Your vanishing retirement benefit

From CNN - "Shrinking Social Security - A new report says Social Security will replace less of your income than it did before, thanks to taxes, Medicare and the reality of hitting your 60's":

Over the next 25 years, NASI [National Academy of Social Insurance] says, the amount of pre-retirement income replaced by Social Security is expected to fall for a number of reasons:

More retirees will have to pay income tax on their Social Security benefits. In 1983, lawmakers decided retirees whose total income was at least $25,000 (or $32,000 for those filing jointly) would have to pay income tax on a portion of their benefits. Those income levels are not adjusted for inflation.

Also, while Social Security payments are adjusted for cost of living every year, Medicare premiums, which are paid out of your Social Security check, have been rising faster than inflation.

Finally for those born in 1960 and beyond, the retirement age is 67 - the age when new retirees would be eligible for full Social Security benefits. So if a worker has to retire earlier and start collecting benefits - as many do - that will reduce his monthly paycheck.

Youngsters, pay heed:

For those in their 20's, 30's and 40's, you can bank on this: whatever changes are decided, you'll either end up paying more for the benefits promised or you'll receive less of them, or, possibly, both.

What a great program! Thank heaven they made it mandatory otherwise people might have the temerity to save their own money.