[aljetmet]

Very interesting article in Yahoo Finance today.
We've had recent discussions concerning annuities and when you should start Social Security.

Check this out.

Social Security: The Cheapest Annuity in Town - Yahoo! Finance

[SukiChu]

Thanks neighbor. If only we knew HOW LONG we are going to be around. OH, WAIT. We are moving to The Villages! Frogs live a very long time!

[asianthree]

Originally Posted by SukiChu

Thanks neighbor. If only we knew HOW LONG we are going to be around. OH, WAIT. We are moving to The Villages! Frogs live a very long time!

Unless you get run over by a golf cart

[RVRoadie]

The math may make sense, but would you buy an annuity from a company the put the following disclaimer on your contract

Your estimated benefits are based on current law. Congress has made changes to the law in the past and can do so at any time. The law governing benefit amounts may change because, by ****, the payroll taxes collected will be enough to pay only about 74 percent of scheduled benefits.

This appears on your Social Security Earnings Statement

[ilovetv]

....the soaring federal debt has allowed politicians of all stripes to begin talking about reining in Social Security expenses. Proposals range from increasing the Social Security tax to raising the retirement age.

The problem is an aging population -- too few workers supporting too many retirees -- and a government that has borrowed heavily from the Social Security Trust Fund.

A nonpartisan General Accounting Office report recently warned: "In the next two decades America’s population will age dramatically, and relatively fewer workers will be asked to support ever-larger costs for retirees."

Warner warned that unless something is done, Social Security beneficiaries could see a 22 percent cut in benefits by 2037. Chambliss said the government is now writing checks out of the general fund to pay beneficiaries. About 40 cents of every dollar of that money is borrowed, he said, and the country is paying interest on that money. That inflates the federal debt.

U.S. News and World Report recently reported that last year Social Security ran its first cash deficit in more than 25 years.

"This is troubling because the federal government for years has been borrowing the system's surpluses, and now there's nothing left to borrow," the magazine reported. "Worse, the government is going to have to borrow just to pay back what it owes Social Security."......

They said the best data come from the Social Security Administration, which says that in 1950 there were 16.5 workers for each Social Security recipient. In 2011, the ratio is 2.9 workers for each recipient."

PolitiFact Georgia | Va. Senator says fewer workers supporting more Social Security retirees

[tv2016]

Thank you for sharing this article. It's another analysis tool to help with a big decision.

[rjm1cc]

Originally Posted by aljetmet

Very interesting article in Yahoo Finance today.
We've had recent discussions concerning annuities and when you should start Social Security.

Check this out.

Social Security: The Cheapest Annuity in Town - Yahoo! Finance

As a general statement taking SS as soon as you can is not the best option if you can afford to pay your bills from other assets and expect to live a long life. This is probably what most people do not do. Thus this is a very good article to consider.

SS is not simple but file and suspend (one spouse collects on the others SS and that spouse has suspended their payment so they are buying the annuity) can help you buy the annuity. Also one spouse collecting SS now and the other buying the annuity may work. Especially if the collecting spouse (lower paid of the two) can switch to the other spouses benefits when they start collecting.

The key is to do a lot of research before you make the decision. One good thing is that if you postpone collecting you can always change your mind and start collecting if you need too.