U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-15-2016, 09:46 AM
 
2,443 posts, read 2,073,079 times
Reputation: 5690

Advertisements

Quote:
Originally Posted by Listener2307 View Post
So the question I have is, did that just happen? Did she just now find out that she had no pension? Did someone steal her savings?

Because that's the way it sounds. It sounds as if she just woke up on her 65th birthday and discovered to her horror that Social Security was all she had.

Everyone can see where I am headed......................
Personally if I was in that situation, I would not agree to be interviewed about it.
Reply With Quote Quick reply to this message

 
Old 02-15-2016, 11:08 AM
 
7,339 posts, read 16,648,534 times
Reputation: 4567
This (in red) was the way it was for me for years. I got stuck working in Shipping/Receiving/Stockroom/Warehouse for years, during my 30's and 40's, for small companies. My average hourly wage was $9.50 per hour. Thing is, I was able to live off of that wage, but it sure wasn't easy sometimes. One thing for sure, I didn't make enough to contribute to a 401K Plan, but was fortunate enough to have VA Medical when companies started making employees pay for medical.

It wasn't until the last job I had (2004 thru 2007), did I make a descent wage of $14 per hour and I was extremely happy about that......you can ask my wife. But, even back then, that still wasn't much. However, I didn't have a college degree and/or certification in anything either. Wife did have me get into a 410K Plan, but we used the money for a move.

When at a younger age, and the person's wage is fairly low, it's extremely hard to have any kind of savings. I had none when I met my wife and she was ok with that, because she understood why. Guess my personality outdid me not having any savings.


Quote:
Originally Posted by s1alker View Post
That's why I always see a big line for the local food bank (mostly elderly) when I pass by it on the way home from work. Many people are low income most or all of their lives which makes it difficult to away anything useful for retirement. It's a sad situation.
Reply With Quote Quick reply to this message
 
Old 02-15-2016, 11:48 AM
 
Location: NE Mississippi
13,676 posts, read 8,585,088 times
Reputation: 19871
Quote:
Originally Posted by jasperhobbs View Post
Personally if I was in that situation, I would not agree to be interviewed about it.
I hear ya, Jasper.


I don't want to pile on someone who has been unfortunate. Stuff goes wrong in all our lives, and sometimes those things leave some of us broke through no fault of our own. I've seen it happen.

But. I know plenty of people who make plenty of money and have no savings of any sort. Buying what you want and hoping for what you need can create a real problem down the road. I have see that happen, too, and in fact am watching it happen in my own family. My daughter and her husband are going to end up flat broke at age 65. Income today?..............160,000$. Age 52.
Pretty sad.
Reply With Quote Quick reply to this message
 
Old 02-15-2016, 12:08 PM
 
130 posts, read 101,412 times
Reputation: 539
Another option, which I don't think was mentioned, was to suggest to your sister that she take SS at her FRA (66 or 67). This will enable her to work full time and it will not affect her SS, she will get full (FRA) benefit. Since she will be paying into SS while she is working, at the beginning of each year she can ask SS to recalculate her benefit (I don't think this is automatic, although I may be wrong). I don't know if there is any long term financial benefit to doing this, although it would give her some extra money for a few years. She might end up working beyond 70. One benefit would be the fact that her SS benefit will pay for her Medicare premium.
Reply With Quote Quick reply to this message
 
Old 02-15-2016, 12:48 PM
 
Location: OH>IL>CO>CT
5,237 posts, read 8,409,707 times
Reputation: 7191
Quote:
Originally Posted by Mark bridge View Post
Another option, which I don't think was mentioned, was to suggest to your sister that she take SS at her FRA (66 or 67). This will enable her to work full time and it will not affect her SS, she will get full (FRA) benefit. Since she will be paying into SS while she is working, at the beginning of each year she can ask SS to recalculate her benefit (I don't think this is automatic, although I may be wrong). I don't know if there is any long term financial benefit to doing this, although it would give her some extra money for a few years. She might end up working beyond 70. One benefit would be the fact that her SS benefit will pay for her Medicare premium.
Don't mis-read the above.

You can elect to have any Medicare premiums deducted from your monthly SS benefit, but SS is not "paying" those premiums. Otherwise you can pay the premiums quarterly, on your own, if you prefer.
Reply With Quote Quick reply to this message
 
Old 02-15-2016, 01:10 PM
 
Location: Albuquerque NM
1,661 posts, read 1,527,059 times
Reputation: 3650
Quote:
Originally Posted by Listener2307 View Post
So the question I have is, did that just happen? Did she just now find out that she had no pension? Did someone steal her savings?

Because that's the way it sounds. It sounds as if she just woke up on her 65th birthday and discovered to her horror that Social Security was all she had.

Everyone can see where I am headed......................
My 57 year old sister will be in the same boat at 65. She never saved and worked mostly waitressing jobs where she did not claim all her tips so SS will be small. Never married. She has always been very stubborn and will not listen to reason.

Concerning the OP's sister, other posts mention that she is an older sister and was married at one time. If she is at least age 62 now and married for 10 years or more, restricted application (?) at FRA may be an option. Receive 1/2 his SS at FRA and let her SS grow until age 70. I don't think the recent SS changes impacted those at least age 62.
Reply With Quote Quick reply to this message
 
Old 02-15-2016, 01:50 PM
 
13,917 posts, read 7,416,674 times
Reputation: 25410
Quote:
Originally Posted by Listener2307 View Post
So the question I have is, did that just happen? Did she just now find out that she had no pension? Did someone steal her savings?

Because that's the way it sounds. It sounds as if she just woke up on her 65th birthday and discovered to her horror that Social Security was all she had.

Everyone can see where I am headed......................
Denial is not a river in Egypt. It's normal human behavior. With the demise of defined benefit pensions, I would imagine more than half the country is going to be exactly in those circumstances. They live their whole adult lives going from paycheck to paycheck. They either rented their whole lives or had a big break in employment for some reason where they lost their house.

USA Today had an article with a great graphic where they referenced a Motley Fool article from a year ago. That graphic is now gone but the Motley Fool has a less pretty version in the article here: The Typical American's Net Worth By Age: Here's Where You Stand -- The Motley Fool

50th percentile household net worth for age 55 to 64 is $144,200. I imagine their house is typically most of that with a bit of retirement savings. 70th percentile net worth for that age bracket is $333,750. Unless you have a defined benefit pension, even that 70th percentile $300K where much of it is likely your home makes for a very lean retirement.

The C-D retirement forum is filled with people who have defined benefit pensions and a fraction of people who created top-5% wealth. You don't see many here who look like those 50th percentile people. They have no option but to work until they can't work and then hope that a miracle happens and there is public housing available for them. With today's demographics, only half of adults reproduce so it's not like there are affluent children coming up with in-law apartments to house their parents.
Reply With Quote Quick reply to this message
 
Old 02-15-2016, 02:30 PM
 
Location: SoCal
13,235 posts, read 6,340,776 times
Reputation: 9854
Quote:
Originally Posted by reed303 View Post
Don't mis-read the above.

You can elect to have any Medicare premiums deducted from your monthly SS benefit, but SS is not "paying" those premiums. Otherwise you can pay the premiums quarterly, on your own, if you prefer.
Also if you are working a full time job, you get health care with it. So why pay double. I realize some people do t have healthcare at work, but if this person does than it's moot.
Reply With Quote Quick reply to this message
 
Old 02-15-2016, 03:47 PM
 
Location: Silicon Valley
3,618 posts, read 1,631,616 times
Reputation: 6140
Depends on the job. Some retirees will want to work for cash to not disrupt their SS. Collecting it early means you get less. If you are still working at a certain point you will begin to get it taxed back. So it depends on if she hits that threshhold.

I think if she wants to keep working, she has the right idea. Having no savings means she'll need her SS to be higher when she no longer can work.
Reply With Quote Quick reply to this message
 
Old 02-15-2016, 05:04 PM
 
Location: Ohio
19,924 posts, read 14,242,533 times
Reputation: 16104
Quote:
Originally Posted by aquietpath View Post
Hopefully someone can give me some input on this:

If a person is not prepared financially to retire, and will probably need to work until they die because their SS payments will never be enough to fully support them, doesn't it make more sense to take early retirement and work part time?

My sister is in that boat, and she is determined to work until she is 70. Even at that age she won't have enough to live on, so why waste 8 years of her life working like a dog full time? I say claim SS early, get a part time job and enjoy life while you still have your health. She says it's better to wait.

Who is right?
Your sister is right, and her situation isn't as dire as you make it out to be.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top