Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Include SS in Retirement Planning?
Old 07-19-2012, 09:18 AM   #1
Gone but not forgotten
imoldernu's Avatar
 
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
imoldernu is offline   Reply With Quote
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!

Old 07-19-2012, 09:21 AM   #2
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
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.
MasterBlaster is offline   Reply With Quote
Old 07-19-2012, 10:15 AM   #3
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 17,773
I found most retirement calculators include SS--maybe those that do not include it are attracting more of a global audience and trying to keep it simple.

Here are several that let you factor SS into the results:

SmartMoney Retirement Planner - SmartMoney.com
http://money.msn.com/retirement/reti...alculator.aspx
Retirement Calculators - CNNMoney
AARP Retirement Calculator - How to Retire, Plan for Retirement, What Is Retirement? - AARP

and, of course: FIRECalc: A different kind of retirement calculator
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 07-19-2012, 10:51 AM   #4
Recycles dryer sheets
 
Join Date: May 2012
Location: Worthington
Posts: 158
Quote:
Originally Posted by imoldernu View Post
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.
LeavingOhio is offline   Reply With Quote
Old 07-19-2012, 11:09 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
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
donheff is offline   Reply With Quote
Old 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 View Post
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.
Animorph is offline   Reply With Quote
Old 07-19-2012, 11:56 AM   #7
Gone but not forgotten
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 6,335
Quote:
Originally Posted by Bestwifeever View Post
I found most retirement calculators include SS--maybe those that do not include it are attracting more of a global audience and trying to keep it simple.

Here are several that let you factor SS into the results:

SmartMoney Retirement Planner - SmartMoney.com
Retirement calculator: How much should I save for retirement? - MSN Money
Retirement Calculators - CNNMoney
AARP Retirement Calculator - How to Retire, Plan for Retirement, What Is Retirement? - AARP

and, of course: FIRECalc: A different kind of retirement calculator
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
imoldernu is offline   Reply With Quote
Old 07-19-2012, 06:00 PM   #8
Moderator Emeritus
Bestwifeever's Avatar
 
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
Bestwifeever is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 08:59 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.