Are you counting on SS?

[txtig]

I’ll reach FRA in six months. That’s when I plan to file for SS and I fully expect to get all of my promised benefits . . . at least for the first 10 years or so.

 

[gcgang]

Thankfully, I don't need it. But I wouldn't be nonplussed if it was taken away.

 

[marko]

On my first day of work in 1972 I was told that SS would be long, long gone by the time I retired. So I never counted on it.

I'm now into my 4th year of receiving benefits.

As a matter of fact, I had so forgotten about it that several years ago I had a 'slap to forehead' moment when I suddenly realized I had a nice monthly paycheck coming in a few years. That was a nice day.

 

[Eagle43]

Yes we're both getting social security now. I also have two pensions (Military and megacorp), so our day to day expenses are met.

 

[street]

I don't need it but being frugal as I'm I will take it. I earned it its my money so I want it but I don't use it in my WR numbers.

 

[ShokWaveRider]

One thing I was thinking, (Bet you were wondering what the noise was) I would have thought SS would be getting somewhat of boost because of the current ultra low unemployment stats. Would this not mitigate the gradual depletion somewhat?

 

[Winemaker]

I will gladly take it at 70, DW will take at FRA. We plan to make an attempt to strengthen the economy whatever shape it is in. I have 10 years to go.

 

[Chuckanut]

I ran Firecalc with both my SS check and my [-]platinum plated solid gold[/-] chrome plated carbon-steel pension at their full amounts. I will do OK and have money left over for wine, women and song.

I also ran Firecalc with 70% of SS and 80% of my pension. I still do OK, but I may have to find a few ladies who don't mind footing part of the bill in return for my company.

 

[Walt34]

I am counting on it being there, but can survive without it.

That's about where we are too. I've already started SS at FRA and it is a nice supplement but we'd still be a long way from cat food if it went away. And despite all the stupidity and inaction in D.C. I just don't see SS taking a serious haircut because for too many people it is their only or major source of income. That would create a major social crisis.

And even if you don't need SS, I'd be willing to wager that most on this forum know or are related to someone who does need it. I sure do.

 

[Retch The Grate]

Over twenty years till I start collecting it (planning on delaying to 70 unless they change the benefit structure), I'm guessing there will be some there (I guess between 50-75%), but my plans are all based on it not existing. If it doesn't, very comfortable secure retirement is the plan. If it does, life of Riley!

 

[CaliKid]

I am only 50ish and do not treat SS in my calculations. Anything I get from SS will be bonus money. I figure it will be reduced and/or highly taxed by the time I collect anything.

 

[Major Tom]

I figure it will be reduced and/or highly taxed by the time I collect anything.

- and if it isn't, there is only upside! This is pretty much how I planned/am planning. I'm hoping for the best, while planning for the worst.

 

[Offgrid Organic Farmer]

As I read these forums I see a lot of talk about nest egg size and withdrawal rates.
Are people not counting on SS? I rarely see SS included in their formulas. I've run the numbers and with my SS + spouse SS + small pension, all our basic living expenses are more than covered. Withdrawing 3-4% on our retirement saving would be an extra 30-40K a year, giving us plenty of cushion.
I don't mean to start an argument, but I don't think someone needs a huge nest egg to early retire (say 62) if they live in a relatively low cost of living area. Especially if they can stay under ACA subsidies limits.

I retired at 42.

I served on Active Duty for 20-years and we invested in rental real estate during my career.

As a retiree, I own a farm and I have zero debt. We do try various things to make a little cash on our farm, but even without that, we do okay on my pension. We recently bought an apartment complex that will soon be filled, and will bring in about 5X my pension.

I have been retired for 17 years, and I am still years away from SS eligibility.

Do I 'count' on SS? For what? I see the projections they send me each year. Sure, okay fine. I am not sure what I would do with that extra cash. More booze?

 

[marko]

I figure it will be reduced and/or highly taxed by the time I collect anything.

I was told something like that back in 1972. Actually they told me that the program was nearing bankruptcy and wouldn't exist at all by now.

 

[Independent]

One thing I was thinking, (Bet you were wondering what the noise was) I would have thought SS would be getting somewhat of boost because of the current ultra low unemployment stats. Would this not mitigate the gradual depletion somewhat?

Yes, but "somewhat" is the key word. If the SS actuaries expect unemployment at 5%, and it actually is 4%, that increases this year's revenue by a little over 1%. The program needs a revenue increase of 33%, year after year, to be viable in the intermediate term.

There's also a small detail in the difference between unemployment rates and labor force participation rates.

There's a section here that might be relevant. See V.B.5 https://www.ssa.gov/oact/tr/2018/trTOC.html

 

[bclover]

58 here. When I run firecalc without ss I'm at 90% , with ss it jumps to 100% it will still be around when i turn it on at 67. I'm not moving to a low cost of living area. I like where i live and if i couldn't sustain my life here I would have kept working at primary job.

 

[pdxgal]

I'm 56 and planning to ER in about a year without touching SS until I'm 70. Going to live off rental income, taxable and non-taxable investments, in that order (as well as moving overseas to avoid high healthcare costs and generally have lower expenses). I think SS will still be around, but I'm not necessarily counting on it. As others have said, it will be a nice bonus. To me, ER almost by definition means not counting on SS. Though I suppose people who retire at 62 and start taking SS are still 'early' vs. 65.

 

[PatrickA5]

Both 60. Firecalc shows with SS, we're at 100% success. Without SS, it drops to 50%. So, I'd say we're counting on SS being there. Lot's of non-discretionary spending in the future retirement budget, so we could come close to getting by without SS, but it wouldn't be fun.

 

[morriss003]

I get it presently. It helps, but we could live without it. There is a good article on it at wikipedia. https://en.wikipedia.org/wiki/Socia...ouse's_benefit_and_government_pension_offsets

 

[Morricol61]

Yes I factor in getting aged pension when I qualify at 67.5 years of age. My husband and I are managing nicely on my superannuation and rent and eventually we will also have the funds received from the sale of our home.



Whilst we could live well without the aged pension, we would have to die younger. The pension (or part pension) will enable us to live comfortably well into our nineties.

 

[meierlde]

A few days ago, DS (who is 29) was explaining to me how he will never see any of the SS deducted from his paycheck. It's no consolation to him when I explain that I thought the same thing at 29, and thus never planned for it. He says it's different now. And maybe it is.

Then I joke about how his Mom and I are going to blow our SS windfall on sports cars and fine wine. He said the noble thing would be to pass it on to heirs and that could be his SS "payoff." To which I replied, "You'll probably get the sports car, but not the wine."

Do continue the I don't expect anything thread. My mother in the 1960s (when she was in her 40s said she never expected anything from SS, but she collected for 19 years (62 to 81). So the meme is not new, but has been around for at least 50 years (And SS was really only 20 years old on the payout front at that time)

 

[Katsmeow]

DH and I are both collecting SS. I assume for planning that this will continue. I recognize the possibility that 100% of it could become taxable and/or the COLA could be lowered. It is possible that benefits could be lowered but I would expect that above to happen first. The main thing that I do remember to do periodically is run scenarios with only of us alive and collecting one SS (in my case that would be mine as it is a little higher than DH's).

 

[Hyper]

Still many yrs away for us. We don't have high age life expectancies in our families so most likely might not even matter. Based on that we would be fine. If we lived to 90, we'd be broke without SS! BUT, I want EVERY penny! Oddly enough I'm actually thinking it might be a good idea not to have more than 1m @ FRA by the time we are elegible. Those over 1m might take a bit more of a hit @ FRA in the future.

 

[DrRoy]

I have not included SS in my planning. Will definitely defer to 67 and maybe 70. Whatever we get will be looked at as an inflation bump or just gravy.

 

[joeea]

One thing I was thinking, (Bet you were wondering what the noise was) I would have thought SS would be getting somewhat of boost because of the current ultra low unemployment stats. Would this not mitigate the gradual depletion somewhat?

Not enough to make an impact.