Just wait until they go on Medicare ... surprise!
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 ...
“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.”
As did I. It paid off, I’m happy to say.
I used to pay acute attention to my SSA statements that were mailed to me, researching their figures compared with my tax returns. One year I sent a letter, detailing where their numbers were incorrect, some to my benefit, some to theirs. I received a notice back that they had their own sources and did not utilize IRS numbers, but did not specify from where those numbers were derived.
To this day, I have no idea where the SSA gets their numbers.
Some people who get Social Security must pay federal income taxes on their benefits. But, no one pays taxes on more than 85 percent of their Social Security benefits. You must pay taxes on your benefits if you file a federal tax return as an “individual” and your “combined income” exceeds $25,000.
If you work while you collect SS you have to “payback” SS if you make somewhere around $11,500 per year in earnings from employment.
Recently retired at 66 here. Even with a pension having to cut corners just to make it. Thinking of moving to a more SS income friendly area but hate to leave family behind.
Until you reach full retirement age, Social Security will subtract money from your retirement check if you exceed a certain amount of earned income for the year. For the year 2018, this limit on earned income is $17,040 ($1,420 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. Once you reach full retirement age, there is no limit on the amount of money you may earn and still receive your full Social Security retirement benefit.
Seriously, if you have not paid attention to exactly what Social Security is going to provide, you are very wealthy or an idiot.
Not after full retirement age.
Yup. Got laid off/retired the same day. Got my first ret check 3 weeks later and first SS chk 4 weeks later at 64 instead of 66 and a half. The difference wasn’t that much and would have taken years to equal what I got during the 2 and a half year early start.
You work for the SS dept. don’t you?
By the way, yeah, full retirement is now just shy of 67 years old. Might as well just move to God’s waiting room (Florida) then cuz death may not be too far behind.
Nah I just know how to use Google.
I will pay taxes on Social Security all my life or until I am unable to work.
Hmmm. I got a Medicare supplement that costs me ZERO/ mth. The previous one was $203/mth. About the same coverage too.z. But, I get most of my meds through the VA. But today I woke up seeing the green side of the grass and not the brown side so all is good.
cripes...SS sends out estimates once one turns 60 and do not have a “my Social Security” account.
If you DO have an account, you’ll get the estimate regardless of age.
Read how benefits are estimated, just don’t rely on the estimates based on their assumptions.
https://www.ssa.gov/myaccount/statement.html
Well that’s encouraging. A relative was telling me how much they pay for supplemental and Part D. I was blown away by how much it was. That relative is pretty well off so I don’t know if that factors in.
Always good to be on the green side, LOL!
I call it the garden of eden, but with more chiggers. :)
Well, yeah. :)
I didn’t start actively starving the beast until about five years ago.
“It’s one of the reasons we moved from Seattle to rural Kentucky.”
I want to look into a strategic move like that.
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