Posted on 04/25/2018 11:37:15 AM PDT by SeekAndFind
Newbie retirees may need to lower their expectations when it comes to their Social Security checks.
According to a new survey released by the National Retirement Institute, more than a quarter (27%) of new retirees say their monthly checks are less than they expected.
What’s more, nearly two in three of soon-to-be retirees (63%) admit that they are not confident in their overall knowledge of how Social Security works.
That number is alarming because nearly one in four (26%) future retirees believe they can live comfortably on Social Security alone.
“It’s problematic that so many people are planning to rely solely on Social Security for income in retirement,” says Tina Ambrozy, president of sales and distribution at Nationwide. “There's a major disconnect between what consumers think their Social Security benefit will be – and cover – compared to reality.”
The biggest problem is that most adults think they are eligible for the benefits sooner than they actually are. The most common age to start collecting is 62, which is also the earliest age a person can do so.
But a majority (about a third) say they don’t care about withdrawing too early as many of them don’t believe Social Security will even be around when they reach their full retirement age.
According to the report, future retirees expect to receive $1,628 a month on average, but that amount is almost 30% more than what current retirees say they are collecting. Today, the average monthly rate reported is $1,257.
(Excerpt) Read more at foxbusiness.com ...
Yeah, no doubt. I was sure I’d still have my full pre-retirement income when I added the SS to my pension. NOT! But, I suppose there are lots of folks out there that are thinking that way.
(27%) of new retirees say their monthly checks are less than they expected.
So what is the deal with this 27%?
My wife and I are 64. We have online accounts with the SS administration to get detailed information on what to expect. After doing the math regarding when to start payments, my stay at home wife started hers now (hers is much lower than mine). Her payments are exactly what we expected. To the penny.
Knowledge is power.
And yes, if push comes to shove, we could live fairly comfortably on SS alone. It’s one of the reasons we moved from Seattle to rural Kentucky.
If you are surprised by the amount of your SS check, you haven’t paid attention to the many mailers you have received telling you what amount to expect given your contributions over the years.
I dumped almost all 401K’s etc. and focused on just getting real estate, etc. paid in full so my cost of living would be low. I did my best to starve the beast.
Not everybody is literate I suppose. Or they have learning disabilities. Or they're Democrats. The most likely scenario is all three.
The average IQ of a SS recipient is probably the same as the average American—100.
That is _not_ a high enough IQ to understand social security. ;-)
More seriously, the SS web page is an excellent source of information if people take the time to read the documents and understand them.
Most people do not.
Exactly. The site is absurdly easy to navigate. And it’s easy to start payments.
You should start taking SS as soon as possible. If you are still working, invest all of it in mutual funds/Roth depending on your tax rate. It will earn faster than the increase you get by waiting.
Way too many Americans are under the impression that the government is going to sustain their current lifestyle in retirement. Way too many Americans are under the impression that they have no responsibility for providing for themselves in retirement. Anything that they saved is just extra to blow on having a good time because they “deserve” it.
I kinda thought that initially, although I’m not retired. I have been disabused of that thought now. The average SS check is about $1,250 according to this excerpt and I believe that’s probably about right.
Now, SS is taxable so subtract, say, 15% or so for taxes and you’re down to about $1,060. Next, you had better account for health care coverage, and it’s staggering. Even if you have Medicare, which costs something, you need supplemental coverage, and Part D coverage, probably another $600 or so in fixed costs.
Now your SS is down to about $400 per month. Good luck with that!
27% is right around the same % that make up the Democrat Party’s die hard voter base.
Problem is that at my income level, if I start receiving it at age 64, I’ll just have to pay it all back at the end of the year. But yes, that is what my wife did since she does not work outside the home.
“Disappointed” is not the same as “surprised”. I’m “disappointed” that my contributions to Social Security were so poorly managed, but I will not be “surprised” by the paltry size of the payments when they come. That information is mailed to me periodically, and available on demand on-line.
You pre-fed the beast. Financially speaking, on average, the present value of an upfront pre-pay equals that of ongoing payments. But, psychologically, you did the right thing.
62 and will receive my first check of $1691 on June 3. You could have owned my house had you bet me 20 years ago that I’d see this come to pass.
Welcome to rural Kentucky. Ain’t it grand?
Why do you have to pay back Social Security?
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