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Old 08-09-2019, 05:46 PM
 
21,256 posts, read 14,071,858 times
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Quote:
Originally Posted by BBMW View Post
I keep seeing articles how almost half of baby boomers have no retirement savings, and boomers are starting to retire en-mass. An example below:

https://www.investopedia.com/article...ent-crisis.asp

I assume the ones with no savings are trying to keep from retiring, but that may not be so easy. Anyone here in that boat, or know people who are, how and what are they doing?
Simple answer? Get busy living or get busy dying.....

Many will work for long as it is physically possible. Monthly income will supplemented in any way possible from collecting recyclables to dumpster diving for food and other things. Also taking advantage of any and every available discount, subsidy or whatever else is offered by federal/local governments, businesses and cultural institutions.
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Old 08-09-2019, 07:54 PM
 
1,839 posts, read 646,955 times
Reputation: 3429
Quote:
Originally Posted by ACWhite View Post
I believe that Social Security is subject to federal tax. ... Some states and localities exempt SS distributions from their taxes, but their rates are typically much lower than the fed’s.
SS is only subject to tax when the person's income from other sources is above a certain level, and even then the tax on the SS income is on a sliding scale.

I have no deductions but because my income from sources other than Social Security PLUS 50% of my Social Security benefits comes to less than $25K, I pay zero Federal tax. I may end up paying some Federal tax when I have to start taking RMDs but we'll see what the IRS tax code ends up looking like at that time.

My state does not tax either SS benefits or RMDs/pensions and the standard deduction here is currently $8000 for a single person on other income which means I pay no state income tax either.
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Old 08-09-2019, 08:18 PM
 
Location: SoCal
13,840 posts, read 6,596,086 times
Reputation: 10417
Quote:
Originally Posted by Submariner View Post
From where I stand, I think not.

I am among the last of the baby boomers, and I have been retired for 18 years already. Most boomers are older than I am. Yet they have not figured out how to retire, yet.
I find a lot of them in my pickle ball court, lots of geezers there.
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Old 08-09-2019, 08:28 PM
 
1,215 posts, read 325,892 times
Reputation: 2515
Quote:
Originally Posted by BBMW View Post
I keep seeing articles how almost half of baby boomers have no retirement savings, and boomers are starting to retire en-mass. An example below:

https://www.investopedia.com/article...ent-crisis.asp

I assume the ones with no savings are trying to keep from retiring, but that may not be so easy. Anyone here in that boat, or know people who are, how and what are they doing?
They can collect cans, work until they're 90, move in with their kids....OR they can vote for politicians that will raise everyone's taxes so the government can take care of them.
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Old 08-09-2019, 09:02 PM
 
Location: SoCal
13,840 posts, read 6,596,086 times
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Quote:
Originally Posted by SoCal_Native View Post
They can collect cans, work until they're 90, move in with their kids....OR they can vote for politicians that will raise everyone's taxes so the government can take care of them.
Collecting cans is so yesterday, it’s driving Uber now.
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Old 08-09-2019, 09:19 PM
 
7,529 posts, read 8,778,685 times
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I'd say the vast majority of people I know and hang out with are prepared already or are preparing for retirement by building their nest eggs in various ways. Some folks could retire anytime they want but they are still working for various reasons. For me planning to retire was something I did as a matter of automating contributions to retirement accounts, IRAs, and making saving a priority starting early in my career, with no specific age goal in mind to retire.
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Old 08-09-2019, 09:25 PM
 
2,684 posts, read 4,565,558 times
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Quote:
Originally Posted by BBCjunkie View Post
SS is only subject to tax when the person's income from other sources is above a certain level, and even then the tax on the SS income is on a sliding scale.

I have no deductions but because my income from sources other than Social Security PLUS 50% of my Social Security benefits comes to less than $25K, I pay zero Federal tax. I may end up paying some Federal tax when I have to start taking RMDs but we'll see what the IRS tax code ends up looking like at that time.

My state does not tax either SS benefits or RMDs/pensions and the standard deduction here is currently $8000 for a single person on other income which means I pay no state income tax either.
Thanks, but you substituted “...” for the part of my response that was quite specific to the previous poster, and also specifically mentioned deductions and took issue with the use of the term “tax free.” His/her income (at least $51600, and the post was ambiguous, but he may have been talking about take home rather than gross) was higher than what you are describing and likely did not include all of his and his wife’s income. SS is subject the federal income tax, ie one can’t merely automatically exclude it as “tax free” implies, but for certain individuals, such as in your case, you may have enough exclusions and deductions to reduce your income tax liability to zero.
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Old 08-09-2019, 09:47 PM
 
Location: Grove City, Ohio
10,170 posts, read 12,474,979 times
Reputation: 14126
Quote:
Originally Posted by ACWhite View Post
I believe that Social Security is subject to federal tax. It would take a lot of allowable deductions to get you to a zero federal tax rate, especially with your wife’s income and income from investments. Some states and localities exempt SS distributions from their taxes, but their rates are typically much lower than the fed’s.
Let's take a good look on what actually is.

As far as state and local taxes we get the truth here The 37 States That Don't Tax Social Security Benefits

Quote:
That means the 13 states that do tax your Social Security benefits are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia.
Three fourths of the states don't tax social security and if we look at population percentage my guess is 80% to 90% of us won't be taxed on social security. Note that this is just a rough guess on my part.

An excellent, accurate and easy to use worksheet How much of my social security benefit may be taxed?

Two couples... John and Marie then Bill and Alice.

John and Bill always made the same amount of money and at their FRA of 66 they would each receive $2,300 in social security benefits.

Marie and Alice were mostly stay at home moms and would collect 50% of their husbands FRA benefits.

John and Marie saved what they could and together they had $220,800 saved in IRA accounts which spread over 25 years meant they could take $8,832 annually or $736 monthly.

John and Marie stopped working at FRA and John's benefit was $2,300 while Marie's was 50% or $1,150 for a total monthly benefit of $3,450. Since they had it they figured withdrawing $736 monthly for a total monthly income of $4,186 or $50,232. Nice... in most parts of the country that is very livable or should be.

Using the worksheet [b][url="https://www.calcxml.com/calculators/how-much-of-my-social-security-benefit-may-be-taxed"] filling in the blanks we discover federal income taxes on their social security is a big fat zero but the way the worksheet works they might have some federal tax to pay on their IRA withdrawals.

Now let's take Bill and Alice who didn't save any money so Bill did what he had to do and that is work to age 70 where he could increase his social security by 32%.

At age 70 Bill's benefit was $3,036 while Marie collected 50% of Bill's FRA benefit or $1,150 for a total monthly benefit of $4,186 for an annual combined benefit of $50,232. Running that through the calculator we learn the taxes on their social security is also a big fat zero... since social security is all they have they will pay zero in federal income taxes and won't even have to file.

In most of the country an equivalent weekly take home income of $966 SHOULD be enough for two people to live comfortably on especially if their mortgage is paid off. According to U.S. Census Bureau data from 2017, the latest release, the median household income is $61,372 and they are going to be paying federal and state income taxes which leaves me to guess the couple with $50,232 in social security only will actually end up with more spending money in their pocket.

As far as my wife and I are concerned I am still working at 71 and while I don't have any intention of retiring anytime soon we've been practicing living on what we get on our social security alone and experience shows us we would be very comfortable.

Savings? Everyone should have some but I don't see the need for a million plus that some talk about.
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Old 08-10-2019, 12:01 AM
 
Location: Las Vegas & San Diego
310 posts, read 53,199 times
Reputation: 325
Quote:
Originally Posted by Submariner View Post
I am a boomer [born 1959], I have been retired for 18 years. I have a pension and my investments were enough that I could have self-funded a retirement even without the pension.

That being said, it is very obvious to me that the other 99.95% of boomers have not planned for retiring. Most of them appear to lack investments or a plan.
Quote:
Originally Posted by Submariner View Post
From where I stand, I think not.

I am among the last of the baby boomers, and I have been retired for 18 years already. Most boomers are older than I am. Yet they have not figured out how to retire, yet.
I don't know where you are getting that impression, it is far from true. My DW and I are boomers (1957 & 1959) and we are both retired - between us we have significant pensions and savings. All the baby boomers I know from work before I retired the second time (I am a Retired Sub guy also) and elsewhere are well off and many are retiring early. I believe most Boomers have more than just SS to retire on.
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Old 08-10-2019, 02:43 AM
 
72,795 posts, read 72,628,690 times
Reputation: 50311
why are we so obsessed with what others supposedly have or don't have .... there is trillions of dollars in an underground economy out there .. no one knows what anyone really has .
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