Yes people would be surprised if they ran the ACTUAL numbers. "MOST" draw out what they paid in in about 3-5 years.

It is all birthday dependent. For me born in 1946 I could earn an unlimited amount and not effect my SS at age 66. So I started getting SS at age 66 and never stooped working.

The payments (stipends) etc. are all based on tables created that if you live to be the normal or average age when taking SS you will receive roughly the same amount during your receiving years. The whole thing depends a lot on how long you live. One can make the decision based on your health status etc. when you start to draw. Waiting increases one's monthly stipend about 8% per year so some things to consider are do you have other revenue streams to use that can delay claiming and do you want to have a higher monthly payment when you start? I had a 50% 50 80% part time job when I was 62 so I waited until I was 66 to claim. My birthday was the last part of December so it coincided with Medicare stat up as well. For those that are healthy and have a job they like or enjoy, working longer and waiting until maximum age or 70 works very well. There are those over 70 I know with pensions, savings, SS and are taking temporary full time jobs and really having good incomes. Another thing to think about is that SS uses the same tables that deferred savings plans do which is why your RMD percentages go up every year with the idea that at about age 88 or so it is gone which is a typical life span. With the tax law change a few years ago I have chosen to pay tax and move deferred to Roths. Looks like I can do that for another 5 years or so and RMDs will be lowered.
I am also investigating buying funds or stocks that are growth based and not so much dividend based. About 15 years ago I started to favor some dividend funds etc. but with dividends taxed at 15-30 percent based on income capital gain is zero until almost 80K for married couples with a max of 15% Just need to find some lower risk securities that meet our investment needs.
Bryce

Must also be another factor too. My Dad (1936) went back to work as a consultant after retirement and had to start paying back SS after he made x amount.

I knew a guy that died at 62. He lost!

Back when it started the government was counting on it to happen a lot more often.

The government probably did not anticipate that wages would go up 20 times either or the caps and rates would be raised. We can handle the increased years of receiving if we deal with the issues of when to start, at what level and if we want to explore caps more or rates as well. We have not had an increase in 25 years in rates. If wage rates the last 25 year would have increased in proportion to GDP etc. the fund would have more longer term security. There are millions that make far over the cap and thus more and more of our GDP along with capital gains etc. etc. does not ever get into the ss funds. If we don't want to review that then we do need to establish a phase out system that is fair to those who are 50 ish and have contributed for say 30 years. Convincing people to save that percentage will be a huge issue down the road if they don't. We also have to figure out how to deal with Medicare or offshoots of Medicare if we choose to change our systems.

Bryce

As I understand it, if a SS recipient receives less than $1200/month, you can earn enough to get up to $1200/mo total. If you are drawing $1200 or more, then you have to wait until full retirement age, which is 66 1/2 for me. Then you can work and earn additional money.

Straight off the Social Security website:

If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.

In 2020, if you’re under full retirement age, the annual earnings limit is $18,240. If you will reach full retirement age in 2020, the limit on your earnings for the months before full retirement age is $48,600.

Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.


Full retirement age, also called "normal retirement age," was 65 for many years. In 1983, Congress passed a law to gradually raise the age because people are living longer and are generally healthier in older age.

The law raised the full retirement age beginning with people born in 1938 or later. The retirement age gradually increases by a few months for every birth year, until it reaches 67 for people born in 1960 and later.

I guess returning the money they stole wasn’t an option.

That's not true, a person can make all they want and draw their full amount when they've reached the full retirement age. What that age is depends on your birth year. For me full retirement age 67, after age 67 I can make all I want and not be penalized..

The age of 70 does has some significance. If a person doesn't draw their social security at their full retirement age, the benefit amount will increase until age 70. After age 70 one may as well draw because it isn't going to get any higher.

That is exactly right Steven.

My full retirement age is 66 years and 8 months. After that age I can collect my full amount and earn as much as I want to with no penalty to my SS checks. If I wait until age 70 my checks will get larger.

That is a trap I didn't get caught in. When you consider the four missed years (66-70) it will take some time just to get even. Especially if you take those four missed years and just invest the SS payments. I think the break even point for me was more than 10 years. I decided the SS payments at age 66 was worth more to me than extra money when I'm 80.

The social security programs is one of the largest transfers of wealth there is and I'm made up my mind it was intended to run surpluses and use those surpluses as a defacto way to spend money in the general fund without raising income taxes.

In a perfect world they would phase it out.

80? Do you think your going to live forever lol.

I don't plan on waiting until I'm 70. I do plan on waiting another 4 years and 4 months to collect my full amount and not have to worry about how much I earn and penalties to my SS checks. I enjoy running the construction company and helping on the different projects we do so I have no plans to retire. Property management can be a PITA, that's why owners pay me to deal with the crap. I may give that one up.

I’ve never understood folks that want to work until they die. Thought the whole point of retirement was to retire? I’ve always considered SS as a supplement or either live off of that and supplement with your retirement. I hope to “work” at what I enjoy after retirement. No 8-5 under management rules.
And if I read it right, SS can actually be drawn at 59.5. With that said I plan on working another 10 years or so and draw at 62, but it’s nice to know I can retire at 60 and still have a little something coming in from the government.

Social security can not be drawn until you are 62.

A 401k or IRA can be drawn at 59.5

Shoot no. At this stage I'm just hoping for one more year.

It's amazing to me how few people understand whatever retirement system they are in. A little time with GOOGLE and they could learn something.