Still fussing about social security.. some info...
Oct 22, 2019 12:53:08 #
Been awhile but many do not seem happy with SS.. so all of us may well know this, but one more time for old times, i will post this.
Social Security pays out based on what you pay into it.
If you do your best to get educated and do well in your career, Social Security at full retirement age will pay $34,332 a year at normal retirement age for someone who paid the maximum amount for the specified period of time into Social Security if they retire at normal retirement age.
That’s $2,861 per month.
If that same person retired at age 70 instead of 66 (the current normal retirement age) in 2019, they’d receive a bump up of 8% for each year they waited so their maximum monthly benefit would be $3,892 or $46,708 a year.
However, if someone dropped out of high school and never made more than minimum wage, they wouldn’t come close to paying in the maximum and their benefit would be much lower.
It isn’t that Social Security pays so little; it is that what you get out is based on what you (or your spouse) put in.
Whether to begin collecting at age 66 and receive the lower amount or wait until age 70 depends on many factors. It takes about 11 years of receiving the higher amount to offset the four years you don’t receive benefits when you could. My husband’s parents both lived until well into their 90’s so for him, it’s probably worth it. My dad is 83 and going strong so for me it will be worth it.
Social Security was never intended to be anyone’s sole source of retirement income. That’s why there are many tax-advantaged ways to save for retirement.
Social Security pays out based on what you pay into it.
If you do your best to get educated and do well in your career, Social Security at full retirement age will pay $34,332 a year at normal retirement age for someone who paid the maximum amount for the specified period of time into Social Security if they retire at normal retirement age.
That’s $2,861 per month.
If that same person retired at age 70 instead of 66 (the current normal retirement age) in 2019, they’d receive a bump up of 8% for each year they waited so their maximum monthly benefit would be $3,892 or $46,708 a year.
However, if someone dropped out of high school and never made more than minimum wage, they wouldn’t come close to paying in the maximum and their benefit would be much lower.
It isn’t that Social Security pays so little; it is that what you get out is based on what you (or your spouse) put in.
Whether to begin collecting at age 66 and receive the lower amount or wait until age 70 depends on many factors. It takes about 11 years of receiving the higher amount to offset the four years you don’t receive benefits when you could. My husband’s parents both lived until well into their 90’s so for him, it’s probably worth it. My dad is 83 and going strong so for me it will be worth it.
Social Security was never intended to be anyone’s sole source of retirement income. That’s why there are many tax-advantaged ways to save for retirement.
Oct 22, 2019 12:56:50 #
Oct 22, 2019 15:32:00 #
lpnmajor
Loc: Arkansas
permafrost wrote:
Been awhile but many do not seem happy with SS.. s... (show quote)
I'm wondering how many minimum wage earners invest in other annuities to supplement their SS on retirement.
Oct 22, 2019 15:39:59 #
lpnmajor wrote:
I'm wondering how many minimum wage earners invest in other annuities to supplement their SS on retirement.
That is so often never mentioned...
Oct 22, 2019 15:43:37 #
lpnmajor
Loc: Arkansas
permafrost wrote:
That is so often never mentioned...
The less fortunate you are while young and working.......................the less fortunate you'll remain when old and on SS. It's better than nothing for sure, but I say old people eating cat food, doing without running water, or skipping medication trying to subsist on SS that is LOWER than the minimum wage they earned their whole life..............................is messsssssssssssssssssssed up.
Oct 22, 2019 18:53:53 #
lpnmajor wrote:
The less fortunate you are while young and working.......................the less fortunate you'll remain when old and on SS. It's better than nothing for sure, but I say old people eating cat food, doing without running water, or skipping medication trying to subsist on SS that is LOWER than the minimum wage they earned their whole life..............................is messsssssssssssssssssssed up.
OOF DA, that would be so sad... should never be allowed to happen in this, the richest nation in the world..
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