What Happens to Social Security When You Retire at 55?

[@JAYY_JAYY]

I am 45 I am quitting work as soon as possible. I live alone , don’t spend much and have seen too many friends, family die before retirement age . I don’t care about reduced benefits. I don’t need to live extravagant at 65,70,75 How many people you know are out traveling , eating loads of food , spending at that age ? I think if you make it too that age you already won .

[@JWDecker69]

Currently 55 YO. Some very intelligent highly educated experts told me, when I was in my 20s, SS wouldn't exist for me at retirement age. Planned accordingly. If I get $1 a month SS I'll be ahead.

[@ChristopherEvans-650]

Agreed. I'm 56 years old and I remember them talking about it during the Regan administration. They did tweak it by making part of it taxable in 1983 and again during the Clinton administration in 1993. I have 40 years into it. 32 full time, 8 part time, so I am good, though I don't plan to take it until 70 years old.

[@MrNodeee]

They were not truly experts. You will get SS. You may get a reduced amount, but you will get SS.

[@davemckenna2828]

In 2010, I retired at age 52 with little effect on my eventual SS payments. I was a blue collar worker until the last 8 years of my working life. When I checked my indexed earnings I found that my best quarters were in the late 70's and early 80's. My income just before retirement , and my future earnings expectations would only index higher than 2 of my 35 best earnings years, and only by a little. Retiring early was the best decision I've ever made, and it had little effect on my FRA benefit. (I'm waiting until 70 to claim}

[@paulreinicke6366]

I have been wondering about this very topic. Very timely and thanks for sorting that out. Totally agree with you that the benefits of retiring early probably outweigh the lower benefit amount.

[@DWilliam1]

I’m retiring in a few months at 58. I’m in the $20K category and will collect at 62 with a deduction because it’s early and a couple of lower years. It will be $2598. That said, I have a pension with a partial COLA that will pay me $8K a month plus almost 1 million in my 403b and 401K combined. Healthcare will be picked up by the government at a cost of $150 a month to me. I was always told SS might not be there for me as a kid so I made sure I found a job with a pension and saved. If I get SS, then it’s a bonus. Home paid off too.

[@RyanBerich-u1w]

Great topic. Thanks for posting it. The important factor for someone retiring early is the 35 years for the calculation. How early did you start earning a significant income. If your 35 year calculation includes part time earning years, the average is lower.

[@titanman11]

So if someone started working at 20 years old at a part-time job, say 25 hours a week, and they retire at 55 (i.e. 35 years) there's not much of a reduction to social security monthly payment if say the person has high monthly income like the $20k example for say 20 plus years. Is my understanding right?

[@RyanBerich-u1w]

@ I believe the formula is the percentage of your earnings to the maximum amount for the top 35 years. If you made nearly nothing for the first 5 years there would be 5 years of near zero in the formula. You should be able to get the official report from SSA.

[@ChristopherEvans-650]

@@titanman11 Yes, I have 40 years into it. 17 years old to 56 years old. 32 years full time, 8 years part time. If I were to work three more years full time, it would only increase my monthly SS benefits by about $50. If I take it at 70 years old, I will get $3,500

[@jonathanfoster2263]

I think if your retiring at 55 you need to plan as if social security does not exist. because in reality it won't be for you for the next 7 to 12 years depending on when you take it. Yes think about it but if its critical for your retirement success you may need to wait another year or 2.

[@swtexan6502]

We're certainly not banking on SS being there in 10 years for us in it's current form... if it is, then that's a windfall for us.

[@timsilva1944]

I retired 3 years ago at 55 and plan on taking SS at 62 to get what I can. A bird in the hand vs feathers in a bush? Your statement somehow makes me happy that I'm no longer paying into a diminishing system.

[@javajava8856]

Well, if you don't think that social security is going to be there for you, you better get a refund on that 6.2% payroll tax that you're paying out of every paycheck...

[@swtexan6502]

@@javajava8856 I wish we could... I think it'll be there in some form. Might not be what it is now, depending on what the esteemed members of Congress does to "fix" it. Time will tell.

[@ChristopherEvans-650]

The moment SS goes belly up, your 401k's and your IRA's will go down with it. Do you really think the markets won't crash if SS dissolves? Think folks. Just like in 1983 and 1993, congress will wait until the last minute and make the needed change, which more than likely slowly raise the age or just adding 1% to the employee/employer sides of the payroll tax will fix it.

[@SergioMartinez-i4n]

Could you create a video on how to invest funds wisely in the stock market? I’ve come across several articles about people making a living off their investment portfolios. I have $45,000 to invest what do you think they invested in?

[@JosephZerafa-l3g]

Seek advice from an expert given the current market conditions and everything that is at risk with the current economy.

[@uwerathsack]

The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.

[@JacobGeorge436]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

[@uwerathsack]

Caroline Suzan Olson is the licensed advisor I use. Just google the name and you'd find basic info. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

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[@Lion_McLionhead]

Once thought there was a maximum. Once you hit the maximum, it was adjusted for inflation from then on & it didn't matter if you continued working. Nowadays, a lot more people don't hit the maximum but 20 years ago it was pretty easy.

[@marklynch8781]

Interesting that the low earner looses the most. This needs to change.

[@RyanBerich-u1w]

@@marklynch8781 the high earners pay in the most. I believe he said the low earners get a higher payout proportionately.

[@steveletro4252]

Retired as utility chief chemist in 2015 at 62 enjoyed spousal 65 to 70. SS max at 70 is $55k

[@csick11]

Best thing to do is dont rely on social security. Rely on your 401 and roth ira.

[@ChristopherEvans-650]

Really? The odds are more likely of a stock market crash than Social Security dissolving. If Social Security goes belly up, the whole economy goes with it and 401k's and IRA's will go down with it.

[@rotatingmind]

What percentage of the population actually makes 5k/10k/20k$ per month?

[@murrayhaven]

Azul, your comment, “The bare necessities . . . “ Now, the bear necessities of life song is stuck in my head! 😂

[@AzulWells]

One of my favorite childhood films. And now the song is stuck in my head too … 🎵Azul

[@tonycorso7865]

I don’t think you are taking into account the extra social security TAX that you would have to PAY while earning/working those extra 10 or 12 years in order to eventually collect those higher benefits.

[@markdavis1116]

If you started working after high school or college, you will have 35 yrs of employment by your mid 50’s.

[@csick11]

Just retire at 55 and don't take social security until 62. Easy peasy lemon squeezey

[@andreawill9017]

That's where your NQ brokerage bridge fund needs to be in place

[@MidlifeCrisisManagement]

Devin Carroll made some comprehensive videos about this topic. if anything, people tend to underestimate their Social Security benefits a little.

[@vincentnnyc]

6:13…you are in nyc? When was this film? Today is 12/22/24 and it is 19 degrees.

[@timsimmons9995]

In my novice view, in about 10-20 years SS will either need a total overhaul or not exist but it almost certainly won't look like it does today. Experts expect it'll be insolvent in a decade, plus we have an ballooned top heavy aging population. My SS calculations I think are around $1100 per month at 62, in 12 years. I'm anticipating that the money won't be there but if it is that's a bonus. The SS mismanagement angers me greatly since I paid in for nearly 4 decades. I think folks 55 and under need to plan that SS won't exist and if it does that's a bonus.

[@ChristopherEvans-650]

Won't happen. Modified by increasing the payroll tax or age, likely. If nothing happens than SS benefit decrease to 78% as there will still be FICA tax receipts coming in, just not enough to fully fund.

[@vincentnnyc]

What city is this in the background? San Diego?

[@MidlifeCrisisManagement]

6:11 "I'm in New York City."

[@vincentnnyc]

@ when was this filmed? Today 12/22/24 is 19 degrees

[@MidlifeCrisisManagement]

@@vincentnnyc on a day when Azul only needed a light jacket. he lives in Utah so cold weather is nothing new for him.

[@vincentnnyc]

@ notice ppl around him not wearing any thick coats either…one person was wearing a white t-shirt….this was probably film in autumn in nyc and not in December

[@javajava8856]

If it's 35 years times 12, that should be 420 months not 460 months.

[@Slaytheday388]

So what’s the most social security pays if you take at 67 if I’m a high earner?

[@brian3255]

4800

[@keithc5729]

Bad background sound.

[@timsilva1944]

Your numbers don't jive with the numbers that I got from SS directly.

[@MegaSuperEnrique]

Do you mean their numbers that say "this much if you work til 62"

[@timsilva1944]

I retired and started my pension at 55, so my "earnings" ended there. I didn't earn the 5K per month my entire career, yet the estimate that SS shows me at 62 is around what Azul shows for those earnings at FRA of 67. His numbers appear low.

[@JWG2014]

I just written off the idea of social security. I really don’t need it but it’s too freaking complicated to work out and care about.

[@GracePainting]

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[@JaykinsFrawn]

jehovah,How did you manage to succeed? I want to invest more wisely because I have a lump sum that inflation is slowly depleting

[@GracePainting]

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i can locate her now

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[@andreawill9017]

Too loud background noise

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I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $200k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.

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[@DerickSams]

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