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 02-22-2017, 01:02 PM
 
7,794 posts, read 4,381,326 times
Reputation: 11578

Advertisements

Sadly, many don't save anything throughout their lives and do rely on SS alone. And no; being smart/prudent enough to save or invest in another retirement plan/pension doesn't reduce our benefits -- and shouldn't. We pay into it, so we take out of it. Fair.
Reply With Quote Quick reply to this message

 
Old 02-22-2017, 01:18 PM
 
Location: Blue Ridge Mountains
1,827 posts, read 2,615,700 times
Reputation: 2887
I'm with Vega! You can't put a price tag on freedom and joy and in the end it all balances out anyway!
Reply With Quote Quick reply to this message
 
Old 02-22-2017, 01:22 PM
 
Location: Long Neck , DE
4,903 posts, read 3,030,667 times
Reputation: 8025
Quote:
Originally Posted by borninsac View Post
So it's official, I made it and am eligible to start collecting Social Security benefits albeit a reduced age 62 benefit. This I shall not do at this time. I hope to cross other age milestone lines in my gracefully aging sand, God willing, in my years ahead.
Good decision there youngster. I started collecting at 62 many years ago. I am still in good health and work partly out of boredom. Had I waited my benefit would be much greater now.
Reply With Quote Quick reply to this message
 
Old 02-22-2017, 03:47 PM
 
13,874 posts, read 7,386,288 times
Reputation: 25351
Quote:
Originally Posted by otterhere View Post
Sadly, many don't save anything throughout their lives and do rely on SS alone. And no; being smart/prudent enough to save or invest in another retirement plan/pension doesn't reduce our benefits -- and shouldn't. We pay into it, so we take out of it. Fair.
It's actually worse than "many". Only 30% of retirees have pension income or 401(k)/IRA distribution income. 70th percentile median household net worth for 65+ is less than $400K with most of that home equity. If you project out 20 years, the numbers get even more grim. Very few of the late-Boomers have a defined benefit pension coming. Savings rates got worse, not better. Birthrates dropped significantly for that group and those who did reproduce often have Millennials who haven't been economically successful and won't be able to help out.
Reply With Quote Quick reply to this message
 
Old 02-22-2017, 03:54 PM
 
7,794 posts, read 4,381,326 times
Reputation: 11578
Sad, but true. Savers and the thrifty are looked down upon, in fact. Honestly, the factor that makes me most reluctant to wait a bit longer to retire is the imminent collapse of society. There may not be time -- or money (even my OWN money) -- later.
Reply With Quote Quick reply to this message
 
Old 02-22-2017, 04:02 PM
 
Location: Center City
6,849 posts, read 7,795,643 times
Reputation: 9469
Quote:
Originally Posted by reneeh63 View Post
....or the opposing perspective which is, rather than counting on the market with its variable returns (and actual losses at times) to keep earning and adding up for you, delay Social Security and get a pretty much guaranteed "return" each year that you wait.

Sure, you have to take out from your investments and that feels painful...unfortunately you can more easily "ignore" or overlook the pain and loss you experience by taking SS earlier. Just because avoiding one pain point is more immediate doesn't mean that it is the best choice long term.

I'm sure that mathjak will chime in very soon!
My way makes sense to me. Your way makes sense to you. Each of us has unique circumstances. When I enter my numbers into the break even calculator, my decision was a "no brainer."

Not clear who or what "mathjak" is. If a poster, I don't make my financial plans based on suggestions of anonymous people.
Reply With Quote Quick reply to this message
 
Old 02-22-2017, 04:06 PM
 
13,314 posts, read 25,546,272 times
Reputation: 20477
Quote:
Originally Posted by M3 Mitch View Post
I'm not certain if pension payments affect SS. Working for wages does, if you earn more than about $15K, you start losing SS at a rate of $1 of SS lost for every $2 earned.
The above only applies if you take Soc. Security before your full retirement age. I imagine others will step up and point this out, too.
Reply With Quote Quick reply to this message
 
Old 02-22-2017, 04:47 PM
 
Location: Albuquerque NM
1,656 posts, read 1,521,661 times
Reputation: 3627
Quote:
Originally Posted by mapleguy View Post
Could somebody answer my question ?


I live in Canada so my understanding of the US social security program is pretty basic.


Do most Americans look at their SS payments as a sole source of income in retirement, or as a supplement to their own investments and private pensions ?


Second. If a US citizen has a pension from a former employer, does that result in their SS benefit being reduced ?


Thanks.


Maple Guy.
https://www.ssa.gov/news/press/facts...icfact-alt.pdf

Per the attached SS fact sheet M3 Mitch is correct that about 35% of elderly USA citizens rely on SS for 90% or more of their income. And more than half rely on SS for 50% or more of their income.

Only earned income (e.g., working wages) results in a SS reduction and only before Full Retirement Age (e.g., before age 66) as brightdoglover pointed out. Pension income and 401k/IRA withdrawals are not considered earned income and do not reduce SS, at least not directly. However this retirement income increases your gross income and can increase the amount of SS subject to federal income tax. For lower gross incomes, SS is not taxed. Taxes on SS are phased in as income increases - a maximum of 85% of your SS can taxed. For example a higher income person may be in the 25% tax bracket and pay tax on 85% of their SS so a $20K annual SS benefit would result in a tax bill of $4250 on that amount alone. Also a higher gross income may result in higher Medicare Part B payments.
Reply With Quote Quick reply to this message
 
Old 02-22-2017, 05:41 PM
 
13,874 posts, read 7,386,288 times
Reputation: 25351
Quote:
Originally Posted by ABQ2015 View Post
https://www.ssa.gov/news/press/facts...icfact-alt.pdf

Per the attached SS fact sheet M3 Mitch is correct that about 35% of elderly USA citizens rely on SS for 90% or more of their income. And more than half rely on SS for 50% or more of their income.

Only earned income (e.g., working wages) results in a SS reduction and only before Full Retirement Age (e.g., before age 66) as brightdoglover pointed out. Pension income and 401k/IRA withdrawals are not considered earned income and do not reduce SS, at least not directly. However this retirement income increases your gross income and can increase the amount of SS subject to federal income tax. For lower gross incomes, SS is not taxed. Taxes on SS are phased in as income increases - a maximum of 85% of your SS can taxed. For example a higher income person may be in the 25% tax bracket and pay tax on 85% of their SS so a $20K annual SS benefit would result in a tax bill of $4250 on that amount alone. Also a higher gross income may result in higher Medicare Part B payments.
This isn't answering his question. A big chunk of people age 62+ who are collecting Social Security are still working at least part time and aren't "retired". They hit age 62, start collecting since it's "free money", and keep working up to the $16,920 earned income cap. That totally skews the data. When you only look at the truly retired with no earned income, it's a totally different number.
Reply With Quote Quick reply to this message
 
Old 02-22-2017, 06:35 PM
 
25,971 posts, read 32,970,649 times
Reputation: 32158
I am envious of those that can retire at 62. Good planning! I have 5 more years before I can retire with a full pension, and I will be 66. So at 66 and 2 months (for SS) I will say goodbye to my 9 to 6 5 days a week...and I can't wait.
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