The Secure 2100 Act is the best way forward.
Contact your Congress critters and push.
“Those who take the option of collecting early can claim benefits as early as 62, but they receive 5 to 6.6 percent less each year—a kind of early retirement penalty—depending on their age when they begin drawing payments,” the Boston Globe reported Monday."
My question is, regarding the early retirement benefit penalty of 5-6.6 % is this: In the first year say, there is a 5% deduction and the year total reflects that deduction. In the second year, doers the reduced annual total then see an additional 5 - 6.6% reduction to the already reduced benefit? In other words, there would appear to be an exponential reduction by which loss of benefits would result in approximately 5-7years?
I’ve never been good at math…
It much the same here in Canada. While overall the system provides more to the poor in Canada there little doubt that it has to be enhanced in Canada as well.
RRSPs (much like your 401k plans) and the TFSA (tax free savings accounts) were added to help supplement peoples incomes in old age but both these systems favor the wealthy. They are designed around the principle of having savings each and every month to invest in these programs. The higher the income the higher the rate of savings.
The CPP , OAS and GIS all need to be enhanced significantly.
As someone that has lived and worked in Mexico, I can tell retired people that are struggling to get by on Social Security, to move to Mexico as I visited many retirees in Mexico that are doing quite well there because of the cost of living difference.
As someone whose entire income is SS I fear any cuts whatsoever. My Medicare expenses rise every year. It’s NOT FREE!!! I paid taxes for this support at the end of my life. I still pay over a hundred a month off the top of my SS check plus all the co-pays for doctors visits and medications. It’s interesting that Amazon didn’t pay any taxes last year yet they are itching to cut SS and Medicare/Medicaid to pay for those same tax cuts by the 2017 tax scam. Socialized big business by big tax cuts and we get screwed by cuts to our vital programs. Something is upside down here and it ain’t me.
Those with a supplementary retirement income can find areas away from the violence and do quite well down south. I can’t move due to disability. I fear gentrification as my modest pad is on a prime piece of land. If that happens I’m screwed.
Report Details How Social Security Has Become Rigged for the Wealthy While Leaving Behind Those It Was Designed to Help
SS has not “become” rigged by the wealthy. It was rigged by the wealthy.
True. Many retired Americans and Canadians live in beautiful, gated, and safe community’s in Mazatlan, and as well as other Southern Mexico cities. And the crime is exaggerated, because I have walked at night on the beaches of Cabo, La Paz, Puerto Vallarta and Cancun, Mexico and I can tell you that is something I would never do in San Diego!
As someone who claimed benefits early, I can tell you that the 5-6.6 percent less a year is a one time reduction, so to speak–you will receive the same amount in benefits each subsequent year as in the first year.
SS is a joke for a ton of people. At the lower end, for lower wage lifetime earners, the monthly benefit might get rent or it might not. and that’s without a crap ton of medicare deductions that are being imposed now.
this ruling class is on a frigging murder spree all over the planet, and we’re still scratching our butts in amazement at it all.
It’s them. Or it’s us. And right now, them is kicking our tails.
For the life of me I can’t figure out where they pull that 5-6% reduction crap from. My best guess is that, if current boomers, who’s full SS age is 67 take benefits at 62, the difference is about 30% (so divide that by 5 and you get 6%, which is specious math at best)
The bottom line is that if you take your SS benefit at 62 instead of waiting for 67, you would have to live to be 83 for the total amount drawn to equal out. And since most Americans only live about 16 years in “retirement” it actually benefits most to take it early. But of course nearly every week the internet is inundated with the same tired re-hashed stories decrying early filers seemingly in an orchestrated attempt to get people to delay taking SS benefits until the very last minute.
An old CPA friend of mine has the same advice for any client that is not wealthy. Take the benefit as seen as you can. Unless you live to be 85-90 there is no difference. And only people who lived in the top 1% of income homes most of their lives live that long in America.
All too true. Since the average rent in the USA is approaching $1200 monthly, and the average SS recipient gets only about $1400 a month, keeping a roof over your head is nearly impossible for half the retirees in America.
Of course if they don’t fix Medicare soon, the SS argument will be moot anyway.
My wife just word that her SS goes up a whopping $10 next year and her medicare goes up about $9.50! What a gloriously fucked-up country! (Unless, of course, you are wealthy)
You are correct, that is why I recommend struggling retires to locate to Mexico. I and one other person shared a beautiful 1500 square foot hacienda right on the beach that came with a part time maid for $500.00 a month piece which included all utilities. You would be lucky to find the same thing in San Diego for 10 times that amount!
Seems as though those who run the system rig the system.
Funny, what does it say about US when people who live decent lives, made average money, had an average existence, have to move to a third world country to survive on their meager retirement stipend?
Oh well, things will be different after the coming tribulations. Food will be cheap, or non existent. Either way. Interesting times ahead.
From AARP website:
“Social Security says it calculates the reductions so that, regardless of when benefits are started, people will collect on average about the same total amount over the remaining years of their lives.”
The assumption seems to be that Social Security recipients will live to about 80, on average.
Here are 3 examples:
Assume a full monthly benefit of $100. If someone retires at the full retirement age of 67 and lives until age 80, that would be 13 years or 156 months, and the total benefits would be $15,600.
Benefits are reduced by 5/9 of one percent for each month of early payments. In the example above, if the person begins to collect one month early, the benefit would be reduced to $99.44 and the number of payments received would be one more. 157 months times $99.44 = $15,612.08.
If the recipient began to receive benefits one year early, the benefit would be reduced by 5/9% per early-collection month times 12 months or 6.67%. The monthly payment would be $93.33 and there would be 168 payments for a total of $15,679.44.
A person who is poor, sick, and unlikely to live to 80 might begin to collect early, but that means a smaller amount for a shorter time. Someone who is healthy, wealthy, and likely to live beyond 80 might delay collecting and would receive larger payments, possibly over a longer time.
People might argue about whether that’s “fair”, but it certainly seems to be neither desirable nor compassionate. We can do better.
There is no additional reduction. The reduction is calculated once, based on how early the recipient applies, and that reduced amount is the amount received in all months.
It says that those retiring US people are getting screwed!