social security

[racerX]

My first thread so go easy on me. I'm 45 years old and have started to think harder about life after work. So...my smart worldly new friends, my question to you is - will I have full, some, or no social security pay outs when I retire? I realize this my start some debate on politics. I'm not looking for that or to start a war or a political discussion. Just want thoughts, so I can plan for my future.

[LostAbbott]

I look at it this way. Save and invest expecting to get no money from Uncle Sam coming to you at all. That way anything you may get from him, is cigar money.

I am 32 and have been saving for my retirement this way for the last ten or so years. I just had a daughter and we are starting to save for her education like it is going to cost half a million clams. The more you can save now the better off you will be later when you no longer have a working income.

[EricF]

I just turned 50 and wonder the same myself. I just keep putting into my 401K and hope it's gonna be enough.

Or maybe I'll hit the Powerball!!!!!

[racerX]

I am wishing for at least some help from Uncle Sam but I have been doing the same (saving and buying Powerball tickets).

[MarkinAZ]

Originally Posted by racerX

I realize this my start some debate on politics. I'm not looking for that or to start a war or a political discussion. Just want thoughts, so I can plan for my future...

Hello John,

The following excerpt is from the current June 2011 AARP Bulletin that states: "The administrative cost (for Social Security) is .09 percent. It returns 99 cents to beneficiaries on every dollar collected. By the end of 2010, the Social Security trust fund had a positive balance of $2.6 trillion. As a result of interest earned on the trust fund balances, the fund's surplus will continue to expand to approximately $3.67 trillion at the end of 2022. After that year, it is projected that the balance will begin to decline. Still, reserves will be sufficient to pay full benefits through the year 2036. After that, Social Security would still be able to pay for 77 percent of benefits."

The name of the article is Social Security's Enduring Truths and its Author is James Roosevelt Jr (the grandson of President Franklin D. Roosevelt).

There are individuals John who strongly wish to "privatize" Social Security so their buddies on Wall Street can rape us further. They can go stick it. There are individuals (the same) who also strongly wish to "privatize" Medicare. They can also go stick it too There is a very simple way to insure that Social Security continues on strongly past 2022, but I will not get into that in your thread. I hope this helps you out...

[camiller]

Originally Posted by MarkinCA

Hello John,

The following excerpt is from the current June 2011 AARP Bulletin that states: "The administrative cost (for Social Security) is .09 percent. It returns 99 cents to beneficiaries on every dollar collected. By the end of 2010, the Social Security trust fund had a positive balance of $2.6 trillion. As a result of interest earned on the trust fund balances, the fund's surplus will continue to expand to approximately $3.67 trillion at the end of 2022. After that year, it is projected that the balance will begin to decline. Still, reserves will be sufficient to pay full benefits through the year 2036. After that, Social Security would still be able to pay for 77 percent of benefits."

The name of the article is Social Security's Enduring Truths and its Author is James Roosevelt Jr (the grandson of President Franklin D. Roosevelt).

There are individuals John who strongly wish to "privatize" Social Security so their buddies on Wall Street can rape us further. They can go stick it. There are individuals (the same) who also strongly wish to "privatize" Medicare. They can also go stick it too There is a very simple way to insure that Social Security continues on strongly past 2022, but I will not get into that in your thread. I hope this helps you out...

Even though that article was published in June it was probably penned earlier, because it differs with what is in the official SS trusties report..

I have nothing against those currently drawing SS or those on the verge of doing so. But lets understand a few things about how broken the systems is.

When enacted about half of all the people paying into it would have died before collecting, medical science has improved lifespans so much that now most people live to collect. Note, I have nothing against people living longer (in fact I plan to do so myself), just pointing out a flaw in the design of the program.

On average most recipients will get back everything they paid in plus interest in the first seven years, after that the money they get is not money they paid in themselves. The program was never designed to be just you saving for your retirement, it was always about current workers helping support the retired. Currently there are about 2.9 workers for every retiree, by 2035 there will be 2.1.

In 2008 it was projected that in 2017 SS would start paying out more than it takes in and in 2041 all surpluses (currently invested in US treasury certificates) would be exhausted. After the most recent economic downturn SS started paying out more than it takes in last year and the exhaustion of surpluses is estimated to be in 2035 (incidentally, about when I would expect to fully retire if I don't retire early). With the debt ceiling being reached, and assuming republicans have the cajones to keep it from being raised, if the US has to default on paying the retirement of treasury certificates, that 2035 date could become 2011.

The best place to keep current is the Trustees report:

The "ANNUAL REPORT OF THE BOARD OF TRUSTEES OF THE FEDERAL OLD-AGE AND SURVIVORS INSURANCE AND FEDERAL DISABILITY INSURANCE TRUST FUNDS" for the years 1997-2011 is available here: Trustees Reports for your further reading enjoyment

[MarkinAZ]

Originally Posted by camiller

With the debt ceiling being reached, and assuming republicans have the cajones to keep it from being raised, if the US has to default on paying the retirement of treasury certificates, that 2035 date could become 2011...

Exactly!

[racerX]

Mark - Thanks for the great info. I read the article.

[MarkinAZ]

Originally Posted by racerX

Mark - Thanks for the great info. I read the article.

Anytime John

[BlindedByScience]

Without getting into politics, my personal belief is that there is only one person that will always come through, only one person that can be counted on, only one person that you can depend on 100%.....and that is yourself. Plan and save like your life depends on it, because it just might.

Read as much information from as many sources as you can. Weigh them all, make your own decisions based on your own research. Take positive action and take care of yourself and your family, first, without fail.

Anything additional will then be a nice surprise.....

One man's opinion - N.F.H.

[mosesbotbol]

I am of similar age. If we get anything, it will be a joke at best. Between government thievery and inflation, our payout will equal 10 cents on the dollar by the time we need it.

[hotreds]

Officially: no such thing.

[elderboy02]

I know I sure as hell won't get anything. I wish I didn't have to pay into it.

[justonemorestick]

Approximate expenses for apartment living on the cheap in Cambodia.

Rent: $90
Electric: $15
Water: $10
Cable: $35
Groceries: $130
Transport: $30
Miscellaneous – Visa Insurance etc. $75
Total monthly expenses – $310

Approximate expenses for apartment living on the cheap in the Philippines.

Rent: P7,500
Electric: P1,300
Water: P120
Cable: P850
Groceries: P5,000
Taxis: P3,000
Miscellaneous Visa, Insurance etc. P2,500
Total monthly expenses P20,270 – $431


Of course these are lowball numbers for more like $1000 USD/month you could get more luxurious accommodations.

My plan is to save in my IRA 401k and hopefully win the powerball. I am still not sure if I will be able to save enough to ever retire.

[N2 GOLD]

What I want to know is if Social Security is not going to be around when we are eligible whythe HELL is it still being taken from everyone of my checks...

[pektel]

Originally Posted by N2 GOLD

What I want to know is if Social Security is not going to be around when we are eligible whythe HELL is it still being taken from everyone of my checks...

BEcause it's a bigger Ponzi Scheme than what Madoff's pulled off.

[Subvet642]

I don't think SS will be there for me, so I quite honestly plan to work until I die; just like countless generations of my ancestors did.

[OLS]

Originally Posted by Subvet642

I don't think SS will be there for me, so I quite honestly plan to work until I die; just like countless generations of my ancestors did.

This was my plan, too, that and dying of cancer. However there are no jobs for us now, like there were then.
You and I both think, 'eh, at worst, I can greet at the Mart.' or 'I am sure I will be able to work, because
unlike THIS generation, I still understand the meaning of work'. But that is when there were textile mills
and car factories and electronics manufacturers and more industries than I can count. NOW, there are
way fewer jobs, and old folks are getting pushed out as being too expensive to employ and remain competitive.
Working longer might be a dream. So save your money. I plan on designing avatars for spare change.

[Subvet642]

Originally Posted by OLS

This was my plan, too, that and dying of cancer. However there are no jobs for us now, like there were then.
You and I both think, 'eh, at worst, I can greet at the Mart.' or 'I am sure I will be able to work, because
unlike THIS generation, I still understand the meaning of work'. But that is when there were textile mills
and car factories and electronics manufacturers and more industries than I can count. NOW, there are
way fewer jobs, and old folks are getting pushed out as being too expensive to employ and remain competitive.
Working longer might be a dream. So save your money. I plan on designing avatars for spare change.

I'm a hospital security officer and we've got lots of "retirees" working for us, so it's easy to see myself working here for the rest of my life. The thing about security, as an industry, is that when the economy is good, there is more money for us, when the economy is bad, there is more need for us. I've been with my company for 23 years and we've NEVER laid anyone off.

[timj219]

If I can keep my health and my job I will probably work til I'm 70. If I hit the average that will mean ~5 years of retirement. I don't need much so I think I'll be OK between SS and a little bit of retirement savings.
My father took an early retirement package at 55 from IBM where they boosted his pension and carried his health benefits for ten years. But that doesn't happen any more. People today who occupy the position he did then just get laid off rather than given an early retirement incentive. I think for most people the golden age of retirement at 60-65, travel, golf, trips to disney with the grandkids is over. SS is always in danger of interference of various kinds, pensions are mostly a thing of the past, wage growth is stagnant (for about 30 years now I think) and your 401 is invested in markets which are always going to be vulnerable to failure.
But personally I'll be happy as long I can house, feed, and clothe myself in retirement.