|
Include SS in Retirement Planning?
07-19-2012, 09:18 AM
|
#1
|
Gone but not forgotten
Join Date: Jul 2012
Location: Peru
Posts: 6,335
|
Include SS in Retirement Planning?
Am certain that the subject is covered here (somewhere)... but going through tens of thousands of posts is a bit daunting.
So here's the question:
Most of the websites that cover the "dollars needed to retire" ignore Social Security, at the end of the calculation. Why? Perhaps because this amount is considered too small to be bothered with? In my case, it's important....
The problem that I see is, when trying to decide whether or not to retire, that amount has to be added in, making the calculation more difficult, especially long term, when inflation has to be calculated.
For a couple. the annual SS can be a substantial supplement, or in my case, a major part of base planning.
Thoughts?
__________________
If you want others to be happy, practice compassion. If you want to be happy, practice compassion.
--Dalai Lama XIV
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
07-19-2012, 09:21 AM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
|
The better online calculators included SS.
You can always back the income from SS out from your need. Then even the simple calculators can predict what kind of cashflow a nestegg can generate.
|
|
|
07-19-2012, 10:15 AM
|
#3
|
Moderator Emeritus
Join Date: Sep 2007
Posts: 17,773
|
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
|
|
|
07-19-2012, 10:51 AM
|
#4
|
Recycles dryer sheets
Join Date: May 2012
Location: Worthington
Posts: 158
|
Quote:
Originally Posted by imoldernu
Am certain that the subject is covered here (somewhere)... but going through tens of thousands of posts is a bit daunting.
So here's the question:
Most of the websites that cover the "dollars needed to retire" ignore Social Security, at the end of the calculation. Why? Perhaps because this amount is considered too small to be bothered with? In my case, it's important....
The problem that I see is, when trying to decide whether or not to retire, that amount has to be added in, making the calculation more difficult, especially long term, when inflation has to be calculated.
For a couple. the annual SS can be a substantial supplement, or in my case, a major part of base planning.
Thoughts?
|
I think it's OK to include Social Security; it is an important part of most people's retirement...for my own parents, it's about a third of their income in retirement. Today it is par for the course to say "I'm not planning on Social Security because I don't think it will be there when I retire", but I don't think that statement is true. I always figure in what the SS calculator says and then I take 70% of that as what I consider to be a more accurate probability.
|
|
|
07-19-2012, 11:09 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,317
|
I think the most common response around here has been that to be safe, in anticipation of deficit reduction measures, assume about 70-80% of your projected SS income will materialize. So, back that amount out of your annual expenses when figuring out how big your nest egg should be.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
|
|
|
07-19-2012, 11:18 AM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
|
Quote:
Originally Posted by donheff
I think the most common response around here has been that to be safe, in anticipation of deficit reduction measures, assume about 70-80% of your projected SS income will materialize. So, back that amount out of your annual expenses when figuring out how big your nest egg should be.
|
+1
In the absence of a calculator input, this is what I would do. SS should inflate along with your expenses, lasts exactly as long as your expenses, and can't be used to rebalance your portfolio. The only real problem is getting the calculator to start it when you want.
|
|
|
07-19-2012, 11:56 AM
|
#7
|
Gone but not forgotten
Join Date: Jul 2012
Location: Peru
Posts: 6,335
|
Quote:
Originally Posted by Bestwifeever
|
Thanks... a little hard to use most, if one is at the point of retirement, since most calculators require an income input.
Here's a site I use, to find out how long my money will last. I'm Retired, How Long Will My Savings Last? | Calculators by CalcXML
The suggestion to reduce "needs" by the SS a/c amount looks to be the easiest way .
__________________
If you want others to be happy, practice compassion. If you want to be happy, practice compassion.
--Dalai Lama XIV
|
|
|
07-19-2012, 06:00 PM
|
#8
|
Moderator Emeritus
Join Date: Sep 2007
Posts: 17,773
|
Hmm, I guess I hadn't thought that people who are already retired would need a calculator.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|