I could probably live off that if I were a hermit in the woods.
Posted on 08/02/2018 2:29:04 PM PDT by Red Badger
The maximum monthly Social Security benefit for a person retiring in 2018, at their full retirement age, is $2,788 per month , or $33,456 per year. To achieve this benefit, you must have had the maximum taxable earning for a whopping 35 years. It is for this reason, that most people’s benefits will be far less. Forget this number if you plan to retire ahead of your full retirement age.
Do you think you could live off $2,788 per month? Before you think about that, it’s important to note that the average check for 2018 is just $1,404 per month. I’m going to go out on a limb here and guess that if you are reading this post you would have a rough time getting by on $1,404 per month.
What if I wait until 70 to collect Social Security?
For those of you looking to get the largest Social Security check possible, you will need to wait to begin collecting until you are 70-years-old. To put this in perspective, if you were 70 this year, and receiving the maximum benefit, your check would be about $3,680 or $44,162 per year. This translates into a 32% increase in your monthly benefit. The bad news here is to achieve the maximum Social Security check you would have likely been making six figures for many years. This means that Social Security would cover less than half of your pre-retirement income.
How is Social Security calculated?
(Excerpt) Read more at forbes.com ...
FORBES, so the post is limited. See full article at link..................
Many strategies are possible.
Suppose you don’t need the money at age 65 but take it anyway, and save it instead of spending it. At age 70, you might have $100k in additional capital to invest. The stream of income from the invested capital would offset your lower SS payments, and might be taxed at a loser rate.
Many strategies are possible.
Suppose you don’t need the money at age 65 but take it anyway, and save it instead of spending it. At age 70, you might have $100k in additional capital to invest. The stream of income from the invested capital would offset your lower SS payments, and might be taxed at a loser rate.
I hope not!......................
I was going to say the same thing.
If you invest it, you’re far better off taking it at 62 and plowing it into an IRA.
That looks like my house!.......................an me..................
Depends upon how much you contributed.
For most people.... if you take ss at 65 you have to live until 81 before you have drawn as much money as taking it at 62 earns you.
I did some math for my California pension (13 years) and it turns out that if I took it now (with survivor option) compared to waiting I get like $5K more over 20 years,
So I took it.
Since SS has always been zero in my planning (and I am shy of 60) I figured I will wait until 70 or if my health fades or something like that. Better to enjoy the money while alive then to enjoy it when dead. It really is a fall-back in case 1929 comes back around ( could probably weather 2008) or for fun money, depending on when I pull the trigger.
If you are 50 or under, just make it zero. You will have to work to 75 to see a penny.
IMHO.
I also add, if you are VERY young and in your first decade of work — SAVE NOW FOR RETIREMENT (and assume zero SS). If I would have done that I would be long retired instead of having to put in 3 or 4 more years.
“taxed at a loser rate.”
hmmm.... True but never seen it stated exactly like that.
I am not a fan of “waiting” to an older age (unless still actively working full time), to increase the monthly amount. Just invest the money, if you don’t need it. But if you wait, and you die before collecting, you will end up getting ZERO.
Best to use the Social Security first, before dipping into your other savings or retirement accounts, since you can generally leave the other accounts to your spouse or children.
JMHO
Crumbs.
Whatever we think of social security, it was never ever intended as a “liveable tetirement sum”. Only as a supplement to your regular savings and investing and any pensions you might earn and any annuities you might choose to acquire. Even FDR broadcast repeated speeches or statements to this effect. To convert it into a liveable sum, we would have to raise the contributions a lot - and terminate the sucking off of contributions for ( very thinly ) disguised welfare type payments It could probably be done but I sure wouldn’t recommend it as good public policy for America.
Good advice.
I have several long-time friends who worked for cash and rarely filed taxes, or only worked for a few years when young and then were stay-at-home moms. They barely paid in enough to qualify for SS benefits.
Each of them gets about $550 a month.
Think of that, they barely paid in anything, and they get 20% of what the max person gets. But the max person paid in much more than 5 times what those guys paid in. Much, much more. It’s just not a retirement program, it’s a redistribution program too.
I have several long-time friends who worked for cash and rarely filed taxes, or only worked for a few years when young and then were stay-at-home moms. They barely paid in enough to qualify for SS benefits.
Each of them gets about $550 a month.
Think of that, they barely paid in anything, and they get 20% of what the max person gets. But the max person paid in much more than 5 times what those guys paid in. Much, much more. It’s just not a retirement program, it’s a redistribution program too.
I view Social Security much the same as you. I don’t plan on getting it at all, anything I get will be gravy.
I have zero doubt the government is going to employ means testing by the time I get there, and that isn’t that far off.
Sounds good except for this:
“People filing as individuals with a combined income of $25,000-$34,000 must pay income taxes on up to 50% of their Social Security benefits. For individuals with a combined income of more than $34,000, up to 85% of Social Security benefits will be subject to income taxes.”
“Better to enjoy the money while alive then to enjoy it when dead.“
I heartily agree.
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