Friday, October 28, 2011

Fleecing of the Sheeple

Notice lately all the articles proposing that working stiffs should keep working until age 70? Figures touting that waiting until 70 will give you so much more money you can't afford to collect Social Security at age 62. Anyone done the math?

My brother-in-law sent Linda an article and suggested we should rethink our Plan. Let me show you what I found using my real world, personal, SS numbers that are the most current available;


At 62                                              At 66                               At 70

1,466                                             1,984                                2,650     Monthly Benefit



Waiting until age 66


1466        Difference a month         -518                               

x  48  (months between age 60-66)

70,368 / 1984(benefit at 66) = 35.5 months to recoup already collected benefits



     1466                                              1984

   x 83.5   (48+35.5)                         x 35.5

122,411                                          70,432      At age 69 (66+2.9) a net gain of $51,979  



At age 69………51,979/518 = 100.35 months/12 = 8.36 years to break even.



62 + 4(to age 66) +2.9(years to recoup collected) + 8.36(to break even) = 77.26 years old = 15.26 years of retirement already enjoyed.

Now some might not believe the math, so here it is in short, concise form.


These would be the total numbers at age 77.26 if starting at 62

     

      1466                                                   1984   

       183.12 (months age 62-77.26)            135.6   (months age 66-77.26)

    268,453.92                                          268,078.08  

Total payments collected at age 77.26 = +375.84 if started taking at age 62

That 25% a month bump doesn't look so good when it is compared to being free, as opposed to having to work an extra four years.

I'll look at waiting until 70 and life expectancy later. Right now I have to get ready to go to work. Only 42 more months of this for me and I'm done.

4 comments :

  1. Paul: I am trying to work out our numbers too, but we are in Canada, so different numbers. Luckily they just changed the laws about contributing to the government plan starting next Jan 1st which means I can collect, work, and continue to contribute and my monthly payout will increase by a certain percentage for each month worked over 65. It is a gambling game trying to figure out how long your health will hold out vs working longer and then not be able to enjoy life.

    bob
    Riding the Wet Coast

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  2. Bob,
    It is all a crap shoot, as none of us know for sure when our time is up. That is part of my thinking in wanting to get started on this fulltime retirement phase of life. I've known people who died within 6 months of retiring.

    South of your Border, here, we also can continue to work and add to the payout. Who knows if after a couple of years I won't feel like going back....it will be available.

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  3. I was fortunate enough to retire from USPS at age 55 and they gave me a retirement incentive to boot. I highly recommend not working. It sucks to have to wait until 62 or later to be able to afford retirement but a lot of folks aren't even able to do so then. I'm still "waitn on Obama".

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  4. Oh, I've seen, heard and read this bull about retiring later. Those gurus want us to work and pay into the system until we die. You see, they don't actually want you to withdraw anything and hope you keep paying in til ya croak. I agree also that so many lazy douche bags are milking the system plus those illegals who get benefits from a system they have never, and will never, pay into. Just how the hell do these losers get these benefits anyway. No! If you have any idea don't post it here, don't want to make it any easier for them. I joked with my son that there must be a secret book on it out there. "Fleecing the system. The lazy mans way to living off the sweat of others and never having to lift a finger"
    Well I have a finger for them.

    As for you, retire and enjoy your freedom. You've earned it.

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