Are you on track to retire comfortably?

[CKN]

Originally Posted By: Schmoe
Move to Cali when you retire? Ye-ouch....that will get expensive quickly. Good luck with getting a CC there.


As someone who lived my entire life in Southern California-with many trips to Palm Springs, retiring in California is a major mistake IMHO. Even in Palm Springs property and the cost of living is very expensive.

 

[CKN]

Originally Posted By: JHZR2
Originally Posted By: doitmyself
I'm on track as well as anyone else, LOL! I'm one of those fund sucking locusts that JHZR referred to. That my employer contributes 2X my contribution is killing me.

Every one of us knows quite a few

Look, the system was broken long before I was born.

http://reason.com/archives/1979/02/01/the-great-1979-social-security/2

Patches were made long before I could vote.

Therefore I'm paying for people to receive benefits from a system that was known to not work properly long before I could have any say or do anything about it.

In my view, that makes SS and Medicare effectively taxation without representation. Receipts were misused, misallocated, and benefits weren't properly reduced to the level that could be afforded long term.

Why shouldn't I be upset about that? You probably will get your benefits. I probably won't.



Most people your age look at it like a tax. And your right-the system was mismanaged.

 

[02SE]

Sold my Business and retired early. These days I pursue a hobby that pays well. If I make it to the age I can collect SS, I'm skeptical that it will still be around. So it doesn't factor into any plans.

 

[Wolf359]

Originally Posted By: 02SE
Sold my Business and retired early. These days I pursue a hobby that pays well. If I make it to the age I can collect SS, I'm skeptical that it will still be around. So it doesn't factor into any plans.


I'm not sure why everyone seems to think they'll get nothing. When SS becomes insolvent, they won't be able to pay out 100% of what is owed, but it probably won't go to 0%, maybe some sort of cut from 100%. But because it's known as the 3rd rail of politics, it will probably get fixed before then, they just keep kicking the can down the road so it will be more expensive to fix later than to fix it now. There are easy fixes now like pushing out the retirement age or raising the SS taxes. But no one wants to do it.

 

[CKN]

Originally Posted By: Wolf359
Originally Posted By: 02SE
Sold my Business and retired early. These days I pursue a hobby that pays well. If I make it to the age I can collect SS, I'm skeptical that it will still be around. So it doesn't factor into any plans.


I'm not sure why everyone seems to think they'll get nothing. When SS becomes insolvent, they won't be able to pay out 100% of what is owed, but it probably won't go to 0%, maybe some sort of cut from 100%. But because it's known as the 3rd rail of politics, it will probably get fixed before then, they just keep kicking the can down the road so it will be more expensive to fix later than to fix it now. There are easy fixes now like pushing out the retirement age or raising the SS taxes. But no one wants to do it.


Don't they have a basic math problem of not enough younger workers to contribute to the fund for those at retirement age?

 

[Wolf359]

Originally Posted By: CKN
Originally Posted By: Wolf359
Originally Posted By: 02SE
Sold my Business and retired early. These days I pursue a hobby that pays well. If I make it to the age I can collect SS, I'm skeptical that it will still be around. So it doesn't factor into any plans.


I'm not sure why everyone seems to think they'll get nothing. When SS becomes insolvent, they won't be able to pay out 100% of what is owed, but it probably won't go to 0%, maybe some sort of cut from 100%. But because it's known as the 3rd rail of politics, it will probably get fixed before then, they just keep kicking the can down the road so it will be more expensive to fix later than to fix it now. There are easy fixes now like pushing out the retirement age or raising the SS taxes. But no one wants to do it.


Don't they have a basic math problem of not enough younger workers to contribute to the fund for those at retirement age?


Yes, that's the basic problem with the current setup. However as I mentioned earlier, there are many fixes to that problem. Increase taxes, lower benefits, increase retirement age. Sorta like saving for retirement, if they increased the taxes now, it will be solvent for a longer period, but if they wait til the last minute, they'd have to raise it a lot more to make it solvent.

 

[DBMaster]

As the percentage of people with no private retirement savings remains high, salary stagnation remains ever present, and overspending is rampant if SS were to become insolvent there would be a lot of old folks living on the streets.

 

[Wolf359]

Originally Posted By: DBMaster
As the percentage of people with no private retirement savings remains high, salary stagnation remains ever present, and overspending is rampant if SS were to become insolvent there would be a lot of old folks living on the streets.


Again, when it becomes insolvent, it doesn't mean payments go to 0. They won't be taking in enough to make payments. But because it's controlled by the government, something will be done to fix it before it gets to that stage, but like the federal government shut downs, they'll probably wait til the last minute or a little beyond.

The insolvency date is 2034. So of course no one wants to anything about it now because that's 17 years in the future. So we're all set for the next 17 years so far. So if nothing is done, it will only be able to pay out 75% in benefits, not 0.

 

[BJD78]

The Social security age citizens tend to have a very high voter turnout and even the stupidest of politicians do not want to lose the sr. vote, so for that reason they probably will not mess with SS retirements. They will more than likely crack down on the millions who file SS disability claims when they really may not have a severe disability, but they get lawyers who use certain dr's to help them fleece the system. Probably billions of very young falsely claiming disability and that is likely messing SS up worse than those who get SS retirement. I am sure we have all known people who have paid in for decades, then they reire draw a few checks and then die... never collecting anyhwere near what they paid in.

 

[CKN]

Originally Posted By: BJD78
The Social security age citizens tend to have a very high voter turnout and even the stupidest of politicians do not want to lose the sr. vote, so for that reason they probably will not mess with SS retirements. They will more than likely crack down on the millions who file SS disability claims when they really may not have a severe disability, but they get lawyers who use certain dr's to help them fleece the system. Probably billions of very young falsely claiming disability and that is likely messing SS up worse than those who get SS retirement. I am sure we have all known people who have paid in for decades, then they reire draw a few checks and then die... never collecting anyhwere near what they paid in.



I have a little over a year before I can collect at the age of 62. I am going to do exactly that. I have done that math-and the break even point is going to close where I will be drooling all over myself and needing adult diapers. I'll take the payout starting at 62.......and this will go towards the wifes and I travel budget.

 

[Mr Nice]

CKN,

Take the money now and enjoy the next 20 years.

 

[02SE]

Originally Posted By: Wolf359
Originally Posted By: 02SE
Sold my Business and retired early. These days I pursue a hobby that pays well. If I make it to the age I can collect SS, I'm skeptical that it will still be around. So it doesn't factor into any plans.


I'm not sure why everyone seems to think they'll get nothing. When SS becomes insolvent, they won't be able to pay out 100% of what is owed, but it probably won't go to 0%, maybe some sort of cut from 100%. But because it's known as the 3rd rail of politics, it will probably get fixed before then, they just keep kicking the can down the road so it will be more expensive to fix later than to fix it now. There are easy fixes now like pushing out the retirement age or raising the SS taxes. But no one wants to do it.


I simply said I'm skeptical. If it's around then great, but either way it won't affect my plans.

 

[Wolf359]

Originally Posted By: 02SE
Originally Posted By: Wolf359
Originally Posted By: 02SE
Sold my Business and retired early. These days I pursue a hobby that pays well. If I make it to the age I can collect SS, I'm skeptical that it will still be around. So it doesn't factor into any plans.


I'm not sure why everyone seems to think they'll get nothing. When SS becomes insolvent, they won't be able to pay out 100% of what is owed, but it probably won't go to 0%, maybe some sort of cut from 100%. But because it's known as the 3rd rail of politics, it will probably get fixed before then, they just keep kicking the can down the road so it will be more expensive to fix later than to fix it now. There are easy fixes now like pushing out the retirement age or raising the SS taxes. But no one wants to do it.


I simply said I'm skeptical. If it's around then great, but either way it won't affect my plans.


I was wondering why you would think it would be gone. They don't have the political will to fix it, let alone get rid of it. It will be there, either it's at 100% or some portion between that and 75%. But I'm going to guess they'll fix it before it drops down to 75% in 2035.

But yeah, it's good that you don't need it. I should be on track myself without any need for it, will just be an extra bonus.

 

[CKN]

Originally Posted By: Mr Nice
CKN,

Take the money now and enjoy the next 20 years.




Thank you!

 

[DBMaster]

Originally Posted By: Mr Nice
CKN,

Take the money now and enjoy the next 20 years.



That is my plan as well.

 

[Indydriver]

Originally Posted By: Kurtatron
I’m 28 and wish I was born earlier in time like you guys. I am saddled with student debt, housing prices are ridiculous, and pensions/SS is a pipe dream for me. The standard of living in America has been going down for decades. Stagnant wages, rising cost of cars, houses, even food continues to rise. Remember .50 cent gallon milk? It’s getting harder and harder to scrape by.

I do what I can to save, but it is extremely discouraging. I go well and beyond what most Millennials do to save money. I bicycle 50 miles a week to work, to keep my 19 year old car running longer. I eat beans and rice maybe 5 times a week for lunch for the last 7 years. I buy stuff from thrift stores, do my own work on cars, and I am still net negative personal net worth. I should have known not to go to a 15k a year school. Student debt sucks. I have paid over 10k so far, and it just seems to go on forever. I feel like a burnout sometimes, like all I want to do is stay home in bed. It’s a fight though, and I can’t give up. I don’t want to retire, I just don’t want to be enslaved under debt.


Student debt will have a dramatic impact on the US economy. My son is another example. He chose to go to an expense private college. I paid for all but the Stafford loan which amounts to about $15k over four years. He made it into law school but had to pay 100% as I had two other kids behind him to help with undergrad. So he took the max available to cover room and board, living expenses as well as school costs. He graduated during the recession and had to take a job at about half his expectations. He has worked hard and now has a six figure income. Unfortunately, along the way, he kept deferring payments. Now at age 33, he owes $275K. This means either a future bankruptcy or 20 years of sacrifice. In the meantime, he won’t be buying a house and all that goes with that. He won’t be buying any new cars etc, etc. With boomers retiring and millennials in debt, consumption in this country is about to go off a cliff. This will have dire consequences for many industries and the overall economy. Tough times ahead folks.

 

[StevieC]

Originally Posted By: Indydriver
... With boomers retiring and millennials in debt, consumption in this country is about to go off a cliff. This will have dire consequences for many industries and the overall economy. Tough times ahead folks.


And this is why corporations and the wealthy elites have shot themselves in the foot.

 

[Indydriver]

Originally Posted By: CKN
Originally Posted By: Mr Nice
CKN,

Take the money now and enjoy the next 20 years.




Thank you!
Originally Posted By: DBMaster
Originally Posted By: Mr Nice
CKN,

Take the money now and enjoy the next 20 years.



That is my plan as well.

I started it at 62. I did the math and it would take 10-12 years to make up lost payments if you start at “retirement age”. Who knows if you’ll still be around or the feds make drastic changes to the program by then? I figure better to get on the dole now and be grandfathered in to any changes. I get about $2k per month which really helps maintain my lifestyle. One thing you have to watch out for....you will owe income taxes on these payments if you have enough other income (a pension for example) and nothing is withheld. It sucks to have to send a chunk back but, that’s the way it is.

 

[Indydriver]

Originally Posted By: StevieC
Originally Posted By: Indydriver
... With boomers retiring and millennials in debt, consumption in this country is about to go off a cliff. This will have dire consequences for many industries and the overall economy. Tough times ahead folks.


And this is why corporations and the wealthy elites have shot themselves in the foot.

Please expand on this thought. These groups have done very well in the 2000s despite the recession. Corporations can easily downsize to the business climate through layoffs. The elites are all set. I don’t see how they’ve hurt themselves.

 

[StevieC]

The elites profits depend on consumerism. If people don't have cash to spend there are no profits and they can't keep up their lavish lifestyles aside from whatever savings they have.

It's really that simple.