What percent of your annual spending comes from Social Security?

DP’s Social Security covers about 33% of our annual budget. I’m not collecting yet. Trying to decide when I’ll start - FRA, 68, 69, or 70 (I’m 65 now, FRA is 66 and 10 months). Our withdrawal rate now is about 2%. When I start Social Security, our withdrawal rate will drop below 1%. DP is 16 years older than me, so I’m financially preparing for an extended one-income late retirement.
 
We seem to be low spenders around here! At least for our normal living expenses. We spent close to $50,000 on living expenses.

Sounds similar to us, even with the yearly living expenses. We do gift with a warm hand to our only kid and spouse, but even that is still covered by what we collect from Social Security.

That said, we do have a 17+ year-old vehicle that probably should be replaced. But it serves as our second vehicle and we put very few miles on it yearly. Having been bitten on a used vehicle purchase many years ago, we likely would go with a new vehicle purchase. Given the prices today, that can get into BTD territory.
 
0 for 2024, about 16% in 25, about 29% in 26. Social security will just start to kick in over the next two years for us. Combined pensions only pay about 4% of yearly spend.
 
Sounds similar to us, even with the yearly living expenses. We do gift with a warm hand to our only kid and spouse, but even that is still covered by what we collect from Social Security.

That said, we do have a 17+ year-old vehicle that probably should be replaced. But it serves as our second vehicle and we put very few miles on it yearly. Having been bitten on a used vehicle purchase many years ago, we likely would go with a new vehicle purchase. Given the prices today, that can get into BTD territory.
Ah, yes. The old "used vs new" question can be tricky. We've stuck with "used" for 30 years just because we're frugal. Generally, we've had good luck. YMMV
 
SS will cover about 75% of our base expenses in retirement. Small pensions will cover the rest. Investment accounts will be there for supplemental spending and giving.
 
That said, we do have a 17+ year-old vehicle that probably should be replaced. But it serves as our second vehicle and we put very few miles on it yearly.
We're driving a 27 yr old truck (daily driver) 19yr old Cargo van and a 19 yr old SUV. The SUV may get 2k or 3k miles on it a year, mostly just to make the 800 mile round trip to visit my daughter.
 
^^^^^^

Yeah, my "new" car is 13 years old and the old one is 25 years old. Avg. mileage for the two cars is less than 100K.
 
^^^^^^

Yeah, my "new" car is 13 years old and the old one is 25 years old. Avg. mileage for the two cars is less than 100K.
Wow - my 95 Audi S6 is @ about 225k, the 2000 F350 @ about 200k, the 01 Audi A6 @ 201k and the 2015 Sonic (the newest one)@ 92k :)
 
Wow - my 95 Audi S6 is @ about 225k, the 2000 F350 @ about 200k, the 01 Audi A6 @ 201k and the 2015 Sonic (the newest one)@ 92k :)
Heh, heh, if my 25 year old LeSabre makes it to 200K I'll be very surprised. I actually love the car, and the 3.8L V6 is bullet proof - BUT, everything else is iffy. Had to redo struts and other suspension stuff, two electric windows, head liner is falling down, etc. Still, per mile costs are really minimal. No need for SS when you own this car.
 
I'm somewhat surprised the high percentages in this thread but the denominator is probably lower than most could really spend because this is a LBYM group.

For others that live paycheck-to-paycheck and have less retirement savings and related income, I suspect the percentages are even higher. I have a friend of more modest means who retired for whom SS is 71% of his income and he can live on SS and income from a duplex rental.

Can you imaginge a world where we didn't have SS? I think there would be a lot more senior poverty because people don't save.
 
DW and I both took our SS at 62. No regrets. I don't really track my spending that close but I'd estimate SS covers about half our base spending (or what we spend to be comfortable/get by) and maybe it's 1/4 of our total spend.
 
SS (pretax) covers about 1/2 my current spending (widower). SS (pretax) is about 1/3 my total income (no pension).
 
How do you answer if you have more passive income than you spend? e.g if your passive income is $50K (dividends/interest/pension), your SS is $25K, and your spending is $50K. You could choose to say SS covers 50%, or 0%...
 
Can you imaginge a world where we didn't have SS? I think there would be a lot more senior poverty because people don't save.
Yes, some people don’t save, some people do save, but others are not able to save, since they live paycheck to paycheck. Most of us here seemed to have been in the fortunate category of those that could save, and did save.
 
0% now at age 55 1/2.

I plan to start collecting at age 70.

If I did the math right, SS with a haircut will cover 127% of my spending at that point.

Assumptions:

SS COLA growth of 3.75% (average from Cost-Of-Living Adjustments)
Spending growth of 3% (my default inflation rate, historically it's been less than this)
SS haircut percentage to 79% happening before I turn 70 (from most recent SS trustee report)
 
Ours is currently
My pension. 43%
Dh’s pension. 34%
Dh’s SS. 14%
My Pay. 9%

But this will change. I currently work about 7 hours a week. I really enjoy it, but anticipate giving it up one of these days. I also was very impacted by GPO so that will change.
We will also be spending more of our retirement savings in the future so what we decide to spend will also impact those percentages.
 
I'm somewhat surprised the high percentages in this thread but the denominator is probably lower than most could really spend because this is a LBYM group.

For others that live paycheck-to-paycheck and have less retirement savings and related income, I suspect the percentages are even higher. I have a friend of more modest means who retired for whom SS is 71% of his income and he can live on SS and income from a duplex rental.

Can you imaginge a world where we didn't have SS? I think there would be a lot more senior poverty because people don't save.
Mom is one of those who live 100% on SS and even saves a little of it. I see that changing soon as they are really slowing down & needing to buy additional services. Without it, they'd last ~5-6 years as they are (modest savings of $150-200k).

I have been pushing her to spend more to get what she needs... I think she's finally listening.
 
The first half of the year my SS seems to cover 77% of my base spending (no travel and no gifts but does include taxes). I seem to have stepped up spending especially on my house since then so the percentage for the second half will be much lower but I won't calculate that until January. I also increased my gifting and travel 2nd half - and often pay the bulk of my traveling companion expenses but my net worth is still going up thanks to the amazing stock market. I just started taking a couple of annuities that replaced DH and my pensions which may be the reason I loosened my purse strings. LOL. I never really thought about how much money we (now I) would have in retirement, just kept plugging away and saving.
 
We’ve decided to gift our SS income via QCDs. Basically matching our QCDs to our gross SS income for the year. DH turns 70 next year, starts his SS and becomes eligible to make QCDs later in year. This strategy will help particularly tax wise as we each become subject to RMDs. And of course can be re-evaluated each year.

Because we retired very early our SS income is not as large as you folks who have 35+ years earnings in. Never planned on it so it feels like “found money”, yet doesn’t go that far to meet our regular expenses.

As higher earner I also plan to wait until 70 to start SS. I’m 4.5 years behind DH.
(Knocking on wood - don’t want to jinx anything here. :hide:)
I’m new here. Please define DH. Thank you
 

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