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> I would be terrified that after a prolonged downturn you'd be left with nothing.

In the long run we are all dead

> And Social Security in the US pays less the less you work.

Aren't there diminishing returns with Social Security ? so at some cutoff you are NOT getting more regardless of how much more you work



>> Aren't there diminishing returns with Social Security ? so at some cutoff you are NOT getting more regardless of how much more you work

Yes, Social Security is highly progressive. As I understand it, it takes your average monthly income over your 35 highest paying years, indexed for inflation, and pays you (2024 numbers) 90% of your monthly income up to $1,174, 32% of your monthly income from $1,175 to $7,078, and 15% of your monthly income above $7,078. There's also a cap on the Social Security tax and so a cap on the monthly income that is considered.

People refer to those as "bend points" in Social Security benefits, and there is a greatly reduced incentive to continue contributing to Social Security after reaching the second bend point. Someone who is 49 today likely started working as a teenager and would have close to 35 years of income credits (and so only a few "zero" years in the calculations). If they spent much time in a high paying job they would be close to or past the second bend point.

See https://www.fool.com/retirement/social-security/bend-points/, although it has 2023 numbers for the bend points.

Also, sounds like the person in question was married for over 10 years, so there could be spousal benefits depending on the situation.


There is a maximum. It's also the case that your social security income is capped, too. I think that a person earning a million dollars a year for 35 years doesn't look any different to social security than someone earning 200k a year for 35 years, because both are well over the income cap.

I haven't read any of the FIRE stuff, but I wonder if it ignores social security. I'd argue that you can't say you're Financially Independent if your early retirement planning is dependent on social security; it's your money (...right), but there are rules around it, and those rules change.


> In the long run we are all dead

Arguably, being left alive with nothing is worse than dead.




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