For all of you that are drawing early what are you doing about insurance?

I need to comment on "how little we pay in today for what we get back".

I started paying in in 1965 and my employer and I (still working) pay in about $1280 per month. My monthly benefit is currently $2515 but they are stealing $1280 per month from me and my employer. My monthly gain is about $1235. Now look at my earning statement from SSA:


Estimated Total Taxes Paid For Social Security

Paid by you: $142,281
Paid by your employers: $137,322 my account total is $279,603

It will take me almost 19 years just to get back what was put into my account. I started collecting at age 66 so if I can collect until age 84 I'll get back what was put into my account. If my account would have earned 3% or 4% interest my payback age would be 95+.

Social Security is the biggest PONZI SCHEME ever! I'll never get back what was paid into my account. The government uses the money to buy votes from people that don't pay into the system. That is why they are going broke.

Concerning health insurance. I retired from State Employment at age 52 with life time health insurance at no cost to me. Guess what happens at age 65 federal law requires everyone to go on Medicare and Medicare charges me $187.50 per month for the "free Medicare benefit". Again they take from the workers and give to the non-workers.

Lots of them have a wife that works and provides for them.

ebsurveyor, that supposed break even point doesn't include the time value of your money. Don't even go there.

I used Cobra for the first 18 months, after I quit working, to the tune of about $568.oo a month. When that ran out I was on Obama care until I turned 65. Obama care cost me about $330.oo a month, but I think I got about $400.oo a month in subsidies, so the real cost of Obama care was close to $730.oo a month. Now I am on Medicare. I'd have to look but I think Medicare costs me a little less than $300.oo a month, including my secondary insurance and prescription insurance.

"I know of people who never paid a dime into SS, but are collecting full disability for the rest of their lives. Another whose son's college was pretty much paid for because the father was disabled and on SS. They make it too easy to qualify for SS disability in many cases. Once they qualify for SS disability, they're on for life. Who would want to get off when the free money is so easy? SS should be more like Workers Comp where some claimants could be rehabilitated and return to work either full time or part time." Quoted from Trapper7

I for one can't wait to get off of SS disability. I am very thankful for the money right now, but it is not enough to raise a family on and I would much rather feel good and be able to work full time then get the small amount of disability check. As Tony F stated they give you a 2% increase in your monthly check but they take twice that amount away as an increase on Medicare.

y2k - My question also.

Health insurance that is.

I don't see it this way. What I see is people who have been having money stole from them their entire lives, finagling the best way to steal it back.

Bingo

We are doing without, paying our way.

Mr. Dirt, you at least understand. For workers SS is a ponzi scheme. For others it is the mythical "free lunch".

Maybe we can esplain it. The government takes $100 out of your paycheck in 1965. The government gives you back $100 in 2018. That $100 in 1965 would have bought 57 six packs of PBR. In 2018 that $100 will only buy you 18 six packs of Pabst. Depending on your drinking ability the government robbed you of about 20 good drunks.

Just think what that money would have done if the Gubmint had saved that for us in a 401K plan. After all, the Gubmint knows best how to manage our money.

For me I will start at 66 and 8 months. I will get Medicare and Medicaid. So I have to work to get insurance from my employer. I say right now I work for insurance for my Wife and we still have 3 under the age of 26, so we have them insured to.

All long term employed people would have been money ahead if they would have taken their money and put it into an ordinary savings account pre 2008. The money would be theirs and if they die at any age the money would go to their beneficiaries.

You all make a good point. I will retire nov at 62. I thought i would go one more year, but for only another 53.00 not for me!

Here you go: (Based on age 66)


If this individual waits until 66 he breaks dead even at age 77
If he waits until 70 it looks like it will take until 81 to break even.

There is no doubt if you were to put the same amount of money in a bank, at retirement age, considering interest on that money, you would have a larger lump sum than SS provides. But, most people can't systematically put away the savings on a long term basis. So, the government forces you to do it. For most people it's a good thing, even if from an investment standpoint it's not.

Good post Hal.

We have to wait until we're 67 which adds another 3 years to the break even part.
That's a very good chart showing it tho.