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Old 02-28-2016, 04:12 PM
 
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TuborgP at #48, yes, I am fully aware of that.
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Old 02-28-2016, 04:24 PM
 
13,973 posts, read 7,441,074 times
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Originally Posted by SFBayBoomer View Post
That's a very huge range. I can't imagine many people over the age of 65 who don't have at least $500k, but $10 million bucks is very unlikely for the vast majority who are not doctors or similar.
Wow! Did you even consider clicking on the article in the first post of this thread and reading it?

For late-Boomers age 55 to 64, $500K in retirement savings puts you at the 91st percentile. 90% of retirees don't have $500K. Sure, some have big equity in their homes, businesses they can sell, or a generous defined benefit pension. Something like half have very low net worth, no defined benefit pension, and nothing but a Social Security check coming. Unless they're retiring from public sector jobs or a very small number of union jobs, few of the upcoming late-Boomer retirees have the defined benefit pensions a lot of current corporate retirees have. It's a really big problem.
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Old 02-28-2016, 04:30 PM
 
13,973 posts, read 7,441,074 times
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Originally Posted by reneeh63 View Post
Exactly - a couple folks on here are in their 50's and have said that as this point they aren't worried about changes to SS - that they are "grandfathered in". NO!
What I said is that they're not going to change the basic Social Security pension benefit structure for anyone 55 or older. Will they fiddle with how much is subject to Federal income taxes with a 100% taxable category or how COLA works? Sure. They're not going to cancel the program. Half of the 55-year-olds would starve the minute they couldn't work. No politician is going step on that political third rail.

I'm not even remotely concerned that I won't be getting my Social Security check. My concern is Medicare. It's kind of inevitable that costs are going to go up and coverage is going to decline. To supplement it to give me the level of coverage I expect is likely to be very expensive. I have $10K penciled in for individual coverage. I'm wondering if I've under-estimated it.
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Old 02-28-2016, 05:16 PM
 
Location: Gilbert, AZ
3,194 posts, read 1,966,450 times
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Originally Posted by GeoffD View Post
What I said is that they're not going to change the basic Social Security pension benefit structure for anyone 55 or older. Will they fiddle with how much is subject to Federal income taxes with a 100% taxable category or how COLA works? Sure. They're not going to cancel the program. Half of the 55-year-olds would starve the minute they couldn't work. No politician is going step on that political third rail.
I expect this is true. Any changes to the fundamental credit and benefit accounting will be phased in over many years, like the change from FRA of 65 to FRA of 67.

IMO, the SS system is way too complicated. Individuals have a hard time understanding the rules, and it's got to be a nightmare to administer. It should just be the basic benefit plus the survivor benefit. All of the other "add ons" were probably done with good intentions, but they tend to create so-called loopholes that people then learn to use in unanticipated ways. Very similar to what happens with the tax close.
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Old 02-28-2016, 05:28 PM
 
Location: SoCal
13,297 posts, read 6,362,704 times
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Quote:
Originally Posted by GeoffD View Post
What I said is that they're not going to change the basic Social Security pension benefit structure for anyone 55 or older. Will they fiddle with how much is subject to Federal income taxes with a 100% taxable category or how COLA works? Sure. They're not going to cancel the program. Half of the 55-year-olds would starve the minute they couldn't work. No politician is going step on that political third rail.

I'm not even remotely concerned that I won't be getting my Social Security check. My concern is Medicare. It's kind of inevitable that costs are going to go up and coverage is going to decline. To supplement it to give me the level of coverage I expect is likely to be very expensive. I have $10K penciled in for individual coverage. I'm wondering if I've under-estimated it.
I agree that they are not changing the basic SS, but to shore up that they are closing the loophole(s). I'm all for it.
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Old 02-28-2016, 06:14 PM
 
29,809 posts, read 34,900,894 times
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Originally Posted by Serious Conversation View Post
I'm really referring to Southern natives. Most people in South Carolina could never afford to retire to MA, but about everyone in MA could easily retire to SC.
This is very true
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Old 02-28-2016, 06:47 PM
 
Location: Tennessee
23,650 posts, read 17,615,071 times
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Quote:
Originally Posted by vicky3vicky View Post
I am just relieved to discover that the vast majority of us are not even close to millionaires [ not referring to you Mathjack] and doing fine. I have been feeling alright with our financial situation, but having so much less money than we are "supposed" to have was making me worry that one day soon I would be waking up in the morning and finding myself living under a bridge. Not so paranoid now.
As long as you can manage what you do have well, and aren't currently on the edge, why would you live in unnecessary fear?
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Old 02-28-2016, 07:13 PM
 
Location: Central IL
15,253 posts, read 8,560,668 times
Reputation: 35693
Quote:
Originally Posted by GeoffD View Post
What I said is that they're not going to change the basic Social Security pension benefit structure for anyone 55 or older. Will they fiddle with how much is subject to Federal income taxes with a 100% taxable category or how COLA works? Sure. They're not going to cancel the program. Half of the 55-year-olds would starve the minute they couldn't work. No politician is going step on that political third rail.

I'm not even remotely concerned that I won't be getting my Social Security check. My concern is Medicare. It's kind of inevitable that costs are going to go up and coverage is going to decline. To supplement it to give me the level of coverage I expect is likely to be very expensive. I have $10K penciled in for individual coverage. I'm wondering if I've under-estimated it.
Fiddling....it's a matter of degree. The program doesn't have to be cancelled outright to cause people considerable difficulty. As long as I have time to adjust my savings and my expectations I'll be nominally okay. But start taxing benefits at double the rate or eliminating COLA...that is beyond "fiddling".

We're all assuming that the politicians are too afraid to do anything major but most people are so complacent and there is so little recourse when elections are years away and memories only last until the next inane news cycle that I am less than confident in what exactly I'll get. And what I get at FRA might well be very different 20 years later - I'm not planning on only being retired for a few years!
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Old 02-29-2016, 07:07 AM
 
673 posts, read 2,030,031 times
Reputation: 875
Quote:
Originally Posted by Serious Conversation View Post
I'm really referring to Southern natives. Most people in South Carolina could never afford to retire to MA, but about everyone in MA could easily retire to SC.
Seniors in 48 states face serious income shortage, study finds - Jun. 10, 2013

Good article about states where retirees are better off, or worse off.

The worst states for retirees - NH, NJ, RI, ND, MA.

Massachusetts is at the bottom of the heap.

Most of the above is because of property taxes.
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Old 02-29-2016, 07:56 AM
 
Location: Tennessee
23,650 posts, read 17,615,071 times
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Quote:
Originally Posted by Nausikaa View Post
Seniors in 48 states face serious income shortage, study finds - Jun. 10, 2013

Good article about states where retirees are better off, or worse off.

The worst states for retirees - NH, NJ, RI, ND, MA.

Massachusetts is at the bottom of the heap.

Most of the above is because of property taxes.

I have a sneaking feeling that study is leaving a lot of critical information out. The median HHI in MA is something like 50% more than in FL, but the replacement income in MA is only a couple hundred bucks more. Where did all that extra income that the people in MA made go? Are the Floridians just more judicious savers?

Assuming that two families in MA/FL save identically, the MA family should have a much higher net worth due to having more money to save/invest and substantially more home equity.
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