retirement spending covered by SS
retirement spending covered by SS
Motivated by the thread, what percentage of your retirement expenses will be covered by Social Security and pensions, I decided to do a finer cut. My theory is that there is a big divide between (1) single with Social Security and (2) paired with Social Security.
For a member of a pair, having Social Security means either one having Social Security.
For a member of a pair, having Social Security means either one having Social Security.
Re: retirement spending covered by SS
Are you asking about now or some day?
I always wanted to be a procrastinator.
Re: retirement spending covered by SS
Now, see poll title "if you are retired"Sidney wrote:Are you asking about now or some day?
Re: retirement spending covered by SS
Being retired and collecting SS aren't synonymous. If you retired at 65, spend 50k a year, and will start collecting 25k a year of SS at 70, how do you answer the question?Now, see poll title "if you are retired"
For the better half and I, there are actually three phases - post retirement, pre-SS, when it will cover 0%, then when we both collect it will pay maybe 120% of expenses, then after the first death it will pay maybe 60% of expenses.
Re: retirement spending covered by SS
I've been retired for over 6 years and SS is still 8 years away. So I will vote zero.
I always wanted to be a procrastinator.
Re: retirement spending covered by SS
I'm retired but waiting until 70 to take SS, so I guess my only option is 'paired with no SS'lululu wrote:Now, see poll title "if you are retired"Sidney wrote:Are you asking about now or some day?
If past history was all that is needed to play the game of money, the richest people would be librarians.
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Re: retirement spending covered by SS
0% currently. We retired over a year ago don't anticipate taking our full SS benefit for another 8 years. At that point it will cover 50% of our projected expenses. A modest pension will cover an additional 8%.
- Info_Hound
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Re: retirement spending covered by SS
I guess this poll will point out the many ways we manage our SS choices.
I voted 50% now as I am retired, single and collecting a widows benefit. When I reach 70 I will change up and collect my own social security that will cover 90% of my current expenses.
I voted 50% now as I am retired, single and collecting a widows benefit. When I reach 70 I will change up and collect my own social security that will cover 90% of my current expenses.
- plannerman
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Re: retirement spending covered by SS
These numbers are not constant. When we retired we didn't have social security. At age 62 dw started collecting. I started collecting at age 70. When we retired 16 years ago, my company pension was about 50% of our income needs. Today, that pension covers about 25% of our income needs and SS about 25%. The rest comes from our portfolio.
plannerman
plannerman
Re: retirement spending covered by SS
SS and Pension comprise 57% of our annual budget , that percent naturally drops in years when we travel more or have unforeseen extra expenses .
Re: retirement spending covered by SS
Thanks for answering the poll. It is just Social Security I am asking about, not pensions.
Re: retirement spending covered by SS
Zero. Retired but not old enough for SS yet.
INSERT PITHY QUOTE HERE
Re: retirement spending covered by SS
53%lululu wrote:Thanks for answering the poll. It is just Social Security I am asking about, not pensions.
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Re: retirement spending covered by SS
Retired at 54 started SS at 62, pays for 2 nice cruises every year.
- MikeWillRetire
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Re: retirement spending covered by SS
OP,
Based on the responses, you should probably clarify the question (bogleheads are a persnickity bunch). Are you asking "for those retired people who are currently collecting social security, what percentage of your expenses are covered by SS?"
Based on the responses, you should probably clarify the question (bogleheads are a persnickity bunch). Are you asking "for those retired people who are currently collecting social security, what percentage of your expenses are covered by SS?"
Re: retirement spending covered by SS
I can't speak for the OP, but he appears to be using social security's own definition of retirement age.
Which is "the age at which you begin receiving Social Security retirement benefits."
Which is "the age at which you begin receiving Social Security retirement benefits."
Re: retirement spending covered by SS
I am retired, took SS at 62, DH still works, he will take spousal at 66, then his own at 70.
Re: retirement spending covered by SS
Thanks for clarifying that you are only looking for what SS covers [per the thread title] although the original post said SS+pensions.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
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Re: retirement spending covered by SS
Similar for me, five years till I claim at 70...Sidney wrote:I've been retired for over 6 years and SS is still 8 years away. So I will vote zero.
Attempted new signature...
- gardemanger
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Re: retirement spending covered by SS
What do you mean by "paired"? If you mean "married", say "married." Also, where does widowed/collecting survivor benefits fit into the scenario?
Re: retirement spending covered by SS
Retired, single, won't start collection SS until 69 or 70, so "no SS."
Re: retirement spending covered by SS
It sounds like some people divided retirement into buckets
post retirement (cash flow from post tax investments)
post retirement (cash flow from pre-tax investment / ss)
post retirement (cash flow from post tax investments)
post retirement (cash flow from pre-tax investment / ss)
Re: retirement spending covered by SS
What the numbers show after 45 votes confirms that there will be a lot of folks who will be surprised that SS will not cover more of their expenses.
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Re: retirement spending covered by SS
It's so easy to know what people will be surprised by.basspond wrote:What the numbers show after 45 votes confirms that there will be a lot of folks who will be surprised that SS will not cover more of their expenses.
- TheTimeLord
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Re: retirement spending covered by SS
Or that a lot of Bogleheads expect to have significant investment income so they can have higher expenses and SS will be a smaller piece of their overall total than the average person.basspond wrote:What the numbers show after 45 votes confirms that there will be a lot of folks who will be surprised that SS will not cover more of their expenses.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. |
Run, You Clever Boy! [9085]
Re: retirement spending covered by SS
I would assume that paired includes (but may not be limited to) married, civil unions, cohabitation.gardemanger wrote:What do you mean by "paired"? If you mean "married", say "married." Also, where does widowed/collecting survivor benefits fit into the scenario?
I always wanted to be a procrastinator.
Re: retirement spending covered by SS
Same here. I have been retired over 7 years and still have over 21 years to go for SS.Sidney wrote:I've been retired for over 6 years and SS is still 8 years away. So I will vote zero.
- TheTimeLord
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Re: retirement spending covered by SS
Personally I have never heard the term paired in this context. I would have thought couples would have covered it since both couples and paired sound like there is a commitment beyond being roommates.Sidney wrote:I would assume that paired includes (but may not be limited to) married, civil unions, cohabitation.gardemanger wrote:What do you mean by "paired"? If you mean "married", say "married." Also, where does widowed/collecting survivor benefits fit into the scenario?
IMHO, Investing should be about living the life you want, not avoiding the life you fear. |
Run, You Clever Boy! [9085]
- TheTimeLord
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Re: retirement spending covered by SS
When I did my poll I asked it in the context of once you start receiving SS not when you retire.Sidney wrote:I've been retired for over 6 years and SS is still 8 years away. So I will vote zero.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. |
Run, You Clever Boy! [9085]
Re: retirement spending covered by SS
Yes.MikeWillRetire wrote:OP,
Based on the responses, you should probably clarify the question (bogleheads are a persnickity bunch). Are you asking "for those retired people who are currently collecting social security, what percentage of your expenses are covered by SS?"
By paired I meant people who consider themselves a couple, since in most cases they are sharing expenses.
Re: retirement spending covered by SS
In any case, the numbers change depending on the circumstances. I plan to defer SS to 70.5 but at the same time, my expenses will skyrocket due to taxes on RMDs. So the ratio would be much lower than it would be one year earlier. Not sure what the ratio means, actually.TheTimeLord wrote:When I did my poll I asked it in the context of once you start receiving SS not when you retire.Sidney wrote:I've been retired for over 6 years and SS is still 8 years away. So I will vote zero.
I always wanted to be a procrastinator.
- MikeWillRetire
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Re: retirement spending covered by SS
I am 52, and not retired, so I didn't take the poll. However, I have used the calculator on the social security website, and it estimates that my wife and I would get a combined benefit of $64k at age 70. That's 75% of our estimated retirement expenses. Nice to know.
Re: retirement spending covered by SS
I am single and have been drawing Social Security for18 years. My SS covers more than my fixed monthly expenses.
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Re: retirement spending covered by SS
For the most information from a poll like this, it may be useful to specify what you mean by expenses. I would like to exclude such deliberate luxury expenses as world cruises, diamond jewelry, and the box at the opera. I would however include housing expenses, including very expensive homes, education expenses for children and grandchildren, and car replacement expense (accrual basis) of a car similar to what is currently owned.
Ralph
Ralph
Re: retirement spending covered by SS
Not sure what the number is, but between SS and pensions, our 7 income streams seem to provide enough monthly cash to pay all of our bills/expenses most months.
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“The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle