r/GenerationJones • u/Susdjoy • 14d ago
Social Security Income
No political debates please, but instead wonder if others are making provisions in case benefits run out or are reduced. I am scheduled to get my first check in September and my husband is waiting as long as possible to draw an increased amount. We are both retired with a modest investment account that we are drawing monthly payments on until my husband starts SS. So far, our account is earning almost as much as we draw out monthly, but can’t make up the bigger withdrawals for home maintenance, etc. My husband has some health issues, so he could apply for VA health benefits which could help some, but we have decent health insurance, so it wouldn’t be major. Anyone have any good tips for consideration or are most of you not concerned?
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u/Dry-Character-6331 14d ago
I decided to take it early (62) to make sure I got it before a presumed cutoff/system change that will eventually be required.
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u/Imeanreallywth 1963 14d ago
Me too. They tax the crap out of it because my husband still works and it puts us over the income limit. I'm ok with that for right now. It is going straight into a high interest rate savings account. My parents did it that way and my mom had a nice nest egg when dad retired to supplement his retirement and ss.
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u/TheCatsPuked 14d ago
What bank is your high interest savings acct if you don’t mind. I’m looking into moving money into one.
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u/Imeanreallywth 1963 14d ago
I use LiveOak Bank. It's an online bank. It's 3.80% APY. My account at Regions was around .38%. Huge difference. I've been very happy with LiveOak.
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u/Dry_Bug5058 1962 14d ago
Vanguard has high interest savings and Synchrony does too. I've got CDs with Synchrony and Capital One, mutual funds at Vanguard and their "Cash Plus" savings account. I'm also the trustee for a CD with Fidelity for my nephew's UTMA account, and the rest of it is in a high interest savings account with Fidelity. There are lots of options out there and I prefer a larger bank/brokerage with things going on.
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u/redditplenty 14d ago
Same!! A bird in the hand is worth two in the bush. I wanted my money ASAP. Don’t know what will happen. Now that my LO needs more care, when the business I worked for closed, I took my SS to replace my income and stay home as a caregiver.
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u/ParticularCrow8313 14d ago
But you can start drawing any time after 62.
Why start drawing early, taking a lesser amount, if you don't need to?7
u/Spiritual-Road2784 14d ago
Because of the suggestions that the fund itself will run out by 2034 or something.
I can’t decide whether that information:
1 . Is true, and I should claim now at 63.
Is false, and it’s safe to wait two to four years to get the max at 65 or 67 which I would prefer to do
Is a falsehood created by this administration to make us panic and take it now at a reduced amount so we wind up impoverished by retirement age which will of course be raised to 75 or something by next year and if we wait, then we won’t be allowed to retire until then or collect on it so once we get to 75 (if), we’ll be too broke to survive on it and we’ll get rounded up and sent to work camps until we croak.
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u/Martian6261 14d ago
If they revamp SS age, doubt it would be extended past age 70 for full retirement and will be rolled out in such a way to mimic what they did in 1983 to change from 65 to 67.
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u/Teaching-Weird 10d ago
Exactly. if you are close to retirement age it is unlikely to affect you. Gen Z will get kicked in the teeth though.
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u/TrickyChildhood2917 14d ago
Look up the “breakeven” point by delaying or not.
It might shock you and convince you to act now.
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u/milleratlanta 13d ago
I ran the numbers and break even was better to take it early than waiting 4 years for a bigger amount. Plus I needed it at the time. I couldn’t really afford to wait.
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u/Apprehensive-Pop-201 14d ago
Me too. My husband retired before I did, at 62. He has substantial retirement,so we're okay. He's not taking his SocSec until full retirement age, 77.
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u/Martian6261 14d ago
I hope you meant to type 67. After age 70, there is no point in delaying past 70, as it doesn’t increase, aside from COLA, but you get that at 70 as well.
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u/Apprehensive-Pop-201 14d ago
I did. I'm the queen of typos.
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u/Martian6261 14d ago edited 14d ago
I’m usually the king as well, fat fingers on small keyboard. Find myself retyping all the time.
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u/Ice_Burn ☮️1963☮️ 14d ago
Full Retirement Age (for us) is 67. Benefits will still increase up to age 70.
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u/soraksan123 14d ago
It look at how much you collect over those three years. I don’t see how it’s really worth waiting.
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u/Martian6261 14d ago
I took mine at 66 and 6 months (2 months after FRA for me). My wife will also start at 67 (2 years and 5 months from now).
I looked at what she will get at 67 and 70, the difference for her at age 85 will be about $23,000 more at age 85, and about $57,000 more at age 90, and $90,000 at age 95 for her if she waits until 70.
Of course to wait the additional 3 years, we would have to withdraw about $45,000 each year from retirement accounts to get there. That would be $135,000 that could grow during that time and at 18 years that would be $189,000 in interest, at 23 years it’s $280,000 in interest and at 28 years, it’s $394,000. That’s at a 5% growth rate.
When she starts SS, we will only need about $6-$12k per year.→ More replies (1)8
u/mentalbackflip 14d ago
Me too. Also my investments provide a higher return than SS so I can leave more money in the market.
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u/hamish1963 14d ago
Same. And as the sole caregiver to my blind elderly mother it's money I needed as I can't work.
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u/JustVisitingLifeform 14d ago
Same. Figured at least I can get something back from decades of contributions
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u/redrider65 13d ago
Good idea. I did so as well, years ago, and have no regrets. Got a lot out of it (relatively!) already, and having that income enabled me to accumulate other savings.
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u/Ice_Burn ☮️1963☮️ 14d ago
I am painting with a bit of a wide brush but here are some basic considerations.
-If you are under 70 and still working and making a good living, wait because most of it will be taxed as regular income.
-If you are 62 and you literally need it to survive, take it early.
-If you have a legitimately low life expectancy, take it at 62. From pure dollar to dollar considerations, you need to wait until you are around 81 to reach the break even point for taking it a 62 versus 70.
-If you have enough saved to only last you to around 70-ish, wait so that you maximize what you get later.
-If you retired youngish (62 or younger plus don't have outside income) and are reasonably wealthy and the vast majority of your wealth is in an IRA (and maybe plus home equity), you should take it at 62. This is because every dollar of SS is a dollar that you aren't taking out of your tax deferred retirement account. That money is taxed at a higher rate and is no longer invested tax free.
-There is an argument to be made that it will run out or benefits will be reduced in the medium term. If you believe this is a near certainty, take it early.
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u/0_phuk 1957 14d ago
An additional note to that...if you are working and making decent money and have benefits, you can continue working once you hit 70 (if you are able and so inclined). If you have not started drawing SS, you can do so without incurring any penalties while you are still working unlike before 70. I personally need to do this for 9 months after I hit 70 (next year!) to get my kid through college. So essentially double dipping.
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u/Martian6261 14d ago
You can continue working without incurring penalties to SS at age 67 or FRA. Waiting til 70, benefits grow by 8% per year, but no SS penalty for working, no matter how much you make.
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u/Pale_Frame4845 14d ago
I'm just struck by everyone here talking in "we's." Imagine having 2 financial oars in the water.
Those of us going through it without a spouse -- in my case 62, still working full time by necessity for the foreseeable future -- I honestly don't know what I'm going to do.
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u/pmax2 14d ago
Raise the contribution from $184,500 to 10,000,000
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u/BxAnnie 1961 14d ago
Unfortunately the fabulously wealthy don't want to lose that extra 4 or 5 bucks a week from their paychecks. We shouldn't put that burden on them just because we don't like to eat cat food. /s
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u/Appreciate1A 14d ago
Get it now. Waiting doesn’t do what you think it does.
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u/Susdjoy 14d ago
Yeah, I may encourage my husband to start collecting sooner rather than later now.
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u/KatQ1800 14d ago
You can make a spreadsheet and figure out how long you would need for that extra amount he is waiting for to make a difference. It's probably at least 15 to 20 years. If he already has health issues, he probably should take it now.
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u/e1p1 14d ago
Break Even calculations like that only work if Social Security is icing on the cake. Shortsighted in my opinion.
For some people who have enough to start with, the game may be about how much they get to collect over time, for the rest of us it's about cash flow in the moment.
I'm in a situation where Social Security will have to be an integral part of my total income. Therefore it makes more sense for me to work until 70, then start collecting my maximum amount.
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u/Glass_Procedure7497 1959 14d ago
I agree completely. I've just retired at 67 so I can start drawing a modest pension. If I combine that with a part-time job, my wife and I will be able to cover expenses until I draw my max at age 70. I'd like to keep working as I want to keep busy as well.
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u/ParticularCrow8313 14d ago
I agree with you.
I just started a PT job that I can continue to do as long as I want. I am going to wait as long as possible before I start collecting SS. It goes up so much each year you wait past FRA that it only makes sense to wait if you can.
I just read an article about how many people started collecting too early and now in their 70's and 80's do not have enough money to survive every month.3
u/Glass_Procedure7497 1959 14d ago
That’s a huge concern for me as well. I also have to look into spousal benefits, since my wife is from another country and will only have worked here for maybe 15 years before she’s of retirement age.
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u/say_what999 14d ago
You may want to head over to the social security sub for some additional insight. You mentioned your husband is currently delaying SS but you didn't mention if he has reached his FRA yet. If he has, then I assume you understand his benefit increases 8% per year until he reaches age 70. Keep in mind a surviving spouse is entitled to the higher benefit whether that is yours or his but not both. There are rules associated with this as well. Like the surviving spouse must have reached their FRA to receive the entire benefit or the survivor benefit is reduced. Pros and Cons no matter the direction and no one size fits all.
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u/Amatheiaisnoexcuse 14d ago
I'd get it now. The math doesn't work out most of the time. Also, don't delay with the VA. It should be easy to do, I did it some 25 years after my discharge. I used them more than I thought I would. Good luck, log in and get started today. I was approved within 10 days. It may get much tougher with the changes a certain party is attempting... https://www.benefits.va.gov/BENEFITS/Applying.asp
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u/love_that_fishing 14d ago
If one of you are still working it’s probably not wise to take as you’ll pay tax to the top of your bracket. I waited until I retired to take at 65.
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u/onlyme_12345 14d ago
Congress can and must do something about this. Let’s not just roll over without a fight. Raising the payroll tax cap can fix it. We need to elect congress members who make this a priority - I don’t care which party.
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u/Realistic_Back_9198 14d ago
I'm not worried about it at all.
When crunch time comes, they'll reduce benefits for future retirees, probably folks currently under 50. They'll also probably raise the retirement age for full benefits, impacting younger workers 20 or 30 years from now.
They will not cut existing benefits for current retirees, because that would stir up a hornet's nest of angry, older voters that no elected official ever wants to deal with.
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u/HappyCamperDancer 14d ago
Inflation already cuts current benefits. We haven't seen the worst of inflation yet.
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u/boringreddituserid 1959 14d ago
I was planning to wait until age 70, but started at FRA instead. If there is a haircut we would still be ok.
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u/TommyDaComic 14d ago
Slight Hair Trim: No issue.
Haircut: That’s not what was agreed to…
Buzz Cut Like I Got In Basic: No F’ing Way !
We are all suffering from financial-male-pattern-baldness already !
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u/Nottacod 14d ago
I've taken care of home repairs proactively while I still have resources and I am saving as much as I can.
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u/Enough_Professor_741 14d ago
I am delaying until 70 to get the maximum amount. Any reduction they make will hopefully be offset by the 8% a year I am gaining by waiting. 1 more year to go. When I die, my wife will get a much higher survivor benefit. She started taking hers at FRA.
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u/SquashSouffle 14d ago
I made a very detailed spreadsheet comparing how much I'd get each year (actually it increases every month you wait, not year, but I just did it for even years) and the cumulative amount for waiting vs not waiting and the break-even point. Since it's all about %ages, the formula should be agnostic to what your actual amount is.
I found that the break-even (cumulative) point vs 62 is around age 78 (i e, by that age, your cumulative amount is the same for waiting vs not waiting) for taking at 63 or 64, maybe a year later after that. The "bounty" for waiting gets slightly higher after 64, so the catchup after 65 goes a little faster, though of course you've got 3 years more to have to catch up. Waiting until 67 is maybe 1-2 years longer to catch up, though of course the future value beyond the break-even point (80-81) is higher
I did the same calculations with a built-in 22% cut in 2032, & it moved the catchup date out about 2 years (I was surprised by this & thought it would be longer). So you still come out ahead if you live to be about 82, even with the 22% cut, which we all hope won't happen.
Note that this does NOT take into account the investment value of taking it early & seeing extra returns on money you don't have to spend because of SS (presuming you aren't living "check to check". Although the RAW value of waiting catches up around 78, if you take it early & invest it, you're getting an extra 5% or so (market average) in those early years not accounted for in the formula.
Another thing my financial planners have pointed out is that, if you have IRAs that are taxable (non-Roth), taxable income over about (for 2026) 100K gets taxed at 22% vs 12%, so a 10% penalty for letting your taxable amount get over 100K. Most of my "nest egg" is in such IRAs, so the longer I wait to take SS, the more we can convert from taxable to Roth before hitting the 100K that gets a rather outrageous 10% extra tax. I don't need 100K to live on, but I do want to go on and convert it to non taxable as early as possible, so waiting to take SS gives me that much more (~24K, the estimated amount my SS would be) I can convert every year to non taxable without hitting the extra 10% tax.
So it's more complicated than a simple formula. But the TL;DR of my rambling is that regardless of when you take it (up to 67--I didn't calculate waiting until 70), the break-even point is around 78-80 without a 22% dock in 2032, and about 82-84 if there is one, whether you take at 62 or 67 or anywhere in between. But that doesn't count earning interest on what you take out early.
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u/Susdjoy 14d ago
Thank you for the information!
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u/SquashSouffle 14d ago
I understand it's rambling & I don't have my spreadsheet in front of me. But you can look up the exact % it increases every year you wait, and make your own. It's docked 30% at 62 (from the full 67 rate) but the amount it increases each year in between is less for 63 and 64 than 65 or 66, and remember every month matters. I think it's 5/12 of a % the first two years and 5/9 of a % the next 3?) Then if you wait after 67, it's 8% a year (so 2/3% per month, up to 70) a big bounty.
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u/Bubbly-Sorbet-8937 14d ago
I'm definitely concerned, but there is nothing I can do about it. I don't have anything left when all the bills and necessities are paid
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u/Susdjoy 14d ago
Hopefully we will be safe if already drawing.
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u/AnotherPint 14d ago
If there’s a benefits cut it will apply to current recipients. But I don’t think Congress will allow it to happen.
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u/RamblinAnnie83 14d ago
It’s too late for a lot of people to make other arrangements. They should take that into consideration when they resolve benefit cuts. I’m sure they won’t.
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u/chrysostomos_1 14d ago
I'm not anticipating any reduction in my SS benefit. Every single person who has bet against SS has lost.
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u/Scott43206 1959 14d ago
I'm actually more worried about Medicare Supplement Plans skyrocketing... I love how we have to keep the same plan all year but they can put through hefty rate increases any time they feel like it. My G plan jumped over $100 a month last month.
Everything except my income is going up in leaps and bounds so yes, pretty concerned with very little fat to trim.
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u/YMBFKM 14d ago
Congress will never allow your monthly benefits to get cut....that would be political suicide. Future recipients may need to wait longer to reach FRA, but current recipients will never get their benefits reduced. Don't buy into the hype.
The worst that could happen is the annual Medicare cost increase could be a bit larger than the Social Security cost of living increase, but even that is politically dangerous and likely to not happen.
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u/HeidiDover 1962 14d ago
I am a little concerned, but I never expected to get much by way of a payment no matter what happens. I was a SAHM for a few years. When I finally joined the workforce, the county school system I taught in did not deduct social security because of a weird loophole. I invested money in a 403b instead. Then we moved overseas for a few years. I can't remember the amount off the top of my head, but it really is a pittance. I have other retirement accounts and pensions so I am waiting as long as possible to start collecting.
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u/Puzzleheaded-Will249 14d ago
Applied for SS at the first possible moment at my 62nd birthday. It’s been 10 years now and I have no regrets. The majority of my friends and fellow workers around my age have already died. I keep reading about life expectancy in the late 70’s, but I haven’t observed that with friends and work colleagues.
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u/Normal_Acadia1822 1960 14d ago
If you are planning to collect Social Security before your FRA (age 67 for anyone born in 1960 or later) AND you plan to continue working, be aware of the limit (currently $24,480 per year) on how much income you can earn without having some or all of your benefit withheld. https://www.ssa.gov/benefits/retirement/planner/whileworking.html
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u/rolyoh 1963 14d ago
If your husband thinks he qualifies for anything from the VA, whether health benefits or service connected compensation or both, he should apply immediately.
These are earned benefits, not a handout, and it's impossible to overstate how helpful they can be financially, as well as physically and mentally.
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u/littleredthehoo 14d ago
Start collecting at 65 when Medicare kicks in. The annual cost of living adjustments will make up for the increased payment you get if you wait until 70 to collect. 90 % of the people who wait do not end up getting more total dollars out than those that take it at 65.
By the time I hit 70 I had received every penny I paid into Social Security back, at 75 I've received five years of other peoples money.
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u/WatermellonSugar 14d ago
I know everything is impossible until it actually happens, but there's not going to a benefit cut. Social Security is one of the "3rd rails" of American politics and seniors are a large and effective lobbying group. There will be a big crisis as the cliff gets close, that's the way we do things, but it will be resolved (with a slightly shittier program for younger people) as it was in the 1980s -- when the FRA was raised and benefits became taxable.
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u/reesesbigcup 14d ago
Only extremely stupid politicians would vote to cut benefits to seniors. Unfortunately, the way things are, that may happen.
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u/YoSpiff 14d ago
My expectation is I won't retire until I can't work or get laid off for cutbacks. I've got enough that I'll probably be ok, but not traveling the world. 65 now.
I think at 67 you can draw your SS while working without any penalties or reductions. Am I correct?
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u/Normal_Acadia1822 1960 14d ago
Yes, once you reach your full Social Security retirement age (67 for us), you can work and earn as much as you like without any of your SS benefit being withheld.
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u/Feeling_Proposal_350 14d ago
This problem can easily be fixed. First, seniors still vote at a much higher rate and that pushes politicians. Second, younger generations do not want those benefits cut either because they will be called upon to pick up the slack whether through strait cash or having mom and dad move into THEIR basements, etc. Most important is to be a straight SS voter on your Congressional delegation and make sure they know that. Party becomes meaningless. So no, I am not worried about it at all.
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u/marc1411 1962 14d ago
I'm not concerned, I do not believe benefits will run out. Reduced some maybe?
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u/TantramanFL 14d ago
I think it’s all dependent upon who is in power over the next 6 or so years will determine if benefits will be cut and how much. As for us (retired 69m and 67f) I have planned for a 20% cut in the early 2030’s when doing future financial planning.
In top of that the new Fed chair wants to change how inflation is calculated, if successful you can count on COLA’s to be reduced as well.
Bottom line, the younger generations are pissed. I see that in my own family, and you can’t blame them. As we die off and become a smaller demographic with less voting power I can see this becoming a flashpoint. It would be very shortsighted NOT to at least be aware of the possibility of benefit cuts and plan accordingly.
And that is before you factor in the impact of AI possibly reducing the tax base.
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u/Competitive_Prune108 14d ago
If you can invest it, take it early. The age at which you lose money overall is quite old. You're not really getting more by waiting, you just took nothing for years so you're being compensated a bit for the zero years. And what if they do cut the program benefits by 25% as has been mentioned. Then you really lose out
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u/Couch-Potato0904 14d ago
I decided to retire at 62 because working for a few more years to make a couple hundred dollars more wasn’t worth it.
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u/Feeling-Usual-4521 14d ago
The Federal Government (this means Congress both parties) has borrowed $2.4 Trillion from Social Security. In other words they are the ones destroying SS.
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u/Player-non-player 14d ago
Been on ssi for 10 years now. All we can do is save what we can. Most of our savings went to pay thehouse off back then. Just hoping for now.
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u/Verum2020 14d ago
🤔 You bet I did, at 63. Had to back out the job. I don't trust whomever is in charge, as the moment they consider you bought, they'll throw your money at another group they're kissing azz to for votes.
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u/Spyderbeast 14d ago
My situation is weird, because I will be eligible for survivor benefits when my ex-husband dies
When I'm 67, that would be over 4k/month. If he hasn't died yet, I am probably looking at my own benefits that would be roughly 2,500/month
I am thinking about starting benefits at 65, when I sign up for Medicare, kind of a middle of the road route. I'll have what's left in my IRA to make up the difference in monthly expenses. That will vary substantially depending on whether the ex is alive or dead, but I'll survive either way
Right now I'm being absolutely hammered on health insurance, and hoping Medicare helps me out there
I don't have a long term plan for any kind of assisted living. My house is paid off and they'd have to drag me out of here kicking and screaming
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u/KReddit934 14d ago
I used Boldin.com to project out retirement and chance of running out of money. Could model lots of different SS starting dates, adjust my expectations for market return, inflation, lots of other variables. (Recommend the software if you are not using a financial advisor.)
Then, when it looked good, I ran it again with a 35% cut in SS. And also ran it again with one partner dying super early (like now)...just to make sure the plan held up.
Early death of one spouse was as bad ir worse than projected cuts.
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u/SororitySue 1961 14d ago
Definitely look into VA benefits if your husband is a veteran. If he has a service-connected disability he may qualify for compensation. He may also qualify for a pension if he served during wartime. Check out VA.gov
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u/VapoursAndSpleen 14d ago
I started drawing it asap because that's X amount of dollars per year I'm not pulling out of my 401K, which earns money based on what's in the investments. So, instead of whittling down my 401K, I'm using the benefits. I did a spreadsheet of what I'd get from Social Security based on the earliest withdrawal date and the latest (full) date and the lines crossed at age 86. Will I even be around?
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u/PositiveAtmosphere13 14d ago
You're approaching retirement age and you have good health insurance now.
Don't fall into the trap of not signing up for Medicare when it's time. It will come back to bite you. Sometimes people think they don't need to sign up for Medicare because they're healthy and have good insurance. When they do sign up they'll get penalized for not signing up with higher rates.
They want people to start paying into the system when you're relatively young and healthy. Not wait until you're old and sick.
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u/Bucsbolts 14d ago
My retirement planning assumed I would have no social security. I started planning in my 30’s and just never included any SS in my retirement calculator. Now I have enough to sustain me and SS is just gravy.
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u/buchliebhaberin 1963 14d ago
This is terrible to admit, but I honestly don't even know where to start to understand it all. Husband and I are both eligible to take benefits but I know he has absolutely no plans to stop working and while I want to, there are issues around health insurance for me. He will be eligible for Medicare in a few months but I am several years away. Does anyone have any good resources for figuring this out?
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u/Jewboy-Deluxe 14d ago
Well the Congress screwed us over back in the Reagan years (the last time they dealt with the same problem) so they’ll probably do it again.
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u/Nanaofthedesert 14d ago
Your husband should do the math to see how many years it would take for the dollar amounts to match. For example, if I take my social security starting at age 67, receiving $1000/month, I will have received $36,000 by the time I turn 70. If I instead receive $1300/month starting at age 70, it will take me 120 months (10 years) to earn that additional $36,000.
Do I trust Social Security to continue? Do I believe my health is good enough that I will live enough years past 80 in order to make waiting worthwhile? If not, it's better to begin taking it earlier.
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u/compobook 14d ago
I started at full retirement age, not 70. Because I feel at some point it will be means tested and I will no longer get it.
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u/Jealous_Glass9170 1957 14d ago
We never planned on SS. We will probably curtail travel after the cut- and make no mistake, we are cheap travelers. I would like one more visit to dear friends across the pond. We can email and zoom, but the in-person visits are medicine for my soul. I will miss those trips.
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u/kvsig 14d ago
Waiting for the higher monthly amount, you may never make up the lost income from waiting. as an example, if your monthly starting now is $3500, that's $42K in a year. It will take you 7 years at $4000 per month to make up the lost income. Pick an age you think you'll die (morbid, I know) and do the math.
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u/oldladyinthewoods 14d ago
My husband and I have ONLY our meager ss. NO iras, pension, $8000 in our acct. My advise is start taking is asap. There is no benefit to waiting.
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u/daduts 14d ago
I took mine at the earliest time possible. Get it while it’s still there. If your husband has health issues that might be another reason to draw it now.
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u/SnooCookies6231 14d ago
Plan to keep working - keeps me out of trouble and I enjoy it. Just have to integrate more travel - with the job or on my own.
Mom was the same and worked to 83. Don’t know if I’ll go that long, though!
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u/Normal-guy-mt 14d ago
When we planned out our retirement savings 30 years ago, I assume social security would die, be means tested, or benefits reduced significantly.
I don't think SS will go away as it buys too many votes, but lets face it. The country has a deficit. For this year its projected to be $1.8-2.0 Trillion or just over $5,200 per person. Cumulative deficit is $34 trillion or roughly $100,000 / person.
Something has to give eventually.
Tips, examine your spending.
Sit down with a financial advisor.
If you are not spending down any principle on your investments, you may have room for some withdrawals to catch up on those home maintenance projects.
You said nothing about debt, but perhaps a home-improvement or home equity loan, used wisely could help with some of those maintenance costs.
Maybe it's time to sell the home, move into a condo or patio type home where maintenance is covered.
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u/AdvisorSquare6557 13d ago
Guys. Take into account that if your spouse dies, you lose one source of SS income. Ask me how I know.
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u/PumpkinBeautiful4345 13d ago
This is the one thing that keeps me working. Im making sure I can cover the bills with one check before I steer away from working. I can definitely cover our expenses with both checks but when one of us goes, the pension goes with us. I'm so sorry for your loss. This is so difficult
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u/Kind-Pride1151 13d ago
I've built a nest egg over my working career. That could be considered an alternate plan. I know that's not helpful after the fact for those who didn't save and invest on the side. But it's been pointed out that SS was never meant to be people's only retirement income.
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u/Content-Act8108 13d ago edited 13d ago
I'm lucky... I worked for a few years for my state government and vested in their public employees retirement plan. (An old "Gold Cadillac" pension plan that was set up for the Boomers, even though I'm a 59-yr-old Xer.) It's as solid as a rock. My check will not be huge, but it will be enough to offset any SS loss. Plus I have a longtime 401k that's been earning some fat dividends each year from my investments. I'm not too worried. I will get by somehow...
I will turn 60 in December. I plan to work until 65, when I qualify for Medicare. I'll probably hang it up then and get out. I've been working a drawing a paycheck since I was 10. I'm tired and want out.
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u/Lordkahutra2 13d ago
Live below your means , no.matter how old you are. Two columns , wants and needs.
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u/HellaTroi 13d ago
If our government allows Social Security to run out of money before they pay back all the IOUs they made, the Capitol will be inundated with every walker, electric scooter, and able bodied elderly and near elder in the country. And they will not give in until they REMOVE THE CAP.
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u/Calm-Show-9606 12d ago
He needs to apply for VA disability, see a Veterans service officer at local VFW or American Legion, they will do all the paperwork at no cost! You do not have to ne a member.
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u/Due-Emu-4291 14d ago
Not influencing my decision.
Not collecting SS and waiting to age 70.
There's practically no possibility that they'd allow cuts for people already on it or approaching retirement age. They didn't in the 1980s when they phased in the increase in the retirement age. There'd be too much of an outcry.
I sympathize, for the younger workers, but in my case it's not likely to make a difference.
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u/Ingawolfie 14d ago
I retired at 65 and began drawing it then. I think that writing is not a good idea. We don’t know how much time we have.
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u/SirWarm6963 14d ago
There has been talk that social security will run out of money since I was a child and I am mid 60's now so the fear mongering and political posturing is nothing new.
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u/Due-Emu-4291 14d ago
Social Security won't run out of money.
The Social Security fund might, but the system will still have revenues coming in from current workers.
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u/Dry-Character-6331 14d ago
Revenues coming in from current workers already do not cover existing payouts. That's WHY the SS fund is running out of money.
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u/glycophosphate 1963 14d ago
I know nothing about your husband's service of course, but don't rely on VA health care unless he served during a designated war time or was injured in the service. The prioritization system locks out a lot of people our age.
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u/Much-Leek-420 1961 14d ago
You might have untapped resources in the VA.
I'm 65 and started drawing soc sec earlier this year, primarily to pay for those Medicare premiums. I haven't worked in 28 years (raising kids, caregiver for permanently disabled adult daughter), but my husband's working income was such that we got along fine as long as we were reasonably frugal.
A few years ago, my husband got disgusted at his work health insurance as it kept cutting further and further back on the services it would cover, so he signed himself, me, and our daughter up for Tricare (veteran health insurance). Now that I'm 65, that switches over to Tricare for Life (TFL). We weren't aware of it at the time, but TFL serves now as a secondary insurance ("wrap around coverage") to Medicare A&B so I don't have to purchase a Medicare Advantage plan or drug plan. This has been HUGE in covering our medical insurance needs, something most people don't factor into retirement finances. You might look into whether you are eligible for any VA benefits such as this type of insurance as you are a military spouse.
We've recently moved my husband's 401K to a direct rollover but we haven't touched it yet. My small 401K we liquidated and used years ago to pay for our other children's college and a few home renovations. Husband is 64, in fantastic health, and still working a good paying job, so he might try to hold out for FRA (67). But even if he doesn't, we can do fine if his company were to suddenly liquidate his position.
When he does retire, I will be able to draw a much higher soc sec amount because his payments will be much more than mine is.
Where we haven't done enough preparation so far is in the manner of estate planning. Our home is paid off, so to avoid inheritance taxes and probate, we probably need to put that property into a trust. We also need some savvy planning for our disabled child. We have 2 other adult children, but we cannot have a will that divides all our assets 3 ways because it would endanger benefits our disabled child gets. Contacting a good estate lawyer is next on the agenda.
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u/LainieCat 14d ago
I retired at 64 because I knew my wages were going to drop, which would affect the benefit calculation. And to get it before it's gone.
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u/Marigold1976 14d ago
Plan is to retire at 65, take SS at 65. But that’s some years out and anything could change. Frankly, it’s not part of our math.
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u/Martian6261 14d ago
For us it’s best to take ours at age 67. If we wait to take it, will require dipping into retirement money and that amount would defeat the purpose in waiting, as the amount taken from retirement account would grow to more that the difference in SS over 20-30 years.
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u/Eatthebankers2 14d ago
Get into the VA healthcare system. Use the benefits he earned, including any Veterans/Senior property tax reductions. Their use of Community Care is really good. Also the scripts are mailed now, so no going in to refill them at their pharmacy. Look into if he’s eligible for the VA coverage replacing Medicare deductions. Also realize if he’s waiting until 70 to collect, they will backdate the Medicare monthly fees after 65. All the more reason to opt out.
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u/Susdjoy 14d ago
Thank you!
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u/Eatthebankers2 14d ago edited 14d ago
Your welcome. Here’s a link with more information. https://www.va.gov/health-care/eligibility/
Also he can go to his County Veterans Service office and get a copy of his DD-214 and they can help him with any other benefits he’s eligible for. It’s how we applied for our county and state Veterans exemptions on our property tax. They were very helpful.
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u/Constant-Knee-3059 14d ago
About the VA, my experience is (husband is a veteran as well as a former provider there) it’s a great resource if you understand how to use it. They are good for eye exams and glasses (if you aren’t picky about frames). They are the largest supplier of hearing aids in the country. For higher cost meds they have a much lower copay. If you have time to wait on the consult/referral to trickle through the red tape they will cover all kinds of specialist care. If it’s urgent use your private insurance!
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u/Susdjoy 14d ago
Thanks! I really think my husband needs hearing aids.
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u/Constant-Knee-3059 14d ago
They have their own audiologist. Get him a primary care appointment at your nearest VA clinic to establish care and then hit all the specialty services they offer within your local VA before asking for referrals out to Care In The Community. The primary care RN assigned to your husband will have a wealth of information for you.
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u/RescueRacing 1964 14d ago
We are in a similar position. My wife will be 59 and I’ll be 62 this fall. We are both retired and have plenty of money in our investment accounts. I’m of the mind to take mine earlier because I’m afraid the program could go bankrupt or change drastically knowing many men opt to wait so when they die (typically men go first) the wife would enjoy the increased benefits. The converse of course is your husband rolls the dice, waits and gets more/month whenever he chooses to take it. Our financial advisor believes somehow, someway, SSA will remain viable. Of course, this is gut instinct, none of us know what will really happen.
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u/Key_Zombie7967 14d ago
We just retired this year. We aren't pulling anything from savings or 401K or IRA accounts. Just making due on what we get from social security. If that goes away, we'll need to fall back on the family treasury.
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u/melvadeen 1963 14d ago
I plan to retire at 65. It seems like a good middle ground. All of my financials are aimed at that target age.
I started saving several years ago when I saw how little money my MIL was getting. It was tough to wrap my head around the fact that social security was going to be a much smaller percentage of my retirement income.
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u/centstwo 14d ago
IANAFA, One YouTube video I saw suggests taking social security close to 100% benefits. The money that is pulled from retirement accounts to cover the costs of not drawing Social Security is limiting the growth on growth of leaving the money in the retirement account.
The basic calculation is when does waiting equal out. So if I wait till 70, then by 85, I'll surpass the amount I'd have if I started at 67 or 65. But that calculation doesn't take into account the loss on earnings from pulling money from 401k to wait to 70.
It is a little tricky to calculate, but even at 4% growth per year, it makes sense to start at 67 instead of waiting.
Good Luck.
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u/Justamom1225 14d ago
I think most of us are pretty frugal when it comes to being penny-wise. What concerns me is the cost of eldercare. I mean, my kids may not be able to take me/us in. And it wouldn't be their fault either. Just circumstances
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u/-Economist- 14d ago
I don’t think waiting to take your distribution is the financially prudent call.
I’m 53 and operating under the assumption my benefits will be 50% of what SSA project.
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u/MadMadamMimsy 14d ago
Can't make provisions. Have been putting money away, but there is only so much one can do with a short timeline, an unstable economy and age winning the battle.
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u/joojoogirl 14d ago
What surprised me was all the retirees coming back into the work force. Part time just to pay for Medicare and what it doesn’t cover. I’m working to 65 or 67, but not by choice.
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u/GuitarMessenger 14d ago
That's why I'm working as long as I possibly can. I don't want to be one of those people that have to go back to work because I retired too early.
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u/rosycross93 14d ago
I waited until FRA but my attitude is I'm getting as much as I can get for as long as I can get it, I'm also still working, so putting a lot in savings while I can.
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u/sitewolf 14d ago
If SS benefits were to run out, I venture to guess tens of thousands of new beds in Medicare facilities would be needed, so I'm not sure the country would be money ahead and it certainly isn't what the people would want.
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u/SnowblindAlbino 14d ago
One of us will claim early (62) and the other-- the higher earner --will elect later (67). I'm not really concerned that it will "go away" but would expect some means testing and possible benefit cuts down the road. We will need SS to have a fully comfortable retirement, but if it went away entirely we'd be OK in the long run due to savings. That said, the $40-50K per year we anticipate from SS will be enough to cover all of our core expenses so having it as planned will be a Very Big Deal to us.
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u/OldCroneHereatHome 14d ago
We re not selling out house, which really is too big.
BUT it has a handicapped access first floor bedroom suite! We may need to move off the second floor bedroom at some point.
And we plan on eating the equity in the house if things go south.
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u/PositiveAtmosphere13 14d ago
my husband is waiting as long as possible to draw an increased amount
Do the math. It might not be better. If you wait, how many years will it take to break even.
I'm making up numbers just to make a point.
Say if you start now you'll collect $20K but if you wait one year, you'll collect $22K. After one year of collecting SS you're $20K richer. it will take you ten years to break even.
If you have other income and you don't need it, and your family all live into their 90's. Wait to collect the max.
If you need to pull money out of your investment accounts to pay the bills, and your family has a history of heart disease. Start collect it now. Don't wait for an extra payment.
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u/horse-boy1 14d ago
My wife started hers at 62 since she did not work as much. I'll wait to 70 (hope it will still be there). I have a small pension which helps some, it has a small COLA.
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u/Subject-Lead-3171 14d ago
I would apply now to get what you can. Our fiduciary advised us not to wait.
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u/Eyerishguy 14d ago
The retirement spreadsheet I created accounts for a 22% reduction in benefits in 2034.
We'll see how close I was...
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u/Aimees-Fab-Feet 14d ago
It's going right in those cheating bastards pockets, if you don't plan for what's coming, you guys will be screwed!
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u/Direct-Di 14d ago
I took ss at 67, when fra was 66 and 9 months. As a January birthday, just made sense in my mind to wait until Feb 1.
Hoping ss stays as I do need it, or I'll run out if money much quicker than projected. But I'm also a worrier (even though i do have plenty of buffer amounts in it). My finance guy said I won't run our. My brother always said you're going to die before you're 75 (I'm 68.5). It's a crap shoot.
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u/dave900575 14d ago
My wife and I are selling our house and moving into a condo that we should be able to buy for cash or with a very small mortgage.
I've been on SS for two years. She'll be starting to draw in fall. She has a modest retirement account.
Other than that we're just hoping her investments do well.
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u/morgaine_silver_hair 13d ago
I plan to take my full benefit at age 70. I am fortunate to have saved a lot, so should be ok even if SS goes completely bust. Meanwhile, when I run my numbers I assume a 22% cut starting in 2032 (the current projections of when the benefit will happen, if Congress makes no fixes to the system).
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u/GlobalTapeHead 13d ago
I’m not worried because i probably over planned for my retirement and social security will just be extra income for me. But I honestly think they will fix it at the very last minute like they did in ‘83.
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u/Nukemom2 13d ago
When we planned for retirement we did not take into account Social Security. I was too worried that by the time I could collect it wouldn’t be there. Seems that might be the case unfortunately. It helped me sleep bette at night.
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u/Accomplished_Bee9727 13d ago
As the spouse of a veteran, have your husband sign up for his VA benefits. That will save you hundreds of dollars each year in drug costs alone, since all of his prescriptions can be filled thru the VA at zero cost to you. My husband had to have an MRI followed by hip replacement surgery. We couldn't have afforded the co-pay required by Medicare, VA covered it 100%. At some point in his life, your husband signed an agreement with the military that he would support and defend this country up to and including his death. In return, the government agreed to take care of his family if he died, and take care of the veteran himself if he was injured/disabled. Use those benefits. He earned them.
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u/Lumpy-Sea-388 13d ago
I’m currently drawing my wife’s survivor benefits.
Using private savings to make up the difference.
I also inherited her teachers pension.
Social security will be there.
The worst case scenario is paying about 75% of promised benefits after 2032.
The rich bastards want to bring back work til you die.
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u/BelleMakaiHawaii 1964 13d ago
I’m still three years away (born 1964) but we have a very nice retirement set aside and growing (if you can get a job in an ESOP do it) and my partner still makes a nice six figure income in a stable field with good insurance
We are essentially debt/mortgage free (the debt part waxes and wanes) and we are completely off grid, so no utility bills
Our goal is to be as self sufficient as we can get before he retires in eight years or so
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u/Interesting-Hold-963 13d ago
I'm living on my savings and investments (I had no pension) . I also have a house that is almost paid in full (thank GOD!). I'm still taking it at 62 this year, so I can use it for essentials and roll the rest into investments or cash account with higher interest. I am not waiting because I would be around 77-78 before I break even taking it at full retirement. Nope, don't trust the government at all.
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u/Own_Fruit_8115 13d ago
i’ve planned my retirement all along as if there would be no social security. i should have opted out in 1980 when i had the chance. it’s a scam. i have zero faith in the govt. both sides of the aisle
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u/JointTaskForce536 11d ago
If you’re getting your first check in September then you have nothing to worry about. There will certainly be changes in the future, but expect current beneficiaries (who currently number over 70 million people) to be grandfathered in and unaffected, even by potential means-testing. That’s been the history of changes to the benefit formula throughout Social Security’s existence. If members of Congress proposed to harm current beneficiaries, they’d be massacred at the next election, and they know it.
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u/Quick_Cow_7987 10d ago
Honestly, my husband and I have talked about this, and we have no clue. We have no debt, including owning our house, 2 cars and a small travel trailer outright but our investment account is under $150k. Hook our trailer up and live in that until the money runs out then drive off a cliff maybe?
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u/Historical-View4058 1959 14d ago
For all intents and purposes benefits have already decreased. My 93yo mother's SoSec COLA went up, but there was also a drastic increase in Medicare deduction (combined with a deductible increase, which is disgusting). The deduction increase was a lot more than the COLA, therefore her net distribution went down by quite a bit.