What is the significance of SS full retirement age?

p.s. one thing I was trying to express, and am trying to figure out myself, is the time factor. There is absolutely a time that comes, when time > money.

Here's an exaggerated example. During the pandemic, people got an extra $600/week. PER WEEK, on unemployment. This made no sense. There were people who made more collecting unemployment, than they did at their jobs. I've never in my life been given $2,400/mo. extra, for nothing at all lol (my bro for example collected the regular max of $700+, and a $600 additional, so that's around $67k/yr on unemployment, more than an entry level person's wage). This permanently shaped the wfh mentality imho

I’m still mad that trillions and trillions of cash was handed out like Halloween candy.
That made people very lazy and not wanting to work or pay their bills.

Some dirtbags didn’t pay their landlord a penny of rent but had money to buy a brand new vehicle.

Very sad and pathetic what was allowed to happen…... 🙁
 
I’m still mad that trillions and trillions of cash was handed out like Halloween candy.
That made people very lazy and not wanting to work or pay their bills.

Some dirtbags didn’t pay their landlord a penny of rent but had money to buy a brand new vehicle.

🙁
Exactly! And those same dirt bags spit on their landlords and demand rent control................what an awful mess
 
I took SS at 62 but still worked part time for some extra cash and something to do. Sure is more fun not "having" to work and having more free time. My dad died at 72 and my mom at 85. I figured I might make my break even point so taking it early made sense
 
Most of the calculations on break even points concerning when to start SS don't take into account the time value of money. I did a spreadsheet assuming taking SS at 64 (when I retired), investing the payments, then withdrawing from that investment account after reaching FRA an amount equal to make up for the 16% lost by taking it two years early.
With an investment return of above 5%, I always came out ahead taking it early, even if I lived to over 100. At a nominal investment gain (S&P500 average) of over 8% the account would continue to grow nicely, even after the withdrawals. The spreadsheet however didn't take into account income taxes, COLAs or survivor benefits.

In spite of this conclusion, I delayed starting SS until I was almost 70. I didn't need the payments to live on and I used the in-between time to convert part of my IRA to a Roth IRA at a low tax rate. Plus my wife gets a higher payment if I go first. If SS payments get reduced because the trust fund runs out, it will have been a bad decision, but I think that is a low probability event.
For most people they need the SS to live on.
 
For most people they need the SS to live on.
Which is really unfortunate. SS was built to be a safety net, that’s the original concept, with 12 workers for every beneficiary.

Safety net is there in case you fall.

If everyone needs the safety net, they aren’t doing a good job on the high wire…
 
Society has been trained the government will bail them out. They handed out money in 2001, in 2008, and in 2020. Savings rates have plummeted.

Not everyone had a pension in 1935, but there were many more of them. When 401K's were formed a lot of companies did some match. Not so many anymore.

My wife will have a small teachers pension (state pension fund) - she also pays social security. Its been underfunded forever. At least 2 governors who won ran on a platform to fix it to get that vote. One treasury secretary all but resigned over it. Nothing has changed.

Savings rate is through the floor - as posted earlier.

In a few years the ss trust fund will be empty. My guess is they will means test and cut money for anyone who has a savings, and future generations. Can kicking as usual.

I am pretty sure the only suckers left are those of us saving for ourselves.
 
I’m still mad that trillions and trillions of cash was handed out like Halloween candy.
That made people very lazy and not wanting to work or pay their bills.

Some dirtbags didn’t pay their landlord a penny of rent but had money to buy a brand new vehicle.

Very sad and pathetic what was allowed to happen…... 🙁
+1 A good buddy owns rental properties and had two nurses renting from him during the pandemic and they refused to pay rent when the green light was given not to pay rent. He was told to shove it when he said you're working. He still didn't get that money.

Back on topic, I'll take SS when I'm 66 and 8 months. The way the program is running there's always the possibility of them running out of money and telling me to pound sand.
 
Social security is unlikely to ever be cut. It is suicide for people wanting to be elected or relected.

It is reasonable to speculate that fuzzy math and inflation will be how to appear no social security benefit cuts, while the buying power of social security payments is reduced.
 
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Which is really unfortunate. SS was built to be a safety net, that’s the original concept, with 12 workers for every beneficiary.

Safety net is there in case you fall.

If everyone needs the safety net, they aren’t doing a good job on the high wire…
I agree, but carefully calculated you will be able to use that Social Security money that you put into the system.
More or less, you should be able to "survive" without it but you should also be able to live better because of it/ as if you dont, what was the purpose of handing it over to the government vs keeping the fruit of your labor to yourself?
 
Social security is unlikely to ever be cut. It is suicide for people wanting to be elected or relected.
...
Agree, it's a media attention getter and also a politicians scare tactic. Scare the public to get their vote. Ummm.. kind of recently can remember that with a world health event a while ago. Without adjustments Social Security would have been broke a LONG time ago. Every couple of decades it needs to be reformulated to longer lifespans and changing demographics. It will NEVER go broke and it will NEVER be cut.
 
..

Back on topic, I'll take SS when I'm 66 and 8 months. The way the program is running there's always the possibility of them running out of money and telling me to pound sand.
:) I know you pretty well, I know you know enough not to believe the mass media and other scare tactics. SS will always be here and adjustments will always be made but nothing will ever be cut.
 
:) I know you pretty well, I know you know enough not to believe the mass media and other scare tactics. SS will always be here and adjustments will always be made but nothing will ever be cut.
Never say never. ;) Having said that it might not be done away with in my lifetime but............. I can't say what I think might happen and where some of the money from SS could end up going.
 
Never say never. ;) Having said that it might not be done away with in my lifetime but............. I can't say what I think might happen and where some of the money from SS could end up going.
Yes, it's possible anything is and well, if you think its possible you should take it now and keep working anyway. Dont know your age but if you take it at 62 you will most likely collect based on nothing but a guess $120,000 or more by the time you are 67/ So you can keep working, bank that SS money which will grow over the years. Let them take the $1 for every dollar you earn, it will get reformulated once you retire anyway and your payout will be higher if it is still around and if it isnt you banked over $150k from the system. Im using a LOW number for monthly payout ($2000) and I am sure most people are higher and $200k with interest might be more realistic that you collect over those 5 years to retirement.
Dont put the money in the stock market if you think SS going away will happen because that will be the end of our society as we know it.

(just having fun here)
 
Yes, it's possible anything is and well, if you think its possible you should take it now and keep working anyway. Dont know your age but if you take it at 62 you will most likely collect based on nothing but a guess $120,000 or more by the time you are 67/ So you can keep working, bank that SS money which will grow over the years. Let them take the $1 for every dollar you earn, it will get reformulated once you retire anyway and your payout will be higher.
Though not in the stock market if you think SS going away will happen because that will be the end of our society as we know it.

(just having fun here)
Fun is good! But there is also some truth in fun on occasion. I passed 62, I have it figured out though. I'll be OK with or without SS, although pissed if it did go away. ;)
 
Fun is good! But there is also some truth in fun on occasion. I passed 62, I have it figured out though. I'll be OK with or without SS, although pissed if it did go away. ;)
Agree, My wife and I have factored in Social Security will boost our lifestyle but we wouldnt be out in the street without it. Its all factored in.
 
This thread has evolved into the "chest beater" style that I occasionally complain about here. Most, if not all of the participants are showcasing how well they navigated life because they are responsible and well grounded (not a bad thing, per se).

I envied the two generations before me because it seemed that they matured with "golden parachutes" regarding retirement. Now, compared to my adult children's (40's) circumstances, I really seem to do have a golden parachute (workplace 403B 2x contribution, "free"* workplace health insurance til death post retirement, etc.).....my chest beating, lol.

Proper chest beating not necessarily bad in our cases. But, I would like to hear from the 30 to 40 year olds about the different challenges they face that makes retirement planning a much different and greater challenge than my and previous generations.


* relatively free, not current 97% free.
 
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