Social Security comments from a Senator

[Admiral Rockwell Tory]

Ponzi scheme. He didn't say it in so many words, but yeah, it's a Ponzi scheme, and the further out you retire, the less you're going to get. The government has stolen (or in their terms, borrowed against the trust fund) and spent it.

Anyone near retirement age - and I am getting there - would be advised to retire as early as you can, because the longer you wait, the less is going to be there.

It's simple economics.

Your source is incorrect. Age 67 has always been the full retirement age for anyone born in 1960. I know because I was born in 1960 and that has always been my retirement age. I retired at age 62 because I was disabled and could no longer work, so I received a reduced benefit. I later was determined to be disabled, so my benefit was raised to the full benefit amount. If was not disabled, I would have reduced the reduced amount the rest of my life, so I am well familiar with how this works.

My wife was born in 1957 so her retirement age was 66 years 6 months. She retired early at age 65 and will receive her reduced amount for life.

 

[Admiral Rockwell Tory]

Lots of people are working hard so they retire by 55. Cant blame them for not wanting to work past that ripe old age.

You must be very ripe than! You passed that about 4 decades ago, didn't you Methusaleh?

 

[Admiral Rockwell Tory]

of course they should. But there's no free lunch!

Congress should have left that money alone.

You don't understand. They can't. The excesses above what is needed to pay benefits are loaned to the government in interest bearing treasury bonds. There is no account where that money just sits. Been that way for decades!

 

[Admiral Rockwell Tory]

Do you know a good source to go to for advice on this? My son is retired at 55, but has been kicking around when to start drawing. Is there much of an advantage to wait until 65? Some say wait unyil 70. But that seems more risky.

If you retire at 62, you don't get Medicare until 65, so you have to pay for your own medical. That was my situation when I retired. I was 61 when I stopped working and paid for my own medical until the VA took over my care. After I had been on disability for a year, they added me to Medicare with the usual associate costs, but I don't use it. I have it in case I can't access the VA easily.

 

[WorldWatcher]

Your source is incorrect. Age 67 has always been the full retirement age for anyone born in 1960. I know because I was born in 1960 and that has always been my retirement age. I retired at age 62 because I was disabled and could no longer work, so I received a reduced benefit. I later was determined to be disabled, so my benefit was raised to the full benefit amount. If was not disabled, I would have reduced the reduced amount the rest of my life, so I am well familiar with how this works.

My wife was born in 1957 so her retirement age was 66 years 6 months. She retired early at age 65 and will receive her reduced amount for life.

You need to check that Rock. The full retirement age was not always 67 for someone born in 1960.

Full retirement age used to be 65, then in - IIRC - 1983 SS reform was enacted that rased retirement age incrementally. I was born in 1959, from 1959 to 1983 FRA was 65 for me, then it was raised to 66 years 10 months.

WW

 

[Admiral Rockwell Tory]

You need to check that Rock. The full retirement age was not always 67 for someone born in 1960.

Full retirement age used to be 65, then in - IIRC - 1983 SS reform was enacted that rased retirement age incrementally. I was born in 1959, from 1959 to 1983 FRA was 65 for me, then it was raised to 66 years 10 months.

WW

The vast majority of my adult life has been after 1983. Whatever happened before that I didn't care. Retirement was the furthest thing from my mind back then. In 1983, I got married and had no kids yet.

It doesn't matter, and I beat you to retirement anyway! Congrats on that achievement!

 

[Lockback]

Ponzi scheme. He didn't say it in so many words, but yeah, it's a Ponzi scheme, and the further out you retire, the less you're going to get. The government has stolen (or in their terms, borrowed against the trust fund) and spent it.

Anyone near retirement age - and I am getting there - would be advised to retire as early as you can, because the longer you wait, the less is going to be there.

It's simple economics.

It's always been a Ponzi scheme and it's become a tremendous source of money for corrupt politicians.
I don't see how this problem can be worked out. It's just another ticking clock that's going to eventually run out of time.

 

[Admiral Rockwell Tory]

It's always been a Ponzi scheme and it's become a tremendous source of money for corrupt politicians.
I don't see how this problem can be worked out. It's just another ticking clock that's going to eventually run out of time.

Not following you on this one.

 

[Lockback]

Not following you on this one.

They spend Social Security money, which is supposed to be sacred, on all kinds of other programs.

 

[Admiral Rockwell Tory]

They spend Social Security money, which is supposed to be sacred, on all kinds of other programs.

Uh, that's the law. It's not optional.

 

[Lockback]

Uh, that's the law. It's not optional.

Well, from what I've read, it's widely ignored.

 

[Admiral Rockwell Tory]

Well, from what I've read, it's widely ignored.

It is not ignored. Excess funds are loaned to the government through treasury bonds by law. I don't think you understand the process.