Let's hear from those on Social Security only (grandparent, weather, vacations)
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The defer-to-70 maximum benefit is more like $3,600/month depending on your full retirement age.
That's my worst case retirement planning math. Defer to age 70 and be able to live off a near-maximum Social Security benefit if I run out of money and have nothing but my paid-for house left. You pay about $3,600 in Federal income taxes on it so that leaves about $40,000 per year to pay your bills.
Most people can't afford to defer collecting Social Security until age 70. Something happens where you can't work and you haven't accrued enough wealth to bridge yourself to 70.
I will be collecting at or very near the "maximum benefit" when I do retire in about twelve years. I also plan on delaying retirement to age 70, health permitting. According to those statements we get from the SSA, my wife stands to get about $2200 a month if she takes her benefit at 65.
So, I think we could live on our social security if we had no other resources. Fortunately, we also have a good government pension that my wife earned and some investments that will generate a decent income for us as well.
The real issue for me is this though: No matter how I slice it, we'll still be taking home less income than we are currently earning.
So, while you may be able to live on your retirement, do you want to have less than you do now? I think that's the case for all, but a few retirees.
I will be collecting at or very near the "maximum benefit" when I do retire in about twelve years. I also plan on delaying retirement to age 70, health permitting. According to those statements we get from the SSA, my wife stands to get about $2200 a month if she takes her benefit at 65.
So, I think we could live on our social security if we had no other resources. Fortunately, we also have a good government pension that my wife earned and some investments that will generate a decent income for us as well.
The real issue for me is this though: No matter how I slice it, we'll still be taking home less income than we are currently earning.
So, while you may be able to live on your retirement, do you want to have less than you do now? I think that's the case for all, but a few retirees.
My Social Security is drastically dramatically less than what I was earning. That factor did not enter into my decision to take Social Security at age 62 at all.
I always thought I would work to age 70 too, but when I turned 62, I changed my mind quickly and jumped on the opportunity to stop working!
Working nearly 40 years was way more than enough of working. (plus a couple health problems)
Last edited by matisse12; 03-05-2017 at 06:22 PM..
As a retired (one year)Social Worker in the Expensive State of CA, I saw many folk on SS only getting by just fine in our small town/rural area. How, you may ask? Step one: subsidized rent apartment. Nice one bedroom for $275 a month. Or shared housing. Medical care is free due to state Medicaid along with Medicare. Food is covered by food stamps and various food banks. Church run charities provide clothes, household items, food and more. Senior center provides, food, rides and social services. And there is the informal network of the poor in our community. Funded programs to provide reduced utility and phone rates.
The poor here do ok, but it does take some effort and reaching out.
So if I drive over there into CA today, by tomorrow I will have a clean, safe, rent-subsidized apartment?
No?
Instead I will be on a waiting list for years?
No?
Instead all the waiting lists are closed and won't be opened again for years? And in the meantime I'm living in my car - until someone breaks into it, beats me up, steals the car and sets it on fire? And them I'm fully homeless? And still no open waiting lists for safe, clean apartments?
YES!
Actually I did just check and there are 23 open waiting lists in CA - but the point is they are still WAITING LISTS. Could still be months or years before you have a place to live. And no telling when they will close again. Several years ago I looked for subsidized housing and discovered I would be ineligible if I was living with my son (as I was) for many, and most were closed anyway. All were backed up, sometimes as long as 2 to 5 years.
Since the average amount of monthly Social Security received is $1342 per month, isn't it misleading to mention the maximum $3600 ($3538) monthly at age 70 when the vast majority of people will not receive anywhere close to that number whatsoever?
Especially for people looking for information on Social Security, and for those who do not have a lot of information yet.
(And then $104 is removed monthly from the $1342 per month to pay for Medicare, making the amount received even lower)
"qualifying for the maximum Social Security benefit is very difficult—it's the equivalent of winning a benefits Powerball. To get the highest benefit possible at your full retirement age (FRA), your income needs to have been at or above the Social Security earnings ceiling (the amount of income subject to payroll tax) each year for at least 35 years since age 22."
"Only about 2% of workers wait to 70 to claim Social Security."
Just asking. I know you were talking about your personal situation.
Maybe you should read the title, it's for each individual. I think GeoffD just replied to that, his comment is not for everybody or the vast majority of people. So let's not get too political for political sake.
The defer-to-70 maximum benefit is more like $3,600/month depending on your full retirement age.
That's my worst case retirement planning math. Defer to age 70 and be able to live off a near-maximum Social Security benefit if I run out of money and have nothing but my paid-for house left. You pay about $3,600 in Federal income taxes on it so that leaves about $40,000 per year to pay your bills.
Most people can't afford to defer collecting Social Security until age 70. Something happens where you can't work and you haven't accrued enough wealth to bridge yourself to 70.
I don't think you will be paying any tax if that's all you have.
I can tell you that assuming you are still collecting SSDI by then, that your SSDI will convert to Social security when you reach FRA the amount should stay pretty much the same. And at no time will your amounts be converged, you will receive separate amounts.
If I go back to work, At any time I can't continue to work, my SSDI is reinstated again without having to re-apply. It will be a new higher amount as my working will contribute to the new higher amount. That part I do know.
This last year was NOT a year to try as I had panned, 216 was a bad health year for me with two major invasive surgeries, 15 weeks of pneumonia, torn ligaments and a car accident with a total of 32 weeks of PT. The pneumonia nearly killed me twice and yes, I was hospitalized.
This year, I am facing another neck surgery and then a back surgery so I will at least be out for 10 days of work each, if not longer and PT can always be worked around working hours in most cases.
I am working with an agency who specializes in helping SSDI people get jobs, as I haven't worked in years, and so employers shy away form that,and I get around with a cane, a sure sign of disability, something most employers notice
I DOn't know yet if I should even try again this year, the surgery on my back may eliminate all or at least some of the constant intense pain I am in, though fusing it will mean I lose flexibility. I already have lost that as I can't bend over well now as bad as my back is. Not all jobs require routine lifting of 50# or more OR standing on one's feet all day I am actually looking into medical secretary, I have administrative assistant experience {though my typing is rusty and being dyslexic doesn't help}, but the hospitals are reluctant to hire a disable person.
Not sure with my limited abilities that ANY time is a good time to try. I want to go back to work for several reasons: 1}I'm a bit bored after 13 years, 2} want to increase my eventual SS payment, 3} it will help produce more income for us NOW 4} I feel useless and unvalued.
I do know how health reasons can help prevent one from working so I looked at things in your perspective from that stand point, as well as having lived on one payment a month for several years. It's not fun, but can be done. at least you said you are at a the higher end of the payout, and you have moved to a cheaper living area and were able to buy a home cheaply.
Always keep in mind Senior housing, if your area has it as the house becomes more expensive to maintain or your health prevents you form caring for it and you can no longer afford to hire those who can care for it.
We seriously considered Senior housing and decided to buy the hosue instead. MOH dosen't do much, I pretty much care for it. MOH is able, just WON'T since I do it because it needs to be done. And MOH works two part time jobs, feels that is all required.
Where we would like to retire to is a cheaper area, and we will check into senior housing, though that will abandon our idea of rentals.
don't know what the future holds, I never thought when I was 25 that I'd have been homeless, and on SSDI in the future!
Best of luck to you.
You are a wonderful valuable person, always remember that, even when you feel like I described myself above.
I have no idea what you're talking about. "political for political sake"?? "Maybe you should read the title, it's for each individual"???
Let me repeat the title for you. Let's hear from those on Social Security only. And that was his reply for his situation when he reaches 70, he will get $3600 a month or whatever the amount.
So if I drive over there into CA today, by tomorrow I will have a clean, safe, rent-subsidized apartment?
No?
Instead I will be on a waiting list for years?
No?
Instead all the waiting lists are closed and won't be opened again for years? And in the meantime I'm living in my car - until someone breaks into it, beats me up, steals the car and sets it on fire? And them I'm fully homeless? And still no open waiting lists for safe, clean apartments?
YES!
Actually I did just check and there are 23 open waiting lists in CA - but the point is they are still WAITING LISTS. Could still be months or years before you have a place to live. And no telling when they will close again. Several years ago I looked for subsidized housing and discovered I would be ineligible if I was living with my son (as I was) for many, and most were closed anyway. All were backed up, sometimes as long as 2 to 5 years.
The trick is to research areas where the rents are low enough that you don't need a subsidy. They do exist. They may be a long drive away, and in a small rural town you won't like. But there won't be a waiting list, and it beats living in your car.
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OR standing on one's feet all day 
