Social Security Wants You To Wait

Discussion in 'UPS Retirement Topics' started by olroadbeech, Apr 20, 2014.

  1. olroadbeech

    olroadbeech Happy Verified UPSer

    recent article on MSN is saying people should wait til age 70 to collect SS. their example showed that you would get 3500 a month at 70 compared to 1950 a month at age 62.

    first, by waiting 8 years it seems like it would be worth it but do the math. it would take approx. 11 years to break even. in 8 years you would collect about 200,000 dollars. you would be 81 or 82 before you would start getting ahead.

    I would rather collect that 2000 a month at 62 and invest most or all of it myself in a tax free IRA till I was 70 instead of letting Uncle Sam do it. that 2 grand a month invested that way would grow to around 275,000 to 300,000 dollars in 8 years under normal ( 40 year average) market conditions.

    Social Security may not be viable if you waited anyway. Im taking my benefit as soon as I am eligible.
  2. 1989

    1989 Well-Known Member

    You can definately save as much of that money as you want. But social security is unearned income and cannot be put into an IRA.
  3. olroadbeech

    olroadbeech Happy Verified UPSer

    you collect it. work a part time job and put it all in an IRA. ive done that before and the IRS said it was perfectly legal.
  4. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    While it may not be directly deposited in to an IRA it most certainly can be done indirectly.

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  5. moreluck

    moreluck golden ticket member

    Take whatever you have coming as soon as you can.......!! Where's the paper that says you are going to be around at 70 ?
  6. upschuck

    upschuck Well-Known Member

    Of course they want you to wait, they'll come out ahead most of the time.
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    With our pensions and 401k's our SS should be little more than spending money.

    IMO it is best to wait until you are at least 67 (preferably 70) before taking Social Security.

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  8. olroadbeech

    olroadbeech Happy Verified UPSer

    smart individuals should be able to invest that money better than the government. if you got all the money that you contributed to Social Security plus interest you would have about 4 million dollars at retirement. there was an article about this but I cant find the link to put here.
  9. satellitedriver

    satellitedriver Moderator Staff Member

    I hope you do not do your own tax returns, and retirement investments.
    :oops: You are incorrect.

    Both type of IRA's, standard and Roth,
    are only limited to the amount one is able to contribute each taxable year, no matter the source of income.
    (Exception's apply if you have earned income in the range of about $200,000.)

    Social Security income is a taxable event, when added to all other sources of income. The only "Grace" given,
    by the IRS, is that only 85% of your Social Security payment is subject to taxes, based on a sliding scale of all income.

    My advice is to take SS at 62.
    The odds are always with "the house" when you gamble time over money.

    Best of Luck,
  10. rod

    rod retired and happy

    I am all for everyone waiting until they are 70 to collect SS. The less taking a cut out of the pie the longer it will last for me.
  11. upschuck

    upschuck Well-Known Member

    I don't think SS will ever go away. It would be political suicide for anyone who votes it away, as it should be. We have paid into it all our lives, we deserve the benefit. If it weren't for the leeches(congress) taking money out of SS it would be in good shape.
  12. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    How about giving different options for the people.

    Looking at my last on-line statement I've paid in over $81k and my employers have paid over $85k for a total of over $166k. And I am only 46 with almost 16 more years to work.

    By the time I am 62, those numbers most likely will add up to $350k or more with out interest. Could you imagine what the compounded interest would be on that amount of investment.

    So I say, either let us direct that money into another type of retirement account like a 401k and make the investment decisions for ourselves, or let people stick with the traditional social security for those that don't want to bother.
  13. upschuck

    upschuck Well-Known Member

    Thanks for reminding me, I've not been able to log into my account, if keeps saying I'm trying after hours when I'm not. Emailed them and just got the form email back. Need to call them.
    I agree, opt out at an early age, and you could have a lot more money than through SS. They tried to get through congress a bunch of years ago, but people were villianized for trying to ruin SS.
  14. satellitedriver

    satellitedriver Moderator Staff Member

    I don't care who you are.
    That's funny,
    and symptomatic
    of our present society.
    All us me's want the we's to pay, for us with the money we gave them/ those we elected.
    ME spells WE, when you look at it upside down.

    The problem is Congress is the one with the knife, and we only get the crumbs off the pie crust.
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