No. of Recommendations: 1
$1500 fewer dollars per month would not be a trivial difference for a married 80 year old couple
If that's their sole source of income, yes.

But the (2013) maximum benefit would be $1,923 if you retired at 62. So someone who would be getting $1800 is in the top tier of income earners, and should have much more retirement income source than SS. Remember, SS was not designed to keep retirees in luxury -- it is intended to keep retirees from being destitute.

A 1%'er should easily have $2M in liquid net worth when they retire at 62. Stocks, bonds, 401k, IRA, etc.

4% of $2,000,000 is $6666/mo. Assume this $6666 grows at COL rate (assume 2.8%), at 80 they'd be getting $10,958.

Their early (62) SS would now be $2959, and the late (70) SS would be $4175. That's $1216/mo. But let's go with your $1500 and say that they'd be getting $4459.

So their TOTAL income would be:
10,959 + 2959 = $13,918
vs.
10,959 + 4459 = $15,418

So, yes, I'd say that this 80 year-old couple would say this $1500/mo difference was trivial. There's nothing that you can do with $15,00 that you can't do with $14,000.
They'd not be changing their diet from filet mignon to Alpo. Although they might be dropping down from King size cut to Queen size once a month.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.