Living only on social security

Twostep said:
As far as I figured out - yes. Two years of IRMAA based on me and until SO retires.
My, call it gripe, is that I need no medical services/medication. My B12 shots are $64.
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I get that, but Medicare is supposed to be a progressive insurance arrangement, i.e. more help for the buck to low earners.

I don't get hurricanes either, just the remnants. Yet my homeowner's rates in part cover those who do. Insurance is a pain.
 
The big problem with IRMAA are the cliff-like steps. Go over the income limit by $1 and you may pay $1,000 more for your Medicare. Go over to same income limit by $12,000 and you still pay $1000 more. It should be more like our income tax with graduated increases as one income goes up.
 
My only reportable income for IRS purposes is Social Security + interest on savings + the RMD on my IRA. Until this year, I have not owed taxes nor been required to file a return, but this year I got a good interest rate increase on CDs. Consequently, I now have to pay taxes for the first time since retiring, because the federal threshold for filing a tax return has not been adjusted since 1984.

I think a lot of people may be in for surprises this year. This government publication from 2015 explains how more seniors will owe taxes with each passing year: FROM SSA.GOV No one in Washington seems to address this issue on behalf if Seniors.

The rules remain the same: "If the sum of half your Social Security plus your adjusted gross income plus your tax-exempt interest and dividends exceeds $25,000 for single filers (or $32,000 if you are Married Filing Jointly), then a portion of your Social Security benefits is included in gross income for taxes, and you might need to file a tax return."
 
I don’t mind paying taxes but I do mind paying taxes on my Social Security benefits.

Taxing Social Security is a subtle form of means testing.

I would prefer that Social Security be exempt from taxes even if it means increasing the tax rate on my other income.

I realize that the end result would be the same but it’s more about principle than money for me.

The good news is that the tax on Social Security goes to help prop up Medicare.
 
Aunt Bea said:
I don’t mind paying taxes but I do mind paying taxes on my Social Security benefits.

Taxing Social Security is a subtle form of means testing.

I would prefer that Social Security be exempt from taxes even if it means increasing the tax rate on my other income.

I realize that the end result would be the same but it’s more about principle than money for me.

The good news is that the tax on Social Security goes to help prop up Medicare.
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ss is means tested in other ways too ….

the lowest earners get 6x the benefit that the highest earners get ,per dollar paid in
 
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Muskrat said:
Met a gentleman yesterday who wants to rent a house. He told me his social security is 950/mth. How can he ever ever eat? Anyone else living only on ss? How???
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I've been doing it for years okay. Now I bring in around $1300 and even managing to save money. I just adjusted my lifestyle and got rid of things I could do without or find cheaper alternatives. After I pay my rent and bills, I'm still able to set aside maybe $180 a month. Not much, but it helps. I also don't have a lot of credit card debt.
 
Muskrat said:
Met a gentleman yesterday who wants to rent a house. He told me his social security is 950/mth. How can he ever ever eat? Anyone else living only on ss? How???
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many who live on ss alone effectively aren’t living on ss alone .

many get health insurance help or medicaid.. here in our city they can get utility bill assistance, free transportation , free meals delivered , possibly never ever a rent increase if on the SCRIE assistance program here .

so effectively they can have an effective income ahead of someone earning 10-15k more
 
mathjak107 said:
many who live on ss alone effectively aren’t living on ss alone .

many get health insurance help or medicaid.. here in our city they can get utility bill assistance, free transportation , free meals delivered , possibly never ever a rent increase if on the SCRIE assistance program here .

so effectively they can have an effective income ahead of someone earning 10-15k more
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I could buy a damn nice tent and shopping cart for 10-15k, and have money left over to invest.
 
mathjak107 said:
many who live on ss alone effectively aren’t living on ss alone .

many get health insurance help or medicaid.. here in our city they can get utility bill assistance, free transportation , free meals delivered , possibly never ever a rent increase if on the SCRIE assistance program here .

so effectively they can have an effective income ahead of someone earning 10-15k more
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I just get social security and VA healthcare. Nothing else and I'm okay.
 
AnneTeak said:
The incoming administration wants to make cuts to Medicare and Social Security. What will people live on? Health insurance alone cost a fortune.
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Sounds like partisan hokum.

How Trump Could Affect Social Security And Medicare—Group Warns Funds Could Run Out In 6 Years Under His Plans

Trump and the Republican Party publicly committed ahead of the election not to cut Social Security or Medicare if Trump won the White House, with the GOP’s platform stating the party will “fight for and protect Social Security and Medicare with no cuts, including no changes to the retirement age.”​
 
StarSong said:
The deal with SS is. if you don't pay in, you don't collect against your own earnings. It isn't intended as welfare. Spousal benefits are 50%, not a bad deal for the situation you describe.

Like most women in my age group (now early 70s), I worked part-time from the age of 16, then full-time starting in my early 20s. Continued that until having children, then stayed home raising them for 10 years. Moved to part time work as they got older and transitioned to full-time. At 65 I went back to part-time work.

Most Americans have a 50-ish year work span (16-68). Choosing to stop while children are young might take 20 years, at most.

Despite a ten year gap, so far I've worked (and paid into SS) for 42 years.
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Spousal benefits are 50% IF one has no benefits of their own and IF you have been married 10 continuous years; and IF you do not remarry before age 60; and IF spouse who earns more dies before you do.

Example #1: If my spouse of 15 years is getting $2,000. in SS on the day he dies, and I am making $1,000. in SS off my earned income over 40 years employment, I get -0- percent, because 50% of his $2,000. is $1,000.00. It is a TOTAL mine plus his cannot equal more than 50% of his.

Example #2: If my spouse of 15 years is getting $4,200. in SS on the day he dies, and I am making $1,000. in SS off my earned income over 40 years of employment, I get 50%, which would be $2,100. - $1,000 (what I already get on my own) = 1,100 + $1,000 = $2200. when he dies - but I do NOT get $2,100. (1/2 of his) and also my $1,000 for $3100.

PLEASE correct me if I am wrong?

Another example: IF a woman, age 55, is married to husband "A", age 55, for THIRTY years, and he divorces her for new Lady Woo-Hoo age 24, and woman finds her new husband "B" BEFORE she turns 60, she LOSES any SS she was entitled to from the man she was married to for 30 years, UNLESS she divorces husband #2 before he dies.
 
AnneTeak said:
The incoming administration wants to make cuts to Medicare and Social Security. What will people live on? Health insurance alone cost a fortune.
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It would be cuts for those in the future coming ON to SS/Medicare, not those already ON benefits.

Those on SS/Medicare at the time of any new legislation would be grandfathered in.

And any change in benefits after "x" date would require new legislation changing age scales, entitlement amounts, premium amounts, benefit parameters, etc for the next recipient beneficiaries: that is the population who are now paying INTO the benefits and not YET eligible.

There will be no cut to SS payments/benefits for those already at and receiving full SS benefits.
 
dilettante said:
Sounds like partisan hokum.

How Trump Could Affect Social Security And Medicare—Group Warns Funds Could Run Out In 6 Years Under His Plans

Trump and the Republican Party publicly committed ahead of the election not to cut Social Security or Medicare if Trump won the White House, with the GOP’s platform stating the party will “fight for and protect Social Security and Medicare with no cuts, including no changes to the retirement age.”​
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That is no cuts and changes to those ALREADY retired and ON SS. They can and will, and MUST make changes for those coming onto SS, say by 2030. The most likely and first change will be the amount those working will be contributing to the funds.

Personally, I think SS contributions should NOT stop at a particular income as it does (I think it is $168,600).

I also think anyone who isn't at a healthy body weight, who smokes, has Type 2 diabetes (preventable with exercise and good body weight, waist circumference), is an alcoholic, and does drugs should pay a LARGER percentage INTO to Medicare funds during their working years. Why? Because those are the people who are going to NEED/suck more Medicare funds when they end up sicker than those persons who watch their weight, habits, and stay healthy.
 
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CooCooforCoCoPuffs said:
I also think anyone who isn't at a healthy body weight, who smokes, ...
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Er, isn't it really more costly supporting the "healthy" who live unnaturally long lives today?

I'm not sure we need to bring in Eugenic means testing any further than the health insurance industry has already pushed it.

Lactose, gluten, sulfite, MSG intolerance? Allergies? Chronic use of recreational hormones (birth control pills)?

Or living in areas of congested traffic? High crime? Average to low IQ and thus more likelihood of poor decision-making?
 
That was a great benefit of the ACA…you could not be denied coverage due to preexisting conditions. Many many people thank their lucky stars about that.
 

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