Happy Birthday Social Security

[GreeneHunter]

Happy 80th Birthday to Social Security !  Just received the latest AARP Magazine and on front it says Happy Birthday SS  .... 80 years of better lives !   I'm not collecting yet but I have many friends whom are . My parents collected (while they were alive) and it cushioned their retirement .   Your thoughts on its value - sustainability ?

[maytom]

I plan on taking it at 62...............not waiting to 66.

[Doc]

Well, it has turned out to be a bit of a Ponzi scheme, but so far it is barely holding together. Most of the problems and uncertainty are coming more from the design and management of the system rather than the basic concept. I guess it beats the alternative of maintaining a publicly run "poor house" for the elderly or perhaps debtor's prison.

 

Had it been designed and maintained to be a market driven enforced retirement investment plan, recipients would be floating in money right now. But it has been given the "welfare touch" and used for every purpose under the sun, and has become a basic slush fund for trying to balance budgets and fund cradle-to-grave welfare schemes. So with so many things being drained from it, and no real ties to inflation, it is stumbling and has a bleak future.

 

One of the things that makes it all look like a loser is the election system that has ever-expanding elderly voters with a self-serving, vested interest, that forms a political block that resists any credible efforts to modify and save it. The geezer vote makes any attempt at reform become the kiss-of-death for any politician dumb enough to enter those waters.

[Doc]

I plan on taking it at 62...............not waiting to 66.

I was advised to wait to maximize the benefits, and it paid off. That is a decision that each generation has to make for themselves with a realistic assessment of the system when the decision has to be made. The sky may be badly cracked, but it isn't falling ...... yet.

 

My advice: use it like "found money" and make sure that your retirement is well funded outside of the S.S. system. And don't wait until your 50's before you start saving and investing. Earlier is better. Every year delayed is thousands of good compounding dollars lost.

[GreeneHunter]

I was advised to wait to maximize the benefits, and it paid off. That is a decision that each generation has to make for themselves with a realistic assessment of the system when the decision has to be made. The sky may be badly cracked, but it isn't falling ...... yet.

 

My advice: use it like "found money" and make sure that your retirement is well funded outside of the S.S. system. And don't wait until your 50's before you start saving and investing. Earlier is better. Every year delayed is thousands of good compounding dollars lost.

Well stated Doc .... I myself am going to treat it as "Found Money"  when I get there !  If it was to disappear tomorrow I would still be able to live in comfort because I planned early (real early) for retirement !  The doing away with Pensions and replacing with 401k's / 403b's in my opinion is a major disaster waiting to happen !

[Doc]

The doing away with Pensions and replacing with 401k's / 403b's in my opinion is a major disaster waiting to happen !

Quite possible, but the historical track record says no. The thing about the market is that if distributed properly and planned right, it keeps pace with inflation. Those pensions that do not have inflation adjustment clauses can wind up to be a starvation income in 20 years if you should be so unfortunate as to live that long.....lol. I know of several households that had a very impressive pension at their time of retirement, who are now finding social security is their larger source of income.....lol. Inflation has taken that impressive pension and turned it into chicken feed. I'll stay with the markets. Of course, anything can happen with the stock market (that is why we diversify), but inflation is a sure thing and can erode improperly protected pension funds.

[ants]

I have to admit that I haven't kept up with the ins and outs of S.S. I read somewhere that a change was made, a few years back and now people born in 1964 and later have to wait until age 67 to collect. Can those people still collect at 62 but receive a lower monthly amount?

[sits in trees]

There are politicians (mostly Republican) that want to privatize it and hand it to Wall St to play with. These same Cons want to voucherize Medicare and basically give you a coupon once a year that would cover you to a minimal amount after which you give your house up to cover your medical costs.

These same politicians have been looking to gut SS and Medicare for decades. Sorry I know this is going to ruffle alot feathers here but this what I'm seeing.

[The_Field_Ager]

Anyone in the their late 30's, early 40's will not see social security. Or, it will be so degraded in value, as to be useless. Better start thinking outside the box.

[BellR]

Anyone in the their late 30's, early 40's will not see social security. Or, it will be so degraded in value, as to be useless. Better start thinking outside the box.

Nope, instead we get to pay the social security bill of the generation who F-ed it up, stole all of the money out of the accounts for years and never paid it back and by the time we go to retire there is nothing left. Sweet.

[moog5050]

Anyone in the their late 30's, early 40's will not see social security. Or, it will be so degraded in value, as to be useless. Better start thinking outside the box.

 

 

I tend to agree and being in my mid-40s it annoys me.  That said, I still get my statements saying this is what you will get when you retire.  I suspect that it will be tough for the government to refuse to return what I paid in - legally and from a public outcry perspective.  Instead, I suspect "benefits" will not be available until I am 75 years old. Keep pushing the age of retirement - its the easy short term fix.  I better lose some weight if I want any chance at receiving dime one of my money - perhaps I should say a younger person's money as my money is gone shortly after I pay it.

[Nomad]

Doc is correct , most all advisors will tell you to wait . There are a few things to take into consideration , your life expectancy based upon your families history and your health, your break even year being the most important .

My wife's family does not live that long , my mom is 93 and going strong , my Dad made it to 89 and I have grandparents that lived till their 100's . She will collect earlier but not at 62 as you gain 8% a year . I'll wait till FRA with my life expectancy and the break even point it'll pay off handsomely .

One also has to look at who,is the highest earner and consider who'll likely die first to maximize what they will collect in servivor benefits . If SS is a major part of ones retirement doing it correct is critical to helping the surviving spouse live as well as possible.

There are thousands of ways a working couple can collect, luckily there are programs to work,it out for you .

I have a pension plus deferd comp. my wife has a fat 401k yet SS has taken a few meetings with two different "planners " I use as well as a lot of my own research .

Edited July 13, 2015 by Larry302

[GreeneHunter]

I have to agree with most all of what has been said , It would be nice to be able to know exactly what would be the perfect match for myself and mine , but too many different things can affect the outcome !  Tough choices ahead !