Submitted by IndexBot t3_zzbcyz in personalfinance
techcaleb t1_j2e6ih0 wrote
Reply to comment by Wilt_The_Stilt_ in Weekend Help and Victory Thread for the week of December 30, 2022 by IndexBot
And just one word of warning: that cap also effectively applies when you go to take social security as well. So instead of the replacement rate being based off your actual income, it will be based off of the capped income. This means that to maintain a similar lifestyle in retirement you may need to increase your retirement contributions.
Wilt_The_Stilt_ t1_j2e6r18 wrote
Super helpful add on. Thank you! Makes a ton of sense when I read it but definitely didn’t cross my mind before.
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