Will Social Security Survive For My Retirement? 78% of it will
In the Bumblefucked household we just got one of those nifty little reports in the mail from the Social Security Administration that tells you how much you have paid into Social Security and what your expected benefits are shaping up to be.
Today I actually read the paper that came with this little report. On the front it says “Will Social Security still be around when I retire?” Here is the answer, with the bolded parts my emphasis:
Yes. The Social Security taxes you now pay go into the Socia Security Trust Funds and are used to pay benefits to current beneficiaries. The Social Security Board of Trustees now estimates that based on current law, in 2041, the Trust Funds will be depleted. Because people are living longer and the birth rate is low, the ratio of workers to beneficiaries is falling. Therefore, the taxes that are paid by workers will not be enough to pay the full benefit amounts scheduled.
However, this does not mean that Social Security benefit payments would disappear. Even if modifications to the program are not made, there would still be enough funds in 2041 from taxes paid by workers to pay about $780 for every $1,000 in benefits scheduled.
Wow. Looks like Social Security will be paying out less than 80% of what is due to people when the Bumblefucked household hits retirement age.
If you were waiting for something to jumpstart your retirement savings this is it. I am going to log into Vanguard right now to set up an automated bi-weekly investment for the Bumblefucked household.
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[...] Shawna from Bumblef..d presents Will Social Security Survive For My Retirement? 78% of it will. [...]
Social Security today provides only enough to lightly supplement some other source of income. I’m being forced into early retirement by a layoff at an age when I haven’t a snowball’s chance of getting another job. Even if I had been able to wait until my so-called “full” retirement age of 66, the amount I would be entitled to would be a munificent $1,466 a month. Coincidentally, the amount I’ll have to take now is just barely over 78% of that: $1,162. No one could live on either amount.
Obviously, you need to have a lot of money in savings to survive in old age, unless you enjoy living under the Seventh Avenue Overpass. However, in the collapse of the Bush economy, I watched my rather conservatively invested, professionally managed savings lose $200,000. So…don’t expect that you’ll necessarily be able to live on savings, either. It’s mighty frustrating to watch a lifetime of hard work, frugality, and saving disappear thanks to other people’s greed and stupidity.
The only thing that will save me for a while is that I have two side income streams. By incorporating one of them as an S-corp, I will be able to continue working to earn enough to stay in my home and continue eating. I highly recommend that everyone develop extra sources of income.
[...] Shawna from Bumblef..d presents Will Social Security Survive For My Retirement? 78% of it will [...]
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