The trick is to make enough money during your career that SS is not the basis for your retirement funding. I never had a really high paying job but I had no problem working 2 jobs and my own business. All it takes is the will to do it and 12 hours a day of effort. I retired at 61 and my wife at 58 and I have more funds than when I retired in 2001
It only makes sense to up the age of retirement benefits since our life expectancy has continued to go up (though we have had a hiccup of late).
There are ways to combat this, of course:
1) Plan to retire earlier and invest for that. Right now, you can get at all of your investment money with no penalties at age 59.5.
2) Set yourself up for passive (or mostly passive) income after you retire from your day job. Own rental properties, for example...and yes, depending on how you do that, that can be a pain, so you just have to decide if that's enough "hands off" for you or not.
3) Keep your investments invested, but if you retire a few years before you can or will take Social Security, have YEARS of liquid money ready to pay your expenses. So, if you don't want to take SS until age 67, retire at age 64 but have 3 years of expenses saved up outside of investment vehicles even (this allows for the unfortunate event that the stock market might tank as soon as you retire, so you don't draw from your stock investments, allowing them to recover).
Bottom line though is don't let the government tell you when you will retire. YOU decide when you will retire, and then make that happen. Downsize, move to a cheaper cost of living area, etc.
THIS! I retired at 58 in Feb of 2020, with no pension or other forms of income other than the money I saved/invested. Guess what? Stock market took major hit and inflation kicked into high gear right around then. Unexpected. But I do have years of liquid money available and that is what I am paying the bills with now. Hopefully I don't have to wait 10 years for the next stock market bull market. Still don't plan on taking SS till I'm 70.
It only makes sense to up the age of retirement benefits since our life expectancy has continued to go up (though we have had a hiccup of late).
There are ways to combat this, of course:
1) Plan to retire earlier and invest for that. Right now, you can get at all of your investment money with no penalties at age 59.5.
2) Set yourself up for passive (or mostly passive) income after you retire from your day job. Own rental properties, for example...and yes, depending on how you do that, that can be a pain, so you just have to decide if that's enough "hands off" for you or not.
3) Keep your investments invested, but if you retire a few years before you can or will take Social Security, have YEARS of liquid money ready to pay your expenses. So, if you don't want to take SS until age 67, retire at age 64 but have 3 years of expenses saved up outside of investment vehicles even (this allows for the unfortunate event that the stock market might tank as soon as you retire, so you don't draw from your stock investments, allowing them to recover).
Bottom line though is don't let the government tell you when you will retire. YOU decide when you will retire, and then make that happen. Downsize, move to a cheaper cost of living area, etc.
THIS! I retired at 58 in Feb of 2020, with no pension or other forms of income other than the money I saved/invested. Guess what? Stock market took major hit and inflation kicked into high gear right around then. Unexpected. But I do have years of liquid money available and that is what I am paying the bills with now. Hopefully I don't have to wait 10 years for the next stock market bull market. Still don't plan on taking SS till I'm 70.
Yeah, it's a pretty good strategy. I'm all for investing of course, but there is a lot to be said for having a good pile of cash to help you through down or flat stock periods.
It's my duty to work until at least 80 to pay for the retirement, lifestyle and pensions of all the Boomers who voted to take away my free education, state owned utilities, a functioning healthcare system, affordable housing, eu membership, etc.
Hopefully I will die chained to a desk paying someones final salary pension and heating allowance for their 8 bed house while they're on a cruise somewhere.
That is an hilarious post, as in funny. Well-written. But also, I am sad for you because that is actually pretty true...
This was legislated and planned decades ago. It isn’t news. It’s been slowly moving from 65 to 67 for a very long time, as planned in the 80’s.
The increase happened last year, not 83'
It only went up two months last year and everyone paying attention knew since 1983 that this would happen.
The problem is the math related to increased life expectancy and fewer people contributing. When Congress and the president legislated this change in 1983 it helped keep SS solvent for a couple more decades but that time has now expired. SS needs to raise taxes, cut benefits, have people die sooner or find more workers.
BTW. People often say that SS taxes are regressive. But if you look at the benefit formula you would realize that the benefit is very progressive (meaning those paying more receive less of a return on their taxes/contributions than lower paid workers).
Cut military spending. Will fix many things. Fake wars in places people can't find on maps does nothing for average americans in america. Also, not our problems.
americans have $200 - 300 taken out every month for military spending. That's 100 - 200k over a lifetime. Don't raise taxes or cut benefits. Lower military spending to match other developed nations.
The goal is to help average americans in america, not hurt them. No need to cannibalize our own.
Cut military spending. Will fix many things. Fake wars in places people can't find on maps does nothing for average americans in america. Also, not our problems.
americans have $200 - 300 taken out every month for military spending. That's 100 - 200k over a lifetime. Don't raise taxes or cut benefits. Lower military spending to match other developed nations.
The goal is to help average americans in america, not hurt them. No need to cannibalize our own.
Or stop giving tax refunds. Either you pay your taxes, or you don’t. Think of the money we saved, if we stopped processing tax returns.
War is the worst thing conceived by mankind, but it's never going away. The least that the US gov't can do is keep it off our soil. In developing the Articles of Confederation our founders only had to contend with one adversary. Recent administrations have to contend with many more. The job description has changed and so have the necessary strategies.
Help us build the best running shoe review site for a chance to win a LetsRun t-shirt.Help us build the best running shoe review site for a chance to win one of 10 LetsRun t-shirts.