Social Security Benefits

[evilanne]

I was just checking my benefits online at SSA.gov

Found this statement interesting:

"Your estimated benefits are based on current law. Congress has made changes to the law in the past and can do so at any time. The law governing benefit amounts may change because, by 2035, the payroll taxes collected will be enough to pay only about 79 percent of scheduled benefits"

Wondering if this is to encourage people to take benefits early, create fear or have us contact our congress critters?

 

[rangerray]

I’ll be 70 when that happens. And, yes, it’s a little scary.


Sent from my iPhone using TSP Talk Forums

 

[nasa1974]

I was just checking my benefits online at SSA.gov

Found this statement interesting:

"Your estimated benefits are based on current law. Congress has made changes to the law in the past and can do so at any time. The law governing benefit amounts may change because, by 2035, the payroll taxes collected will be enough to pay only about 79 percent of scheduled benefits"

Wondering if this is to encourage people to take benefits early, create fear or have us contact our congress critters?

Maybe all of the above.
I did the math and started to get my wife's and my SS early instead of waiting until we turned 70.

 

[emichael]

Even if you take benefits early couldn’t they still cut that distribution?

 

[nasa1974]

Even if you take benefits early couldn’t they still cut that distribution?

The government can do what ever they want to SS.

 

[Khotso]

Even if you take benefits early couldn’t they still cut that distribution?

Yes, but any SS benefits collected before 2035 will be the full amount due for the age you start drawing at. So none of those benefits received during that time will have been reduced to offset any SSA collections shortfall (which is projected to be 21% the first year and who knows what the following years). The likelihood is (if this actually happens) that you'd be money ahead by drawing when you are eligible as opposed to waiting to get full or max SS benefit.

 

[evilanne]

Well if you start taking it at 62, when 1st eligible, you are taking a 30% cut off the top. So if everyone started at 62 maybe the year will get pushed out a bit.

If you wait until 70, you get an increase of 24% so a 31% cut would be only 7% less than FRA, so overall that doesn't sound too bad

Happy Trails

 

[Valkyrie]

just run the numbers.
example say one put 100k into the system and same from employer/s. So 200k of ones money is in the system.
if one waits until full retirement age lets use 67, at the higher rate it will take until one is 77 to just break even from the 200k that was put in, and the money not collected from 62 thru 67 which could have been invested. if one waited to 70 to collect the break even is even worst.

just run some numbers like the above, it is not exact but gives one a different perspective. many youtube vids showing this also.

and who doesn't know or heard of someone waiting to retire later to get that bigger % and they die or get really sick one or two yrs after retirement and never enjoying that extra % of money.

 

[tsptalk]

Social Security cost-of-living adjustment could be 6.2% in 2022

Social Security’s annual cost-of-living adjustment for 2022 could be the highest it’s been in years.

Based on the latest consumer price index data, beneficiaries could see a 6.2% boost next year.

The preliminary estimate is subject to change before next year’s adjustment is officially calculated.

https://www.cnbc.com/2021/08/11/soc...justment-could-be-over-6-percent-in-2022.html

 

[nasa1974]

Social Security cost-of-living adjustment could be 6.2% in 2022


https://www.cnbc.com/2021/08/11/soc...justment-could-be-over-6-percent-in-2022.html

That sounds good to me. I’ll take 6.2%.

 

[nnuut]

That sounds good to me. I’ll take 6.2%.

The cost-of-living adjustment is just enough for Medicare and BCBS Price to spill the 6.2 % on the ground.

 

[nasa1974]

The cost-of-living adjustment is just enough for Medicare and BCBS Price to spill the 6.2 % on the ground.

True. But if it covers the increase it's better the 1% and Medicare and BCBS goes up 4%.

 

[TommyIV]

When Janet Yellen wrote 'Nearly 50 million seniors could stop receiving Social Security checks for a time' in the case of a government shutdown, she did not reiterate that only delivery times may be affected, not payment amounts. Yellen has rang alarms that some social programs and other government obligations and debt payments could be affected if congress does not extend the debt limit. However laws are in place to keep social security benefits out of the reach of cut backs.

What debt ceiling woes could mean for Social Security benefits

 

[TommyIV]

U.S. Social Security benefits to rise by most since early '80s

To keep up with inflation, the Social Security Administration plans to increase Social Security benefits by 5.9% next year. This is four times the cost of living adjustment made last year and the largest made since the 7.4% increase made in 1982.

 

[nnuut]

The last time they did that it was eaten by my health care, Medicare and BCBS.

 

[Bullitt]

Zero increase in 2009 and 2010 after 2008's 5.8% increase.

2021: 5.9%
2020: 1.3%
2019: 1.6%
2018: 2.8%
2017: 2.0%
2016: 0.3%
2015: 0%
2014: 1.7%
2013: 1.5%
2012: 1.7%
2011: 3.6%
2010: 0%
2009: 0%
2008: 5.8%
2007: 2.3%
2006: 3.3%
2005: 4.1%
2004: 2.7%
2003: 2.1%
2002: 1.4%

https://www.ssa.gov/oact/cola/colaseries.html