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"The maximum monthly Social Security benefit payment for a person retiring in 2016 at full retirement age is $2,639. However, the maximum allowable benefit amount is only payable to those who had the maximum taxable earnings for at least 35 working years." - Investopedia
The OP's full retirement age is 67. If he retires at age 62 he will be eligible for only 70% of the maximum if he otherwise qualified for it. In 2016 that would have been $1873 so it is probably right around $1900 in 2017. I notice he has not been back and did not really ask a question; I wonder what the point of his rant was.
the max at 70 is 3576.00 plus colas . a couple can see more than 85k from ss if they have the work history . if they are living off their portfolio the difference in draw rate once ss kicks in can fall off a cliff f . they can be quite a bit less dependent on the whims of markets and inflation than had they opted for 69% less at 62 .
you either need more from your portfolio taking ss early with more market and inflation risk or you need less from your portfolio once ss kicks in and have more longevity risk but less market ,interest rate and inflation risk ..
Last edited by mathjak107; 01-30-2017 at 03:20 AM..
the max at 70 is 3576.00 plus colas . a couple can see more than 85k from ss if they have the work history .
If one defers collecting SS to 70, but does not work those 3 or 4 years between FRA to 70, how much reduction would one see from their age 70 benefit not working those years ?
Don't we all on here make 100k+ a year, and have a 2nd house on the beach. If he does make that much, and his mother only gets $1200 a month. HELP HER OUT!
If one defers collecting SS to 70, but does not work those 3 or 4 years between FRA to 70, how much reduction would one see from their age 70 benefit not working those years ?
It totally depends on how much you make and how many low or zero years are in the 35. If at 62 you are making $60k, and have 35 years of roughly the equal of that based on inflation , then the predicted amount from 62 to to 70 will be fairly accurate .
If you have many lower years but started making over 6 figures AGI, the last few before 62, then the age 70 predicted amount will be way off, (too high) as it assumes max earned for 8 years replacing low or zero amounts. I have 37 years maxed out contributions at 59. Because the last few years had large max income increases, where the inflation adjusted amount was much higher, I have seen my FRA predicted amount increase about $250/MO over the last 3 years. This past month, Jan 2017, when they recalculated it went up 89/MO alone. If SSA keeps increasing the max taxed AGI, as it did this year, the predictions for mine will be higher than reality, and only until I have 2 years of zero earned retirement income, will it adjust down to the real levels when the calculations correctly assume no more FICA income at max.
85 years ago 35 States had social security-like or social insurance programs. In fact, the first program was instituted in 1914 in Arizona, followed by programs in Montana, Nevada, Pennsylvania, Wisconsin, Kentucky, Washington, Colorado, Maryland, California, Utah, Minnesota and Wyoming up through 1929. More States added programs between 1930 to 1935, including New York, where FDR was governor prior to being elected president in 1932.
Fact still remains, that social security has not been around forever in the United States!
Government is not "squandering" Social Security, and once again, Social Security is insurance, not a investment scheme.
The reality is, most Americans think of SS as a retirement plan, not as insurance. And that is largely true - the only insurance out of the SSA is SSDI. But Social Security itself, which we all expect to get somewhere between 62 and 70, looks just like an annuity. You pay into it your entire working life and then when you retire it pays you a guaranteed amount every month for as long as you live.
You know what they say, if it quacks like a duck and walks like a duck, it must be a duck. SS certainly looks a lot more like an annuity to Americans than it looks like insurance. And the Social Security Administration does nothing to dispel that belief - they remind you that it is an entitlement by sending out retirement pay-out estimates every year!
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