Giving Away Social Security

[crazy connie]

http://biz.yahoo.com/ibd/070104/issues01.html?.v=1

I had not realized that this was lurking. It really annoys me when anyone is so charitable that they can not take care of their own needs!

[mickeyd]

The agreement would drain more billions from a system with a $14 trillion liability and assets of only $3.5 trillion,

A billion here, a billion there before you know it we're talking about real money. This makes the case for beginning your SS at age 62 just to make sure that you get some of it....

[John Tuttle]

This is a curious statement:

Our system is progressive, meaning lower-income workers get more than they paid in. Mexican participants get back only what they pay in, plus interest.

Strictly speaking that may be true, but a lot of folks get back more than they pay in. I have maxed out on social security since 1994 and according to my Social Security statement I will get all my money back in 5 years if I start collecting at age 62.

[samclem]

Originally Posted by John Tuttle

I have maxed out on social security since 1994 and according to my Social Security statement I will get all my money back in 5 years if I start collecting at age 62.

I think there's a mistake somewhere in this. Are you sure you are reading the statement correctly? Don't forget that the benefit listed assumes you keep making contributions at the level of the most recent year until you draw your first benefit check--did you include these future contributions in your "all my money back" pot?

[rs0460a]

Originally Posted by samclem

I think there's a mistake somewhere in this.

Actually not; going back on old posts, John Tuttle is 60 years old. Assuming he starts drawing at 62, his reduction would only be about 2% from the stated current statement amounts (part of another discussion related to impact on SS of ER).

- Ron

[Sam]

Originally Posted by John Tuttle

I have maxed out on social security since 1994 and according to my Social Security statement I will get all my money back in 5 years if I start collecting at age 62.

Originally Posted by Ron'Da

Actually not; going back on old posts, John Tuttle is 60 years old. Assuming he starts drawing at 62, his reduction would only be about 2% from the stated current statement amounts (part of another discussion related to impact on SS of ER).

I would love to see the actual calculation leading to this conclusion.

[rs0460a]

Originally Posted by Sam

I would love to see the actual calculation leading to this conclusion.

Here's a couple of discussions on this subject:

http://early-retirement.org/forums/i....msg414#msg414

http://early-retirement.org/forums/i...35.msg74#msg74

One message pertains to a phone call to SS, and the results of that conversation; the other, on the SS calculator.

- Ron

[John Tuttle]

Originally Posted by Sam

I would love to see the actual calculation leading to this conclusion.

My Social Security Statement Dated October 5, 2006

Page 2
YOUR ESTEMATED BENEFITS
At age 62 your payment would be about $1,458 a month

Page 3
Total Social Security and Medicare taxes paid over your working career through the last year reported on the chart above. (Ends with 2005)
Estimated taxes paid for Social Security:

You paid $89,355

$1,458.00 x 12 = $17,495/year

$89,355/$17,495 = 5.1074592 years.

I just turned 61 and I've paid the max amount of social security taxes since 1994, I'll actually get my money back faster than that, because my wife who is one year younger than I am is better off taking one half of my amount.

[d]

you need to double the amount paid to include your employers half, and you have to consider the forgone returns had the funds been invested elsewhere. ... nonetheless a better deal than the next generation will get, but not as good as the previous.

[Sam]

Originally Posted by d

you need to double the amount paid to include your employers half, and you have to consider the forgone returns had the funds been invested elsewhere. ... nonetheless a better deal than the next generation will get, but not as good as the previous.

Ditto. But also take inflation into consideration.

[kramer]

Originally Posted by Sam

Ditto. But also take inflation into consideration.

And the numbers also assume that he works until he retires, so will be paying in some more until then and must consider that additional tax money for the calculation.

Kramer