Will cuts to Social Security change your retirement plans?

[Just Joe]

http://www.cbsnews.com/news/gop-social-security-funding-plan-cuts-benefits/

[nereo]

http://www.cbsnews.com/news/gop-social-security-funding-plan-cuts-benefits/

Not for us.  We are far enough out (~30 years) that changes to SS doesn't appreciably affect the success rates. It will be a nice safety feature and I fully expect to have at least 70% of promised benefits, but it wont change our timeline.

[farmecologist]

Probably will not affect our plan too much.

However, by choice, Social Security IS figured into the retirement planner we use ( personal capital )...so changes will be a bit of an unknown.

We currently plan on taking SS at the earliest possible time ( age 62 - let's not debate this....I know the pros and cons ).  If that changes then it will affect retirement calculations in a relatively minor way.

[BabyShark]

I'm 26 and since I have no idea what SS will look like in 35 odd years, I try not to take it into account in my calculations.  Would it be nice to have?  Sure.  But I'd prefer to be pleasantly surprised.

[MsPeacock]

I am 15 years out, at minimum, from SS. I can't really predict what the program will look like at that point in time - so, no changes in my plans one way or another.

[SuperMex]

I assume that they will means test it or cheat me out of it in some way. I haven't calculated it as far as needing it to survive.

[Roboturner]

we dont put [implied] inheritance or SS in any of our calcs, would just be an added bonus if either/or came through

[Eric]

Any reason why you think this is Off Topic?  Seems pretty relevant to FIRE to me.

[Gin1984]

I'm more worried about cuts to Medicare, myself.

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[waltworks]

Health care will be a bigger issue for FIRE folks, I'm guessing. With no ACA, your choices are to drastically cut the budget/withdrawals and get on Medicaid, or pay a LOT of money out of pocket for insurance.

A lot of people will be headed back to work, I'm guessing, because that's going to be a $10k/year+ hit. Save up your extra $400k (or maybe quite a bit more), kiddos.

-W

[Syonyk]

Social... security... OH!  That tax on my paycheck that I pay twice on self employment income!

I assume my parents generation greatly appreciates my contribution, and that I'll see nothing of that it going forward, or so little that it's beer money.

So, nope.  I intend to "retire" (to the hard physical labor of homesteading) long before SS is relevant, and if I get anything out of it, ever, that's a bonus.

[wenchsenior]

Well, it's highly unlikely SS will go away entirely, so we've just assumed all along that the payout will be cut or adjusted in some way so the program can remain solvent.  We therefore plan on receiving approximately the minimum benefit (I think that is ~1100/mo) and that's all, though hypothetically given DH's salary, it could be a lot more. If it is a lot more, that will be party money!

[farmecologist]

Well, it's highly unlikely SS will go away entirely, so we've just assumed all along that the payout will be cut or adjusted in some way so the program can remain solvent.  We therefore plan on receiving approximately the minimum benefit (I think that is ~1100/mo) and that's all, though hypothetically given DH's salary, it could be a lot more. If it is a lot more, that will be party money!

That is basically what we are doing...but assuming just a bit more than the minimum.  Also assuming that the 'earliest withdrawal age' will continue to be age 62.  If the 'earliest withdrawal age' changes by a couple years..no big deal.  The thought is that Social Security income should at least cover health insurance premiums, and maybe more.

I think people are far too pessimistic on Social Security in general.  Sure, there almost certainly will be reduced payments.   However, there are far to many people that absolutely depend on it for it to just 'go away'.  I firmly believe there WILL be social security when I reach "social security retirement age"  ( i.e. - 62 ).

[nereo]

I think people are far too pessimistic on Social Security in general.  Sure, there almost certainly will be reduced payments.   However, there are far to many people that absolutely depend on it for it to just 'go away'.  I firmly believe there WILL be social security when I reach "social security retirement age"  ( i.e. - 62 ).

While I agree with you that SS *will* be available in some form, there's a difference for Early Retirees (ERs) between expecting it to be there and having that change your FI/RE goals.  If you are ~30 years out from SS it may not change your plans one iota either way.

[farmecologist]

I think people are far too pessimistic on Social Security in general.  Sure, there almost certainly will be reduced payments.   However, there are far to many people that absolutely depend on it for it to just 'go away'.  I firmly believe there WILL be social security when I reach "social security retirement age"  ( i.e. - 62 ).

While I agree with you that SS *will* be available in some form, there's a difference for Early Retirees (ERs) between expecting it to be there and having that change your FI/RE goals.  If you are ~30 years out from SS it may not change your plans one iota either way.

I totally agree with that.  Just trying to point out that some of us find it useful for "big picture" long-term planning.

[Just Joe]

We're expecting the minimum too despite paying into it our entire lives.