Is anyone not depending on social security when they retire?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills

Are you planning to be dependent on social security when you retire (or on SS already)?

I am not retired, but plan on using little to no social security for my retirement needs.
65
37%
I am not retired, but plan on using a moderate to the full amount of social security for my retirement needs.
60
34%
I am retired and using little to no social security.
22
12%
I am retired and using a moderate to the full amount of social security.
16
9%
I will not get social security.
14
8%
 
Total votes: 177

cheesepep
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Is anyone not depending on social security when they retire?

Post by cheesepep » Sun Mar 04, 2012 7:50 am

As the title states.

We all are investing here, some different than others.

But do you (or are planning to) use social security to retire? In guess, in other words, do you need to use social security (no matter how small or large of an amount)?
Last edited by cheesepep on Sun Mar 04, 2012 10:19 am, edited 1 time in total.

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damjam
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Re: Is anyone not depending on social security when they ret

Post by damjam » Sun Mar 04, 2012 8:07 am

When I do projections of retirement income I assume 75% of current benefits will be available. At least that's what I've read will be available when the "trust fund" runs out.
If SS were completely eliminated I would have to rethink my plans. I would have the option to move to a lower cost region, since I now live in NYC. So my retirement would not be a bust if SS did not exist.

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Re: Is anyone not depending on social security when they ret

Post by sscritic » Sun Mar 04, 2012 8:19 am

I get $2000 a month in social security. I get $2000 a month in a pension. I spend $2000 a month to live on.

a) I am spending none of my social security. I save it all and live off my pension.
b) I am spending all of my social security and save all of my pension.
c) I spend half my social security and half my pension; I save half my social security and half my pension.
d) When I write a check on my checking account, the bank decides whether to spend social security money or pension money without asking me.
e) all of the above.

Or, to put it into your "need" version:
a) I don't need social security.
b) I need social security, but I don't need my pension.
c) I need a little of both.
d) What does need mean for one income stream when you have two or three?

P.S. Note that your title (depend) is inconsistent with the survey (use). Your description is equally inconsistent: plan to use vs need to use.

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Re: Is anyone not depending on social security when they ret

Post by snyder66 » Sun Mar 04, 2012 8:28 am

I paid in to it, Why would I not use it? I also do assume that it will not be there when I retire. Never use it as an assumption as to when, or if, I can retire.

westie
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Re: Is anyone not depending on social security when they ret

Post by westie » Sun Mar 04, 2012 8:33 am

I'm guessing within 25 years it will become need based.

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SpringMan
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Re: Is anyone not depending on social security when they ret

Post by SpringMan » Sun Mar 04, 2012 8:39 am

Don't see any box that describes our situation. We have enough savings in taxable, and IRAs to live on but rather than tap into those immediately we will use social security and pension income letting our savings grow (hopefully they will). The alternative is to defer SS to age 70 and live off our savings until then. We have heirs that would likely benefit more from the first option, though a good case can be made for the second option.
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Re: Is anyone not depending on social security when they ret

Post by likegarden » Sun Mar 04, 2012 8:45 am

We use all of social security and all of our equal-size pension payments, but do not use the sizable savings.

We should realize that Social Security will stay around, or most of the population will be forced to work until they die. Surveys have shown that the general population is not financial literate and not able to accumulate sizable savings to replace SS. So they are forced to contribute to SS to save for a retirement.

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Re: Is anyone not depending on social security when they ret

Post by HongKonger » Sun Mar 04, 2012 8:52 am

I don't see an option that says 'There is no SS in my country'.

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Re: Is anyone not depending on social security when they ret

Post by mgullo » Sun Mar 04, 2012 9:12 am

What about 'I won't get Social Security during retirement' as an option? I work in one of the few states where public employees do not pay into nor receive benefits from Social Security. I have even heard that I may not be able to claim my wife's s.s. if she passes on before me. Not sure how that works...
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cheesepep
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Re: Is anyone not depending on social security when they ret

Post by cheesepep » Sun Mar 04, 2012 10:21 am

I am sorry. I edited the poll per request and it reseted everything. Please post your response again. Again, sorry.

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Re: Is anyone not depending on social security when they ret

Post by lexie2000 » Sun Mar 04, 2012 10:46 am

We are 55 and DH is planning to retire this year. We have never included SS in our retirement planning. As time marches on and we become eligible, we will consider whether to take it or delay. At this point it looks like we will be waiting until 70 1/2, but who knows what may happen in the nest 15 years?

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Re: Is anyone not depending on social security when they ret

Post by nisiprius » Sun Mar 04, 2012 10:59 am

I'm semiretired.

If Social Security were to suddenly vanish completely without warning in the next few years, my wife and I would be in serious trouble, requiring life-wrenching changes to adjust to them.

If Social Security undergoes what's projected to happen if nothing at all is done, it will undergo an effective benefits cut of some kind on the rough order of 1/4 to 1/3 taking place in the rough time frame of 2040, give or take a decade, we can adjust to it. I wouldn't say we've formally planned for that, but we can adjust to it.

The uncertainties I perceive in Social Security are trivial--compared to my worries about the rate at which medical costs are increasing, the uncertainty in that rate of increase, and the uncertainty of the future public/private/state/federal patchwork that will be available for paying for them. This of course is compounded by the natural uncertainty in one's personal health as one ages. Money, schmoney, as long as you've got your health.

(Some to think of it, why don't all the fancy-schmancy sophisticated economics deep thinkers who talk about "human capital" and "your job is a bond" ever consider your "health capital?")
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Midpack
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Re: Is anyone not depending on social security when they ret

Post by Midpack » Sun Mar 04, 2012 11:13 am

The full amount of Soc Sec may be a small part of retirement income for a given individual, but is there anyone who won't use the full amount whatever that is? Are some people going to give back or give away some or all of it?

I assumed the OP meant how much of total retirement income will come from Soc Sec, but it doesn't read that way so I'm probably missing the point..
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englishgirl
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Re: Is anyone not depending on social security when they ret

Post by englishgirl » Sun Mar 04, 2012 11:16 am

I still don't really understand the poll questions, even though they've now been edited.

Look, the government is going to pay me money. Based on the taxes that I have paid over my working life. There's no way I'm not going to "use" that money.

Does not using it mean that I say "no thank you" and don't accept it? Presumably you mean that it's money I expect I won't need to spend, and could therefore plan to invest? Or I guess you're saying that it's money that I am not going to factor in to my calculations of how much money to save? I'm totally factoring it in. I could get about $2k a month (today's dollars). Even if the funding problems mean I only get 75% of that, that's still a big chunk of change. $1500 a month equates to needing to save $450,000 if you use a 4% withdrawal rate.

Here's my plan in case you're interested (all in today's dollars - of course when I retire it'll be more, but inflation calculations hurt my head):

Basic monthly expenses = 50% SS + 50% annuity
Actual income = 33.3% SS + 33.33% annuity + 33.34% portfolio withdrawals.

In other words, if I think my basic expenses will be covered with $4k per month income, I plan for SS income of $2k per month, plan to buy an annuity that pays out $2k per month, and plan to be able to withdraw $2k a month from my portfolio for fun stuff/extra expenses so I get a total income of $6k per month.

Actually I probably only need $3k for basic monthly expenses, if not less. And $2k a month of extra money is a LOT. So I have a lot of flexibility built in if SS pays out less. I could just live on less, or buy a bigger annuity (leaving less in my portfolio for extras) - I'll know more details as I get closer to retirement age. But the SS money is all going to be used, because I'll use it for day-to-day spending and if lucky I'll draw down less from my portfolio, leaving it to grow longer.

As Nisi says, it's the uncertainty over medical expenses that I worry about, not uncertainty over social security. A difference of $500 or even $1000 a month I can adjust to. Suddenly needing $7k or $10k per month for medical expenses??? That I don't know about.
Sarah

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Re: Is anyone not depending on social security when they ret

Post by chaz » Sun Mar 04, 2012 11:17 am

SS not relied upon, but nice to have.
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Rob5TCP
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Re: Is anyone not depending on social security when they ret

Post by Rob5TCP » Sun Mar 04, 2012 11:19 am

westie wrote:I'm guessing within 25 years it will become need based.
I am guessing the day before I retire it will become need based (in 10 years or so).

For my own needs, I am using 50% of my projected SS benefits to be available.
If it's more, great.

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Re: Is anyone not depending on social security when they ret

Post by SimonJester » Sun Mar 04, 2012 11:24 am

I will not get social security.

Per the Social Security : SUMMARY OF THE 2011 ANNUAL REPORTS Social Security and Medicare Boards of Trustees
Year the OASI trust funds are exhausted: 2038
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Re: Is anyone not depending on social security when they ret

Post by HueyLD » Sun Mar 04, 2012 11:40 am

nisiprius wrote:The uncertainties I perceive in Social Security are trivial--compared to my worries about the rate at which medical costs are increasing, the uncertainty in that rate of increase, and the uncertainty of the future public/private/state/federal patchwork that will be available for paying for them. This of course is compounded by the natural uncertainty in one's personal health as one ages. Money, schmoney, as long as you've got your health.
+1.

However, there are a lot of retirees who depend on social security and Medicare and very little anything else. They seem to be able to carry on with their lives with dignity. So there is hope after all.

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OAG
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Re: Is anyone not depending on social security when they ret

Post by OAG » Sun Mar 04, 2012 11:40 am

We "use" 100% of SS. What we "use" it for is to generally save it all. Kind of a confusing poll in that other than sending it back to the Treasury there is no recourse but to use it. :shock:
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Re: Is anyone not depending on social security when they ret

Post by momar » Sun Mar 04, 2012 11:45 am

SimonJester wrote:I will not get social security.

Per the Social Security : SUMMARY OF THE 2011 ANNUAL REPORTS Social Security and Medicare Boards of Trustees
Year the OASI trust funds are exhausted: 2038
Fortunately they will still be collecting FICA taxes, the date is highly uncertain and during good economic times recedes into the future, and only requires minor tweaks to keep it going.
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Re: Is anyone not depending on social security when they ret

Post by Harold » Sun Mar 04, 2012 12:04 pm

englishgirl wrote:Look, the government is going to pay me money. Based on the taxes that I have paid over my working life. There's no way I'm not going to "use" that money.
Though I realize this is the way most folks think it works, the language is a bit squirrelly and leads to a desired conclusion (i.e. getting money I've earned).

The reality is:

Legislation establishes tax and benefit formulas to keep the system funded in aggregate over a sufficiently long period. (That period is currently appearing insufficiently long, hence the current discussions.) The formulas get tweaked independently of each other from time to time to keep the system funded in aggregate. An individual's tax formula has no connection with that individual's benefit formula (i.e. an individual's tax formula isn't intended to fund that individual's benefit formula, and he likely paid taxes under one set of formulas and will receive benefits under an uncorrelated set of formulas anyway).

The taxes an individual pays go to someone else's benefit. Any excess goes to general revenue, with a tracking mechanism (i.e. the Trust Fund) accounting for that excess to be used for someone else's benefit when SS taxes are insufficient to cover current benefits (i.e. other tax revenue is then used to cover current benefits).

The benefits an individual receives are totally funded by other taxpayers. They are not funded by that individual's taxes paid. Not in a literal sense, because other taxpayers are funding it -- and not in an accounting sense because the benefit formula has nothing to do with the tax formula, other than the common variable of taxable compensation.

Perhaps you already knew that, but the sentences didn't read as if you did. What I've written doesn't change the fact that pretty much all of us are going to use any money granted to us by a government program -- especially one that we've participated in by providing for the retirement of others.

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Re: Is anyone not depending on social security when they ret

Post by scrabbler1 » Sun Mar 04, 2012 12:15 pm

Being an early retiree (age 48 now), I found none of the choices to apply perfectly to my situation. I interpreted "retire" as someone who is old enough to be eligible to collect SS but has not done so. Therefore, for the purpose of this poll, I considered myself "not retired."

For me, SS is one of my 3 "reinforcements" which will aid me in 15-20 years but without it I will still have my current investments (the ones generating more than enough investment income to pay my expenses) along with my frozen (former) company pension and unfettered access to my IRA. So if I go from 3 reinforcements to 2 I will still be okay.

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Re: Is anyone not depending on social security when they ret

Post by Oicuryy » Sun Mar 04, 2012 12:54 pm

Midpack wrote:The full amount of Soc Sec may be a small part of retirement income for a given individual, but is there anyone who won't use the full amount whatever that is? Are some people going to give back or give away some or all of it?
I am retired but I am not taking Social Security and I don't intend to.

I think it would be wrong for me to accept money that is being taken from working people's paychecks. I thought it was wrong when retired people took money from my paycheck.

IMO, this system of forced wealth redistribution is akin to stealing.

Ron
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lexie2000
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Re: Is anyone not depending on social security when they ret

Post by lexie2000 » Sun Mar 04, 2012 1:02 pm

Oicuryy wrote:
Midpack wrote:The full amount of Soc Sec may be a small part of retirement income for a given individual, but is there anyone who won't use the full amount whatever that is? Are some people going to give back or give away some or all of it?
I am retired but I am not taking Social Security and I don't intend to.

I think it would be wrong for me to accept money that is being taken from working people's paychecks. I thought it was wrong when retired people took money from my paycheck.

IMO, this system of forced wealth redistribution is akin to stealing.

Ron
It certainly is if you've paid in and don't get your "fair share". :wink:

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Re: Is anyone not depending on social security when they ret

Post by RadAudit » Sun Mar 04, 2012 1:07 pm

cheesepep wrote:But do you (or are planning to) use social security to retire? In guess, in other words, do you need to use social security (no matter how small or large of an amount)?
I'm retired and getting bye on two small pensions and SS. If SS went away - or was significantly reduced and nothing else changed - I guess I could get by on hitting the IRAs a little harder and a little earlier than I had planned to.
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Re: Is anyone not depending on social security when they ret

Post by HardKnocker » Sun Mar 04, 2012 1:29 pm

I'm going to use Social Security to pay for my cable TV service. If it's enough.
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Re: Is anyone not depending on social security when they ret

Post by Default User BR » Sun Mar 04, 2012 1:59 pm

Oicuryy wrote:I think it would be wrong for me to accept money that is being taken from working people's paychecks. I thought it was wrong when retired people took money from my paycheck.
This makes no sense. I have now paid into SS for more than 30 years. I have EARNED a benefit. That's how that works.

That being said, I won't be depending on SS for anything, assuming nothing too bad happens to my company pension and/or investments.


Brian

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Re: Is anyone not depending on social security when they ret

Post by SGM » Sun Mar 04, 2012 2:02 pm

I have been paying into SS for umpteen years. If I don't get some of it back no matter how wealthy I become through hard work, investing and frugality I will not be very happy.


Everyone's fortune is at risk. SS is a safety net and will stretch the dollars of anyone. It is important even to millionaires who can lose via fraud, inflation, taxes, bad luck and market disasters. Look at the Harriman's fortune.
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Re: Is anyone not depending on social security when they ret

Post by Atilla » Sun Mar 04, 2012 2:05 pm

Depending? Absolutely not. I'm young enough at 46 that I received the "we admit we ain't got the money" annual benefit statements back when they still mailed them out.

If all goes well I won't need any of it and I can just hand it over to my son with an apology for how bad his elders screwed things up. A possible result is I will need some of it to maintain comfortable monthly cash flow. But I plan to not depend on it.
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Re: Is anyone not depending on social security when they ret

Post by FireProof » Sun Mar 04, 2012 2:11 pm

I'll get almost none, because I won't work enough years.

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Re: Is anyone not depending on social security when they ret

Post by FrugalInvestor » Sun Mar 04, 2012 2:22 pm

I am early retired and living off of investments. I plan to draw Social Security, most likely at age 70. It will likely make my later years more enjoyable and will decrease the chances of us outliving our financial resources. This is especially important for my younger wife.

We could likely do without Social Security but it would substantially increase uncertainty for us. If it were to become apparent that it would no longer be available we would need to cut back on spending to feel comfortable about our futures. It wouldn't be fun, but it would be doable.
Last edited by FrugalInvestor on Mon Mar 05, 2012 3:09 pm, edited 1 time in total.
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Re: Is anyone not depending on social security when they ret

Post by Midpack » Sun Mar 04, 2012 2:47 pm

Oicuryy wrote:
Midpack wrote:The full amount of Soc Sec may be a small part of retirement income for a given individual, but is there anyone who won't use the full amount whatever that is? Are some people going to give back or give away some or all of it?
I am retired but I am not taking Social Security and I don't intend to.

I think it would be wrong for me to accept money that is being taken from working people's paychecks. I thought it was wrong when retired people took money from my paycheck.

IMO, this system of forced wealth redistribution is akin to stealing.

Ron
I disagree with the entitlement minded 'I paid in so I earned it mentality, you'd better not cut my benefits (depending on age to some extent)' - it's a paygo system, not an investment. [And I have NO interest in debating it for the umpteenth time]. However, everyone alive today pays/paid in having been told (annually) they'd receive some benefit when they're older, so I don't know that I'd call it stealing.

And my guess is you're part of a very, very small minority...hats off to you.
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Re: Is anyone not depending on social security when they ret

Post by mcblum » Sun Mar 04, 2012 3:12 pm

I am semi-retired. I get a Fed. pension (old CS) and am working,and,therefore,paying into SS. I will not completely retire until I am 74-75. At this point,I will qualify for a small SS payment. I'll take it to help support my wife.
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Re: Is anyone not depending on social security when they ret

Post by mickeyd » Sun Mar 04, 2012 3:19 pm

We are both retired now. When we were initially planning our financial future in 1970, after reading available literature and using common sense, we assumed the SS would not be available when we retired way in the future (2005), so we saved/invested for the long pull and lucked into 3 pensions along the way.

My SS is continuing to grow @ 8%/year until I am 70 and I am a spouse on DWs small SS account, so we are both taping her SS account. SS pays for my Medicare monthly and gives us extra fun money that we had not planned on. Not sure how we will spend my SS account money which should be 3-4 times what we get now...
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Re: Is anyone not depending on social security when they ret

Post by hsv_climber » Sun Mar 04, 2012 3:22 pm

sscritic wrote:I get $2000 a month in social security. I get $2000 a month in a pension. I spend $2000 a month to live on.

a) I am spending none of my social security. I save it all and live off my pension.
b) I am spending all of my social security and save all of my pension.
c) I spend half my social security and half my pension; I save half my social security and half my pension.
d) When I write a check on my checking account, the bank decides whether to spend social security money or pension money without asking me.
e) all of the above.
f) I am sscritic :beer

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Re: Is anyone not depending on social security when they ret

Post by mickeyd » Sun Mar 04, 2012 3:32 pm

Oicuryy wrote:
Midpack wrote:The full amount of Soc Sec may be a small part of retirement income for a given individual, but is there anyone who won't use the full amount whatever that is? Are some people going to give back or give away some or all of it?
I am retired but I am not taking Social Security and I don't intend to.

I think it would be wrong for me to accept money that is being taken from working people's paychecks. I thought it was wrong when retired people took money from my paycheck.

IMO, this system of forced wealth redistribution is akin to stealing.

Ron
Medicare is paid for in a simular fashion. Do you not plan on enrolling in Medicare too?
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Re: Is anyone not depending on social security when they ret

Post by Grasshopper » Sun Mar 04, 2012 3:51 pm

I have been paying my own way for 6 years, with more than I started with. SS will just be my travel $'s. :beer

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Re: Is anyone not depending on social security when they ret

Post by GregLee » Sun Mar 04, 2012 6:18 pm

hsv_climber wrote:
sscritic wrote:I get $2000 a month in social security. I get $2000 a month in a pension. I spend $2000 a month to live on.

a) I am spending none of my social security. I save it all and live off my pension.
b) I am spending all of my social security and save all of my pension.
c) I spend half my social security and half my pension; I save half my social security and half my pension.
d) When I write a check on my checking account, the bank decides whether to spend social security money or pension money without asking me.
e) all of the above.
f) I am sscritic :beer
Yes, me too. Except I get more pension per month, $3000, and spend that to live on, so his b) - c) would need to be amended appropriately.
Greg, retired 8/10.

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Re: Is anyone not depending on social security when they ret

Post by Oicuryy » Sun Mar 04, 2012 6:33 pm

mickeyd wrote:Medicare is paid for in a simular fashion. Do you not plan on enrolling in Medicare too?
I was afraid someone would ask that.

I would prefer not to take Medicare. But health care pricing is so screwed up I don't see any realistic alternative.

If health care was sold to individuals at free-market prices I might buy it directly. But most health care is sold to the government or to insurance companies. Prices charged to individuals are ridiculously high compared to what the dominant buyers pay.

Or if health insurance was sold to individuals at free-market prices I might buy that. But most health insurance for people under 65 is sold to employers. That distorts the market and pushes prices up for individuals. Medicare has all but eliminated the health insurance market for people over 65.

So even though I think it is wrong, I will sell out my principles and force someone else to pay for my health care. Can't win 'em all.

Ron
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Re: Is anyone not depending on social security when they ret

Post by Jack » Sun Mar 04, 2012 6:43 pm

Atilla wrote:Depending? Absolutely not. I'm young enough at 46 that I received the "we admit we ain't got the money" annual benefit statements back when they still mailed them out.
You may want to read your statement more carefully. With no changes at all, Social Security will be able to pay 100% of your benefits at least until you are 72 years old. After that time, Social Security will be able to pay at least 76% of your benefits forever. Given that initial benefits are indexed to real wages, the 76% benefit you receive in the future will be larger than a 100% benefit received today in real inflation adjusted dollars. In other words, you will get larger benefits than those receiving them today, even after the trust fund is depleted. With minor tweaks, Social Security could pay 100% of promised benefits.

Allan
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Re: Is anyone not depending on social security when they ret

Post by Allan » Sun Mar 04, 2012 7:00 pm

According to the statements we receive, in 9 years at age 70 my wife and I will receive almost $70,000 in Social Security. So yes, it will be a big part of our retirement income.

Allan

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Re: Is anyone not depending on social security when they ret

Post by richard » Sun Mar 04, 2012 7:09 pm

Oicuryy wrote:If health care was sold to individuals at free-market prices I might buy it directly. But most health care is sold to the government or to insurance companies. Prices charged to individuals are ridiculously high compared to what the dominant buyers pay.

Or if health insurance was sold to individuals at free-market prices I might buy that. But most health insurance for people under 65 is sold to employers. That distorts the market and pushes prices up for individuals. Medicare has all but eliminated the health insurance market for people over 65.
If healthcare were a normal competitive market, the presence of significant bargaining power on the part of some buyers wouldn't increase prices for others. Unfortunately, healthcare is not a normal competitive market, and not because of the presence of "dominant buyers." The classic paper on the subject is by Kenneth Arrow. http://www.who.int/bulletin/volumes/82/2/PHCBP.pdf

Compare healthcare prices in the US to those in any country with even more dominant buyers. If you find one in which healthcare spending is higher than in the US, please let me know.

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Re: Is anyone not depending on social security when they ret

Post by The Wizard » Sun Mar 04, 2012 7:13 pm

Allan wrote:According to the statements we receive, in 9 years at age 70 my wife and I will receive almost $70,000 in Social Security. So yes, it will be a big part of our retirement income.

Allan
If you live that long, yes. Same for me...
Attempted new signature...

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Re: Is anyone not depending on social security when they ret

Post by hq38sq43 » Sun Mar 04, 2012 8:11 pm

A close relative, now over 70,began investing in real estate very young and never had enough covered earnings to qualify for Social Security benefits. Prides himself on having provided for his own retirement and seems somewhat disdainful of SS beneficiaries. I'm sure he's smart enough to know that none of us succeed without lots of help along the way, but as a friend used to say, each of us tells himself and others his own life lie. I worry more about a younger relative who shares the ideology and possibly (don't know for sure) the non-participation of the older, but has earned his less financially successful living by labor. What he will do when no longer able to work is anyone's guess.
Harry at Bradenton

Allan
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Re: Is anyone not depending on social security when they ret

Post by Allan » Sun Mar 04, 2012 8:19 pm

The Wizard wrote:
Allan wrote:According to the statements we receive, in 9 years at age 70 my wife and I will receive almost $70,000 in Social Security. So yes, it will be a big part of our retirement income.

Allan
If you live that long, yes. ..
Thanks, I needed that!

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Re: Is anyone not depending on social security when they ret

Post by Gray » Sun Mar 04, 2012 8:28 pm

The issue in my mind is not whether the US Govt cuts the check, but how devalued the dollars will be.

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dmcmahon
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Re: Is anyone not depending on social security when they ret

Post by dmcmahon » Sun Mar 04, 2012 9:05 pm

I'm not counting on getting it, but I am planning on getting it. If things change, then so will my plans. I am counting on it being there as a backstop if the rest of my resources are wiped out.

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Re: Is anyone not depending on social security when they ret

Post by Jack » Sun Mar 04, 2012 9:26 pm

Gray wrote:The issue in my mind is not whether the US Govt cuts the check, but how devalued the dollars will be.
Benefits are indexed to inflation, which preserves their purchasing power.

More precisely, your initial benefit is indexed to wages which generally grow faster than inflation, meaning that your benefits will be worth more than today, in inflation adjusted dollars. After retirement your benefits increase at the rate of inflation to prevent loss of purchasing power.

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Re: Is anyone not depending on social security when they ret

Post by Sheepdog » Sun Mar 04, 2012 9:29 pm

I am retired. My wife and my SS payments equates to about 55% or our annual spending so I should say that we depend on it..

A note of possible interest:
In my lifetime, from my first SS deduction in 1952 through 1998, I personally paid into SS only $59,275. I received or will receive $64,200 in just the 2010-2012 period (3 years).
The total amount I have received personally from SS since retiring is $244,993.
In the early days the maximum amount a worker would pay in was only $174 per year. I did pay the maximum SS tax for my last 38 years of employment.
Jim
It's not what you gather, but what you scatter which tells what kind of life you have lived---Helen Walton

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Re: Is anyone not depending on social security when they ret

Post by hq38sq43 » Sun Mar 04, 2012 11:03 pm

Sheepdog wrote:I am retired. My wife and my SS payments equates to about 55% or our annual spending so I should say that we depend on it..

A note of possible interest:
In my lifetime, from my first SS deduction in 1952 through 1998, I personally paid into SS only $59,275. I received or will receive $64,200 in just the 2010-2012 period (3 years).
The total amount I have received personally from SS since retiring is $244,993.
In the early days the maximum amount a worker would pay in was only $174 per year. I did pay the maximum SS tax for my last 38 years of employment.
Jim
My first SS contributions were also in 1952 and I have also also already received benefits nominally more than what I paid in, but somewhat less than those payments reasonably compounded. But, if I live, the benefits will shortly exceed compounded contributions. But so what? The system is what it is according to the will of the society I was born into and chose to remain part of. I also chose, as I am confident most Bogleheads have, to make additional provision for old age through Boglehead-type money management, in my case long before hearing the names Bogle or Boglehead. To those who have done likewise, as well as those who haven't, in the words of Mr. Spock: Live long and prosper.
Harry at Bradenton

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