62, And What To Do? - About SSI

SS will just consume more and more of the budget

If we don't reduce benefits or increase the taxes dedicated to the program then it would eventually represent an on-budget expense. As it is now Social Security is still off-budget and supports itself. (Though, the interest that the general fund pays the Social Security program on its savings is an on-budget expense.)

Social Security is a large part of the so-called unified budget.
 

b23hqb

Well-Known Member
PREMO Member
If we don't reduce benefits or increase the taxes dedicated to the program then it would eventually represent an on-budget expense. As it is now Social Security is still off-budget and supports itself. (Though, the interest that the general fund pays the Social Security program on its savings is an on-budget expense.)

Social Security is a large part of the so-called unified budget.

"So-called" is right. You can say what you want about the funding - it all comes from that empty bucket that puts out way more than it takes in, and it will find us out sooner than later.
 

GURPS

INGSOC
PREMO Member
If we don't reduce benefits or increase the taxes dedicated to the program then it would eventually represent an on-budget expense.



this is a couple yrs old now ... but are the numbers really that far off


 

intertidal

New Member
Now that I'm eligible to take SSI, the options on how to do it are staggering. My financial advisor says there are at least 600+ different strategies one can apply. Every neuron in my brain says to start now, simply because i don't know if I'll be around later to collect more. Add in the wifey becoming eligible in September as well, we have some thinking to do.

Anybody out there have any advice/comments/disses? Thanks.

Approaching 62 also and still working, so not planning to take it just yet. If you need the money, then take it. If you don't need the money but want to invest it as you like, that also makes sense to me. If we knew your or my date of death, the decision would be easier, but lacking that crucial piece of data, we have to use our own health information, family history, and other investments. If you have such large 401K and IRA that you are worried about the size of RMDs, then you might want to start drawing those down before reaching 70.5, and delaying SS to at least full retirement age.
 

b23hqb

Well-Known Member
PREMO Member
Approaching 62 also and still working, so not planning to take it just yet. If you need the money, then take it. If you don't need the money but want to invest it as you like, that also makes sense to me. If we knew your or my date of death, the decision would be easier, but lacking that crucial piece of data, we have to use our own health information, family history, and other investments. If you have such large 401K and IRA that you are worried about the size of RMDs, then you might want to start drawing those down before reaching 70.5, and delaying SS to at least full retirement age.

SS benefits are not a big part of my retirement picture, but not knowing when I will assume room temperature is the mystery, as you mentioned. My wife is still working, and plans on going on until 65, which is three years from now. SS will be a big part of her retirement, along with her 401k. Between the two of us, with her current salary, my CSRS and retired military reserve pensions, my 401k from TSP, my SS bennies will probably just be sugar on the cookies. I have no complaints, just nagging guess work.
 
SS benefits are not a big part of my retirement picture, but not knowing when I will assume room temperature is the mystery, as you mentioned. My wife is still working, and plans on going on until 65, which is three years from now. SS will be a big part of her retirement, along with her 401k. Between the two of us, with her current salary, my CSRS and retired military reserve pensions, my 401k from TSP, my SS bennies will probably just be sugar on the cookies. I have no complaints, just nagging guess work.

If SS isn't a big part of the monies, I'd start taking it now, put it aside and use it for "mad money". Spontaneous trips, unnecessary sports car payments, new hot tub....
 

nutz

Well-Known Member
I recently had a financial planner review my retirement and he concluded that I should be able to retire by age 83 and will be able to sustain myself for approximately 27 days after that...if I don't go crazy on frivolous stuff.

:lmao: a case of lagavulin single malt stashed for my 80th. Once that's gone, I plan on becoming a ward of the state.
 

b23hqb

Well-Known Member
PREMO Member
If SS isn't a big part of the monies, I'd start taking it now, put it aside and use it for "mad money". Spontaneous trips, unnecessary sports car payments, new hot tub....

Playing around money - I like your thinking. Didn't quite look at it that way
 

tommyjo

New Member
I assume you're referring to Social Security benefits rather than SSI (Supplemental Security Income). I know that some people refer to the former as SSI, though I'm not sure I ever figured out why. SSI is a more conventional welfare program paid out of the general treasury and for which a beneficiary doesn't need to have quarterly work credits.

That said, I think Social Security benefits will continue to be paid for quite some time. Politically it would be too problematic to get rid of the program. Even if we did at some point decide to do so, it would likely be a gradual transition out of the program - a transition that took decades to complete.

As it is the program has enough savings to float it for a while, and then we will have no choice but to make the tweaks needed to be able to continue paying benefits. With less people working to support payments to more beneficiaries, we will have to either raise the taxes some, lower the benefits some (or hold them steadier), or reduce the number of people that are eligible (e.g. by gradually increasing the retirement ages). If we'd make the necessary changes now they wouldn't need to be that large - just tweaks as I referred to them. The longer we wait the larger the changes will need to be. But regardless we will make them and Social Security benefits will continue to be paid.

Stick to talking about legal issues.

Social Security can not end due to insufficient funds. It cannot go bankrupt. It cannot be insolvent. It is a pay as you go system. Current tax revenue supports current retirees.

The funding issue that is looking with Social Security will occur in the mid 2030s (this has been well documented for a long, long time). The cause of the issue (also well known for decades) is that the demographics of our society are now negative. We have too many retirees and not enough workers to support them. Again, this is not new information.

Social Security will continue to take in revenues from paychecks. Until recently, revenues were more than payouts. The excess (aka the Trust Fund) was invested, BY LAW, (not some idiotic conspiracy) into US Treasuries. When expenses became more than revenues, the trust fund money was used to make up the difference. When the trust fund runs out all that will be left is the incoming tax revenue.

Current projections show that sometime in the early to mid 2030s, tax revenue will cover about 75% of promised benefits.

That is the reality. That has been the reality for a long time. This information is updated annually by the trustees and is publicly available.

The options to fix Social Security are relatively simple (compared to Medicare and Medicaid) but are not painless as the term "tweaks" insinuates. We need to do a combination of things, none of them palatable to a whiny, "me first and only" public: 1. raise the retirement age 2. increase Social Security tax 3. reduce benefits 4. Means test benefits (the wealthy don't receive Social Security) 5. adjust the COLA calculations. None of the solutions are earth shattering...they are the same ones that have been on the table for decades.

None of this is "news". Well I guess it is depending on where you get your "news".
 
Stick to talking about legal issues.

Social Security can not end due to insufficient funds. It cannot go bankrupt. It cannot be insolvent. It is a pay as you go system. Current tax revenue supports current retirees.

The funding issue that is looking with Social Security will occur in the mid 2030s (this has been well documented for a long, long time). The cause of the issue (also well known for decades) is that the demographics of our society are now negative. We have too many retirees and not enough workers to support them. Again, this is not new information.

Social Security will continue to take in revenues from paychecks. Until recently, revenues were more than payouts. The excess (aka the Trust Fund) was invested, BY LAW, (not some idiotic conspiracy) into US Treasuries. When expenses became more than revenues, the trust fund money was used to make up the difference. When the trust fund runs out all that will be left is the incoming tax revenue.

Current projections show that sometime in the early to mid 2030s, tax revenue will cover about 75% of promised benefits.

That is the reality. That has been the reality for a long time. This information is updated annually by the trustees and is publicly available.

The options to fix Social Security are relatively simple (compared to Medicare and Medicaid) but are not painless as the term "tweaks" insinuates. We need to do a combination of things, none of them palatable to a whiny, "me first and only" public: 1. raise the retirement age 2. increase Social Security tax 3. reduce benefits 4. Means test benefits (the wealthy don't receive Social Security) 5. adjust the COLA calculations. None of the solutions are earth shattering...they are the same ones that have been on the table for decades.

None of this is "news". Well I guess it is depending on where you get your "news".

Nothing that you say in this post conflicts with what I said in the post of mine which you quoted. And most of it is stuff that (in essence) I've said myself before. You're more or less right, but I'm curious why you started the post with: "Stick to talking about legal issues."

Given the things you went on to say, I would think that something like "I agree" would have been a more appropriate way to start the post. So I would ask, seriously and humbly, what did you mean in opening with a suggestion that I should stick to talking about legal issues? Because I can't make any sense of that suggestion given the context. If you'd help me out there I'd appreciate it.

You've done this in response to me a number of times - said things that were more or less right, but for whatever reason suggested that they refuted what I had said when they were more so in agreement with what I had said. Are you just quoting the wrong poster when you do this? You meant to respond to someone else?
 

KingFish

Nothing to see here
I recently had a financial planner review my retirement and he concluded that I should be able to retire by age 83 and will be able to sustain myself for approximately 27 days after that...if I don't go crazy on frivolous stuff.

I feel like I am not much better. I have my TSP, Top 3 average salary X years worked as a percentage, and SSI. I hope to work until age 71 so I have 30 years in with the govt.
 
this is a couple yrs old now ... but are the numbers really that far off

...

Sorry, I forgot to reply...

As you suggest those numbers are several years old, but other than the deficit aspect they're ballpark accurate. The deficit number is way different now.

My comment related to how people like to think of Social Security. Many (fairly) like to think of it as a separate thing that doesn't represent an expense of the government generally, as something taxpayers aren't paying for through normal income taxes. And it of course is technically off-budget. We've had that discussion in various forms a number of times. Without changes it would eventually have to (partially) be an expense that comes out of the general fund though, because the program had an operating deficit it would in effect have to be subsidized by taxpayers through ordinary income taxes (rather than paid for through payroll taxes and savings from prior payroll taxes and interest on those savings).

Anyway, I think a lot of SOMD posters would take issue with how that video characterizes Social Security benefits: As part of the $2 trillion plus (each year) that government officials use to buy votes; as money that is being given to them by the government in order to buy their vote; as much the same as, e.g., Medicaid and food stamps in that regard; as part of the wealth redistribution system; as part of people voting themselves other people's money.

And I'd say he's wrong in saying that "the government is not allowed to cut [] by law" that $2 trillion plus worth of entitlement spending. The government certainly can cut that spending. It's just that cutting that spending takes action whereas with other kinds of spending (e.g., so-called discretionary spending) it takes action to provide for it each year. The so-called mandatory spending can be cut or eliminated, but it's already provided for and thus goes on year after year unless legislation is passed to change it. Other kinds of spending don't go year after year unless legislation is passed to provide for them.
 

b23hqb

Well-Known Member
PREMO Member
Just found out that due to the federal pension offset, and the calculations from SSA, I will lose about 40% of my SS retirement bennies due to my CSRS pension. Apparently, every one of the years I paid SS withholdings, a provision called the Windfall Elimination Provision (WEP), is calculated to reflect each year that although I had at least the minimal amount of income to get credit for for the quarter, I earned less than what SS required to not be penalized. Therefore, I will forfeit 40% of every monthly benefit for life!

What a country, playing the game as you're supposed to, paying the required taxes automatically deducted, and only getting a portion of it back!

Anybody else out there that is not FERS, or prior to 1984, that thinks they will get all the SSA due them, watch out.
 
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b23hqb

Well-Known Member
PREMO Member
Well, that sucks. Good thing you weren't overly depending on that income.

It does, and I was told it would happen. So it will be just playing around $ each month, which, I must admit, 10 years ago I never expected it to be around for we who are living large off CSRS retirement, right?

Here's the link to the WEP calculater from the SSA, so anyone else may see what is in store for them:

https://www.ssa.gov/pubs/EN-05-10045.pdf
 
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I'm going to do what the song tells me..... "Take the money and run!!"

http://money.cnn.com/2016/06/22/pf/social-security-medicare/index.html

If lawmakers don't act, Social Security's trust fund will be tapped out in about 18 years.

That's one takeaway from the Social Security and Medicare trustees' annual report released Wednesday. That doesn't mean retirees will get nothing by 2034. It means that at that point the program will only have enough revenue coming in to pay 79% of promised benefits.

So if you're expecting to get $2,000 a month, the program will only be able to pay $1,580.

Technically, Social Security is funded by two trust funds -- one for retiree benefits and one for disability benefits.

The 2034 date is the exhaustion date for both funds when combined. But if considered separately, the old-age fund will be exhausted by 2035, after which it would be able to pay just 77% of benefits. And the disability fund will be tapped out by 2023, at which point it could only pay out 89% of promised benefits.
 

Monello

Smarter than the average bear
PREMO Member
No matter what anyone does, I hope you all enjoy retirement to the fullest. Get out there and do all the fun things you have been putting off. Life is short, play hard!
 

littlelady

God bless the USA
No matter what anyone does, I hope you all enjoy retirement to the fullest. Get out there and do all the fun things you have been putting off. Life is short, play hard!

:yay: :like: That is why we are moving out of Calvert so quickly. Daughter needs us to help with the baby, and we have to drive 3 hours round trip to visit. We have a contract on a house near her (will know soon if we got it), and ours isn't even up for sale yet, but, hopefully, by July. :jet: We will face a double mortgage for a while, most likely. You only live once. You can't take it with you, so go for it! Do what feels right. You and vrai are living your dream. Good for y'all! :smile:

To stay on topic: Hub says he is going to put in for my SS starting next year. He has the option of working for US Bank until he dies (works from home), if he wants to, so he won't collect his until whenever, if ever depending on our wacky government. We think we have invested wisely, but we shall see. It is hard to take in that we are now of retirement age. Life went by in a flash!
 
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No matter what anyone does, I hope you all enjoy retirement to the fullest. Get out there and do all the fun things you have been putting off. Life is short, play hard!

In my best Oliver and Hardy, "I certainly am, Ollie!"
 
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