No. of Recommendations: 10
If you are depending on SS, you are counting on a 3rd party (the Federal government) to keep doing what they've been doing, even though they are not obligated to do so, and they can change the deal at any time. Money that is is your hands is in your hands. Money that you expect the government to give to you is *not* in your hands.

Funny coincidence, I just came here after reading a blog post on another site discussing that the current generation, the Millenials, hating the Boomer Generation -- which would be us folks who are in the SS claiming age. And how they are becoming cognizant of how the ratio of workers per SS recipient is trending. When/if they revolt (politically) and drastically cut SS, the deal will have altered.

When Social Security gets to the point that the government needs to radically change the rules, do you think that they'll say, "OK, everybody now gets half of what was promised," so that you were lucky to have filed at age 62 so as to get the "un-halved" amount for more years? I think that there'll be more subtle changes, like no COLA raises. So, people who filed early will sort of lose less because their reduction will be on a smaller monthly amount. But really, if there's a cut of, say, 5%, I'd still rather have 95% of the high age-70 amount.

The Millennials may hate the idea of paying into social security for you and me, but what they REALLY won't want is for mom or dad to have to move in with them because they agitated for lower social security payments and now their own parents can't afford their own home. And if you want to play to the stereotype, the Millennials are already living in the basement their own parents' home.

My annuity comparison in another thread didn't say SS is an annuity. But, looking at two scenarios:
-SS at age 62 plus you buy an annuity to increase your monthly income to the age 70 amount, vs.
-SS at age 70, plus live off the money you'd have paid for an annuity
showed the latter scenario to be much better in several ways.

Yes, SS isn't certain. But I'll bet it's more certain than plenty of other stuff people are counting on (pension, health insurance during retirement from their employer, market returns) because the government can tax when there's not enough money...or print money, or sell bonds.

If SS is means tested, the more "levers" you have to pull, the more likely you'll be able to arrange things to your benefit. So, having some money in IRA/401k, some Roth money, some outside investments, will all enter into the equation.
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