What percentage of your retirement income is Social Security?

[5Miler]

SS is 100% of income and easily covers expenses.

Started SS December last year and cut off my monthly IRA distributions at that time. It gave me a slight raise from my 10 years of monthly distributions. Still 3 years to go before RMDs kick in under current rules which will significantly change things.

 

[Gumby]

So would you consider RMD's from your portfolio as income? After all, it's your money, it just hasn't been taxed yet.

No, I don't consider that income. I'm well aware rhat there is an embedded tax obligation in my tIRA. Income is money I get for providing goods or services now or in the past. Money earned as capitalist is different, at least in my mind. In other words, my definition does not depend on tax treatment. You are free to have your own definition.

 

[Car-Guy]

No, I don't consider that income. I'm well aware rhat there is an embedded tax obligation in my tIRA.

Me too!

 

[Kabowest]

In approx four years when I start collecting, my projection is it will cover 50% of annual spending. I year four of retirement and haven't yet tapped retirement investments.

 

[jebmke]

No, I don't consider that income. I'm well aware rhat there is an embedded tax obligation in my tIRA. Income is money I get for providing goods or services now or in the past. Money earned as capitalist is different, at least in my mind. In other words, my definition does not depend on tax treatment. You are free to have your own definition.

I've gone back and forth on this and finally settled on your approach. I also treat capital gains that way since it is also just a division of assets.

On the other hand, in terms of any real action, the only "income" I really think about is what hits the tax return.

 

[Dtail]

About 26% of the expense budget, but I am not collecting yet and it will rise to over 50% at that time.

 

[MarieIG]

No, I don't consider that income. I'm well aware rhat there is an embedded tax obligation in my tIRA. Income is money I get for providing goods or services now or in the past. Money earned as capitalist is different, at least in my mind. In other words, my definition does not depend on tax treatment. You are free to have your own definition.

Re income: I run two separate set of books - in my head.

For the IRS, I include any IRA conversions I make, or distributions DH takes. But this certainly does not "feel" like income, rather a withdrawal with the corresponding payment of tax liability.

Income I think of as DH's pension, interest on bonds, and dividends (although I can see how dividends may be phantom income). But I can also see how, in these threads, YMMV.

 

[CyclingInvestor]

Depends on the definition of income I use

11% of SS+dividends (what I mentally use)

5% of AGI (due to big Roth conversions)

 

[RE2Boys]

I've been retired for 23 years. Wife is 63 but not taking SS. I started at 63.5 mainly due to having dependents in high school that qualified for SS checks as dependents. Currently after removing one time income items (cash 30 year old Series EE bonds) SS is about 5% of income, COLA pension is 56%, wife's W2 income is 12%. Remaining 27% is earnings and withdrawals from investments.

This has nothing to do with spending! Once my sons graduated college and had jobs, I ceased to worry about what I spend, I will never spend what is left in my lifetime due to my LBYM lifestyle, that is left to wife and sons.

 

[Finance Dave]

So far zero, but in the long run I think about 40-45%.

 

[stevelb]

48% of spending. 27% of AGI. Probably 2021 was a little light on spending due to various circumstances.

 

[audreyh1]

I interpret income to mean income independent of portfolio withdrawals.

The OP specifically included portfolio withdrawals as part of retirement income.

 

[cyber888]

Zero now. But when DW and I claim Social Security in 4 years, it will be probably contribute around 70% - 72% of our monthly expenses (based on my projected expenses by the time I get social security).

 

[jollystomper]

Currently zero. Assuming we are both alive at these future dates, at my FRA it will be 35% of income, if I wait to age 70 it will be 40% of income.When RMDs hit it will be around 33% of income.

 

[Still Learning]

37% of our monthly income is SS. Our investment withdrawal is under .007% and we take no money from savings. Just living on SS and a pension with extra money left over for discretionary spending for another 7 years +/-.

 

[N02L84ER]

0% currently. In 8 years, our combined SS is projected to be 70% of expenses, 50% of income.

 

[Out of Steam]

So far, zero.

Next year, with one of us filing for Social Security and the other deferring, between 20 and 25%.

 

[TheWizard]

Re income: I run two separate set of books - in my head.

For the IRS, I include any IRA conversions I make, or distributions DH takes. But this certainly does not "feel" like income, rather a withdrawal with the corresponding payment of tax liability.

Income I think of as DH's pension, interest on bonds, and dividends (although I can see how dividends may be phantom income). But I can also see how, in these threads, YMMV.

I understand how you feel.
Certain money is like cash in your wallet after all taxes have been paid. That includes your Roth IRA.
So Roth conversions count as income even though you have no need to SPEND it all this year.

Money in your tax-deferred accounts is NOT equivalent to cash in your wallet because you haven't yet paid the ransom to get it out of tax-deferred.

Hope this line of reasoning helps...

 

[TheWizard]

The OP specifically included portfolio withdrawals as part of retirement income.

Tax-deferred or taxable or Roth?
They're not at all the same...

 

[marinauser]

Zero currently and for the next 2.5 years. One of us will hit 70 then and spouse the following year. Hard to tell what the percentage will be then since capital gains can fluctuate significantly from year to year right now. But once both collecting, I expect it to be about 30% of income coming from SS, dividends and interest. Smaller percentage if you take into account capital gains that are included in income.

 

[Ronstar]

I've never taken any portfolio withdrawals. I live off SS and a similar monthly payment from an annuity. SS is roughly 40% of expenses.

 

[rk911]

I am curious what percentage of your retirement income from all sources including withdrawals is from Social Security.

we don't count dividends and interest payments into our annual income estimate since they are unpredictable. our income streams are SS and three state and local defined benefit pensions. of that our combined SS is ~24% of our total.

 

[martyp]

My income is a work pension plus Social Security. SS is 20% of my income.

 

[Timeisprecious]

So far, zero.

+2. If social security keeps getting increased at the same rate as military pensions and disability payments, I'm estimating 27.84% before taxes when I take it at age 70.

P.S. I'm not including withdrawals as part of this estimate.

 

[Teacher Terry]

1/7 of my retirement income is SS. Due to WEP my SS is small.