I get upset when I see that my grandmother has saved her money by strict budgeting and hard work for years and years. Now, she is nearly 80 and is taxed like crazy on the interest she earns and lives on from the nest egg she has saved. Each and every time we look into any medical assistant programs, or discounted prescription programs, they ask the question, how much do you have saved?
Now, an irresponsible person who saves NOTHING gets more in social security than she does only because she has money in the bank. If she had nothing in the bank, she could get prescription help, medical insurance, and more in a social security check every month. But instead, she writes a check for at least $1100 in prescription and medical insurance each month.
Personally, I think that IF you save your money and live off the interest, it shouldn't be taxed in her case or when you reach a certain age. I only say this because it is upsetting. I handle the finances of a lady from our church, and she buys everything, saves nothing and gets twice as much in social security as my grandmother who has in the past and still does to this day, live like she did during the depression. I think the current social security system rewards those who don’t plan.