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Just curious how many people planned and saved for retirement and did NOT factor in Soc Sec.
I (single) -- have friends my age (a couple, 57) -- who will have a million bucks by retirement. And I admit I'm not sure whether it's THEY who want to have enough without factoring in Soc. Sec -- or their financial planner has for years suggested they invest and save to have enough as if they'd never see a dime of Soc. Sec. Which in my mind, of course, means you'll have to have more of your own money.
Now, granted neither one of them has a pension coming. And I have no idea how much they've already been assisted by inheritances. (They have. I just don't know how much)
I just ask because I had my mom's CFP glance at my future retirement situation. (when I was thinking about getting LTCI. So he wasn't actually MY CFP. I asked him to look into LTCI for me, he said let's see how you're set for retirement, before you get that with money you may never see again....so he looked over all my figures, charted various growth projections, etc.)
And -- including Soc Sec. he said I will be fine. And even if, in some scenario where my benefits are reduced even by 25% -- and an increased in Medicaid costs of 25% -- I think I should still be fine, just with less wiggle room. I'll also have a pension and my own money, of course. But it sure as hell won't be anywhere NEAR a million dollars.
So while I hesitate to say I'm "depending" on Soc. Sec., it sure as heck IS in my projections.
Was receiving Soc. Sec. figured in your retirement panning finances?
What makes you think that the million was saved without considering SS?
Without a pension or other guaranteed income, a million isn't all that much. Calculators I've utilized indicate we'll need significantly more than that. And we're not wealthy, nor do we live high-on-the-hog, or plan to post-retirement. Be grateful for that pension.
We designed our retirement to get expenses low enough to do well on SS alone. We get SS max which is about $2600 per month for me and half that for my wife. We're also 67 and on Medicare.
We have a paid off house and two new paid off cars. With just SS, that income is tax free in Colorado. We've always been frugal so our standard of living did not change.
Our savings are frosting on the cake. That can be used as we like.
As a retired high school teacher in California, I was among the public sector workers whose wages did not fall under Social Security because of having a separate pension system. So naturally SS was not a factor for me, except in terms of qualifying for Medicare.
Having had part-time jobs in college and in grad school, and also some moon-lighting jobs at various times during my working career, I did qualify for SS retirement benefits and hence for Medicare. The SS benefit is very small - when I first started drawing it, it was less than $100 a month. I understand that nowdays people in my situation do have Medicare taxes taken out so that is no longer a concern for them, i.e., qualifying for Medicare is now automatic.
I paid a greater percentage of my salary into the pension system (9%) than I would have paid into SS, but the pension benefit is also better, so I have no complaints. That 9% was the best money I ever "spent", or to be more accurate didn't spend but which I'm spending now.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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At 64/63 we are still a few years from retiring, but despite two pensions plus 401k and 5013c that SS income of about $2,500 for me and $1,200 for my wife will certainly be welcome.
What makes you think that the million was saved without considering SS?
Without a pension or other guaranteed income, a million isn't all that much. Calculators I've utilized indicate we'll need significantly more than that. And we're not wealthy, nor do we live high-on-the-hog, or plan to post-retirement. Be grateful for that pension.
Depends on so much. What is the cost of living where you live, is your house paid for, what is your tax situation, personal income and property taxes? Are you going to travel when retired? If so, expensive destinations? Do you still have loans going into retirement? What is your health like, major medical bills or concerns? These are just a few questions you need to answer.
We have SS planned as part of our retirement, if you are over 55 it is dumb not to figure it in as you will receive it. Biggest thing you need to do is figure out a budget income vs. expenses. Most people can and do live off much less then a million dollars. I think the average retirement savings is $100,000 so obviously these people are surviving. You just need to answer lots of questions and start working on what you want out of retirement.
Depends on so much. What is the cost of living where you live, is your house paid for, what is your tax situation, personal income and property taxes? Are you going to travel when retired? If so, expensive destinations? Do you still have loans going into retirement? What is your health like, major medical bills or concerns? These are just a few questions you need to answer.
We have SS planned as part of our retirement, if you are over 55 it is dumb not to figure it in as you will receive it. Biggest thing you need to do is figure out a budget income vs. expenses. Most people can and do live off much less then a million dollars. I think the average retirement savings is $100,000 so obviously these people are surviving. You just need to answer lots of questions and start working on what you want out of retirement.
Well yes, that was pretty much my point. Most people who actually plan for retirement are trying to do more than scrape by. Depending on a lot of things, having a million saved doesn't necessarily indicate one isn't considering SS. Without SS, that million could be gone pretty quickly under a number of circumstances.
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