Posted on 01/10/2018 8:07:57 AM PST by Oldpuppymax
If you’re counting on Social Security to finance your retirement, you’re in for a big surprise—and not the good kind.
Let me give you two reasons why.
One: Social Security is going broke.
And, two: Even if it weren’t going broke, it couldn’t possibly cover the cost of a decent retirement.
Let’s look at these two reasons in a little more detail, and then I’ll propose a solution.
Social Security is going broke.
When this government program was set up in 1935, the average life expectancy was 60. But you couldn’t collect your first check until you reached 65. In other words, most people didn’t live long enough to receive Social Security. And most of those who did, didn’t collect it for very long. Today, the average lifespan is 79. So now, most people do live long enough to receive Social Security—for 10, or 20, or even 30 years.
Here’s another important piece of information: When the program started, the ratio between worker and retiree was 159 to 1. That means for every one person drawing benefits, 159 were paying in. Today the ratio is 2.8 to 1. Get that? We’ve gone from 159 workers supporting every retired person to fewer than three workers supporting every retiree. And it’s going down.
You don’t need an advanced math degree to figure this one out: Social Security is spending more than it’s bringing in. Far more. Its own Board of Trustees has said that it will be bankrupt within twenty years.
That doesn’t mean it won’t exist. It means that either the government will pay you less than it promised, or it will have to raise taxes to make up the shortfall. Most likely, both.
Sounds about right for an entitlement program...
(Excerpt) Read more at thecoachsteam.com ...
I’ve done just about all there is to do in this crazy world, tried anything once and most things twice.
Right now I’m just happy to be vertical sucking air LOL
Well duh....how many times do we have to be told
I was recently made aware that people can start collecting at age 62, even when they have not yet retired.
Yes, you heard that right. I had an employee that recently retired at age 69. In his exit interview, he casually mentioned that all his bills were paid off because he had been collecting social security - on top of his salary that we were paying him - for the past 7 years!
Is this crazy or what?
That’s what I would want. Just give me my damned money and I’ll waive any right to Soc Sec in the future. The govt stole that money from me with the promise that it would be there for my retirement. Never mind that they keep moving the retirement date; now the math shows that they won’t be able to pay me anyway.
That shows you what a promise from the govt is worth.
2053 is a ways down the road.
I did that and they all told me that if they could only get $10 an hour at their job, that they would be "set for life."
I laughed as I got back into my Delorean to come back to 2018. They also thought I had a really ugly car.
Sorry to hear that.
At 70, I count my blessings everyday for being alive and active.
I am still healthy after open heart surgery, a valve repair and two knee replacements. :-)
I can do most things required on the farm. Keeps me in shape and "young".
Life is good.
Don’t worry, you’ll get paid if they have to rob your future 7th great grandchild to do it.
Blessings
I did just that. It's called a 401(k). I've been averaging double digit returns over the past 30 years. Now I have enough saved to not worry about what I'm going to get from Social Security.
Though I do wish I didn't have to pay all that FICA money out over the years! I would have gladly given up my rights to benefits in exchange for getting out of the FICA program entirely.
That's a very good point!
Most likely we’ll all be plugged into the VR matrix by then.
In a Scifi book i just read it was called “Heaven”.
Agree...I’ve paid the max for more than 20 of the last 3 some odd years I have been working and am not even eligible to start collecting for another 20+ years at which point it will be completely gone or worthless.
I calculated that based on what the statement they send me says I will supposedly receive when and if i start collecting at 68 that I would have to live at to least 105 to get pack what I paid in NOT counting interest.
At this point I’d be willing to just opt out and give it up if could stop paying in.
Wonder how long before the illegals riot?.
I've had my 401(k) going since 1987 and it never "went bust." As you get older, you move more and more of it out of stocks and into fixed and balanced funds. In fact, I'm kicking myself a little now because at my age, I have a larger percentage out of stocks and thus I'm missing out on much of Trump's big stock market boom. But at my age, I'd rather be in the situation of protecting most of what I already have as opposed to risking it all.
I did that and they all told me that if they could only get $10 an hour at their job, that they would be “set for life.”
I don’t think this house of cards will stand all that much longer. I think Trump gave us a GREAT cultural reprieve, but our financial woes are way past a human solution, short of hitting the reset button with war.
Sure, you can do that, but SS caps out your outside earnings. After you earn a certain amount ($16,920 in 2017) SS starts to deduct $1 from SS for every $2 you make after that threshold. So, yeah, you can “double dip” but you have to be careful.
We are so screwed.
Thanks for that link. I will definitely check it out!
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