View Full Version : Signed up for Social Security
I now feel old. I’ll be turning 62 in May, so I went ahead and filed to start taking my SS. I retired 12 years ago and that didn’t bother me, but signing up for SS means I’m really at retirement age.
i don’t need the money, and I’ve read up on all the articles about when the best time to take it. By taking it early I’ll just have that amount invested. Since I don’t know how long I’ll live or what return I’ll get on my investments, I won’t know if this is the best strategy till I’m dead.
But it shouldn’t make any difference in my standard of living, just what’s left for a inheritance. And who knows what changes may be in the future due to the tax laws and SS funding.
iris lilies
3-7-19, 8:21am
I am currently in the process of signing up for Medicare, and when that is comlete I am signing up for Social Security. All this free government money is pretty great.
I am currently in the process of signing up for Medicare, and when that is comlete I am signing up for Social Security. All this free government money is pretty great.
if only it didn’t cost us so much during our working years. I would have loved to been able to invest the amount that I and my employer paid over the years. Why do you think teachers and gov workers have such good pensions? They don’t pay into Social Security.
i don’t need the money,
I do. If it hadn't been for the recession I might not need it as much, but I still need it and am grateful that we have a safety net...
All this free government money is pretty great.
...which I have paid into for over 40 years.
I'm happy that you have been both been able to the point where you don't need the Social Security, and you can use it to buy hats (reference: The Jerk). ;)
Why do you think teachers and gov workers have such good pensions? They don’t pay into Social Security.
Huh. When I look at government-worker DW's W-2s for the last years, i see four- and five-digit subtractions for Social Security.
One of us must be wrong.
Huh. When I look at government-worker DW's W-2s for the last years, i see four- and five-digit subtractions for Social Security.
One of us must be wrong.
That sucks if she is also hit with WEP. I am going by what teachers and state of Missouri workers pay. They do not pay into SS, but my wife has worked for a university part time and qualifies for SS, but WEP pretty much reduces it quite a bit.
Huh. When I look at government-worker DW's W-2s for the last years, i see four- and five-digit subtractions for Social Security.
One of us must be wrong.
Someone is always wrong when there is a disagreement. My wife is a public worker in Ohio and does not contribute to Social Security. No public worker in Ohio contributes to Social Security and the Ohio Public Employee Retirement System (OPERS) provides a much better return to its participants, so no great loss there.
She is eligible for SS benefits as well due to her previous employment, although her benefit amount will be lowered due to the Fed's Windfall Elimination Provision while her OPERS pension will not be affected by any SS payments received.
Simplemind
3-7-19, 12:14pm
I was a public worker and I paid into SS.
goldensmom
3-7-19, 12:16pm
I am currently in the process of signing up for Medicare, and when that is comlete I am signing up for Social Security. All this free government money is pretty great.
Free?? That was a joke right? I will receive SS for 12 years before I get back all the money I paid in over the years and I am paying taxes again on the my own money that I am getting back. Also, paid into Medicare my entire employment years and will continue to pay monthly premiums just like my BCBS insurance. May be free for some but far from free for me.
Teacher Terry
3-7-19, 1:26pm
Due to WEP my SS is 300/month at age 66. My pension is only 20k. Not sure what huge pensions Dmc talking about.
if only it didn’t cost us so much during our working years. I would have loved to been able to invest the amount that I and my employer paid over the years. Why do you think teachers and gov workers have such good pensions? They don’t pay into Social Security.
The Federal Government changed its whole retirement system in 1987. From that point on, it is Social Security, a much smaller retirement payment, and a voluntary 401K type plan (Thrift Savings Plan).
I suspect there are some state government parts including teachers that still maintain their own separate retirement systems but over the years, they have dwindled.
if only it didn’t cost us so much during our working years. I would have loved to been able to invest the amount that I and my employer paid over the years. Why do you think teachers and gov workers have such good pensions? They don’t pay into Social Security.
DH works for the state-has since 1993. He pays into Social Security AND Medicare and the state pays in their portion for these as well.
If I recall correctly Williamsmith is also one of those government workers who gets a pension, and not SS. I also seem to recall that Pennsylvania had underfunded it to a level that he's now getting less than he would have under SS. Undoubtedly the "government pension vs. SS" question is very much a "your mileage may differ" type of question due to the variations in government pensions.
The 1987 overhaul was indeed huge. My father worked for the federal government for almost 30 years starting in the early 60's. He had worked almost 15 years fulltime paying into SS prior to that and until the overhaul had expected to get both SS and his pension. He ended up retiring in the early 90's and only getting the pension. It was generous enough (and he and mom frugal enough) that they certainly never had any money concerns, but it was definitely a marked change from what he had been planning on.
I have friends from Illinois who are worried about their government pensions. So they are all definatly not equal. Thankfully the wife’s is well funded. Of coarse there are always some politician bringing up a bill to take control or lump other agency’s together.
But SS May change in the future also. Or those of us with other incomes may have our SS reduced one way or the other.
But SS May change in the future also. Or those of us with other incomes may have our SS reduced one way or the other.
True. Paul Ryan is still very much alive and unfortunately those college kegger party dreams of ruining people’s lives won’t die until he does.
Due to WEP my SS is 300/month at age 66. My pension is only 20k. Not sure what huge pensions Dmc talking about.
My wife retired at 50 years old. She had 27 years in the system and we paid $75,000 for an additional 3 years so she would qualify for 30 yrs. Her contribution was 12% to 14% of her salary, and the school district matched that amount. So if everyone put 25% of their salary away for retirement it would also make for a nice retirement after 30 yrs.
Pensions obviously vary, but many are quite good. I know several former police officers that are members of my golf club. I don’t know what their pensions are, but they live in nice homes have have nice cars.
True. Paul Ryan is still very much alive and unfortunately those college kegger party dreams of ruining people’s lives won’t die until he does.
The new crop of Democrats will also be looking for ways to fund their socialist utopia.
I know several former police officers that are members of my golf club. I don’t know what their pensions are, but they live in nice homes have have nice cars.
I know people with nice homes and nice cars -- and debt up to their eyeballs while they try to keep up with the Joneses. Maybe law enforcement officers get really nice pensions. Maybe they're just hoping their debts will be erased by death.
DW will receive a pension but the amount will be far outstripped by what she's put into a defined-contribution plan and Social Security.
I think the gig economy has taken care of any pension issues for the younger generation. It's Social Security and whatever you can manage to save.
Wisconsin, where I live, is one of those states that elected to include public employees in SS, which is fortunate for me. I’m also fortunate to participate in one of the very few public pension plans that is fully funded. I’m a one-percenter!
Between the pension and SS (which we will delay for me and take early for my wife) we will not need to touch our investments except for dire emergency or capricious self-indulgence. We will have some level of policy risk, but will be diversified between COLAed SS increases and the Wisconsin plan design that bases increases on portfolio performance. It’s a good feeling to know the checks will keep coming even if I lose my mind and that my widow will never need to live on less than $100K/year.
I have much to be grateful for. Now, as even many public employers are shifting to defined contribution plans, I think I was very lucky on timing. This proves yet again that it’s better to be lucky than smart.
Well I’ve been approved. My first check will be deposited July 24. I’ll have to say that filing online was easy, took about 5 minutes.
i assume when the time comes to sign up for Medicare it will be the same.
I wonder if taking SS will effect the coming UBI that’s being promised ?
I wonder if taking SS will effect the coming UBI that’s being promised ?
Looking at my budget for the future, UBI and free medical care would pretty much cover my needs.
When do the checks start?
dado potato
3-15-19, 4:46pm
@LDAHL
I totally agree with your observation that the Wisconsin Retirement System is fully funded. The "downside" to that is the shared risk aspect, a brilliant concept of Gary Gates, who is talked about in the linked article below. Unlike other states where there tends to be a defined benefit for pensioners which cannot be cut, come hell or high water, annuitants in the WRS may find their "dividends" cut by the fund if the stock market lays an egg, or if the longevity of participants is greater than actuaries have predicted.
Furthermore the adjustments in the WRS benefits do not require the approval of any politician. The unfunded pension liabilities in other states (and many municipalities) got "that way", because politicians looked to civic employees for support at election time. Politicians could privately (or publicly) make promises to civic employees, on the basis of ludicrous assumptions about returns on pensions. Extremely generous pensions for police and first responders, and what-the-hell, school superintendents <wink>, could be provided in all the contracts for these employees. By the time the pension fund is insolvent, it will be other politicians who will be in office … . The temptation to kick the can down the road has been irresistible.
Mind you, the Wisconsin Retirement System may yet have its downfall, if the Governor in concert with the Legislature succeeds (with the approval of the State Supreme Court some day) in treating the WRS as a cookie jar for state government finance. Employees and annuitants cannot be complacent. The one-and-only state retirement system that has been independent from politicians may yet be forced to make loans to the state of Wisconsin (cough up!). It is not only a matter of Wisconsinites being "lucky". They have been "wary" too.
http://projects.jsonline.com/news/2016/9/26/wisconsins-fully-funded-pension-system-is-one-of-a-kind.html
I am old enough at 57 to have a pension from my first hospital where I worked for 20y in 7 different roles. In today's dollars it will cover 81% of our utiliity, insurance and prop tax expenses for our primary home and the cabin.
Our projected SS and hubby's state pension account will cover the rest of our routine annual expenses. Our savings will pay nicely for travel and our $100k emergency account will cover another roof on each home, heat/cool system replacement X2 and kitchen appliances X2. (all based on current EOL projections).
I'm so grateful we learned how to master plan our money in our early 30s. Because we learned simplicity, YMOYL principles and mindful spending early, we are currently sitting in a comfortable financial spot at age 57 and working by choice, not by force.
@LDAHL
I totally agree with your observation that the Wisconsin Retirement System is fully funded. The "downside" to that is the shared risk aspect, a brilliant concept of Gary Gates, who is talked about in the linked article below. Unlike other states where there tends to be a defined benefit for pensioners which cannot be cut, come hell or high water, annuitants in the WRS may find their "dividends" cut by the fund if the stock market lays an egg, or if the longevity of participants is greater than actuaries have predicted.
Furthermore the adjustments in the WRS benefits do not require the approval of any politician. The unfunded pension liabilities in other states (and many municipalities) got "that way", because politicians looked to civic employees for support at election time. Politicians could privately (or publicly) make promises to civic employees, on the basis of ludicrous assumptions about returns on pensions. Extremely generous pensions for police and first responders, and what-the-hell, school superintendents <wink>, could be provided in all the contracts for these employees. By the time the pension fund is insolvent, it will be other politicians who will be in office … . The temptation to kick the can down the road has been irresistible.
Mind you, the Wisconsin Retirement System may yet have its downfall, if the Governor in concert with the Legislature succeeds (with the approval of the State Supreme Court some day) in treating the WRS as a cookie jar for state government finance. Employees and annuitants cannot be complacent. The one-and-only state retirement system that has been independent from politicians may yet be forced to make loans to the state of Wisconsin (cough up!). It is not only a matter of Wisconsinites being "lucky". They have been "wary" too.
http://projects.jsonline.com/news/2016/9/26/wisconsins-fully-funded-pension-system-is-one-of-a-kind.html
I agree that it’s always possible to wreck a good thing, but when I view the building pension catastrophe at our neighbor to the South, I can’t help feeling fortunate.
The risk-sharing aspect of the plan design means I need to set aside a certain amount to smooth over the bad periods (which are already somewhat mitigated by the plan’s five year smoothing formula), but I would have to do that anyway with an investment income portfolio. I believe that over time it will make a good complement to SS.
Teacher Terry
3-18-19, 6:10pm
IL, I mentioned that applying for SS was easy and I expected Medicare to be the same. I can now eat my words:)). Luckily we can both stay on my state insurance for 4 more years until my husband is 65. The only thing I need to do is sign up for Medicare A and B and show proof to the state and they will reimburse us for the amount we are paying. I won’t have to wade through all that crap for another 5 years.
iris lilies
3-18-19, 7:56pm
IL, I mentioned that applying for SS was easy and I expected Medicare to be the same. I can now eat my words:)). Luckily we can both stay on my state insurance for 4 more years until my husband is 65. The only thing I need to do is sign up for Medicare A and B and show proof to the state and they will reimburse us for the amount we are paying. I won’t have to wade through all that crap for another 5 years.
We went to an insurance broker who pointed out a few things mentioned a few issues with moving back-and-forth between here and Hermann and we ended up going with the Cadillac option for me, not because I use docs and drugs and etc but because I just didn’t wanna fuss with stuff when it comes up. That is likely a pipe dream however.
Next in a few weeks, I’ll sign up for Social Security. I thought it was going to go down to the office to do it but maybe I’ll just do it from home.
Teacher Terry
3-18-19, 9:11pm
I signed up for SS a week ago and it was easy. Medicare is a whole other issue. Ugh!
I haven't signed up for SS yet, but we did the Medicare thing. I didn't find signing up for basic Medicare that difficult, online at least. The hardest part is wading through the supplemental plans, but I relied on the experiences and opinions of a couple of friends and signed up for their plan-- Plan F Supplemental through AARP.
And I have to say, for the money we're spending, compared to what we were spending as self-employed people, wow! DH had two hospitalizations over the winter (one ER, one stay that was 4 nights) and he spent January in and out of doctors' office (3 specialists and a PCP). I just got the Statement of Benefits from both Medicare and the supplemental and it looks like we'll be paying 0 OOP. And he's already met his deductible for prescriptions, too.
iris lilies
3-19-19, 10:12am
Due to WEP my SS is 300/month at age 66. My pension is only 20k. Not sure what huge pensions Dmc talking about.
Do you think your Social Security pension would’ve been much more?
Teacher Terry
3-19-19, 11:27am
IL, I would have went to work for a state that had paid into SS so I would have had a pension and SS which would have been more than what I am getting. When I graduated I had 7 job offers all from states because they were the only places I applied. I had no idea Nevada didn’t pay in.
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