Posted on 04/16/2020 12:04:43 PM PDT by Hojczyk
Prior to the economic downturn—or collapse—that we’re now experiencing, the trust fund was projected to run out of money by 2035.
This has, practically overnight, gotten worse. Why? Because some 16 million Americans have lost their jobs in the last three weeks. This means there are a lot fewer—millions fewer—people paying those payroll taxes into the Social Security system.
And on top of a lot less money coming in, a lot more will soon be going out. That’s because people who are now out of work and eligible to draw benefits may soon do so, out of sheer economic need.
This one-two punch could mean the depletion of the trust fund sooner than 2035. How soon? Perhaps two years earlier—2033—estimates one of the country’s leading experts on Social Security, Alicia H. Munnell, the director of the Center for Retirement Research at Boston College, and a MarketWatch columnist.
This means the gap between what Social Security takes in and what it pays out—which, again was growing to begin with—will widen further. “The trust fund has been filling that gap,” Munnell adds, “but as that gap gets bigger, the trust fund will be used up faster.
(Excerpt) Read more at marketwatch.com ...
I am retired and choosing to wait until age 70 to collect—but right now I would take a check for all the “Social Security taxes” I paid and my employer paid—with accrued interest of course—in one lump sum—and call it good.
There is no way .gov would take me up on that offer.
Do yo feel it’s better to take check at 62 and continue to supplement, part time etc, or wait as long as possible?
Why wait? Get something out of the system early, because you may croak before you get to full age. Those years of receiving reduced payments make up for waiting for full payments, unless you think you'll live a very long life. Hopefully one has other sources of income and savings, in case you do live long.
The future never arrives. The piper never has to be paid. The road down which we are kicking the can has no end. This is the foundation of modern government.
Your life expectancy is the key factor imho.
If your family tends to die young, take the money asap, cause you can’t take it with you.
If your family has very long life (into their late eighties or later), then you want to wait as long as you can afford to do so.
Yep, that’s what the COVID deal reminded us of. Fix any problem by spooling up the printing presses. Printed money, the government’s version of duct tape.
You’re going to be 62 in 2 years. You’ll probably make it. IMO start getting some of your money you paid in, ASAP. 75% of a loaf is better than no loaf.
When the FDR administration started SS, they promised the tax would NEVER be more than one percent of gross income. Look what it is today! Also, initial retirement age was 65 years old. At that time, the average American male lifespan was between fifty-nine and sixty years. A ponzi scheme from the gitgo!
If I take SS I will have to take Medicare and lose my insurance, not sure I want to do that.
Neither story doesn’t change a single thing i said.
Your own personal story actually affirms its a ponzi scheme.
OTOH, a lot of people who have been collecting have now died.
Wait until full retirement age. The difference pays off in 5 years IIRC. But waiting after full retirement age takes 14 years. But taking it early is a disaster if you live into your 80’s or 90’s.
You must also factor if your spouse is taking a spousal benefit or their own. If the take a spousal benefit the above changes.
Best advice on the web is Jonathan Clements
millions not working, only thousand died, that math is not going to pencil out in social security’s favor.
Follow this link and then find the section labeled “ACT”.
https://humbledollar.com
This guy is really good on finances and retirement.
Thank you. I like looking at different points of view on this.
“...But the welfare system is sound right?...”
Yep. As long as they keep voting “D”, it will alway sound. You can count on it.
You can’t get Medicare until you’re 65 or maybe it’s 66 now.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.