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Old 02-25-2017, 11:24 AM
 
280 posts, read 286,518 times
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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.
Unfortunately this is not completely true. In a lot of pension plans the benefit paid is offset by a percentage of social security.

For my companies legacy plan (I do not qualify as it's been closed) participants have their benefits reduced by a percentage of their S.S check. This is also a defined benefit plan that was fully funded by the employer.

So a great benefits from the company! But it did have a S.S offset.
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Old 02-25-2017, 02:09 PM
 
Location: Upstate, NY
613 posts, read 263,469 times
Reputation: 753
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.
According to the above, 48% married and 71% single receive 50% or more of their income from SS. I would stress the or morepart. Just from casual experience, it seems to me that many folks, I would say the majority, are or will be dependent upon SS to make ends meet.

Just a note about when to take SS: It all depends on your circumstances. If you want to provide more for your spouse, for example; if you anticipate your savings will dissipate before you will be ready, you can have more per month until the day you die if you wait. However, if you and your spouse both have pensions; if you expect to have plenty into your 90ís and beyond; if you anticipate living only briefly into retirement, etc., then take it at 62. I'm still thinking it over, but have years yet until retirement.
DC
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Old 02-25-2017, 02:41 PM
 
Location: State of Denial
1,919 posts, read 966,747 times
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I took SS at 62 because I also had a pension and was READY.TO.RETIRE (OK, I had been ready for about 40 years, but....)


I had an opportunity to go traveling and wasn't about to pass that up. I'm glad I did.
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Old 02-25-2017, 03:27 PM
 
639 posts, read 1,746,783 times
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I took it at 62. There were some changes being made and I wanted enrolled before the changes took effect.
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Old 02-26-2017, 08:17 PM
 
Location: Central IL
15,253 posts, read 8,568,509 times
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Quote:
Originally Posted by dcfas View Post
According to the above, 48% married and 71% single receive 50% or more of their income from SS. I would stress the or morepart. Just from casual experience, it seems to me that many folks, I would say the majority, are or will be dependent upon SS to make ends meet.

Just a note about when to take SS: It all depends on your circumstances. If you want to provide more for your spouse, for example; if you anticipate your savings will dissipate before you will be ready, you can have more per month until the day you die if you wait. However, if you and your spouse both have pensions; if you expect to have plenty into your 90ís and beyond; if you anticipate living only briefly into retirement, etc., then take it at 62. I'm still thinking it over, but have years yet until retirement.
DC
I'd think that even people who rely on SS for (just!) 25% of their retirement income would certainly notice its absence. After all, what percentage of your retirement budget is discretionary? SOME people can use their SS as mad money or fun money but that is really the minority. I have a pension but without SS my savings would go down much faster than I'm comfortable with. I plan to wait until 70 to start collecting but hope to retire at 62.
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Old 02-27-2017, 05:00 PM
 
Location: Eastern Washington
14,275 posts, read 44,987,205 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.
I read the fact sheet and the harder I read it the less sure I am of what it says.

My guess of "about 35%" is no more than just a SWAG based on people I know, people in my extended family. I would guess about 1 in 3 has no real retirement plan as such, so when they are eventually unable to work, they fall back on SS.

I wonder what that fact sheet means by "elderly retired" - they don't define it.

My own situation, with as it turns out DW able to draw SS retirement on my account when she turns 66 next year, she will be getting more than $2K per month. My own pension will be about $3500 per month, depending on when I actually retire. If I hold off drawing my own SS until I reach 70, it's quite possible that we will be getting more than half our income from SS, but at the same time should be far from poor.

Next year when I turn 60 and she turns 66, I *could* retire with SS and pension gross about equal to my current take home pay. So with taxes it would be less, but, still, not a bad thing to contemplate. I'm pretty sure we could get by just fine on that level of income.
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