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Old 03-18-2016, 08:06 PM
 
20,741 posts, read 13,749,199 times
Reputation: 14404

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Quote:
Originally Posted by Vision67 View Post
I've read lots of articles about how much people should save for retirement and about how few actually are successful reaching that goal. This article demonstrates how dependent retirees actually are on Social Security.

"Based on this data, only the top quarter of all savers and only the top 12% of all retirees in this age range can count on a minimum of $16,000 in income each year from their nest eggs."

US retirement savings vary widely - Business Insider

Here is the thing, and we've been down this road before; Social Security was *NEVER* designed nor intended to be a retiree's or senior's sole source of income. But rather part of a three legged stool whose other two were savings/investments and pensions. SS was designed to be a guaranteed entitlement benefit for workers, and in some instances their spouses and children that would keep the wolf from the door so to speak. Better still since you cannot get at it the thing cannot be drained, spent, or any of the other ways persons lost their life savings and thus ended up in penury. This is particularly beneficial to wives that often found out upon their husband's demise there wasn't anything as the guy has either lied about and or mishandled the household finances. That or quite simply the family was always working poor.


Anyway fast forward to modern times and the other two legs of that stool are largely gone for many. Americans do not save enough, often have to service debt loads which takes away from any potential saving, and fail to start an early plan for retirement savings.


By "early" am talking about taking a minimum of ten percent of every dollar earned and stashing it away in savings or investments. Persons today are far to ignorant regarding the beauty of compounding interest. Many also do not know upheavals not withstanding overall the S&P 500 has out performed any other investment including owning a home.


The easiest way to save is just what the government does with payroll taxes; have the money taken out before it reaches your hands and see that it goes somewhere you cannot get at it.
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Old 03-18-2016, 08:39 PM
 
Location: Sarasota FL
6,860 posts, read 9,289,028 times
Reputation: 6565
Announcement by SSA. There are now 60,000,000 beneficiaries of S.S. In 2015, $944,143,000,000 was paid. During 2016, it is estimated that $991,558,000,000 will be paid. Monthly average payment is $1230
40,339,000 retired
2,343,000 spouse of retired
660,000 children of retired
6,065,000 survivors of deceased
8,897,000 disabled
139,000 spouse of disabled
1,758,000 children of disabled
[numbers don't add up to 60 million but these are the numbers supplied by S.S.A.]
There are now only 2.05 people working to support one beneficiary.
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Old 03-18-2016, 10:17 PM
 
Location: Los Angeles area
14,018 posts, read 17,735,102 times
Reputation: 32304
Quote:
Originally Posted by d4g4m View Post
Announcement by SSA. There are now 60,000,000 beneficiaries of S.S. In 2015, $944,143,000,000 was paid. During 2016, it is estimated that $991,558,000,000 will be paid. Monthly average payment is $1230
40,339,000 retired
2,343,000 spouse of retired
660,000 children of retired
6,065,000 survivors of deceased
8,897,000 disabled
139,000 spouse of disabled
1,758,000 children of disabled
[numbers don't add up to 60 million but these are the numbers supplied by S.S.A.]
There are now only 2.05 people working to support one beneficiary.
Interesting statistics - thanks for posting them. The thing that always makes me wonder is how there can be almost nine million disabled people in the United States. That is one hell of a lot of disabled people!!

I get it that you can be in a car wreck and break your back. That is a terrible tragedy. I get it that you can have a stroke and be partially paralyzed. That is a terrible tragedy too. But how do those cases, and others like them, add up to almost nine million? One has to wonder how many cases "cannot" work due to "mental" issues? One has to wonder further if there were no food forthcoming unless work were performed whether the ability to work would be magically restored?

I know there is no way to know this, but I would be very curious about the percentage of the "disabled" who are truly and genuinely disabled. The real ones must be even more galled than I am about the fakers, and I do recognize that there are plenty of real ones.
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Old 03-18-2016, 10:52 PM
 
Location: Wasilla, AK
7,247 posts, read 4,136,323 times
Reputation: 15658
Quote:
Originally Posted by BugsyPal View Post
In about ten to fourteen years (give or take) the USA is going to be in for a huge shock. That is when the last wave of Boomers (those born late 1950's through 1962) reach retirement age and for *WAY* to many of them the financial outlook is bleak to even dire.


This will be the generation that grew up during the Stagflation of the 1970's came out of college during the recession and stock market crashes of the 1980's and suffered through a few more economic similar *upsets* along the way. They also are likely to be the first generation hit with companies fully cutting back on or not even offering pensions.


For a generation know for reinventing themselves and doing things "their way", most have. They married later in life and or also started families (40's or even 50's) thus are still paying the high costs of having children (such as college and the first few years afterwards until kiddos get themselves straight), during what should be their peak earning years for contributing to retirement funds.


Long story short there are going to be a whole lot of persons for who SS is going to be their only source of retirement income. Worse a large segment of this demographic will be females as for the first time in recent American history (if ever) the number of spinster, divorced, widowed or otherwise single women >65 will exceed those that are married.


Being a widow or divorcee isn't always bad economically but that depends upon what the women got or gets from her late/former husband. When you consider many of those women who will be seniors then spent their active working career lives under very different circumstances (lower paid positions or even careers), what they will get from their own SS benefit record is likely not to be nearly enough.


Senator Warren and some others want to address this looming crisis for both older women and quite frankly many others who will be solely or mostly dependent upon SS for their retirement funds. Problem is there isn't a way to do so without fiddling with the benefit system so someone pays more in order for someone else to get more.

People like myself, who sacrificed and prepared for retirement, are going to be looked at as a piggy bank to be raided so that those who failed to secure their financial future can have more. If you're feeling the Bern, I'm one of the ones who will get burned.
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Old 03-19-2016, 06:10 AM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,927,825 times
Reputation: 6716
Quote:
Originally Posted by Escort Rider View Post
Interesting statistics - thanks for posting them. The thing that always makes me wonder is how there can be almost nine million disabled people in the United States. That is one hell of a lot of disabled people!!

I get it that you can be in a car wreck and break your back. That is a terrible tragedy. I get it that you can have a stroke and be partially paralyzed. That is a terrible tragedy too. But how do those cases, and others like them, add up to almost nine million? One has to wonder how many cases "cannot" work due to "mental" issues? One has to wonder further if there were no food forthcoming unless work were performed whether the ability to work would be magically restored?

I know there is no way to know this, but I would be very curious about the percentage of the "disabled" who are truly and genuinely disabled. The real ones must be even more galled than I am about the fakers, and I do recognize that there are plenty of real ones.
In addition to relaxed definitions of "disability" - particularly in the area of mental health - there is a large amount of fraud.

Another looming crisis: Social Security Disability Insurance | TheHill

Fraud is especially rampant in Puerto Rico:

Insolvency Looms as States Drain U.S. Disability Fund - WSJ

Note that I have only known 2 people on SSDI - and their claims were legitimate.

Robyn
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Old 03-19-2016, 06:16 AM
 
6,822 posts, read 5,151,080 times
Reputation: 3729
Quote:
Originally Posted by mathjak107 View Post
for the youngin's it is still early in the game . they are paying their dues the same as we did . i went to apex technical school back in the 1970's borrowing more money then i ever imagined i would be able to pay back

it was tough but i paid it back . there was little to save for years .

same thing with our kids , we paid for college but they paid for graduate school and law school .

8 years in they are making great money and recently paid off 6 figure loans in 8 years .. now that they made partner a law firm partnership is costing them multiple 6 figures .

the early years are always tough for savings but eventually things work out if you take life by the collar and make things happen for yourself . if you drift like a cork in water to where ever your job pulls you then you will likely not do well at all
Sorry Social Security won't be there for the youngins. It was a system developed when the life expectancy was not much greater than the retirement age. For decades now nothing has been done about the problem across multiple administrations.

Many people that did nothing about the failing program will be drawing from it. The kids will be left high and dry.
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Old 03-19-2016, 06:35 AM
 
Location: Los Angeles area
14,018 posts, read 17,735,102 times
Reputation: 32304
Quote:
Originally Posted by Mikelee81 View Post
Sorry Social Security won't be there for the youngins. It was a system developed when the life expectancy was not much greater than the retirement age. For decades now nothing has been done about the problem across multiple administrations.

Many people that did nothing about the failing program will be drawing from it. The kids will be left high and dry.
Not true. You are using hyperbole, because even if nothing at all is done to tweak the system (unlikely), the benefits will eventually have to be cut to 75% of current levels. While that would be a serious problem, it is not the same as Social Security "not being there" and people being "left high and dry".

The way you expressed it, Social Security is going to implode and cease to exist, which is an absurdity.
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Old 03-19-2016, 06:40 AM
 
Location: Amelia Island
2,977 posts, read 3,958,966 times
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I am soon to be less than six years away from 62 and like others SS is one leg of my three legged stool.

Can I live without it, yes but having it will definitely increase my quality of life, not luxuriously but it will give me a bit of float if something large financially comes at me, like home, auto repairs, or medical.

When retired dipping into savings to me is irreversible when taking out for life's unexpected events.

Will I make it to 62 before they creep up the age..........I hope so. I firmly believe that Congrees will raise the age for partial SS and eventually creep up the age from 66 to 70 for the rest of those retiring later.

I can only hope they do this when I am less than five years away from 62, as I think that is the number they use to grand father you in. I hate to be selfish but I am so ready to get on with my next life

Whatever Congress does I hope and pray they put a lot of thought into it as my mom was part of the little slice of Americans known as Notch Baby's............and that is another story.

Last edited by JBtwinz; 03-19-2016 at 06:50 AM..
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Old 03-19-2016, 06:43 AM
 
33,046 posts, read 22,053,448 times
Reputation: 8970
Quote:
Originally Posted by Mikelee81 View Post
Sorry Social Security won't be there for the youngins. It was a system developed when the life expectancy was not much greater than the retirement age. For decades now nothing has been done about the problem across multiple administrations.

Many people that did nothing about the failing program will be drawing from it. The kids will be left high and dry.

What can be done about the problem that is not regressive?
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Old 03-19-2016, 07:26 AM
 
71,537 posts, read 71,712,424 times
Reputation: 49125
Quote:
Originally Posted by Mikelee81 View Post
Sorry Social Security won't be there for the youngins. It was a system developed when the life expectancy was not much greater than the retirement age. For decades now nothing has been done about the problem across multiple administrations.

Many people that did nothing about the failing program will be drawing from it. The kids will be left high and dry.
nonsense !
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