years. As a result, workers now pay 6.2% in payroll taxes — nearly double the 3.6% tax rate workers paid in 1965. Over the same time period, the maximum earnings eligible for taxation have also increased from $4,800 to $106,800.

Call me for a free evaluation about your specific retirement conditions and planning.

Jesse Alvarado

(562)822-5565