I'd also opt-out if I could (and they can keep anything I've already contributed). Social Security tax is 6.2% of the first 117,000 in 2014, or $7254/yr. My wife and I are contributing a good bit >$1000/mo to Social Security. It's definitely frustrating to think about what else I could do with that money. And the cap goes up to $118,500 for 2015, so they're just going to take more.
Retirement planning
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I'd also opt-out if I could (and they can keep anything I've already contributed). Social Security tax is 6.2% of the first 117,000 in 2014, or $7254/yr. My wife and I are contributing a good bit >$1000/mo to Social Security. It's definitely frustrating to think about what else I could do with that money. And the cap goes up to $118,500 for 2015, so they're just going to take more.
ultrarunner
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Many get more out than paid... some have paid very little and get way more.
In my Dad's case... he never stopped working... even with Chemo and Dialysis he still went to work... took SS at 70.5 and continued to work...
He knew his days were limited and figured he would rather work than sit home in an easy chair because he wanted Mom to be secure... no one in my family has ever drawn a pension.
Mom's social security from a lifetime of part time nursing was $600. When Dad passed her social security went to $1800 and that gave Dad a lot of comfort...
In my Dad's case... he never stopped working... even with Chemo and Dialysis he still went to work... took SS at 70.5 and continued to work...
He knew his days were limited and figured he would rather work than sit home in an easy chair because he wanted Mom to be secure... no one in my family has ever drawn a pension.
Mom's social security from a lifetime of part time nursing was $600. When Dad passed her social security went to $1800 and that gave Dad a lot of comfort...
KiotiKowboy
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Just for clarification ...
SS has NOT ONE PENNY in the bank. Taxes flow into the general fund and right back out again. The concept of a separate funded SS system ended when politicians violated the trust of the people and raided the account to fund their pet projects.
If the government was held accountable to the law, the same as businesses and individuals, most of our politicians would be in prison.
SPIKER
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Yes many placed pension funds into accounts was gone when markets crashed etc, so business as usual.
I would jump on a early payout of cash and let me manage my OWN accounts, I do that NOW for savings and 401K & my IRA, managing all my own $!!!
Mark
ultrarunner
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A very good friend retired from the Phone Company 25 years ago... he went against all advice and did a roll over into his self directed IRA back then.... he has since converted to annuities because he is over 80.
By managing his own investments... he tripled his ATT monthly retirement check from what he would have received if he had left it in and not taken control
By managing his own investments... he tripled his ATT monthly retirement check from what he would have received if he had left it in and not taken control
Lets assume someone intends on retiring at 60. Home is paid for, cars are paid for and in good condition. What do you think will be needed in liquid funds to retire ? Figuring property tax of 7,000 pr yr and health insurance as well. No kids.
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It depends on too many variables for each individual.
For example.... Our property taxes are about $500 per year. So there's a $6500/year variable right there. Let's say we both live to 80. 20 years of property taxes and you need $130,000 more than us if all other things are equal.
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newbury
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Have any of you studied the squalid conditions the low income workers existed in prior to 1935? Social Security was DESIGNED as a SAFETY NET for the mass of people who could not, chose not, or by some accident did not save for their retirement and then ended up outliving their income.
Now I realize most on this board would rather let humans fend for themselves entirely and die after they can't work, all in third world squalid conditions, some people don't feel that way.
And the fact that the American public elect officials that are too stupid stupid to manage money is their own fault.
I worked with a lot of scientists, "smart" people, who thought they managed their own money well up and were going to retire rich up until Black Monday, October 19, 1987. But they were a lot older than I was, so I wouldn't make the same mistake because I wasn't due to retire until 2016, another 29 years.
And I worked with a similar crowd during the October 27, 1997 mini-crash. I vividly remember seeing a bank sign, one of those that tracked the DJA, showing 508, as we left work and thinking the time was off. Many of the older scientists I worked with who were about to retire lost a great deal of money and had to work several years longer. But they were older than I was, so I wouldn't make the same mistake because I wasn't due to retire until 2016, another 19 years.
I was one of those whose employer retirement plans started to include funds that invested in the stock market. And we were allowed to move these funds about thru various packagess. By 2007 most of my close friends at work, and I, were moving our retirement $$ thru various funds and enjoying the paper returns. In the late summer of 2008 I faced back surgery and the doctors placed me on a bunch of pain meds. Knowing I was going to be wiped for a few weeks I temporarily moved my all my $$ to treasury bills. By the time I got back to work my coworkers had lost 30% of their retirement funds or more.
But my $$ were saved. And I wouldn't make the same mistake because I wasn't due to retire until 2016, another 7 years.
Then came 2009. My wife suffered 2 strokes, one nearly fatal, that took her a long time to recover from and mandated early retirement, about 5 years early, 2016 isn't here yet.
It's refreshing to read here about all those who are so successful in managing their own money. Back in 2011 there were a lot of posters bragging about investing in gold and saying it was going to go thru the roof. And it did, it went thru the roof they were standing on. I haven't noticed many who advise buying gold at 1600 and selling at 1200.
The point is that social security was designed as a safety net (maximum benefit is only $2.6K/mo) not a retirement plan, and it was always a ponzi scheme to some extent.
However now a lot of employers are "designing" it into their retirement plan.
And pension plans are failing all the time. There are very few of us who fully control our own fate, regardless of how well we plan.
I view SS similar to "tithing" at a church. Money for those that but for luck could be me.
I view managing my own money as a necessary part of life but realize I don't know enough to outsmart the wolves of wallstreet. How many of you would have predicted diesel prices as they are? My local station was down to $2.90/gallon yesterday, almost $1 less than last year.
The big problem is getting those who don't "deserve it" off the money train.
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Travelover
Elite Member
Here is the problem with allowing people to opt out of SS - IMHO:
Without SS, many of these people would be on some other government dole, paid for by us.
How to Retire on Social Security Alone - US News
Without SS, many of these people would be on some other government dole, paid for by us.
How to Retire on Social Security Alone - US News