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Thread: Social Security's place in retirement income stream

  1. #11
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    yes you might be looking at it backwards, it probably is a wash if you live to the average age (if everyone in your family tends to be long lived though you may want to wait). See reason #2:

    https://www.fool.com/retirement/2018...ty-benefi.aspx

    Now I would suspect A LOT of people might wish to work until 65 because they want to collect that employer provided medical insurance until they can finally get Medicare, but the affordability of healthcare options is a separate issue.
    If you want something to get done, ask a busy person. If you want them to have a nervous breakdown that is.

  2. #12
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    Quote Originally Posted by pinkytoe View Post
    We took at 62 last year as that along with my pension was more than enough to support us in retirement. Especially with paid off house and no car payment. Neither one of us wished to continue slogging away at work for four more years so that we could have a few hundred more each month. I wanted to be able to do things like travel or garden while I still could - who knows as one ages how health will turn out. I also don't have great faith in the future of "entitlement" programs so figured we better get what we can while we can. I do however continue to save in various accounts and our small 401K will sit until we have to withdraw.
    +1

  3. #13
    Senior Member dmc's Avatar
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    I’ll probably start mine at 62. We don’t need the money, so I’ll either invest or blow it. The break even point due the extra payments if invested moves it out to 80 something I believe. And who knows what changes may be in the future. If it turns out I live past the break even point I won’t be complaining.

  4. #14
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    We have done the same thing as DMC. We planned on a retirement based on our own efforts. SS was a total fall back and not to be a significant portion of our plans. Life is a gamble and with our tax situation, it is always likely that more will be clawed back in taxes.

  5. #15
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    We are both still working, and make more than the 16920 I think you can earn without it affecting benefits. IL--that rule about how much you earn is still there. Not sure what rule you are talking about--hours?

    "For the year 2017, this limit on earned income is $16,920 ($1,410 per month). The amount goes up each year. If you are collecting Social Security retirement benefits before full retirement age, your benefits are reduced by $1 for every $2 you earn over the limit."

    If and when we stop working, or are making less than 17k, we will stop. DH plans to work til 70 if he can stand it, both to get more money and to build up 401k. His dad lived to be 93 and he looks just like him, so probably he is in for a long haul.
    My dad is 89 and my mom is 91. But the grandparent whose body I seem to have inherited died at 78, so I have always thought I would not make it as long, so maybe I will take earlier.

    It's a really good question. right now, it is our safety net if we get fired, I guess.

  6. #16
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    There seem to be two camps on the SS claiming decision. The breakeven strategy aims at collecting the maximum amount prior to dying. The longevity insurance strategy looks for the highest payout for the contingency of living a long time. I've seen the debate get surprisingly acrimonious at some sites.

    I'm planning on a delayed claim. My wife is younger than I am and has a significantly lower earnings record, so I need to look to maximizing her survivor's benefit. She also has little interest in investment management and a generous nature that makes me think it a good idea to emphasize streams of regular income over a larger investment portfolio. I've made additional contributions to my pension plan for the same reason. The idea is to live off the paycheck-like income and let the rest alone to cover major emergencies, end-of-life care, bequests, etc.

  7. #17
    Senior Member iris lilies's Avatar
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    Quote Originally Posted by Tybee View Post
    We are both still working, and make more than the 16920 I think you can earn without it affecting benefits. IL--that rule about how much you earn is still there. Not sure what rule you are talking about--hours?

    "For the year 2017, this limit on earned income is $16,920 ($1,410 per month). The amount goes up each year. If you are collecting Social Security retirement benefits before full retirement age, your benefits are reduced by $1 for every $2 you earn over the limit."

    If and when we stop working, or are making less than 17k, we will stop. DH plans to work til 70 if he can stand it, both to get more money and to build up 401k. His dad lived to be 93 and he looks just like him, so probably he is in for a long haul.
    My dad is 89 and my mom is 91. But the grandparent whose body I seem to have inherited died at 78, so I have always thought I would not make it as long, so maybe I will take earlier.

    It's a really good question. right now, it is our safety net if we get fired, I guess.

    Hunh, now I have to research the thing about limits on earned income. I wonder what it was that my friend told me?
    It isnt important for me since I do not plan to work nor does DH, but it is bugging me. Thanks for the info, clealy I wm erong in my understanding of what My friend told me.

  8. #18
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    I am waiting to see how our income tax works out this year, but might consider part-time work after that. I know there is an earning threshold to be wary of plus I don't want any extra income to kick us into another bracket as happened last year.

  9. #19
    Senior Member bae's Avatar
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    I have always planned our retirement as if SS would be extinct by the time we could draw on it.

    Now that assumption seems wrong, as in < 10 years I will be able to begin taking SS payments. I suspect, unless it hoses my taxes and medical insurance, I will simply draw on it as soon as I can, and invest/donate/spend-on-wine-women-and-song whatever they decide to send me.

  10. #20
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    IL: WEP is a special rule if you retire from a place that does not pay into SS they can take up to 60% of your SS unless you have 30 years of what they consider substantial earnings under SS and they specify each year what that amount was. If you have 30 years employment in a system that does not pay into SS then you make out. I however only have 15 years in the system so am losing out on my SS big time.

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