How much Social Security will you get?

[SkyPilot]

SkyPilot,

I think Social Security will become worse of a deal as the years - and the grasping politicians - go on. I am not willing to pay even a quarter point more toward it. The state would have to coerce me into paying more for this 'insurance'. They could, and they probably will...

I would chose not to receive it within the time it takes to type this message if it meant never paying into it again. And, I have paid into it for almost 30 years. I'll give all that away for free if I am allowed not to accept it and not to pay a dime more into it.

Dead and deader. Even deader than dead for the chaps behind me. It has been a politicians slush fund for four decades now.

I am with you, and at one point I was even permitted to opt out under the legal description provided. Alas, circumstances changed and I have been given a compulsory invitation to ever since. As we are unable to avoid it, like so many other "social" programs, we will have to ride it out and extract as much as we can from it while it exists to add to personal wealth and use it to offset other expenditures. According to some studies, if we push it out far enough, the peak of the babyboomers will begin to decline, and the actuarial stats improve again for another few decades.

 

[Boghie]

SS as an investment is not great, but as "Social" security "insurance" it probably performs pretty well. I do believe that the earnings cap will have to be raised, maybe even eliminated, and "Full Retirement Age" moved up to 70. Maybe even a tweek in the percentage of contribution (maybe a quarter point). How about providing a tax deduction or even credit to those who have enough wealth that they would even choose not to receive it? Along with this, I would like to see the Earnings Test eliminated so that you did not have to give back 1 for 2 after a particular amount of earned income. Too complicated, and not working out in practice what it proposes to accomplish in theory which is to reduce elderly poverty by encouraging working more hours longer (which in practice it mostly accomplishes the opposite).

SkyPilot,

I think Social Security will become worse of a deal as the years - and the grasping politicians - go on. I am not willing to pay even a quarter point more toward it. The state would have to coerce me into paying more for this 'insurance'. They could, and they probably will...

I would chose not to receive it within the time it takes to type this message if it meant never paying into it again. And, I have paid into it for almost 30 years. I'll give all that away for free if I am allowed not to accept it and not to pay a dime more into it.

Dead and deader. Even deader than dead for the chaps behind me. It has been a politicians slush fund for four decades now.

 

[SkyPilot]

Certain religions are allowed to not pay into SS. A little late in the game for most of us however! Not recommended you understand.

Code of Federal Regulations § 404.1039

 

[PessOptimist]

Bad news: 85% of your social security benefit may be taxable income.

http://www.irs.gov/uac/Newsroom/Social-Security-Benefits-and-Your-Taxes

 

[Birchtree]

There is some good news - you medicare premiums can be deductable. Just keep your AGI as low as possible and fly under the radar of the obama ACA taxes.

 

[Scout333]

Remember in the 90's when HRO informed us that taking your health insurance premiums out pre-tax would lead to reduced Social Security benefits. Oh, the horror...

Is there anything else that I can use to reduce my Social Security benefits as a result of paying less into it?

Just asking, just asking...

Certain religions are allowed to not pay into SS. A little late in the game for most of us however! Not recommended you understand.

 

[SkyPilot]

SS as an investment is not great, but as "Social" security "insurance" it probably performs pretty well. I do believe that the earnings cap will have to be raised, maybe even eliminated, and "Full Retirement Age" moved up to 70. Maybe even a tweek in the percentage of contribution (maybe a quarter point). How about providing a tax deduction or even credit to those who have enough wealth that they would even choose not to receive it? Along with this, I would like to see the Earnings Test eliminated so that you did not have to give back 1 for 2 after a particular amount of earned income. Too complicated, and not working out in practice what it proposes to accomplish in theory which is to reduce elderly poverty by encouraging working more hours longer (which in practice it mostly accomplishes the opposite).

 

[Boghie]

By the way I thanked James for this post, but Social Security (as well as the 'G Fund') is not a retirement investment during the accumulation phase...

For example, your Social Security contributions and employer match are 12.4% of your salary. Using my earnings history and an averaged out 12% contribution rate into the 'C Fund' (ie. an S&P500 indexed fund or ETF) results in an annual inflation adjusted income stream of:

12% contribution
5% average wage growth
7% average earnings (after inflation)
------------------------------------
$38,000 in inflation adjusted income till age 100​

Social Securities annual payout is projected to be significantly less. Significantly lass...

 

[Boghie]

Remember in the 90's when HRO informed us that taking your health insurance premiums out pre-tax would lead to reduced Social Security benefits. Oh, the horror...

Is there anything else that I can use to reduce my Social Security benefits as a result of paying less into it?

Just asking, just asking...

 

[SkyPilot]

SS Means Testing,

A well reasoned article, I thought....

“Why Aren’t Social Security and Medicare Means Tested?” | Committee for Economic Development

 

[Bquat]

Great link James. While I don't believe SS will be there for me when I am eligible, it's nice to see how much I contributed to my elders' retirement.

And I thank you very much as I start drawing this year. You are so kind.

 

[Viva_La_Migra]

Great link James. While I don't believe SS will be there for me when I am eligible, it's nice to see how much I contributed to my elders' retirement.

 

[Weather]

My wife started benefits the day she turned 62. She likes the extra pocket change. When I draw, she'll add to it by drawing off my account.

 

[Birchtree]

If the democrats remain in charge you'll find that if you ever had any earned income and were never on wealfare that you won't qualify for social security when the time arrives.

 

[Kaufmanrider]

NARFE and AAII have been running some good articles about Social Security in their magazines. I am far away now but it is never too soon to plan.

 

[SkyPilot]

Five strategies to get the most Social Security - Robert Powell's Retirement Portfolio - MarketWatch

 

[Birchtree]

Remember now when she clocks into medicare parts B and D that the premiums are based on your AGI - medicare is not free, even if she has paid into the system for 40 years.

 

[Stoplight]

THAT'S why we're taking her's now. ! Get it when it's still there !!!

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[RealMoneyIssues]

$0.00

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[Stoplight]

James,

There was another recent post about the SS web site...logged in and created accounts for both the Wife and I ! It's pretty cool !!!

Used it to apply on-line for the Wife's SS...pretty painless, but I DID mess up !!!

FYI...The gross amount the Wife will receive was exactly what her "Earnings Report" said it would be, at age 62...I still have a few years to go before I'm even eligible, so I don't know how accurate their estimate for me, at age 62, will be...


Stoplight...