Retirees, does SS cover all your needs?

[Independent]

Yes, SS covers all of our "regular" spending. We deferred so that would happen. Our combined 2019 benefit will be about $57,000.

That covers everything we normally spend, including charitable contributions and "regular" gifts to children and grandchildren. It wouldn't cover a trip to Europe, and it doesn't cover the expenses we incur supporting a disabled relative.

Note that if SS were our only income, we wouldn't pay any Federal Income Tax.

 

[Beer-man]

Yes, SS covers all of our "regular" spending. We deferred so that would happen. Our combined 2019 benefit will be about $57,000.



Note that if SS were our only income, we wouldn't pay any Federal Income Tax.

Good to know thank you

 

[mpeirce]

I’m in my 30’s so I’m trying to get a feel for how retiree’s are doing with their SS. I have a decent SS earnings history(cause I work a ton of overtime) and a very low burn rate. I’d like to hope that trend will continue but time will tell.
Was hoping to see how like minded people a generation older than me were faring. All I read about online is about how SS barely covers anything and everyone at work in their 50’s and 60’s doesn’t want to talk about SS or retirement in general.

I've been retired for about 8 years and still have another dozen or so years before I take SS at 70.

That's too far into the future for me to worry about too much.

(This is the EARLY retirement forum...)

 

[HadEnuff]

Yeah, we could make it on both SS but then I'd have to cut all of my vices and that's not going to happen

I hear ya.

 

[ShokWaveRider]

Looking at this years mandatory expenses, absolutely every living expense including food and grog, except what I call discretional. If we never went out to eat, or went on vacation etc. It would, if in fact we were both taking it (DW @ 62, me at FRA), which currently we are not, we would be $700 gross positive (before taxes) per month.

 

[Sunset]

I know some old guys, widows, and they own their own places, but SS still does not cover all, and they dip into savings for house repairs and new car every 15-20 yrs.
Both don't travel, and think very long about making a LD phone call.
TV and free movies from library are the big entertainment.

 

[arky]

I think the more relevant way to frame the question is not how much SS covers of one's spending but how much of one's necessities it covers. We could live reasonably well on SS... we would have a roof over our heads and food on the table and that's is all it was really intended to do.

IOW, in the title thread put emphasis on "needs".

This is the way I look at it. So far this year, SS has covered ~60% of my total spend.

 

[Spanky]

Sadly, SS would only cover about 40% of our estimated expenses. What we really need is one of the those public pension plans that pay a large percentage (i.e., 80%+) of your salary for life.

 

[travelover]

..........What we really need is one of the those public pension plans that pay a large percentage (i.e., 80%+) of your salary for life.

No problem, take a public job with such a pension. You can't have your cake and eat it , too.

 

[NW-Bound]

Faced with limited means, one has to think hard about needs vs. wants.

This is want.

But need is something more modest.

 

[mickeyd]

I am delighted that I waited until age 70 to begin my SSA bonanza.


It alone does not pay all of my expenses, however along with pensions, VA disability, military retired pay, my monthly expenses are generally paid, with a bit left over for fun-time.

 

[CRLLS]

I will receive my 1st SS spousal benefit in 1-1/2 weeks. Between DW and my benefits, today's SS will cover ~50% of our nut. The rest is coming from our IRA's. We long ago rolled over our 401K's and pensions. When I claim delayed benefit at age 70, our combined benefit will cover ~100% of the nut. We have plenty of room for frivolity, both now and later. Although we do have modest desires/needs. Our IRA's will then be there for some "extra" fun money, our LTC (if needed) and cover our widow's(er's ) financial loss of income.

 

[Dreamer]

No it would not. DH is receiving his FRA amount and my SS due to WEP is $92.00 per month. Luckily, we have 3 other pensions, although one of the pensions is tiny. They more than cover our expenses as of now.

 

[nhcycling]

Doesn’t come close to covering our needs and we don’t have an extravagant lifestyle by any measure. It’s the unexpected, the unplanned expenses that take you by surprise and need to have cash tucked away for / new roof, crown on a tooth, rising house taxes ...

 

[Spanky]

No problem, take a public job with such a pension. You can't have your cake and eat it , too.

It's a little late for that. I should have stayed in the military. hindsight is 20/20 indeed. Anyway, I have no regret as working for the military or the public sector is not my cup of tea.

 

[RobbieB]

About 12% for me.

 

[Floridatennisplayer]

Faced with limited means, one has to think hard about needs vs. wants.

This is want.

But need is something more modest.

NW you used that top pic of our home without our consent..........lol

 

[Luck_Club]

Though I'm 12 years away from an early claim. I know details of a couple people already drawing their checks. 1 could make it on the SS alone, though it would be tight by all accounts. The other wouldn't even cover the monthly condo fees.

I know 2 others that when the income stops the needs will be covered by SS and other social safety nets. It wont be fun or pretty but they wont freeze on the street or starve.

The kids have already decided "they made the bed let them sleep in it".

 

[Aiming_4_55]

It depends on your and spouse's social security benefit, i.e. earnings, number of years worked, and age of filing vs. your needs or spend per year.

https://www.investopedia.com/ask/an...ive-my-social-security-retirement-benefit.asp

The maximum monthly Social Security benefit payment for a person applying in 2017 at full or normal retirement age is $2,687 ($32,244 a year). However, the maximum allowable benefit amount is only payable to those who had the maximum taxable earnings for at least 35 working years. Depending on when you retire and how much you made while working, your benefits may be considerably less. The estimated average monthly benefit for "all retired workers" in 2017 is $1,360 ($16,320).

What do you estimate your and your spouse's SSN benefit? What do you estimate your needs or expenses to be? It's generally different for each of us.

 

[W2R]

I ask cause it “appears” that even with cuts that SS would cover our expenses. Even retiring early the numbers are there as we are high earners and don’t spend much.
It would seem that we could still plan for a 30yr drawdown but have it be from 40-70yrs. At 40yrs we’ll be at 4%WR and that’s with pitiful 3% estimated returns.
Spending down tax advantage would avoid tax torpedo. Downsides?

If you are cutting things this close, you need to be absolutely certain of how much you spend. So I hope you are since your life depends on it IMO. Be sure to include income tax, medical, and unusual/unexpected large expenses. Also, depending completely on one income source, even SS, is something I personally would never do, but whatever.

As for the question in the title of this thread, "Retirees, does SS cover all your needs?": Even though I waited until 70 to claim my SS, during 9 years of retirement my spending has been between 151%-212% of my 2019 SS. My house is paid off, so no rent or mortgage. I could probably live on SS alone, but not comfortably at all. I doubt I will ever have to test that, since I also have income from a small pension, TSP equal monthly payments, and my investment accounts.

 

[gayl]

So ... my answer mirrors others with that rare DBP plan. My PENSION covers all my needs. I get a little less than 2500m. But then I've got Prop 13 & a pd off house in a sunny state (California). My investments throw off 1k a month for travel

 

[Vacation4us]

Sadly, SS would only cover about 40% of our estimated expenses. What we really need is one of the those public pension plans that pay a large percentage (i.e., 80%+) of your salary for life.[/QUOTED

DH has such a pension with a cola too! Just ask him and he will say he choose well!

Not only will he never collect SS but he won’t be able to collect mine if I should die before him.

Oh and he has paid into his pension for 31 years forgoing pay raises several times over the years. Since he has surpassed his 30 years he is basically working for 10 cents on the dollar because he is dedicated and loves his job.

Most people wouldn’t want to do his job. Instead of being envious of his public employee pension maybe a little gratitude for those who serve others is in order.

You too could have choose service and a pension over whatever career path you took.

 

[Golden sunsets]

SS covers 27% of our 2019 budget. At no time during our careers did we consider SS as more the one leg of our 3 legged stool.


Sent from my iPad using Early Retirement Forum

 

[bingybear]

Doesn't come close. But then I have 5 years until I can take it early. I can't quite live on nothing.

 

[flintnational]

At FRA (currently 58/59), SS will cover about 40-50% of our inflation adjusted budget (not sure how future tax situation will play out - currently low tax spending from taxable accounts). But, we will likely spend more by then. We are still in the first few years of FIRE and keeping gifting to family lower than our long term plan.