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Those around 35, are you figuring Social Security into your planning? I've been using some tools on the 401k website where I make my work contributions. I also looked on the SS.gov site. My estimate is around $2500 a month from SSI. That's not chump change. Even if I take that at 75% I get $1875, still quiet a big sum of money. Do most of you assume we won't be getting that and plan around it. This is just me, not counting my wife.
My wife and I make decent money and (if all goes well) will increase our earnings further in the next 5-10 years. We contribute to 401ks at the rate of 6-8%. I also put extra monies into IRA at the end of the year. I know we are behind. Together at 35 we have $110K in retirement accounts. The recession derailed us a bit and climbing back up in the working world, paying off bills and college loans and having children have prevented us from contributing more. We have a house with $40K equity in it right now as well.
I do have a plan. We will move to a lower cost of living area when we retire and continue to work in some capacity. Back to my original question, how are others accounting for SSI income? If we end up getting nothing, I don't know that we can retire comfortably. I also have a fear of getting kicked out of work in my late fifties (if not before) and having to make adjustments for that. I also don't want to work full time until 67
Those around 35, are you figuring Social Security into your planning? I've been using some tools on the 401k website where I make my work contributions. I also looked on the SS.gov site. My estimate is around $2500 a month from SSI. That's not chump change. Even if I take that at 75% I get $1875, still quiet a big sum of money. Do most of you assume we won't be getting that and plan around it. This is just me, not counting my wife.
My wife and I make decent money and (if all goes well) will increase our earnings further in the next 5-10 years. We contribute to 401ks at the rate of 6-8%. I also put extra monies into IRA at the end of the year. I know we are behind. Together at 35 we have $110K in retirement accounts. The recession derailed us a bit and climbing back up in the working world, paying off bills and college loans and having children have prevented us from contributing more. We have a house with $40K equity in it right now as well.
I do have a plan. We will move to a lower cost of living area when we retire and continue to work in some capacity. Back to my original question, how are others accounting for SSI income? If we end up getting nothing, I don't know that we can retire comfortably. I also have a fear of getting kicked out of work in my late fifties (if not before) and having to make adjustments for that. I also don't want to work full time until 67
I plan to get roughly 75% of the projected payout at 67 (today) at 70 by the time I get there (a year younger than you), but I also plan to stop working 15-20 years before 70, so it doesn't really play much into my retirement calculations. It might allow me to go with a slightly larger withdrawal rate because both mine and my wife's SS at that age would cover our entire monthly living expenses today if you removed daycare and our principal and interest payments on our mortgage.
i would expect that by retirement that there would be some sort of means test that would knock me out. so i dont anticipate getting it. however, if you are thinking that you are unsure of your retirement comfort without it then i would expect you to get it.
I'm older than you but had the same concerns when I was in my 30s. I always assumed something less than the full amount, but not zero. I have lots of co-workers who assume zero, which I think is too pessimistic.
Try to get your total retirement savings up to at least 15%. Try to stay healthy!
My wife and I started retirement planning at 30/34 (I'm older) and have never once thought about SS being in existence come 2035/9. We expect it to be fully defunct by then, though the optimistic side of me thinks there might be enough money left for us to order in Dominoes once a month, on whatever day is their cheap deal day now (haven't lived near pizza delivery for a few years now... :/)
I don't have any faith in the SS program (or any Gov. program), so I don't rely on it. When talking with out financial planners, we tell them the same thing ~ completely remove that from their equations. I'd rather it be a "happy surprise" than something we intended to rely on and no longer exists.
37. I'm not counting on it. It's vaguely there -- like in the Fidelity calculator's etc. But I don't pay attention to it -- to me it's about maxing out the 401k to 18k (or whatever the new IRS limits will be each year) and then after the tax benefitted retirement options are done, putting other money into a brokerage account -- that money isn't for retirement per se however it is for other needs later on. Like you I worry about being pushed out in my 50s, wanting to retire early anyway. Not suggesting that that taxable account is enough, but it makes me feel like I'm doing something beyond the standard 18k.
i would expect that by retirement that there would be some sort of means test that would knock me out. so i dont anticipate getting it. however, if you are thinking that you are unsure of your retirement comfort without it then i would expect you to get it.
That's interesting, I have thought about this. But we did pay into the system - my SS statement gives the exact number. Wouldn't it be in essence stealing? We are not socialist just yet.
I'm older than you but had the same concerns when I was in my 30s. I always assumed something less than the full amount, but not zero. I have lots of co-workers who assume zero, which I think is too pessimistic.
Try to get your total retirement savings up to at least 15%. Try to stay healthy!
Trying! Doing everything I can to get raises, promotions, switching jobs for increases. We have 3 in daycare right now which is eating up a huge percentage of our budget. Once that stops, I plan to ramp it up.
College expenses to consider as well, but I always thought that my kids either get a scholarship or go to state school. State school we can afford (with their help), but no way I'm saving to pay for a $50K per year school times 3. I still think the model will be different and there will be hybrid, less expensive ways to educate yourself and get a job in 15 years.
My wife and I started retirement planning at 30/34 (I'm older) and have never once thought about SS being in existence come 2035/9. We expect it to be fully defunct by then, though the optimistic side of me thinks there might be enough money left for us to order in Dominoes once a month, on whatever day is their cheap deal day now (haven't lived near pizza delivery for a few years now... :/)
I don't have any faith in the SS program (or any Gov. program), so I don't rely on it. When talking with out financial planners, we tell them the same thing ~ completely remove that from their equations. I'd rather it be a "happy surprise" than something we intended to rely on and no longer exists.
I see your point. Where I am on the fence is that, say $400/month is a happy surprise. But is it's like $2k between me and my wife, that's pretty significant. My concern is, how much of my life do I put on hold - don't take a vacation or don't buy some thing that we want because we're saving for retirement, when in reality we can save less because we're gonna get $2K/month in retirement from SSI. No one can know this of course, but this is my dilemma.
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