Mid 50's or younger... are you counting on Social Security?

[PatrickA5]

How about a show of hands from all those who believe employers would raise your pay 6.2% if they suddenly didn't have to pay social security? Anyone? Bueller? Yeah, me neither.

Oh, I'm sure they'd give you that 6.2%. Right after they give you a big raise due to lowering of the corporate tax rates!

 

[Rustic23]

Yes, I believe corporations will increase salaries. However, not the day after a bill is signed. I believe in the free enterprise system. I believe business will pay for labor what it must to get qualified employees. No more and No less. What you are more likely to see, however, is a reduction in the cost of goods sold. Payroll tax, along with corporate income tax, are an expense, just like cost or raw materials, or labor. Those expenses are, to the max extent possible, included in the 'cost of goods sold'. If not, then the provider of capital takes a lower return on his investment, and at some point will invest is some other commodity.

 

[badatmath]

"Counting on?" No. "Expecting". Yes.

 

[Markola]

54 yo here and, yes, max SS at age 70 is factored into our plan. We could survive a worst case scenario 25% cut if there is no action by Congress, in which case they can all get off my lawn.

 

[ugeauxgirl]

"Counting on?" No. "Expecting". Yes.

+1

 

[pj.mask]

Some employers would (or increase 401k match). I used to work for a fairly equitable employer.

As usual, higher paid/demand employees would move positions to get that pay raise and employers would eventually get there.

I don’t have the same confidence that lower pay/low demand workers would get a fair portion of that bump.

 

[slick8511]

Currently 52, retired at 38... no intentions of utilizing social security.

 

[Dtail]

Currently 52, retired at 38... no intentions of utilizing social security.

Retiring at 38, there might not be a whole lot of SS for you anyway.

 

[UnrealizedPotential]

Currently 52, retired at 38... no intentions of utilizing social security.

I would like to hear the story behind your ability to be able to retire at 38. How did you accomplish that? If you want you can start a new thread.

 

[pj.mask]

I would like to hear the story behind your ability to be able to retire at 38. How did you accomplish that? If you want you can start a new thread.

I just read a post of someone who retired on 25k with about 700k assets at this age on reddit.

With a high paying profession saving half, you can have the equivalent of 16 years max earnings for SS and that’s probably more than many people earn in a 40 year career.

 

[michelek]

When we were in college back in the 80s the Econ profs said Don’t count on SS- we haven’t and don’t expect to get a dime.

 

[almost there]

Agree, never banked on it. But now that I plan to take it in 3 1/2 yrs. Its looking pretty good. Would be happy to just get my money back. That would be epic.
To just break even. LOL LOL Paid the max into it for many years.

 

[Philliefan33]

I am 55. From the time I started working, I realized that counting solely on SS to fund my retirement was irresponsible. I figured that if I got anything, it would only be enough to pay the cable bill and buy a pizza every month.

As it turned out, SS will likely be more significant. We are fortunate that DH’s pension covers most of our needs, and we were disciplined enough to save a nice nest egg. So we will either spend more, make larger gifts to the offspring, or leave more in the estate.

I never considered the FICA taxes I paid as my money being put into the system for my benefit, and “I better get out at least what I paid in”. The FICA taxes I paid at the beginning of my working life were paying for my grandparents’ benefits, then later my parents. My girls are working now and paying taxes so their grandparents and father get benefits. When I start SS in about twelve years, my benefits will come courtesy of the people working at that time. I know that’s not exactly how the money flows, as there was a time when money coming in > money going out, but it’s how I’ve always thought about FICA taxes.

 

[corn18]

How many years of retirement have been lost to not planning on getting SS in retirement?

 

[BMP2CPM]

I'm 50 and wife is 45.

I plan to retire by 65 or sooner depending how the nest egg goes. SS is not a factor in any retirement decision.

My thinking is I will wait until 70 before taking SS, as long as the market does not go into a major recession before then.

 

[reneeh63]

When we were in college back in the 80s the Econ profs said Don’t count on SS- we haven’t and don’t expect to get a dime.

I wonder if that was before the big changes in 1983 to the FRA that got SS back on track to solvency?

Anyway, though I'm certainly not counting ONLY on SS, yes I include it in my calculations. Frankly, I'd be hard-pressed to retire before FRA if I didn't count it. And just as frankly, even as a pessimist I'm betting everyone currently in the system (even those in their 20's) will get at least half. That may not be a whole lot but it'd likely cover someone's most basic needs.

 

[Henry Lili]

I wonder if that was before the big changes in 1983 to the FRA that got SS back on track to solvency?

Anyway, though I'm certainly not counting ONLY on SS, yes I include it in my calculations. Frankly, I'd be hard-pressed to retire before FRA if I didn't count it. And just as frankly, even as a pessimist I'm betting everyone currently in the system (even those in their 20's) will get at least half. That may not be a whole lot but it'd likely cover someone's most basic needs.

53 here Fire 'd at 47. Working scenario no SS. Best case scenario a 75% cut.

 

[Retch The Grate]

Gen-X so I was always being told that SS wasn't going to be around when I retired, so I never included it in my planning. My assumptions were either I'd be fine without it, or I'd end up getting a raise.

At this point it seems likely to me that it will still be around, and I sometimes look at models where I assume I get 50% of my expected benefit, but I definitely don't make plans for having it for sure.

 

[NotYourAverageJones]

When we were in college back in the 80s the Econ profs said Don’t count on SS- we haven’t and don’t expect to get a dime.

My parents always reminded me and my sister "don't put all your eggs in one basket" and "don't count your chickens before they hatch!" They always said make sure your retirement plan isn't banked on SS being your main or only source of retirement income. They knew the gov't couldn't keep their greedy paws off our trust fund and watched them rob it over their own working years. So they were smart not to "trust" that this mindset would somehow change and they would make good on their promises in full.

When they retired in 1994 at ages 55 and 50, they had enough secure additional income so they wouldn't need SS. Of course it was there for them and they still draw it, since they have both paid into it. But like they taught us, it's been all extra and they just spend it as they wish. We have planned the same way and definitely taught our 26 yr old son to do the same.

Our thought is: "It's better to have it and not need it, then to need it and not have it!

 

[NotYourAverageJones]

How many years of retirement have been lost to not planning on getting SS in retirement?

IDK, but we have spent far less years stressing over whether or not SS will be there by NOT planning on it as part of retirement. We trust ourselves more than we trust the gov't to keep their promises. I'd rather bank on what we can control, then put our future security in something out of our control. We just plan for the unknown and hope for the best!

So no, we won't "need it" and yes, we could retire today if we wanted. But we still plan to work for a couple more years because 1. my DH still like his job enough and gets paid very, very well for something he can basically do in his sleep and 2. We want to spend like drunk sailors on shore leave in retirement.... So "OMY" or "TMY" in our case is significant.

If/when we get SS, it will all be spent on #whateverthehellwewant or having fun doing things with our son and hopefully grand kids. So if it gets cut or reduced down, it really won't affect our ability to securely live our best life.

 

[NW-Bound]

"Counting on?" No. "Expecting". Yes.

+1

+2

More than expecting, my wife is drawing it already. I am delaying mine till 70.

My wife's benefit is a small part of our expenses, but seeing that amount deposited in our account every month is nice. Almost makes me want to get mine too.

PS. Oops, the OP was asking of people mid-50 or younger. Well, obviously I don't belong in that group. Sorry.

 

[Dtail]

60 y.o. here and still expecting it and is mostly factored into the calculations.
DGF already collecting due to SSDI.

 

[karen1972]

I just read a post of someone who retired on 25k with about 700k assets at this age on reddit.

With a high paying profession saving half, you can have the equivalent of 16 years max earnings for SS and that’s probably more than many people earn in a 40 year career.

Maxing out likely, but they could have way more than 16 years and not all just tiny. I retired at 43 and had 29 years of earning records. My first co-op I was 19, earned $15k (now worth $31k on the earnings record), so not insignificant.

 

[Focus]

Jane Bryant Quinn in this CNBC interview (3/1/20):

Can you imagine telling your grandmother that her benefits are going to be cut by 20%? No way. Now, certainly we need either higher taxes or benefit adjustments to keep the system going for five more generations. But it’s going to be done.

Might benefits be adjusted down if you are 20 years old today? Possibly.

So the idea that Social Security will go broke is an idea promulgated by people who want to privatize it, people who want to cut benefits for older people. They are not people who have your best interest in mind when they tell you Social Security is going broke. It won’t go broke. It will be there. It will certainly be there at present rates for older people and people near retirement.

 

[Tiger8693]

It's interesting (and I'm amazed) at the number of people that are seemingly mid to late 50's saying "don't plan on SS". I'm curious how that breaks down to income level, ie, i have paid the max for over 20 years now, and I am not only planning to get SS, I expect to get it.

Whether and when I could retire if the US Gov't failed and I didn't get it is a question of when I would retire, and what level of retirement I would have.