Will Social Security be there?

[Beststash]

How's that? But with negative interest we'll be able to reduce the burden, yes?

I think not ---Lowering interest rates will decrease the cost of newly issued debt but the dollars used to pay off any existing debt are now worth more in terms of what they can buy. An increase in inflation is good for borrowers and bad for lenders because the borrower makes the previously agreed-upon interest payments in dollars that are worth less. The converse is also true: a decrease in inflation is bad for borrowers and good for lenders because the borrower makes the previously agreed-upon interest payments in dollars that are worth more.
So in terms of "real" cost of government debt the FED should increase interest rates - not decrease them (increase inflation to a certain level). When inflation is lowered (especially negative) it increases the real cost of government debt outstanding, leaving taxpayers with a bigger tax bill in real terms.

Got a headache yet!!

Now back to the ongoing issues of SS which we all love and most need.

Peace

 

[ivinsfan]

Sigh...I'm hoping that, since there is really nothing I can do about it (except vote!), that I can figure out how to stop worrying. Thank you for letting me worry here, though, everyone!

Read and watch less uninformed stuff online and stay away from politics that should help with the worrying.

But the most important is what age to actually take your SS..

 

[CindyBlue]

Read and watch less uninformed stuff online and stay away from politics that should help with the worrying.

But the most important is what age to actually take your SS..

I know I should wait until 70 to take Social Security in order to get maximum benefits, but I really can't, financially. So I'm waiting (and using my pension augmented by my savings) until FRA.

 

[FANOFJESUS]

Ok, I'll be the one to ask...yet again...
I retired last August. I've been living on my savings since then (not my 403b, but savings - I planned it that way for the first year of retirement) plus my pension. I was all set to do fine in retirement. But...
Will Social Security be there when I take it next March (I'm waiting until FRA)? After reading about the president approving tax cuts...and the economy...I'm worried about Social Security. I'm also worried about my (defined benefit) pension still being there.
Sometimes I think all I do is worry...sigh...

I look for them to do a combination of four things. Lower the benefit a little,raise the payroll tax a little, raise the cap a little and raise the age to draw a little.

 

[jim584672]

Someone just grabbed the third rail with both hands, I have my popcorn.

 

[CindyBlue]

Based on the fact you budgeted and your spending is tracking your budget so far, you'll be fine.

You've picked a fabulous time to NOT be in workforce right now, IMO.

I agree...especially since I retired from a lifetime career of teaching. What those poor teachers are going through now...sigh... Timing is everything (smile!)

 

[ivinsfan]

I look for them to do a combination of four things. Lower the benefit a little,raise the payroll tax a little, raise the cap a little and raise the age to draw a little.

Pretty much business as usual then...

 

[CindyBlue]

Someone just grabbed the third rail with both hands, I have my popcorn.

Sorry...didn't mean to start anything!

 

[jim584672]

Sorry...didn't mean to start anything!

I wasn't referring to you. Someone who is de-funding the trust fund.

 

[FANOFJESUS]

Someone just grabbed the third rail with both hands, I have my popcorn.

I am just trying to say the government will try to spread the pain out so no one group bears it all. Worker or retiree

 

[Chuckanut]

I know I should wait until 70 to take Social Security in order to get maximum benefits, but I really can't, financially. So I'm waiting (and using my pension augmented by my savings) until FRA.

That still puts you in the more conservative and cautious minority. Most of the people I know NEED it at 62 if they don't want to work. You seem to be doing well.

 

[CindyBlue]

I wasn't referring to you. Someone who is de-funding the trust fund.

(...whew!...)

 

[CindyBlue]

That still puts you in the more conservative and cautious minority. Most of the people I know NEED it at 62 if they don't want to work. You seem to be doing well.

Making it so far. I don't have anywhere near the retirement resources that a lot of people seem to have here, but I've planned as best I can, and hopefully planned correctly! But I can't plan if the government keeps "moving my cheese" after the fact.

 

[CindyBlue]

For the OP
This pamphlet was included with my Vanguard 401(k) statement back in 2006.
Sorry about the quality, had a really cheap scanner back then.

Thank you for this. I'd read something similar before I retired. I am even more concerned now because I keep reading in the news the past couple of days that the Social Security "haircut" could be a lot worse if the payroll tax is cut...

 

[eytonxav]

I know I should wait until 70 to take Social Security in order to get maximum benefits, but I really can't, financially. So I'm waiting (and using my pension augmented by my savings) until FRA.

I was more than able to wait until 70, and although 1.5 years isn't much in terms of moving up the payout date, out of concern the haircut would come sooner I took it at 68.5.

 

[ivinsfan]

Thank you for this. I'd read something similar before I retired. I am even more concerned now because I keep reading in the news the past couple of days that the Social Security "haircut" could be a lot worse if the payroll tax is cut...

The "news" hasn't been an informed source about anything for a long time. You keep wanting to steer this in a political direction. Do you have any room to cut back in your budget. If you are worried about staying retired share some general numbers. your AA, anyway you might cut expenses and so on.

Focus on what you can do instead of a bunch of slanted news stories. It will make you feel more in control of your own life..

 

[CindyBlue]

The "news" hasn't been an informed source about anything for a long time. You keep wanting to steer this in a political direction. Do you have any room to cut back in your budget. If you are worried about staying retired share some general numbers. your AA, anyway you might cut expenses and so on.

Focus on what you can do instead of a bunch of slanted news stories. It will make you feel more in control of your own life..

Nope, not political in any way. Just financial, truly.

I am trying to focus on what I can do, but I need to know what will be around in order to do it. Just asking for information and advice.

 

[ivinsfan]

Nope, not political in any way. Just financial, truly.

I am trying to focus on what I can do, but I need to know what will be around in order to do it. Just asking for information and advice.

As I said, if you are uncertain you can share some of your info here and see what people think. If you want information and advice get more specific. The question you have asked is unanswerable at this time.

 

[ShokWaveRider]

I think as a result of this you will see a lot of folks applying for SS this year before November, even though they were waiting till 70, others will apply immediately they are eligible. Not sure if this will add the strain to the system. Personally I am more concerned about Medicare.

 

[CindyBlue]

As I said, if you are uncertain you can share some of your info here and see what people think. If you want information and advice get more specific. The question you have asked is unanswerable at this time.

I disagree...I've gotten answers, advice, and information that already makes me feel better.

 

[CindyBlue]

I think as a result of this you will see a lot of folks applying for SS this year before November, even though they were waiting till 70, others will apply immediately they are eligible. Not sure if this will add the strain to the system. Personally I am more concerned about Medicare.

Interesting...why do you think people will apply for Social Security now rather than wait? Is it because you think that people are thinking that Social Security might not be there at all, so they want to take it early to at least get something before it goes? Or do you think it's about the "haircut" - they want to get what's fully coming to them for a few years before the haircut arrives?

These are the same issues I'm thinking about, the ones that prompted me to ask my original question.

And Medicare...arrgghhh! Another thing to worry about! I'll have to go look that up...

 

[bobbyr]

Interesting...why do you think people will apply for Social Security now rather than wait? Is it because you think that people are thinking that Social Security might not be there at all, so they want to take it early to at least get something before it goes? Or do you think it's about the "haircut" - they want to get what's fully coming to them for a few years before the haircut arrives?

probably both, but especially the second item

 

[CindyBlue]

probably both, but especially the second item

Makes sense to me...thanks!

 

[ShokWaveRider]

Interesting...why do you think people will apply for Social Security now rather than wait?

Probably knee jerk reactions, scared of what will happen next year. DW will take it at 62 to pay for her health care (Sad I know), I will probably take it in August of next year for different reasons, I will be 67.5.

 

[braumeister]

Remember that all the worries and pessimistic predictions about Social Security inevitably include the phrase "unless Congress takes some action."

I think it's probably wise to expect "some action" even if the can continues to be kicked down the road for some time yet.