I didn't check your numbers but that's what you should expect. The SS default estimates always assume you will work to that age, at your current salary and with the current SS maximum. Stopping your contributions lowers your benefit but the take early and delay benefit adjustments remain the same.
Social Security Statements Now Available
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Thanks for the link.
I was a bit shocked to see that I (age 44) have paid in $100,000 to SSN already thus far and my employeers have paid $102,000. All of a sudden this does not seem like an "entitlement" program to me like some like to characterize it!
I was a bit shocked to see that I (age 44) have paid in $100,000 to SSN already thus far and my employeers have paid $102,000. All of a sudden this does not seem like an "entitlement" program to me like some like to characterize it!
ChiliPepr
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Welcome to the dark side!
I am 47 and I have contributed $114,971, while my employers have contributed $128,348.
I have also paid $53,801 into Medicare and my employers paid the same.
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It's all a question of when you started paying into the system. The supposed "greatest generation" is the first and possibly the last generation to have what would be described as a comfortable retirement. They had the benefit of company pensions and miniscule contribution rates to SS. They basically funded their retirements off of their children (boomers) and grandchildren who saw their SS payments escalate dramatically to pay for the benefits that far exceeded the worth of their contributions.
Personally, I'm an older boomer so my first few working years had my SS contributions maxed out before June and I had the illusion of a pension. Now I'm in the same boat as you are with high contributions and I don't have any pensions but the old, terminated plans. I'm 60 and my combined SS contributions are somewhere around $260,000 yet I've been in the workforce 16 years longer. By the time you might get SS, you will have paid much more than me.
Accidental Retiree
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2B said:
And don't forget any offset you may have as a result of getting a public sector pension. If you have 30 years paying into SS, you don't have the offset and I think will get your full SS payout.
For every year under 30 years, it may reduce your SS benefit.
There are 2 offsets that may affect you, so check out info on gov't pension offsets and windfall elimination on the SS site or elsewhere.
The process worked for me, thanks for the link.
It would be nice if they had a button that allowed users to select "see my monthly benefit at FRA if I quit working and contributing to SS now." But I suspect people (voters) might be a bit put off by how little their continued contributions will increase their monthly checks. And for every person that decides to retire early in response, there's one fewer "payer" and one more "taker."
Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Excellent, thanks for the heads up, I missed having annual statements but online is better than snailmail. Just printed my statement and verified earnings, whole process took less than 5 minutes. Tax dollars well spent IMO (can't always say that)...
EvrClrx311
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I'm sure one of the following will work:
NMI - no middle initial (as someone pointed out above)
< space > - just hit the space bar and see what it does
If those don't work, then try putting a random letter in there. How about N for None
Wow. Thanks A. Retiree. I had no idea of this little feature. I spent the last 30 minutes in panic mode trying to figure out from their little fact sheet how it would affect me. I finally pulled my records up and I do have 31 years contributions so I escape this little quirk. Up until recently I had not considered SS an essential, but as I get ready to jump I gotta admit it was a nice little dependable piece of the pie. To suddenly think it was not was a shock. One of the reasons I'm reluctant to jump is the fear something out of the blue will jump up I had not thought of, even though I'm the essential pessimist and it's unlikely. Well, back to, ummm, work.
Lancelot
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I tried NMI but the program limited me to only "N" and locked me out
The space bar is a good lead-thanks, I'll try that after my 24 hour lock out period
Accidental Retiree
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H2ODude said:
I am sorry to have sparked panic! I read the best explanation of GPO and Windfall Elimination at a blog by Jim Blankenship, a few months back. his blog is called something like "Getting Your Financial Ducks in a Row." He even included a chart showing how much you need in SS earnings, per year, to decrease the amount you would get dinged by these offsets.
Also try "NMN". Means No Middle Name
madsquopper
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Signup was easy. Found out that the North American Tiddlywinks Association is considered a business (answered yes on that one).
Larry
Larry
Don't want to spark another panic for you, but the 30 years of contributions only applies to WEP, which affects your benefit. GPO applies to spousal/widow benefits and will apply.
Andre1969
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I noticed a slight discrepancy between what my final paystub from 2011 said, and what my SS statement says. The SS statement is short, to the tune of $2,212. But, I noticed that my health, dental, and vision insurance totals out to $2,211.04.
I never noticed before, that health insurance and such reduces the amount of your income subject to SS and medicare. Has it always been that way, I wonder?
I never noticed before, that health insurance and such reduces the amount of your income subject to SS and medicare. Has it always been that way, I wonder?
Major Tom
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The online statement looks like it has all the same information that the paper statement did, but I much prefer the convenience of being able to access it on a computer, rather than having to go and delve into my file box to retrieve the old mailed paper statements I have stashed away.
For some reason, I didn't pay much attention to the section in the old paper statements that told me how much I, and my employers, had contributed, but am certainly appreciating that info now.
Based on a few rough calculations, as long as I get almost all that my current estimate says I will, and provided I live to at least my early 80's, I'll do quite well from SS. If I had worked another 15-20 years, the increase in my benefits wouldn't have increased in proportion to the amount of my contributions. It's interesting looking at these figures.
It looks to me as if early retirees get quite a good deal from SS. From my point of view, this "annuity" was well worth the purchase price, and I'm now really appreciating all those contributions my former employers made.
For some reason, I didn't pay much attention to the section in the old paper statements that told me how much I, and my employers, had contributed, but am certainly appreciating that info now.
Based on a few rough calculations, as long as I get almost all that my current estimate says I will, and provided I live to at least my early 80's, I'll do quite well from SS. If I had worked another 15-20 years, the increase in my benefits wouldn't have increased in proportion to the amount of my contributions. It's interesting looking at these figures.
It looks to me as if early retirees get quite a good deal from SS. From my point of view, this "annuity" was well worth the purchase price, and I'm now really appreciating all those contributions my former employers made.
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EvrClrx311
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Is there an easy way to find what impact retiring at say 50 compared to 62 does to an individuals payouts? Every estimate I've ever seen comes with the qualifying statement:
Your estimates are based on the assumption that you will earn $106,800 a year from now until retirement.
Your estimates are based on the assumption that you will earn $106,800 a year from now until retirement.
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Accidental Retiree
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oldphd said:
Maybe there could be a thread on that topic. I know just little enough to ask questions and be aware, right now.
My small pension comes from a combination of public agency work (water and waste water agencies) and teaching in both state university systems. I also had 21 years in SS.
At this point I figure I may file and suspend at 66, let DH collect spousal, and see how everything rolls out. Then he can wait the 2 more years until he is 70 and file on his record.
Major Tom
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The SS Benefits Estimator on their site at http://www.ssa.gov/estimator/ allows you to create different imagined scenarios in which you specify the age at which you stop working. You can also enter your future annual earnings up to the age at which you stop working, and based on that, receive an estimate of what your SS payments will be when you begin claiming.
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EvrClrx311
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I think I found the answer.. It looks like they average out your top 35 years of ss taxable income... so since I started contributing the max in SS at age 25, I guess that means that if I am still working at 60 (and am fortunate enough to still be making the max income)... then taxes I pay towards SS from work beyond age 60 won't benefit me at all.
Also... I guess that means that if I planned to retire at 50, I can expect my SS checks to be about 25/35 or 60% what they would be if I worked another 10 years until age 60...
Obviously if FIRE is possible at 50... the last thing on my mind will be collecting a few hundred more in SS. Certainly not reason enough to keep me working another decade
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I have ran the "quit working at 50" options and the "zero years" of income do not have the negative impact on your benefits that you think it will. It does not drop the payout by the percentages you think it will.
EvrClrx311
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I figured I missed something, because I kind of had that idea as well from talking to others who have quit work early. I guess I'll just have to find a reliable calculator (I'll try the link above first).
I found my notes from when I did this simulation a year or so ago:
Work till 62 and take benefits at 62: $1,668/month
Retire at 50 with no more income and take benefits at 62: $1,431/month
Retire at 55 with no more income and take benefits at 62: $1,559/month
If you defer taking benefits till 70 (which is my plan) then numbers increase significantly for all scenarios.
Argh. Did some more digging and my income in HS and College was not "substantial." Hence no 30 year exemption. Found the calculator and entered all my years earnings and it drops the payout at 66 about 10% to $1,847 a month. Also just found out health insurance that I can get from last employer went up $100 a month. All I can say is I'm glad we have a wide margin of safety built into our plan. Nibbling away at it already!
EvrClrx311
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Wow... yeah that is a lot less of a difference than I assumed! Hardly a factor in deciding to work longer seeing that 12 extra years is only worth about an extra 16% in benefits.
Also as I mentioned before, anyone who has the option to FIRE at 50 is not all that concerned about SS anyways.
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