2% Raise for EVERYONE... but only for a year.

[angwill]

Won't affect me since I don't pay into Social Security (pay into state retirement instead).

But maybe we'll see a slight increase in DH's paychecks... would be nice since he hasn't had a raise in 3 yrs, and makes peanuts as it is.

You will probably see a decrease in pay because you will no longer get the tax cut he gave last year.

 

[RitaE]

Social security was never designed to be anyones total revune during retirement and unfortunately the concept of "saving" has disappeared from the American consciousness.

Social Security hasn't been billed as a sole source of retirement income for decades, but for a vast majority of the population it is the bulk of their retirement "savings," given that pensions are a vastly disappearing. Social Security and the value of their house, that is pretty much it. As others have stated, Social Security is already a largely bankrupt vehicle and now we are venturing into putting even LESS into it. Who wants to lay odds on this being extended past one year??? If SS disappears, what will everybody do?

I wonder sometimes where everybody thinks they will "work" in retirement? WalMart can only hire so many greeters and Corporate American is infamous for moving people along.

Ah, I really have nothing new to say. Experts have been predicting the collapse of our retirement system for decades now but the only way to fix it is to change enough individuals behavior. It is getting better, but I still can't convince many 22 year olds to sign up for the 401ks.

 

[nunzia]

The Work for Pay thing was silly too...plus it was organized so poorly that you could end up having too much taken out and then OWE for that little cut (ie..each employer taking Work for Pay out and then each person having the family total removed, so getting back double what they should have). Both DH and I told our employers not to give us that little deal. My second job doesn't take out any income taxes since I make so little, so we get hit every year on that one. This one isn't optional, so we'll take it and stick it in a ROTH. We do not have a large income and I think fit about the low average. As an aside I think I need to cancel Money magazine again..I'm always just floored when they do their money makeovers and every single family they make over makes, at a minimum, over 100K. I guess we are not in that magazine's demographic

 

[Kathi OD]

No effect here since I don't pay into Social Security but rather the Teacher Retirement System in my state.

Hmm...in NJ we have to pay into both. Wonder why you are exempt from paying into SS?

 

[mommy2allyandaveri]

No effect here since I don't pay into Social Security but rather the Teacher Retirement System in my state.

Bummer, I was hoping to get a nice surprise when my DH gets paid at the end of the month

My check went up by about 60 per payperiod. My Federal deductions stayed the same.

 

[eliza61]

Social Security hasn't been billed as a sole source of retirement income for decades, but for a vast majority of the population it is the bulk of their retirement "savings," given that pensions are a vastly disappearing. Social Security and the value of their house, that is pretty much it. As others have stated, Social Security is already a largely bankrupt vehicle and now we are venturing into putting even LESS into it. Who wants to lay odds on this being extended past one year??? If SS disappears, what will everybody do?

I wonder sometimes where everybody thinks they will "work" in retirement? WalMart can only hire so many greeters and Corporate American is infamous for moving people along.

Ah, I really have nothing new to say. Experts have been predicting the collapse of our retirement system for decades now but the only way to fix it is to change enough individuals behavior. It is getting better, but I still can't convince many 22 year olds to sign up for the 401ks.

And thus the problem. I can't get many of my coworkers to sign up and they are well into their 40's and my job matches contributions dollar for dollar for the 1st 8%. that's like getting free money.

I'm an "armchair" sociologist by schooling and you are absolutely right, its ridiculously hard to change our mindset. My concern is that bankrupt or not we now are in a position, like you said that we can't get rid of social security. I shudder to even think what would happen if we tried and with so many seniors depending on it, no one is even going to broach making drastic changes.

 

[rigs32]

Just last week I had to explain the difference between a regular IRA and a Roth to a coworker. He's 30-something, married, expecting a child, and waiting to close on his new home as an upgrade from their starter home. Great for now, but what about later?

 

[Ava]

And thus the problem. I can't get many of my coworkers to sign up and they are well into their 40's and my job matches contributions dollar for dollar for the 1st 8%. that's like getting free money.

Last open enrollment I had more than one coworker ask me if I participate in the 401K & wondering if they should sign up. I told them yes and yes! My employer matches the first 5%, and it's immediately 100% vested - why would anyone not take that free money?? Baffling.

 

[smokeyblue]

Last open enrollment I had more than one coworker ask me if I participate in the 401K & wondering if they should sign up. I told them yes and yes! My employer matches the first 5%, and it's immediately 100% vested - why would anyone not take that free money?? Baffling.

I think some people think they can't affort to do it. My employer just pulled the rug from underneath us this year and took away our pension. They were paying the whole amount which was 12%. They are now doing a 4% 401k match. I feel really badly for the people at my employer that make minimum wage and just above. I'm sure many of them live paycheck to paycheck and even 4% can hurt. I know I've had to make adjustments in my lifestyle to offset the cost.

 

[momof1princess]

A growing trend in America - Retirement will never happen.

http://biz570.com/economy/banking/w...w-normal-for-middle-class-americans-1.1084092

I saw a recent article in regards to Canada that had very similar views. More people plan to work through their retirement years than not.

i clicked this link to read the article, and norton put up a page that told me it was suspicious, and blocked it. darn, i wanted to know what it said.

 

[leadfootlevi]

Last open enrollment I had more than one coworker ask me if I participate in the 401K & wondering if they should sign up. I told them yes and yes! My employer matches the first 5%, and it's immediately 100% vested - why would anyone not take that free money?? Baffling.

How about, because they can't afford to bring home 5% less money each pay check.

 

[dhuba]

Just last week I had to explain the difference between a regular IRA and a Roth to a coworker. He's 30-something, married, expecting a child, and waiting to close on his new home as an upgrade from their starter home. Great for now, but what about later?

I think that one of the best thing you can do for your child is talk to them about money. My son is 19 and goes to college and has worked since he was 16 and he fully funded his Roth for 2010 and will do so this year.

 

[disney1990]

How about, because they can't afford to bring home 5% less money each pay check.

With the tax savings, they will not lose 5% of their take home income. The the SS rate change was a compromise in Congress.

 

[disneymom3]

not to get political, but doesn't anyone else think it's odd that they decided to put less into what is essentially a bankrupt program? Isn't that like owing $10,000 on a credit cad and instead of sending them $10 a month you decide, what the heck, I'll only send them $8?
I'd suggest putting that extra cash in your retirement fund so that when they lower your SS payments you'll have a little more cushion.. I just don't get the logic.

It makes no sense to me either. I don't care what the rational is, it still makes no sense. We are raising DHs 401K contribution by 2%

And thus the problem. I can't get many of my coworkers to sign up and they are well into their 40's and my job matches contributions dollar for dollar for the 1st 8%. that's like getting free money.

.

That is incredible!

 

[Virgderon]

Just got paid and my take home increased by $23. Have not seen my pay stub yet, and heard it might be February before you would have the most accurate number. After my next payday, I will put whatever amount it is in my online savings account. I might be leaving my current job, so I don't want to add to my 401k right now.

 

[DJT]

I get paid every two weeks. Got my first paycheck of the year yesterday and it went down by $4.00. My insurance went up by 46% so guess that's not too bad! Last year our employer put $1,000 into our HSA but this year they put in $100.

 

[nunzia]

How about, because they can't afford to bring home 5% less money each pay check.

But it isn't really 5%, since it's pre tax it's less than that.

 

[21yankees]

In the end this 'raise' won't affect most people because the making it work credit expired. The difference after my federal taxes went up and my social security went down is $14.12 in my pocket.

steph

 

[Gr8t Fan]

And I'm down way more than that because Illinois just raised the income tax rate from 3% to 5%. Frustrating!