Anyone else worried about SS?

[Anchors Aweigh1]

I laid my plans for retirement assuming that social security would not be available at all, with the thought that a conservative approach would be wise. That means I can survive a cut to social security, but I'm still going to be quite angry with all the feckless politicians who have led us to this juncture when they could have fixed the issues years ago at much lower cost.

Agree don’t need but definitely figured in as safety measure and increased travel so We paid in and we deserve it [MOD EDIT].

 

[davidfin]

Year to year my wife and I are getting more worried about major cuts to SS benefits.
I am 69yo, retired and pulling my SS. My wife was going to retire next year at 65 but, is now planning to keep working.
She is all done with her job but, is distraught about SS uncertainty.

Her SS benefit is expected to be a significant part of our cash flow so, she wants to bank more in her IRA. She also will have a pension which will benefit from another year working.

I think we will be ok but, she … not so much.

Anyone else rethinking their retirement plan base on SS status?

There are many options available to Congress to put SS on a more stable footing. Two under consideration are raising the income ceiling and/or raising FRA for workers 55 and under. There is little discussion about cutting benefits for those already retired. Personally, I think it’s just a political cudgel being used by one side or the other. Don’t fret. Perhaps your spouse is using fear of SS cuts to hide the fact she likes her job and wants to keep working and the rest is a Cunard.

 

[NameTaken2]

At age 67, plan to start SS at 68.
Don't expect any changes that pull the rug out from under those following the "delay SS" mantra.
Holding out that carrot, then pulling it away would not go well for elected officials.
They are well aware of that -expect them to proceed accordingly.

 

[PatrickW]

Surprised that they haven’t cut it already. Never counted on getting it anyway, and would consider it a bonus if it’s there for me. I’m 61, and planning to take it as soon as I’m eligible…

What chafes me is that my “contributions” were taken against my will. I’d rather have been able to put that money into a simple S&P500 index fund. Granted that most people would not have the discipline to do that.

 

[GoodLife59]

Year to year my wife and I are getting more worried about major cuts to SS benefits.
I am 69yo, retired and pulling my SS. My wife was going to retire next year at 65 but, is now planning to keep working.
She is all done with her job but, is distraught about SS uncertainty.

Her SS benefit is expected to be a significant part of our cash flow so, she wants to bank more in her IRA. She also will have a pension which will benefit from another year working.

I think we will be ok but, she … not so much.

Anyone else rethinking their retirement plan base on SS status?

We pulled the trigger on our SS benefits this fall (age 64). Glad we did. Not particularly concerned about SS changes. Going to be a lot of political grid-lock on entitlement plans. The simple solution is to lift the salary cap. Raising the minimum age a couple of years might help. But in reality employers like to get rid of older workers sooner in the majority of cases. So higher minimum age could hurt people.

 

[meleana]

Year to year my wife and I are getting more worried about major cuts to SS benefits.
I am 69yo, retired and pulling my SS. My wife was going to retire next year at 65 but, is now planning to keep working.
She is all done with her job but, is distraught about SS uncertainty.

Her SS benefit is expected to be a significant part of our cash flow so, she wants to bank more in her IRA. She also will have a pension which will benefit from another year working.

I think we will be ok but, she … not so much.

Anyone else rethinking their retirement plan base on SS status?

No. Not worried.

My husband just started collecting this past May (for April) at age 70 and I am also waiting until age 70 (I am 68).

Our whole financial plan is based on finally getting SS. I haven’t worked since fall of 2018 and my husband retired the end of 2019. No monthly pensions and been living off cash.

 

[GamblingMan]

Not worried about SS. I try to prepare for the worst and my expected worst in this case is a 25% trim to SS benefits. It I was worried about it, I would probably w*rk an extra two years (contributions, interest, etc.) to account for the loss. I am not that worried about SS to do reduce my retirement years.

 

[Beststash]

I'm not worried about it from a financial standpoint, but I am aggravated that it seems to be such a low priority for those in charge considering it affects over 70 million people.

 

[AudiDudi]

I created a spreadsheet in 2014 showing my full benefit, a 21% cut and a 23% cut as the handwriting was on the wall back then. That was one reason (being born before 1954) I decided to draw spousal at 66 and let mine grow unti 70. I fully expect a low 20% haircut around 2034. IMO, Congress has already waited too long, kicking the can down the road, to have a viable fix in place by then.

 

[2retireearly]

there will be enough money to finance ss if they take the danged cap off of soc sec taxes. I have no fear of it running out..those voting are getting older and older. they know the actuarially correct things, pay back any money the govt too out as a loan, never touch it for any other use than paying benefits, and raise the limit on the income for paying into SS. I'd take it when you are eligible though

 

[AudiDudi]

In 2034, the gov't will have "paid back" the money they were required by law to "borrow". There will be no Trust Fund. Benefits will be paid out of income received. They need to act very soon to implement ideas like eliminating the wage cap. I doubt they are capable of doing that.

 

[almost there]

Not worried a bit. And am super exited about that it may be tax free soon, as it should be.
Such a shell game / where Govt money goes. But its not going to change for those already collecting it.
Just my personal opinion. Its 5.2% of the GDP. There are lots of ways to fund it. Several options.

 

[AudiDudi]

Not worried a bit. And am super exited about that it may be tax free soon, as it should be.
Such a shell game / where Govt money goes. But its not going to change for those already collecting it.
Just my personal opinion.

Just what do you think happens when the fund + current receipts that pays your benefit runs out of funding? Tax free would be great but the Trust Fund receives about $50B per yr from income tax and pays out about $1.3T per yr so over a 10 yr period from now figure about $500B less in the fund so it's easy to figure out how much sooner the fund runs out. (maybe 4-5 months)

 

[almost there]

I think its a money shell game. The funds needed / could come from 10k other places to cover it.
Too many examples. But a few quick ones? Raise the cap,
cut wasteful spending in other areas to cover it. As mentioned, its 5.2% of the GDP.
How about finding ways to increase the GDP? Not worried a bit for those our age.
Down the road? 50 years? Not so sure.

 

[Old Microbiologist]

Once the Trust Fund is depleted in about 10 yrs, there will not be enough money to cover full benefit checks. I planned on a 23% haircut 10 years ago. I don't think Congress will act (it's already too late, IMO) and if they do, it will be, as usual, too little too late. The politcal promise to stop taxing SS will likely cause the Trust Fund to run out of money 2-4 months early by my calculations.

Congress borrowed $4 trillion from the fund and never repaid it. There is a cap on payments, which is another thing they could change to add more funding. So, in the worst case, they will print more money, repay the loan, and end the cap to tax the rich more. I don't see an issue. Our government pays zero concern to balance the budget and prints money until it runs out of ink. The real threat is the potential for government default once the debt payment gets closer to the GDP and the ROW stops using dollars. I don't see that happening any time soon, and certainly not in my remaining lifetime. But, no one saw the Soviet Union collapse either so there is always a potential given our foreign policy decisions.

 

[Surewhitey]

Increase retirement to age 68, use highest 38 years of earnings instead of 35, add 2 more bend points at 8% and 4% and remove the earnings cap. Sadly, the time to act was 10 years ago and nothing will take effect, IMO, to prevent a haircut. Any action now most certainly will not affect anyone over 60 and more likely over 55 so will have no effect on the Trust Fund. The Trust Fund will most likely run out. Just my 2c.

Can you please lower this to 54?

 

[rogert]

Reforming the SS system before things get bad, requires our elected representatives to work hard, take a position and then vote on the record. Simply allowing the SS cut to take place requires no effort on their part. It happens automatically.

So, I think there is a small chance the people who we vote for and put in office may take the easy way out and do nothing. Probably not. But, it is the easy way out, just don’t plan on running for office after the cut hits.

Cutting SS is similar to reducing national debt, or any government expenses, is very difficult if not impossible. Any elected official main goal unfortunately is to get elected , then re-elected, and finally have a reputable legacy such as improving healthcare, education, environment, etc which all increase expenses. Work smart or spend smart is most of the time just a slogan, and bs. [MOD EDIT] Unfortunately, people like to take instead of give and elected officials fully aware of that. Most of the people in this forum are already different from others I talk to, not counting or discounting SS in their retirement. I guess that’s why here we are FIRE, requiring discipline and forgoing short term gains, and eyeing on long term and real independence, cheers!

Reforming the SS system before things get bad, requires our elected representatives to work hard, take a position and then vote on the record. Simply allowing the SS cut to take place requires no effort on their part. It happens automatically.

So, I think there is a small chance the people who we vote for and put in office may take the easy way out and do nothing. Probably not. But, it is the easy way out, just don’t plan on running for office after the cut hits.

 

[Toocold]

Personally, I never counted on SS. It's a line item of potential income in the future, which will add to cashflow.

From a policy perspective, it's definitely putting a strain on the federal budget. SS and Medicare outlay ($2.2T) equals all individual income tax. I would guess if they were to do anything about SS, they would raise the wage cap and raise the age of payouts, and perhaps means testing it, likely for those who are farther out from retirement ~under 50 so they can prepare for it.

 

[Cerys]

Year to year my wife and I are getting more worried about major cuts to SS benefits.
I am 69yo, retired and pulling my SS. My wife was going to retire next year at 65 but, is now planning to keep working.
She is all done with her job but, is distraught about SS uncertainty.

Her SS benefit is expected to be a significant part of our cash flow so, she wants to bank more in her IRA. She also will have a pension which will benefit from another year working.

I think we will be ok but, she … not so much.

Anyone else rethinking their retirement plan base on SS status?

I have been hearing doom prognostications on Social Security since I was 21. I am 65. And I’m sure there were those before I was 21, but I was 21 and my dad died and I could collect on his Social Security until I was 22 because I was in college. He died right before the change was to take affect that after 18 you were cut off.

At least that’s what that wonderfully pleasant (heavy sarcasm) woman from Social Security screamed at me when I called to ask when the benefits were going to start.

As a general rule we seniors vote. And when you mess with our Social Security we vote you out. They know not to mess with us. They may try but I think they’ll fail.

By the way my second go round with Social Security when my husband had to file for disability was an absolutely amazing experience. No sarcasm. Because he had a brain tumor, he would be immediately qualified, and benefits would start five months after diagnosis. I got the letter that he was approved and benefits would start two days after he died… brain tumors suck.

 

[GenXguy]

As a general rule we seniors vote. And when you mess with our Social Security we vote you out. They know not to mess with us. They may try but I think they’ll fail.

But remember, no one has to "mess" with it for the haircut to take effect. It's automatic when the trust fund runs dry when only incoming SS taxes will be providing for benefits.

 

[camfused]

As a general rule we seniors vote. And when you mess with our Social Security we vote you out. They know not to mess with us. They may try but I think they’ll fail.

But, I am not sure this axiom holds true for some of the current politicians. It seems their agendas may override their desire to stay in office. Think tossing a grenade and running.

 

[ychuck46]

If benefits are reduced, I'd be amazed if that happened for anybody of your ages.

I would not be worried about it.

I would echo this. Every generation has been spouting the same mantra, that SS was going away or was going to be cut drastically. The politicians will do as they always do, namely tweak the salary limits for SS taxation and push the retirement ages out slightly. In other words kick the can down the road. For those of us currently collecting SS it will be a big nothing.

 

[almost there]

Seldom talked about, but one reason some are taking it sooner than later.
Once you start taking SS am not sure they could reduce your benefit midstream.
While working, I watched the SS cap go from about 15k a year to well into the 6 figures.
And my full Ret. age go from 65 to 67.
Making all of this seem like less than a new issue.
And like others have said, was told not to count on SS from teen years, all the way into retirement.
So, I never did.
Am not an expert on this at all. Just my 2 cents.

 

[Sunset]

There are many options available to Congress to put SS on a more stable footing. Two under consideration are raising the income ceiling and/or raising FRA for workers 55 and under. There is little discussion about cutting benefits for those already retired. Personally, I think it’s just a political cudgel being used by one side or the other. Don’t fret. Perhaps your spouse is using fear of SS cuts to hide the fact she likes her job and wants to keep working and the rest is a Cunard.

I just looked up that slang...

Seems like it's a bad name to call a cruse ship line

 

[GenXguy]

Seldom talked about, but one reason some are taking it sooner than later.
Once you start taking SS am not sure they could reduce your benefit midstream.

"They" don't have to take any new action to cut your benefit. It will automatically be cut across the board when the trust fund runs out, as I said up above, if no action is taken. It won't matter if you are already taking the benefit.