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Old 02-24-2017, 03:18 PM
 
Location: Florida -
8,764 posts, read 10,848,423 times
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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.

??? That's not what the article actualy says! - It says that 9 out of 10 people over the age of 65 receive Social Security --- and that Social Security represents about 34-percent of the income of the elderly. It also says that about 50-percent of the elderly rely on SS for about 50% of their income ... and finally, that SS represents about 90-percent of the income of 21% of married couples and 43% of unmarried persons.

" Social Security is the major source of income for most of the elderly.
ο Nearly nine out of ten individuals age 65 and older receive Social Security benefits.
ο Social Security benefits represent about 34% of the income of the elderly.
ο Among elderly Social Security beneficiaries, 48% of married couples and 71% of
unmarried persons receive 50% or more of their income from Social Security.
ο Among elderly Social Security beneficiaries, 21% of married couples and about 43% of
unmarried persons rely on Social Security for 90% or more of their income.
"

IF there is a directly proportional relationship between married and unmarried people, then 21% of married people would represent 14% of all retirees (66% x 21%); - 43% of single people would also represent 14% of the all retirees (33% x 43%). Therefore, only 14% of all retirees depend on SS for 90% of their income This sounds about right - and is a long way from 35% of retirees depending on SS for 90% of their income.

Last edited by jghorton; 02-24-2017 at 03:27 PM..
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Old 02-24-2017, 04:43 PM
 
1,137 posts, read 570,641 times
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...it was my understanding that there would be no math...???!!
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Old 02-24-2017, 04:48 PM
 
Location: At the Lake (in Texas)
2,070 posts, read 2,036,182 times
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Quote:
Originally Posted by MagnoliaThunder View Post
...Made it to 65 in August last year. ...[SORRY, I got my own age wrong! LOL - perhaps now the following sentence will make more sense!] So, although my SS monthly income is about $100 less monthly than it would have been at FRA, between my severance package from my firm and SS, I will be okay...I am also receiving unemployment benefits until May, I believe and don't feel bad at all about getting this since I gladly paid into the system for myself and others while I was working. I also am going to try to put a little away each month into some sort of investment, maybe just a mutual fund, but we'll see.

It does feel like finally I'm getting something in return for all the years I worked, and I am so happy to be able to relax and not work...I feel blessed and don't care that I couldn't keep working. Life is good!
Couldn't edit so thought I should correct here...I was 65 in August, not 66 . . . don't even know my own age these days...plus I thought today was Thursday...retirement is Great! LOL
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Old 02-24-2017, 04:50 PM
 
Location: Albuquerque NM
1,661 posts, read 1,527,059 times
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Quote:
Originally Posted by jghorton View Post
??? That's not what the article actualy says! - It says that 9 out of 10 people over the age of 65 receive Social Security --- and that Social Security represents about 34-percent of the income of the elderly. It also says that about 50-percent of the elderly rely on SS for about 50% of their income ... and finally, that SS represents about 90-percent of the income of 21% of married couples and 43% of unmarried persons.

" Social Security is the major source of income for most of the elderly.
ο Nearly nine out of ten individuals age 65 and older receive Social Security benefits.
ο Social Security benefits represent about 34% of the income of the elderly.
ο Among elderly Social Security beneficiaries, 48% of married couples and 71% of
unmarried persons receive 50% or more of their income from Social Security.
ο Among elderly Social Security beneficiaries, 21% of married couples and about 43% of
unmarried persons rely on Social Security for 90% or more of their income.
"

IF there is a directly proportional relationship between married and unmarried people, then 21% of married people would represent 14% of all retirees (66% x 21%); - 43% of single people would also represent 14% of the all retirees (33% x 43%). Therefore, only 14% of all retirees depend on SS for 90% of their income This sounds about right - and is a long way from 35% of retirees depending on SS for 90% of their income.
My bad! I did not fully account for married couples being two people. But I think your math is flawed. You have to add the 14 and the 14 to get 28%. But I agree that it is not 35-36% per the fact sheet unless there are a lot more singles than marrieds age 65 or older. However I found another web article that stated an SSA quote of 35% but then the journalist came back and questioned whether the SSA was including all income in their statistics. So who the heck knows? And the Fact Sheet is discussing those who receive 50% or more of their income from SS, not those relying on SS for about 50% of their income.
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Old 02-25-2017, 03:34 AM
 
Location: Mount Airy, Maryland
10,464 posts, read 5,933,005 times
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We've all seen the numbers on retirement accounts, so many have little or none. So I'm having trouble believing the figures posted here, I believe far more than 14% rely on 90% of their income from SS.
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Old 02-25-2017, 03:48 AM
 
12,300 posts, read 15,202,635 times
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Quote:
Originally Posted by Vision67 View Post
I think that making it to 62 gives you a bit of security. That reduces anxiety.

Even if you decide to delay the onset of SS, you know that if things get ugly, you can click that mouse and start the gravy train. Each scoop of gravy will be smaller, but at least you will have some.
Even to 61-1/2, if you are lucky enough to be working. If you get laid off, your unemployment pay will take you to Social Security. So you will always have some income for the rest of your life. Unless you are working as a contractor, of course.

I plan to keep working as long as possible, or to 70.
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Old 02-25-2017, 05:34 AM
 
Location: Colorado Springs
4,845 posts, read 4,959,765 times
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Quote:
Originally Posted by MagnoliaThunder View Post
Couldn't edit so thought I should correct here...I was 65 in August, not 66 . . . don't even know my own age these days...plus I thought today was Thursday...retirement is Great! LOL
We have a clock especially designed for retirees.

In addition to the time, it displays the day of the week, the date of the month, and my wife added a card to it that displays the current year.

If you want one, look on amazon.
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Old 02-25-2017, 08:52 AM
 
13,320 posts, read 25,569,771 times
Reputation: 20505
I had a co-worker who famously crossed off each day on a list in his locker, like a prisoner, in groups of five. He started somewhere over 1,000 days left.
Saw him for dinner recently and after three years of retirement, he is still thrilled that every day is Saturday. Of the four of us dining, he was the only one retired and the only one not having medical problems from work and being exhausted. He said that during one snowstorm, he cleared the end of his driveway, put on shorts and put out a beach chair, and waved to commuters with one hand and drank a beer with the other! Some people honked in approval.
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Old 02-25-2017, 09:22 AM
 
Location: Central IL
15,243 posts, read 8,538,301 times
Reputation: 35674
Quote:
Originally Posted by Pine to Vine View Post
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.
Hahah...me either...if I hear something interesting I research it for myself. As for breaking even, I'm not counting on dying young, I'm planning for if I live long.

You must be new here if you haven't run into a post by mathjak, whatever "it" is.
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Old 02-25-2017, 09:33 AM
 
Location: Florida -
8,764 posts, read 10,848,423 times
Reputation: 16639
Quote:
Originally Posted by ABQ2015 View Post
My bad! I did not fully account for married couples being two people. But I think your math is flawed. You have to add the 14 and the 14 to get 28%. But I agree that it is not 35-36% per the fact sheet unless there are a lot more singles than marrieds age 65 or older. However I found another web article that stated an SSA quote of 35% but then the journalist came back and questioned whether the SSA was including all income in their statistics. So who the heck knows? And the Fact Sheet is discussing those who receive 50% or more of their income from SS, not those relying on SS for about 50% of their income.
Sometimes the math in these "fact sheets" and related media reporting is intentionally obscure - particularly when it is being spun to make a one-sided point. Note: The prior math is also reduced to 90% of the elderly, since only 9 of 10 are actually on SS.

The fact is that many of the claims of a high percentages of elderly people living solely on SS ---really aren't true ... but, can be made to seem so by skewing the percentages.

Even the 50% number is skewed to make it appear larger. 48% of married couples represents only 32% of the total (66% married) elderly people (actually 29% with the 90% factored in). And since only 71% of those are represented in the 50% on SS number, the number is further reduced to about 21% for whom SS represents 50% of their income. However, since these are married couples, their SS is doubled, so the total household income is actually twice as high as represented if it were only a single income.

Last edited by jghorton; 02-25-2017 at 10:14 AM..
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