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Old 01-12-2015, 05:27 AM
 
33,046 posts, read 22,067,502 times
Reputation: 8970

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Quote:
Originally Posted by nicet4 View Post
For some the answer might be working to age 70.

Sure, for many it would suck but sometimes a man has to do what a man has to do.

Forget the $20/hour because John here, born January 15, 1945, never made more than the equivalent of $18.00 per hour his entire life. From 1962 to 1965 he didn't even make the equivalent of $18.00 it was more like $9.00.

From 1966 on the annual income amounts are equivalent to $18.00/hour adjusted for inflation.

Putting the figures into the calculator http://www.ssa.gov/retire2/AnypiaApplet.html

Annual Income $36,000.00
Equivalent
1962 $2,000.00
1963 $2,000.00
1964 $2,000.00
1965 $3,000.00
1966 $4,932.00
1967 $5,076.00
1968 $5,292.00
1969 $5,580.00
1970 $5,904.00
1971 $6,192.00
1972 $6,372.00
1973 $6,768.00
1974 $7,524.00
1975 $8,208.00
1976 $8,676.00
1977 $9,252.00
1978 $9,936.00
1979 $11,052.00
1980 $12,564.00
1981 $13,860.00
1982 $14,724.00
1983 $15,192.00
1984 $15,840.00
1985 $16,416.00
1986 $16,704.00
1987 $17,316.00
1988 $18,036.00
1989 $18,900.00
1990 $19,908.00
1991 $20,772.00
1992 $21,384.00
1993 $22,104.00
1994 $22,608.00
1995 $23,220.00
1996 $23,940.00
1997 $24,480.00
1998 $24,840.00
1999 $25,380.00
2000 $26,244.00
2001 $27,000.00
2002 $27,468.00
2003 $28,044.00
2004 $28,800.00
2005 $29,772.00
2006 $30,744.00
2007 $31,608.00
2008 $32,904.00
2009 $32,688.00
2010 $33,228.00
2011 $34,308.00
2012 $34,992.00
2013 $35,496.00
2014 $36,000.00

John is finally able to retire this month at age 70.

John's SS benefit will be $2,084 but if he had retired at FRA John's benefit would have been $1,579 so working the extra four years really paid off for John at an extra tax free $505 which can go a considerable distance in raising his monthly standard of living.

If John is married his wife will receive her full SS benefit or 50% of John's FRA benefit whatever is more. The lowest benefit she can receive would be $789 so together they will have a monthly tax free benefit of $2,783. This is equivalent to a job that provides a weekly take home pay of $663.

At $18.00/hour John earned only $720 weekly and of that he had to pay taxes... he paid at least $60/week in taxes (social security being the biggest tax by far) so by working to age 70 John will receive about what he was receiving from working full time in terms of "take home money".

Now if John had been a lazy ass and quit work at age 62 he and his wife would be eating cat food only if they were lucky. John's benefit would have been reduced to $1,184 and if his wife had taken hers early they'd be living on $1,600/month which is cheap cat food city.

For me an extra eight years for an extra $1,000/month for the rest of your life is pretty much a no brainer.

Low wage workers have lower ife expectancy and low-wage men have low marriage rates. John is screwed, doesn't get to enjoy retirement, and has nobody to collect survivors benefits.
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Old 02-27-2015, 02:20 PM
 
Location: Atlantida, Uruguay
28 posts, read 33,374 times
Reputation: 71
NO More Snow For ME: You're absolutely right! You've described my reality exactly. I enjoy every day not working and will probably live longer without the stress. I am content and my frugal lifestyle suits me.
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Old 02-27-2015, 03:37 PM
 
Location: WA
5,395 posts, read 21,401,588 times
Reputation: 5898
I know some who retired after a life of low/no wages. He gets SS, food stamps, a rental voucher that fully covers his modest apartment, still on Medicaid, has good cell service from a program, gets a transit voucher (although he still has car), and may get other government aid. He actually lives as good as he has for most of his life.
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Old 02-27-2015, 03:42 PM
 
Location: Los Angeles area
14,018 posts, read 17,744,100 times
Reputation: 32304
Quote:
Originally Posted by cdelena View Post
I know some who retired after a life of low/no wages. He gets SS, food stamps, a rental voucher that fully covers his modest apartment, still on Medicaid, has good cell service from a program, gets a transit voucher (although he still has car), and may get other government aid. He actually lives as good as he has for most of his life.
Interesting, if a bit painful to read about, knowing that we are all paying for it. How was it that he had "a life of low/no wages"? "Low" I can understand; "no" I cannot understand.
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Old 02-28-2015, 02:06 AM
 
33,046 posts, read 22,067,502 times
Reputation: 8970
Quote:
Originally Posted by cdelena View Post
I know some who retired after a life of low/no wages. He gets SS, food stamps, a rental voucher that fully covers his modest apartment, still on Medicaid, has good cell service from a program, gets a transit voucher (although he still has car), and may get other government aid. He actually lives as good as he has for most of his life.



Rental vouchers are very hard to get unless you are a single parent, a senior, or disabled. Even if you are one of the above it is hard to get a voucher. Ten year waiting lists in some areas, if you are lucky enough to get on the waiting list for a voucher.

People at that income level without a rental voucher generally would have to live with roommates, which generally makes them ineligible for the phone program.
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Old 02-28-2015, 04:08 AM
 
71,631 posts, read 71,777,271 times
Reputation: 49230
except for working longer low wage earners may not be able to retire. retirement is not a right it is a priveledge.for those who were successful at working for their money and can now have their money work for them.
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Old 03-02-2015, 11:26 AM
 
Location: USA
1,815 posts, read 2,244,017 times
Reputation: 4139
Quote:
Originally Posted by mathjak107 View Post
except for working longer low wage earners may not be able to retire. retirement is not a right it is a priveledge.for those who were successful at working for their money and can now have their money work for them.

So maybe it's time to re-open those workhouses again huh?
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Old 03-02-2015, 12:16 PM
 
Location: Forests of Maine
30,685 posts, read 49,462,974 times
Reputation: 19134
Quote:
Originally Posted by Escort Rider View Post
Interesting, if a bit painful to read about, knowing that we are all paying for it. How was it that he had "a life of low/no wages"? "Low" I can understand; "no" I cannot understand.
My best friend from highschool has an older brother [Kevin] that I have seen maybe once every 5 years or so.

Since the 70s, Kevin has worked mostly as a live-in care-giver getting room / board and a small stipend. Sometimes one arrangement works out for a year, before he ends up living with his parents again. Sometimes it lasts 5 years, before he moves back in with his parents. I doubt Kevin has ever earned enough wage to pay income taxes. I would suspect that his 35-year work history with SS, likely shows an annual income of under $1,000/year.

Today Kevin is obese and diabetic, and on disability. He has never earned much. He will never earn much.

I do not think it he ever thought about retirement income.

I suspect there are many people like that.
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Old 03-02-2015, 12:43 PM
 
8,859 posts, read 5,136,100 times
Reputation: 10134
Quote:
Originally Posted by freemkt View Post
What would you do if you had only SS to live on?
Do you mean if I had arrived at retirement age with no money saved and not able to continue working (for whatever reason)? I suppose I would look for a palatable roommate situation, and really try to find one I felt might be compatible for years to come. According to my most recent statement, my benefits are estimated at:

age 62 1,114 mo
age 67 1,704 mo
age 70 2,196 mo

If I were closer to age 70, I think I would get along OK (assuming shared living expenses). If I were closer to age 62, it would be more challenging. Certainly it would not be the retirement I have planned. And of course we're already warned we may only receive about two-thirds of those estimated benefits.

A divorce at age 40 has already significantly altered my vision of my retirement. So if I had to alter yet again, well, that's what I'd do.
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Old 03-02-2015, 10:25 PM
 
48,516 posts, read 83,955,483 times
Reputation: 18050
Quote:
Originally Posted by mathjak107 View Post
except for working longer low wage earners may not be able to retire. retirement is not a right it is a priveledge.for those who were successful at working for their money and can now have their money work for them.
Not at all the case really. I know people who can retire easily who do not and other who retired for health reasons. We all either die in place or retire eventually. In fact I would say the really wealthy are the least likely to I know ;because the reality is they have to have their hands on the source until they can't. The vast majority of wealthy gain their money by using other peoples money( investment they make in their enterprises) and investing in assets that maintain their wealth.
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