The coming Social Security fight could be 1983 all over again

[joestein]

Not when you are making six figures a year during that time. It helped push me towards the maximum Social Security benefit available. Get a perspective.

Claiming at 62, you get a 30% reduction in benefits from FRA. Working and waiting until 69 you increase your benefit by 24% from FRA. Add in the fact that I was maxing out my 401K (with employer match of 4%) with catch-up, maximum HSA (me and DW) and contributing to two ROTH IRAs.

You must plan on dying early.

Isnt it a 40% reduction. 67 to 62 is 5 years and doesn't it go down 8% per year or up 8% per year after?

 

[joestein]

I am doubtful that SS will be cut. Our gov't is addicted to borrowing and they are not going to cut SS benefits when they can just borrow the couple hundred billion shortfall.

Plus seniors vote more than any other group - anyone who votes for SS to be cut will be cut themselves.

 

[DrQ]

Isnt it a 40% reduction. 67 to 62 is 5 years and doesn't it go down 8% per year or up 8% per year after?

According to the SSA it is a reduction from 25% to 30% depending on birth date if you start drawing at 62.

Yes it grows by 8% per year after FRA, but if you are employed, you only pay half, but it was misstated as 4% rather than 6.2% up to the max withholding.