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SS is really important
Old 06-09-2010, 11:03 AM   #1
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SS is really important

For years SS has been derided and people often say that they won't be relying on it. Given the continued insufficient level of personal retirement savings, this article shows just how important it is to support SS. Currently the 2 largest sources of retirement income are SS, 40%, and working 26%.

heres-how-to-pay-for-retirement: Personal Finance News from Yahoo! Finance
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Old 06-09-2010, 11:44 AM   #2
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Thanks for the article. It's definitely part of my retirement plan income...
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Old 06-09-2010, 04:55 PM   #3
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Hi nun - Thanks for the link. For me, as someone planning to FIRE 15 years from now, it's not that I am not relying on it, it's just that I don't expect to get as much as SSA says I will. My retirement calculations use 1/2 of what they say I'll get. The system just isn't sustainable forever, and sooner or later someone will have to face it and make some changes.
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Old 06-09-2010, 05:11 PM   #4
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What about pensions? Federal, State, Private? Are people also planning on a reduced payout in the future?

I think SS will be around when I qualify, but not at the level as my latest SS report shows. In my plan, it represents an insurance against a failure of my portfolio to provide the planned income. Unfortunately, no pensions in my future.
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Old 06-09-2010, 05:40 PM   #5
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What about pensions? Federal, State, Private?
The article has a section on pensions, so what about them?
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Old 06-09-2010, 06:25 PM   #6
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Quote:
Originally Posted by nun View Post
For years SS has been derided and people often say that they won't be relying on it. Given the continued insufficient level of personal retirement savings, this article shows just how important it is to support SS. Currently the 2 largest sources of retirement income are SS, 40%, and working 26%.

heres-how-to-pay-for-retirement: Personal Finance News from Yahoo! Finance

Since the 70's, when I began investing seriously, I totally discounted SS in my scheme of things. I have been investing and following good pensions since then. Now that I am age 65 and it's all coming together, I am eligible for a big fat SS bonus that is available at any time I wish to begin plucking it. I have never been a big supporter of SS but I am quite happy to begin receiving a monthly infusion into my checking account.
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Old 06-09-2010, 07:54 PM   #7
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Originally Posted by LOL! View Post
The article has a section on pensions, so what about them?
Sorry if I wasn't clear.

For those who have pensions, do your worry that your pensions will not be there for you?

Just like we worry that Social Security may not be there or will be much reduced or taxed.
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Old 06-09-2010, 08:07 PM   #8
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My military pension and SS cover 100% of our monthly expenses. We have savings to cover surprise expenses and fun stuff, however, it would not cover living expenses if the other two went away.

However, those two going away is not something I worry about. I figure if that happens there are going to be a lot more to worry about, as it would most likely mean the total collapse of the government. Could it happen, sure, however, I could also win the lottery! Well, I could win if I bought a ticket.
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Old 06-09-2010, 08:29 PM   #9
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Originally Posted by nun View Post
For years SS has been derided and people often say that they won't be relying on it. Given the continued insufficient level of personal retirement savings, this article shows just how important it is to support SS. Currently the 2 largest sources of retirement income are SS, 40%, and working 26%.

heres-how-to-pay-for-retirement: Personal Finance News from Yahoo! Finance

and because of SS' importance much thought should be given as to when to take it, which i talked about in these 2 posts on another thread:

Article: Withdrawal Policy Statement

Article: Withdrawal Policy Statement
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Old 06-10-2010, 08:20 AM   #10
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SS is going to keep me from living on the street. For a while.
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Old 06-10-2010, 09:18 AM   #11
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This article points out why I believe our government will never let Social Security fail. It is simply to vital to many americans in this country. They will raises taxes to whatever level is necessary to fund the program before they would let it fail. You could make an good argument that they should do away with all welfare before doing away with social security. Most people on welfare are at least young enough that they are capable of working. Pluse, at least with Social Security, everyone has paid into the system and did so with some sort of implied guarantee that our government would return that money when retired.

I know my financial plan is going to be heavily relying on Social security past age 70. It is simply to politically unpopular for our politicians to let it fail.

To me the easiest way to immediately give the program a big shot in the arm is to remove the Income cap. I think you pay social security on your income up through something like $106K currently. Simply remove this cap and take social security as a percentage of all income. Not something I would love right now as I enjoy a couple months each year with no deductions but it seems easier and more acceptable than cutting benefits or raising retirement age.
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Old 06-11-2010, 06:11 PM   #12
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I've spent my entire working life assuming SS would not be available for me. Now that I am getting closer to it I am fairly confident it will be there for me. My biggest fear is that there will be some sort of means test that cuts those of us who planned well out of the benefits.
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Old 06-11-2010, 07:52 PM   #13
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Originally Posted by DoingHomework View Post
I've spent my entire working life assuming SS would not be available for me. Now that I am getting closer to it I am fairly confident it will be there for me. My biggest fear is that there will be some sort of means test that cuts those of us who planned well out of the benefits.
More likely they'll change the current tax formula for deciding how much
of your SS is taxed, so you'll get it all, it's just Uncle Sam will be taxing it
more.
TJ
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