to Avalpert1
"Um, first, if you are doing double takes over $64k across 30 years I doubt you are making $168k a year at any point in your career. Second, you are looking at it wrong, a 62 year old can buy that $60/month in income for life for like $15k with an annuity and they pay about $10,500 in social security taxes on that $168k so the real net benefit for them in social security benefits for working that extra year are less than $5k... again, you may find that substantial but most people who earning max ss earnings and contemplating early retirement probably aren't going to change their plans over that little amount."
I have made six figures the last two years of my career and this is the last five years or so of my career, so you are correct that the little amounts mean a lot more to me than you. I never said that working one more year just for SS was the correct move. I left it open, because I noticed that nobody mentioned that this young man didn't have 35 years of minimum substantial earnings in SS, and that there was a benefit in SS to working another year. Of course $64k over 30 years of retirement is not THE reason to work another year, but it is another factor. You don't have to agree, but you tried to minimize the amount. Go ahead, minimize away. If you took 15k-the annuity amount you mentioned- in your backyard and burned it up, it would affect you a lot less than if I tried that. But what about this young man? What if he retires and the stock market quickly does a 2009 style crash and he wishes he had worked another year? Wouldn't he want to know all of the possible factors before retiring at age 50 or whatever it is?
"Um, first, if you are doing double takes over $64k across 30 years I doubt you are making $168k a year at any point in your career. Second, you are looking at it wrong, a 62 year old can buy that $60/month in income for life for like $15k with an annuity and they pay about $10,500 in social security taxes on that $168k so the real net benefit for them in social security benefits for working that extra year are less than $5k... again, you may find that substantial but most people who earning max ss earnings and contemplating early retirement probably aren't going to change their plans over that little amount."
I have made six figures the last two years of my career and this is the last five years or so of my career, so you are correct that the little amounts mean a lot more to me than you. I never said that working one more year just for SS was the correct move. I left it open, because I noticed that nobody mentioned that this young man didn't have 35 years of minimum substantial earnings in SS, and that there was a benefit in SS to working another year. Of course $64k over 30 years of retirement is not THE reason to work another year, but it is another factor. You don't have to agree, but you tried to minimize the amount. Go ahead, minimize away. If you took 15k-the annuity amount you mentioned- in your backyard and burned it up, it would affect you a lot less than if I tried that. But what about this young man? What if he retires and the stock market quickly does a 2009 style crash and he wishes he had worked another year? Wouldn't he want to know all of the possible factors before retiring at age 50 or whatever it is?
Statistics: Posted by AlaskaTeach — Mon Jun 03, 2024 1:07 am — Replies 66 — Views 10659