Social Security COLA 8.7% for 2023

[5030]

The 8.7% increase don't even cover the cost of inflation and what it's doing to your spending power.

 

[Snobdds]

The one good thing with SS...you're benefit is based on what you put in. Everyone has different payouts depending on how long and how much was contributed.

If your a 1099 contractor and never paid in...sorry sucker.

 

[sea2summit]

Social Security isn't "free money". We're taxed on it all our working lives.
That said, SS should be strictly applied for people who paid in... not for any other recipients

Sorry Roy, maybe I wasn't clear. Wasn't referencing SS with that statement, it was the relief checks and other inflation fighting measures that do exactly the opposite.

ETA, from long ago I gave up counting on my SS contributions ever coming back to me with the miss management of the system.

 

[sea2summit]

Nothing is free from the gummit, nothing. Far as SS goes, you paid into it with no choice and it's your money you are getting back, not theirs. It's a forced 'savings' account, nothing more, even though politicians robbed the fund for money which, is typical of politicians.

Too true, and with the "administrative costs" of managing SS the government is literally making itself a self licking ice cream cone with that money.

 

[plowhog]

Choosing when to collect SS is a complex decision that each person must make based on their circumstances. There are a few additional considerations I have not yet seen here:

1. The comparisons of whether to "draw early" or "wait until 70" are not accurate, in my opinion. Because they presume the money drawn early is spent with no return or residual value. But what if you use the early-drawn money to buy tangible goods, like a tractor, land, or a rental property? Or, more simply, invest the early-drawn money. Calculate a typical return on that, and it moves the decision more toward drawing early.

2. If you wait to draw, but die before starting to draw, your family loses all the value that would have been added to the size of the estate they will divide up.

3. For me, the crossover point was age 84. At age 84. I would have drawn exactly the same amount regardless of which path I chose.

A very skilled investment advisor once counseled this on drawing SS: "It's counter-intuitive. If you don't need the money for monthly expenses, you should start drawing it early. But if you do need the money for monthly expenses, you should wait as long as possible, up to age 70."

 

[Username Taken]

Choosing when to collect SS is a complex decision that each person must make based on their circumstances. There are a few additional considerations I have not yet seen here:

1. The comparisons of whether to "draw early" or "wait until 70" are not accurate, in my opinion. Because they presume the money drawn early is spent with no return or residual value. But what if you use the early-drawn money to buy tangible goods, like a tractor, land, or a rental property? Or, more simply, invest the early-drawn money. Calculate a typical return on that, and it moves the decision more toward drawing early.

2. If you wait to draw, but die before starting to draw, your family loses all the value that would have been added to the size of the estate they will divide up.

3. For me, the crossover point was age 84. At age 84. I would have drawn exactly the same amount regardless of which path I chose.

A very skilled investment advisor once counseled this on drawing SS: "It's counter-intuitive. If you don't need the money for monthly expenses, you should start drawing it early. But if you do need the money for monthly expenses, you should wait as long as possible, up to age 70."

Good stuff.

You pay into SS with after-tax money and when you start receiving it, many people have to pay taxes on it. Something don't seem right.

Also, what if (I hate those) you took all your SS money from 62-On, invested it and took it in a lump sum when you're 70?

I took mine. If I can get money from the goobermint, I get it. Immediately if not sooner.

I also never over-contributed to the IRS and used them as a bank. But that's just me

 

[FERLING]

That is all factored into the math with the break even point...

Roll That Dice! By the way check out the obits - how many were 80 plus and how many were under 80. Social Security loves for people to work until they fall over. It eases the burden on those they send a check to every month.

 

[5030]

Without sayin what I get monthly, let me say it's a good chunk of change.

 

[FERLING]

Nothing is free from the gummit, nothing. Far as SS goes, you paid into it with no choice and it's your money you are getting back, not theirs. It's a forced 'savings' account, nothing more, even though politicians robbed the fund for money which, is typical of politicians.

Correction - The money you paid in is not yours. It did not go into a savings account for you. The money paid into SS today is paid out to people that are receiving SS / Disability today. Your contributions to SS comes with a promise that when you retire the people currently paying in at that time will contribute so you can receive a check.
It's a basic welfare system for the old and disabled. People that earn an income pay into SS so old and disable get a check to buy food, etc.
If they made SS optional no one but the rich would pay into it. Old and disable people would have to have a 'go fun me' page on facebook just to keep from starving.

 

[Gale Hawkins]

While my break even is 78 by starting at 70 my COLA $$$ is much greater than had I signed up at 62 or 66. If I die in the next 6 years you guys can fight over what I left on the table.