there is yet another option. according to the linked annuity calculator you and your wife if you were both age 65 you could buy a single premium joint immediate lifetime annuity for $100K which would generate $5616 per year or $468 per month which is considerably more than 4%. One of the two of you would have to live about to age 83 in order to have been paid back the entire $100K. One of the two of you would need to live about to 92 to have generated $150K in annuity payments. the downside of course is that if you both leave early you will be able to bequeath less to your heirs. there is also an option to have the monthly payments increased each year according to an inflation calculation but that will of course lower your initial monthly payouts. i plan to do this for myself when the time comes. of course you are paying the house to assume the risk but i'm willing to trade that for the certainty. in this situation i'm not looking for an advantage play. just a fair deal.
Abolish it and give everyone their money back! It's been a scam from the get go.
The money doesn't exist to give. While there in theory exist "trust funds," it is money that future generations owe the current one.
I'd be very slow to accept this is a good deal. I mistrust this calculator.
Of course it's not going away but the purchasing power of $1 will be nothing in 20 years just as $1 today buys a whole lot less than it did 20 years ago. Our SS payments are based on the dollars we are earning today (and the last 20 years), not the value of a dollar 20 years from now. The only thing that can stop that is serious deflation which will wipe out asset values (meaning a segment of retirees will have even less to work with at retirement).
That is an interesting point, and as a Social Security recipient, I have some first-hand info.Quote: lilredrooster
... in December of 2016 the s.s. payouts were increased by 3% due to the COLA.
Yes, the Social Security monthly gross benefits were increased. However, the Medicare premiums that are deducted from those payments were increased by the exact same dollar amount. There was no increase in the net benefits deposited in my bank account each month. It was strictly a matter of transferring funds from one government program to another related program.
That is an interesting point, and as a Social Security recipient, I have some first-hand info.
I don't think I really have anything to offer on the basic topic of this thread.
I retired at 58 with a (reduced) pension from my employer and started drawing Social Security benefits at 62 and Medicare benefits at 65. I do not work (at least not for any compensation) at all. I describe my status as "delightfully unemployed." I occasionally comment that unemployment is quite nice for those who can afford it. I consider it to be my full-time responsibility to have fun.Quote: terapined
At what age did you retire. Do you work part time?