Reply to What Would You Be Willing to Do to Save SS?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]8:15 here. My mom has a Jitterbug and this does seem like a problem.

You're also talking about the progressive benefit formula. Do you have a source for your numbers on contributions vs. benefits, because they don't seem right.[/quote]

Social security website was the source.  Actual numbers from friends and relatives.  Because of the max earnings people feel free to discuss it-not a subject like actual earnings.   Retired teachers /cops etc in major cities [high cola areas] should really be complaining via unions to elected officials about medicare premium surcharges beginning at 85k retirement.  Now that is just grossly unfair.

[/quote]

Retirement security person here. For really low income people, the annual benefit is about 90% of their wages when they were working. For middle income people, the rate is about 35-40%. For the highest earners at the cap, their annual benefit is about about 25% of their salary before they retired. I haven't seen your figures for low earners as a ratio to high earners for contributions. [b]If you have a link I'd be happy to take a look[/b].

It's true that living standards vary by area.[/quote] Please don't confuse people with actual facts.   :) [/quote]

Numbers are actuals from real people so no links.  Medicare premiums are on it's website.  What would I do?  Remove all medicare freebies at the state level for Part A.  Change Part B base so there are no income based surcharges and have all pay prescription.

You can do sample amt paid v benefits.  Use 40 quarters only annual max income for 10 years and then use a lower number for 10 years.  Try 120k v 10k.  [/quote]

Retirement security person here. Somebody who pays on over just 10 years would get a low benefit no matter their income. SS benefits are calculated over 35 years, so it would be better to use 35 years. 10 years is the minimum you can pay in and get any benefit. [/quote]

Yes but those parameters are easier for data entry on this exercise based on the calculators I can find.  We are interested in pay in, income, benefits.  3 things and any calc I have found [except actuals] just shows income and payout. DOB 1/1/1954 with 10 years of earnings ending 2014.

10,000/year 62=181>pay in exceeded in 3.5 years
max per year at 62=1046>pay in exceeded in 6.5 years. 
[/quote]

Retirement person here. Here's a way to get quick results for benefit levels without sacrificing accuracy. Take those replacement rates I posted earlier (25%, 40% and 90%) and apply them to whatever income you're considering. Income is the average income of this person over 35 years. For a low income like $25,000, use 90%. For a medium income like $50,000 use 50%. For a high income at the cap use 25%. For something in between one of these income levels, use a rate that's in between. The result of income*rate will be the benefit level for this person. Then divide by 12 to get the monthly benefit and subtract off the monthly Medicare premiums you gave above. If I've misunderstood what you're trying to do, let me know.[/quote]

Back again. I forgot: pay-in equals the average income you used above * 6.2 or 12.4 depending on your goal * 35 years.

Obviously these are very rough calcs, and applying the SS benefit formula would give you a more precise answer. It doesn't sound like you need that, though. So if you go with what's above, you get rough, but you don't have the issue of 25 years of zero income in the benefit calculator you're using, which really would lower benefit results.[/quote]

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