I received a statement a few days ago that showed I can start getting $1,400 per month when I turn 62 in May, 2022.
My wife and I do not need the money, so we will spend it on beer, wine, whiskey, pizza and cheez-its.
I received a statement a few days ago that showed I can start getting $1,400 per month when I turn 62 in May, 2022.
My wife and I do not need the money, so we will spend it on beer, wine, whiskey, pizza and cheez-its.
In 2014 the maximum social security taxable income was 117k. How it is in the 130's. The solvency date is how long we could last without adjusting things. Now there is a surplus. Without adjusting things there will cease to be a surplus in 2030-something. The actuaries are always adjusting things. Social security will always be solvent. Social security is insurance. People pay premiums, and the govt. pays out claims.
Claims of insolvency are either ignorant people who don't understand how social security works, or Wall Street stooges that want to get hold of this cash flow pipeline.
I’m sad for all you Americans that have to continue working into old age just for healthcare. Have you considered loving to a more friendly nation? One that cares about its citizens?
Yes, you will realize an 8% increase if you wait 3 years or so until 70, BUT you will also LOSE 36 months worth of payments which could add up to over 100k. How long would it take to make that up?
I come from a land down under wrote:
I’m sad for all you Americans that have to continue working into old age just for healthcare. Have you considered loving to a more friendly nation? One that cares about its citizens?
Do you think that as an American, I can just choose to go live in another country? You know better than that.
However, there is a wrinkle there that I've been meaning to follow up on, and it is the fact that my mother was born in England (English birth certificate) to an English mother (as in citizen). It's a bit confusing, but I might qualify to be an English citizen if what I have read online is true. But still, no interest in jumping countries at age 60.
Healthcare consideration is one I've never really thought about though. Another thing I don't actually know the answer to, is whether social security is subject to taxation? I know my 401k and pension would be.
Any American with an education and slight means can live/work (and eventually retire) in a foreign country. That doesn’t mean every country will have you and some might have language requirements, but the option is there for every one. It just takes a little effort. The reason so many of you stay is the same reason people continue to live in Ohio. It’s what you know. Your friends and family are there. Fear of the unknown.
I come from a land down under wrote:
I’m sad for all you Americans that have to continue working into old age just for healthcare. Have you considered loving to a more friendly nation? One that cares about its citizens?
Do you mean a country that pays practically nothing for defense because the United States is protecting their pathetic asses through the NATO alliance ?
No.
You make it seem like being around friends and family is negative. Paying it a little more for health insurance to live near your children, grandchildren, old friends and a community with deep roots is well worth it for most people not necessarily because of fear of the unknown.
I'm 48 and have never considered Social Security when planning for retirement. My husband and I have based our retirement on 401Ks, pensions, and investments. If Social Security is there then that's great, more money in retirement. If it's not there then I didn't screw myself by planning for money that doesn't materialize. It seems like there is no downside to not considering Social Security, but a big downside if something happens to Social Security before retirement.
Scholar Expert wrote:
The age will be raised and there will be income tests. Ten years from now, the minimum age will be 67 and nobody making $50k in retirement will be eligible.
You are predicting that in ten years we will have a House plan that 60 senators agree that does a major overhaul to social security.
That can will be kicked.
X-Runner wrote:
Scholar Expert wrote:
The age will be raised and there will be income tests. Ten years from now, the minimum age will be 67 and nobody making $50k in retirement will be eligible.
You are predicting that in ten years we will have a House plan that 60 senators agree that does a major overhaul to social security.
That can will be kicked.
To be honest, I hope the can is kicked down the road. Sure, not very "future friendly", but might allow me to retire a tad earlier than I thought. Not that I necessarily need it, as up until yesterday I hadn't ever considered SSI or my pension. My 401k should be in the 1.5m range at 60, which is probably enough (and this is based on 6% rate of return, not the craziness it has been getting the last couple of years).
But again, I was planning on paying my mortgage off in 10 years on a 30 year note, but maybe that is not necessary and I can "do something else" with the extra funds. Only have one life, I'd like to enjoy it!
I have an idea... What if we take social security and put it in a lockbox?
Suggestion: run your numbers both ways, with and without SS and compare the values based on your anticipated financial needs. I calculated mine based on a 4% annual ROI and draw down from my investments alone through the age of 84 and used only 85% of that amount as a disposable income in case of a market drop. Use a spreadsheet to run a cumulative remaining value of your savings until it runs out to see how long you might stay solvent. I also paid off my house 2 years ahead of my retirement date and bought a new car (to be my last) on a no interest loan at the same time anticipating it to be paid off shortly after retirement. It all worked out. With SS I haven't yet touched my savings in 3 years..
They’ll just raise the ceiling on earnings that are subject to the tax and it will be fine.
Although, I am afraid the lazy, leftist millennials and younger will increasingly clamor to raid the 401ks of people who saved and lived below their means.
I am curious what the collective wisdom of LetsRun says about this question
How do you determine what $/month or % of your current working income you need in retirement?
I have started on doing a "ground up" budget but I'm curious how others approached this
Naperville Runner wrote:
I am curious what the collective wisdom of LetsRun says about this question
How do you determine what $/month or % of your current working income you need in retirement?
I have started on doing a "ground up" budget but I'm curious how others approached this
60. Retired 2 years ago, following a reorg at work. I haven’t looked at it in terms of % of income, since I was highish in income. Focused more on $ per month. Single. Chicago suburbs.
Ground up build:
Utilities (gas, electric, garbage, city services) $2,500 annually
Cell phone $1500 annually. (3 grown kids mooch off of my plan, but I don’t mind)
Internet. $600 annually. No cable tv for a while now. Part of my austerity planning. I sign up for sling ($30 per month) when the TdF comes around
Gym, WSJ subscription, Netflix $300 per year
Food/groceries. $2,000 per year
Dining out $500 annually
Liquor. $1,000
Golf. $2,500
Household supplies $700
Gasoline $1,200
Auto fees and maintenance $500
Home and auto insurance. $2,500
Home maintenance and repair. $2,500
Healthcare. $600. (Net cost includes ACA premium reduction)
Medical (meds, copays, deductibles) $1,000
Real estate tax $18,000
Fed/state tax TBD. haven’t had to pay the last 2 years but I’ve started recognizing some income this year. Probably $2,000
Total $40,000
Travel and other discretionary expenses extra
I'm 49. It's not part of my plan. If I get any of it I will consider it a bonus.
Oh Please wrote:
I come from a land down under wrote:
I’m sad for all you Americans that have to continue working into old age just for healthcare. Have you considered loving to a more friendly nation? One that cares about its citizens?
Do you think that as an American, I can just choose to go live in another country? You know better than that.
Why not? I'm American and have lived in various countries. I'm not sure I'd want to retire in the US, there are many countries where you can get a retirement visa or a long-term visa by other methods (investment or property ownership).
I'd be down for a retirement visa, but no idea how healthcare would work in that case. For various reasons, we aren't leaving our kids any money when we die, so the plan is to figure out how to be close to zero money by time we die. Admittedly hard to figure out. Anything that is left goes to animal rescue.
Very good post!
RIP: D3 All-American Frank Csorba - who ran 13:56 in March - dead
RENATO can you talk about the preparation of Emile Cairess 2:06
Running for Bowerman Track Club used to be cool now its embarrassing
Great interview with Steve Cram - says Jakob has no chance of WRs this year
Hats off to my dad. He just ran a 1:42 Half Marathon and turns 75 in 2 months!
2017 World 800 champ Pierre-Ambroise Bosse banned 1 year for whereabouts failures