Thumb of Michigan | md.mcwill - 12/6/2025 11:01
Maybe a change could be where the SS from the employee and employer would go into this mechanism. Can you image if you had all that money in a special 401k when you got to 55 or 62. I would be rich.
A problem with putting SS into a 401(k) type vehicle, it would undo the stacking of SS benefits towards the lower wage earner. Example: someone with a $24K year income SS will be more than half of some making $48K or $72K ($1,321 month verses $1,961 or $2,601 month, even though he/employer paid in twice three times as much)
Here's the formula for your PIA (Primary Insurance Amount) for 2025. Average Indexed Monthly Earnings (AIME).
X=$1,174 ($14,088 annual amount)
Y=$7,078 ($84,396 annual amount)
90% of first X of AIME +
32% of the AIME over X and through Y +
15% of AIME over Y |
Australian version of the US 401K Love it
