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Old 02-01-2017, 11:52 AM
 
15,258 posts, read 4,025,863 times
Reputation: 11028

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Quote:
Originally Posted by AtlantaNative1968 View Post
I am speechless. Where the heck has all our money gone for these decades paying into the government fund? This is a lesson to everyone out there in their 30s and younger. Don't even consider SS as potential income in retirement. Save as much as you possibly can as early as you can and take advantage of as many investment opportunities as you can - like 401K and Roth IRAs. Your government is squandering your social security so do not expect to get anything resembling a return on what you are paying in.
Strange debate!

As people live longer and healthier it's obvious that they (like your parents, etc.) collect more from the system...so the system needs more money put in.

It's not a hard formula to understand.

As many here have said - SS should be just a small part of the average retirees income. In my case, it will probably represent less than 20% of my total income.

What it is really important for are those people at the lower end of the scale. It allows them to live in some kind of dignity without the bill collectors knocking on the door.

The government isn't squandering anything!

Did any of the companies you worked for have pensions? Surely you know enough history to understand that many (even most) Americans who worked as you do had pension a generation or two ago?

My situation is somewhat likes yours. I have worked since I was 18 - now 63. Since I was largely self-employed I put money away myself (IRA and otherwise) and SS is really just going to be mad money. I've been saving for 30+ years and all is fine in that department.

Do the math and I think you will see that the money you put in is not being stolen from you.
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Old 02-01-2017, 12:09 PM
 
Location: Metropolis IL
1,602 posts, read 1,892,707 times
Reputation: 2348
Quote:
Originally Posted by ChessieMom View Post
What?? What nonsense.
Why is it nonsense? They show up in threads on here all the time. You seldom see Joe or Jane Sixpack, who have averaged an inflation adjusted $50K per year or less their working lifetime, coming on here and saying "Gee I wish I had been allowed to save all those FICA taxes I paid, and bought an annuity that pays more than my monthly SS check."

For high earners, FICA taxes are a big government annoyance, that pay out what they consider to be pocket change.

For lower earners, it's a benefit that pays out an amount, that they have little chance of replicating through investment at their income level.

I'm not criticizing either. It's just an observation of human nature.
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Old 02-01-2017, 12:13 PM
 
25,986 posts, read 33,003,034 times
Reputation: 32208
Quote:
Originally Posted by BLS2753 View Post
Why is it nonsense? They show up in threads on here all the time. You seldom see Joe or Jane Sixpack, who have averaged an inflation adjusted $50K per year or less their working lifetime, coming on here and saying "Gee I wish I had been allowed to save all those FICA taxes I paid, and bought an annuity that pays more than my monthly SS check."

For high earners, FICA taxes are a big government annoyance, that pay out what they consider to be pocket change.

For lower earners, it's a benefit that pays out an amount, that they have little chance of replicating through investment at their income level.

I'm not criticizing either. It's just an observation of human nature.
LOL!!! "Pocket change". . I have never heard even ONE person state that.
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Old 02-01-2017, 12:34 PM
 
Location: Connecticut
26,329 posts, read 42,304,319 times
Reputation: 7819
Quote:
Originally Posted by AtlantaNative1968 View Post
Proportionally, yes, I agree. But those numbers do not make sense. It is grossly disproportionate for someone making $16K a year (at his peak earning years...significantly less most of his life) to make only slightly less in returns from someone making $100K+ for 2 decades and not significantly less before that.


And my view of what it is could be wrong...but it should not be as you state. Otherwise, why would there be ANY difference in anyone's returns? If it was this communal pool and everyone just got a hunk of it, then it would be an even socialist pie that did not fluctuate at all based on income. Clearly, income does have something to do with the formula, correct?


IMO, it should be privatized and be more akin to municipal or treasury bond fund. And regardless of what you say it is supposed to be, millions of elderly do people live on it 100%. Modern savings vehicles like 401Ks are a relatively recent invention. Before those existed, most people had either pensions or SS at retirement. The lucky had both, but you know good and well that millions depended solely on SS.
I STRONGLY disagree with privatizing Social Security. You are under the VERY mistaken assumption that people are able to handle their finances and investments well. That is not correct. Many people have no idea how to invest money wisely or how to spend it wisely. The whole point of Social Security is that it gives the elderly a small guaranteed income each month to live on since they can likely no longer work to support themselves. It is a safety net and not meant to be someone's full retirement income. Without that income, millions of retirees would have nothing if they invested poorly or if they spent more than they should have. The only ones who make out good in that are the Wall Street investment advisors and you know how honest they can be. Jay
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Old 02-01-2017, 01:00 PM
 
Location: Myrtle Creek, Oregon
12,260 posts, read 12,507,549 times
Reputation: 19414
Quote:
Originally Posted by NewbieHere View Post
I think you should read the link I posted. OP is not making mistake. The max anybody got contributing the max is $2100 something at age 62 assume that person starts working at age 22. I hate to keep beating the horse. So $1900 is not far off. I've always earn very high salary immediately after college and I would get nearly the same amount. Same with my husband. We may not have worked 40 years though but certainly more than 25 years.
If you want to take the 32% to 40% reduction in your benefits by claiming at age 62, it's your business. That's the deal. You can hardly complain when it's your choice. You can insert yourself into the actuarial tables wherever you want. If your health is poor and you need the money right now, early retirement at a lower income can be a good choice. If you are in excellent health and everybody in your family lives into their 90s, at least wait to FRA if not later.
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Old 02-01-2017, 01:05 PM
 
71,587 posts, read 71,751,865 times
Reputation: 49194
if you hate stock market volatility and dependency on rates, delaying is your best choice . the 69% bigger check plus colas can cut that dependency by quite a bit for decades of your life or your spouses life .
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Old 02-01-2017, 01:08 PM
 
Location: Metropolis IL
1,602 posts, read 1,892,707 times
Reputation: 2348
Quote:
Originally Posted by ChessieMom View Post
LOL!!! "Pocket change". . I have never heard even ONE person state that.
Ever hear of a metaphor?
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Old 02-01-2017, 01:10 PM
 
71,587 posts, read 71,751,865 times
Reputation: 49194
you mean like "i met her for some drinks so i could get her drunk " ?
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Old 02-01-2017, 01:17 PM
 
Location: Idaho
1,454 posts, read 1,155,024 times
Reputation: 5492
Quote:
Originally Posted by Larry Caldwell View Post
If you want to take the 32% to 40% reduction in your benefits by claiming at age 62, it's your business.
https://faq.ssa.gov/link/portal/3401...enefit-payable

Quote:
What is the maximum Social Security retirement benefit payable?

The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2016, your maximum benefit would be $2,639. However, if you retire at age 62 in 2016, your maximum benefit would be $2,102. If you retire at age 70 in 2016, your maximum benefit would be $3,576.
The reduction is 20.35% for taking at 62 instead of FRA (66) and 41.22% for taking at 62 instead of 70.
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Old 02-01-2017, 01:18 PM
 
4,718 posts, read 10,318,015 times
Reputation: 2300
I guess when I previously visited that calculator I missed where you can go beyond the basics and change when you plan stop working. Running the numbers and stopping @ 60 but delaying to FRA or 70 didn't have as much disparity as I thought it would.


Quote:
Originally Posted by reed303 View Post
SSA has several calculators at https://www.ssa.gov/planners/benefitcalculators.html depending on what you are looking for.
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