The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  https://boards.fool.com/here-ya-go-not-my-specific-numbers-those-are-at-32160378.aspx

Subject:  Re: Attitude Question - SS Date:  3/15/2016  12:49 PM
Author:  Hawkwin Number:  79338 of 97361

Here ya go. Not my specific numbers (those are at home someplace) but numbers from a study performed by SSA.gov.

http://www.reuters.com/article/us-column-miller-socialsecuri...

--Younger workers will get less. Today's young people will see lower rates of return, because they will have paid the highest payroll tax rates of all the age groups compared in the SSA analysis.

--Couples do better. Marital status is a key factor affecting Social Security returns. In every age group, the best returns went to married couples where one spouse works. That is because Social Security's design includes valuable spousal features that pay benefits to nonworking spouses and surviving widows. Spouses are entitled to receive the greater of his/her own benefit or half of their spouse's benefit. And surviving widows can step up to 100 percent of a deceased spouse's benefit.

A single-earning couple with medium wages, born in 1943, will see a 4.59 rate of annual return, while a single female born the same year - also with medium wages - can expect a 2.49 percent return. (Spousal benefits are also available in cases where a lower-earning spouse had some earnings but so much less that their worker benefit is less than half.)

--Longevity matters. All pension and annuity systems are structured around mortality credits - that is, they use assets of those who die young to fund the benefits of those who live to a very advanced age. A projection by Favreault of Social Security data found that 82 percent of individuals who live to age 85 get back more in benefits than then pay in taxes; about 52 percent of those who die between 75 and 84 come out ahead. Meanwhile, just 21 percent of those who die between 62 and 69 get back more than they put in to the system.

------------

An interesting and humorous tangent about married couples with one working spouse. Johnny Carson was married four times. Because of the laws regarding divorced spouses and SS, Three of his wives, both his current and two previous, were eligible for half of his SS benefit, of course without any reduction for him. One missed out because she was married to him about 9 months less than the required 10 years.


https://www.mutualfundstore.com/investing-insight/re-marriag...
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us