Just wondering, what is the "average" ( and I know this could be all over the board, but there IS a maximum) that some of you "retired" or semi retired farmers receive? Know many of you are still farming in some fashion or another, but heard a lot of talk lately about SS not being what was expected. Just curious.. Thanks
- Thread starter True Son
- Start date
Jim in Ma.
Well-known Member
Because everyone's income is different- So will the benefits.
FYI - Don't believe those form letters they send you retire They lie!!!
FYI - Don't believe those form letters they send you retire They lie!!!
Bob Harvey
Well-known Member
Won't give you a number on what I get from my fine, fine gov't, BUT it's a danged good thing I saved some, invested some and the wife has a good pension from work. The gov't pension that I paid into for 40 years is a slap in the mush every time I get the pittance, covers the bar tab and 3 tanks of gas.
Pair-a-dice farm
Well-known Member
I contacted SS last month. I would be 79 before I would make up the difference in waiting for full retirement vs 62. The average for males in my family is 72. Either way if I counted everything I paid in plus what my employer paid in and added in 3% interest I would have to draw 234 months to break even at what they are saying.
I went to another friends funeral today that died at 64 just months before drawing his 1st check. That 4 in the last year, who gets their money?
I went to another friends funeral today that died at 64 just months before drawing his 1st check. That 4 in the last year, who gets their money?
blue water massey
Well-known Member
only up here it's called an entitlement
welfare actually pays more
welfare actually pays more
The maximum monthly check you can get as an individual is $2,642.00 in 2015 and you and your wife can together could draw $5284.00 a month maximum in 2015. I retired and went on Social Security at 63 and with the cut for gong early I get well over the national avarage.
john in la
Well-known Member
My full retirement age is 66 years 8 months.
I figured my 62 payout a while back and came up with 78.5 years old before I broke even.
Then you figure I could work a little bit part time and make 15k a year without losing any benefits.
So yea I am planning on giving up the 5 day a week job at 62 and work about 5 days a month.
I got 5 years and 4 months to go.
I figured my 62 payout a while back and came up with 78.5 years old before I broke even.
Then you figure I could work a little bit part time and make 15k a year without losing any benefits.
So yea I am planning on giving up the 5 day a week job at 62 and work about 5 days a month.
I got 5 years and 4 months to go.
Chuck (CA)
Well-known Member
I jumped at 64. Took a bit of a hit vs working til 67, but that's 3 years of extra collecting. And I left a job that I didn't enjoy.
Like was recommended, we invested in some IRA's and I get a (very) small pension from Circuit City. All in all, we're doing OK and should outlive our money. We're pretty frugal. Our goal of paying the mortgage off before retirement didn't happen, and if we pull the money from our IRA's to do it, it would show as income. So, we're going to take just enough of a chunk out each year where it won't hurt us at tax time and it should be paid off in a few years.
Like was recommended, we invested in some IRA's and I get a (very) small pension from Circuit City. All in all, we're doing OK and should outlive our money. We're pretty frugal. Our goal of paying the mortgage off before retirement didn't happen, and if we pull the money from our IRA's to do it, it would show as income. So, we're going to take just enough of a chunk out each year where it won't hurt us at tax time and it should be paid off in a few years.
farmerwithmutt
Well-known Member
I don't know exactly what I'm getting but as soon as I can I'm going for it and retiring to just taking care of the farm. I've worked two jobs since before I got out of high school . As far as insurance most companies won't cover you if you get hurt on the farm the best way I can explain this is if you work for Hardee's flipping burgers and have insurance with them then you also work for McDonald's and get hurt there Hardee's insurance shouldn't have to cover what McDonald's workman's comp should cover . Your farm basically is a business . I have seen this happen a woman worked to provide insurance for the family husband got gored by the bull and when they turned it in the weren't covered . I have asked a lot of insurance guy's about this and they keep telling me they will get back to me .
ShadetreeRet
Well-known Member
All I will say is you had better start investing at a very young age if you expect a decent income when you retire! I passed up that opportunity years ago and am having a hard time existing on what I draw! And if you are anywhere close to retirement age, pass this bit of wisdom on to your kids and grandkids.
Eldon (WA)
Well-known Member
I'm not sure how people got the idea that SS is what you live on when you retire. You are supposed to save and have assets and investments to provide for your retirement. SS is just the safety net. I wouldn't be able to sleep at night if I depended on the government for my retirement.....
MarkB_MI
Well-known Member
- Location
- Motown USA
You don't say what your REAL question is. If it is "can I expect to keep my current standard of living with just my SS check?", the answer is probably "no".
I guess I don't know what "less than expected" means, but I suspect it really means "less than I would like". Farmers, like most self-employed businessmen, don't generally pay a lot of money into SS and therefore don't get very big benefit checks.
I guess I don't know what "less than expected" means, but I suspect it really means "less than I would like". Farmers, like most self-employed businessmen, don't generally pay a lot of money into SS and therefore don't get very big benefit checks.
Traditional Farmer
Well-known Member
- Location
- Virginia
If your assets are in US Federal Reserve Notes or have your money in a bank in the US
then you are depending on the Gov't for your retirement.SS is only the tip of the iceberg.
then you are depending on the Gov't for your retirement.SS is only the tip of the iceberg.
Pair-a-dice farm
Well-known Member
Just curious, where did you get that information? If you are self employed you pay 15.3% of your net income into SS and medicare. You also pay about half of the SS and medicare for all of your employees.
As others has said SS was never meant to be retirement plan. 65 was set up as the retirement age because that was the average lifespan for men at that time.
SS was never meant to be a retirement plan. Everyone saying that is telling the absolute truth. What SS was intended to do was 2 things. 1- Put more cash in the depression era economy. 2- Give the party that came up with the idea and their Prez a huge new voting block. I don't know if #1 worked, but #2 surely did.
MarkB_MI
Well-known Member
- Location
- Motown USA
> Just curious, where did you get that information? If you are self employed you pay 15.3% of your net income into SS and medicare. You also pay about half of the SS and medicare for all of your employees.
What I mean by paying a "lot" into SS would be to nearly max out your contributions every year for 35 years. Currently you have to net $118,500 per year to max out your contributions. Now I realize there are farmers and other self-employed businessmen who make this much, but that's hardly typical. As for the contributions you make on behalf of your employees, that's an irrelevant point because they aren't used to calculate YOUR benefits.
I'll also note for the record that many self-employed businessmen are in a position to under-report their income, either because they have a cash business or they have transactions which don't get reported to the IRS. I'd say it's a reasonable assumption that many of those individuals pay much less than the max SS tax, even though their real income is well into six figures.
What I mean by paying a "lot" into SS would be to nearly max out your contributions every year for 35 years. Currently you have to net $118,500 per year to max out your contributions. Now I realize there are farmers and other self-employed businessmen who make this much, but that's hardly typical. As for the contributions you make on behalf of your employees, that's an irrelevant point because they aren't used to calculate YOUR benefits.
I'll also note for the record that many self-employed businessmen are in a position to under-report their income, either because they have a cash business or they have transactions which don't get reported to the IRS. I'd say it's a reasonable assumption that many of those individuals pay much less than the max SS tax, even though their real income is well into six figures.
gtractorfan
Well-known Member
Yehbut what are your CDs paying interest-wise? It's down to next to nothing.
Geo-TH,In
Well-known Member
There are many things you should know about SS. Best thing to do is go to the SS office or call and find out what works for you. For me, I have 4 sources of retirement income, rental, 401, pension, and now SS. All these incomes I pay 28% fed tax, 3.4% state and 1% local. The good news is my state and local doesn't tax SS.
I waited to my full retirement age before drawing SS. However, what I get in my pocket is about what I would have gotten at age 62, because Fed takes 28%. SS told me, because I waited to get my full SS, I could go back to work and make as much money as I wanted without paying a penalty. I laughed, I retired at age 55. Told them I have no intentions of ever going back to work.
My older brother has just SS and a pension and is living in the poor house. As some said, SS isn't enough.
I waited to my full retirement age before drawing SS. However, what I get in my pocket is about what I would have gotten at age 62, because Fed takes 28%. SS told me, because I waited to get my full SS, I could go back to work and make as much money as I wanted without paying a penalty. I laughed, I retired at age 55. Told them I have no intentions of ever going back to work.
My older brother has just SS and a pension and is living in the poor house. As some said, SS isn't enough.
MarkB_MI
Well-known Member
- Location
- Motown USA
Bret, retirees of ALL political persuasions howl like scalded cats when anyone talks about cutting SS benefits. They don't call it the "third rail" for nothing.
Geo-TH,In
Well-known Member
Pair-a-dice farm,
If you do the math, the increase you get is 8% per year for delaying. Yes, age 78-80
is the break even piont, reguardless when you retire. After that you loose taking
early retirement. So, it's a gamble. Die before 80 and you have more money in your
casket. Live past 80 and you may find yourself living in the poor house like my older
brother.
What sounds like a lot of money today, just wait inflation will eat it up.
For me, I have more retirement money, than when I worked. And I pay more taxes,
retired, than when I worked. Including taxes on my SS. It doesn't seem right. I paid
SS tax, and now I pay taxes again on drawing SS.
If you do the math, the increase you get is 8% per year for delaying. Yes, age 78-80
is the break even piont, reguardless when you retire. After that you loose taking
early retirement. So, it's a gamble. Die before 80 and you have more money in your
casket. Live past 80 and you may find yourself living in the poor house like my older
brother.
What sounds like a lot of money today, just wait inflation will eat it up.
For me, I have more retirement money, than when I worked. And I pay more taxes,
retired, than when I worked. Including taxes on my SS. It doesn't seem right. I paid
SS tax, and now I pay taxes again on drawing SS.
Pretty simple. The farm is a workplace. So he was at his place of work and the farm insurance should pay as a work place accident according to her health insurance.
Now I'd have read her health insurance policy, farm policy and know a little of the state law before being able to give a solid answer.
Many time policies written by out of state companies violate state law of the policy holder. And if the policy hold is ignorant of state laws they run around "fat, dumb and happy" cause they have coverage.
A good farm policy should have so type of medical coverage for a "worker" injured at work. Now this may not happen because of the affordable health care act and it's requirements . But the farmers daughter would be covered for that hay mow accident with the hired man :lol: but farmers may have to start looking at carrying a separate workmanship comp type of insurance.
So read your policies. Pay particular attention to exclusions. If it's not specifically excluded it's covered even if the company wants to say it isn't. Winds up in court they lose.
If you have questions about your policy call the 1-800 number on your card. Our state has pretty tuff insurance laws. The test to get an independent adjusters license is a nightmare. It's 6 weeks of school and a pretty east test to be an agent. So often an agent isn't the one to be asking about a policy. The company has people who know about it as well as any lawyer who deals with insurance claims.
I know that didn't fully answer your question but it's the best I can do. If you been asking local agents they haven't gotten back to you because they 1. Don't know or 2. Are afraid if the truth came out it will cost them business.
Rivk
I'm getting close (64.5 now) but I've told my wife we've got to wait until she turns 65 so we're both on Medicare which is 2 yrs, 2 months from now. (She'd retire tomorrow, if I let her. She's almost 63) We both make decent money and I'll get close to the max when I retire at full retirement age. Together, we'll pull down around $60k in SS. We've saved "ok" and hope to have around $1 mil in the IRAs & 401ks at that time (fingers crossed). I figure that drawing $25k-30k per year out would last us, not considering any buildup/losses in the accounts.
With little debt at retirement time, we should do ok. We won't be traveling first class around the world but shouldn't be starving either.
That's the plan anyway. Things can change quickly, though, i.e. unexpected health issues, financial setbacks, loss of a job, etc.
Like others on here, we've looked at retiring "today" from a financial perspective. The spreadsheets don't lie and losing six-figure + income for the next couple of years would be significant, mostly due to paying for health insurance and not paying down remaining debt. We also have some expensive interests (skiing trips, horse owners). I don't want to be one of those people who retire and sit and watch TV all day, just being happy to buy food and pay the light bill.
With little debt at retirement time, we should do ok. We won't be traveling first class around the world but shouldn't be starving either.
That's the plan anyway. Things can change quickly, though, i.e. unexpected health issues, financial setbacks, loss of a job, etc.
Like others on here, we've looked at retiring "today" from a financial perspective. The spreadsheets don't lie and losing six-figure + income for the next couple of years would be significant, mostly due to paying for health insurance and not paying down remaining debt. We also have some expensive interests (skiing trips, horse owners). I don't want to be one of those people who retire and sit and watch TV all day, just being happy to buy food and pay the light bill.
Hobo,NC
Well-known Member
- Location
- Sanford, NC
If you are married and retire early when you pass your wife will draw less off of you, Its something to think about. I am single my wife passed before me I will take my SS at 62 I see no reason to hold out for more... I plan to invest the SS money and take a look at were I am at, at 66...
OldFarmTractor
Member
I am 64 and signed up for social security and planned on drawing at 62. I had retired for teaching at age 60 and was drawing a pension from that system. At 61, the school asked me to drive a bus. That gave me time to take care of my dad since he was along the drive to the school. SS called me and notified me that due to the bus driving my benefits at 62 would be nil. As a teacher I did not pay SS but did in other jobs. So I canceled the SS (lots of paperwork). At 63, I decided to retire from the bus driving (it was another pension due to a political position I held + bus driving). My Dad passed and I decided to let some young person have my driving job. So SS, teacher pension and municipal worker pension are my sources of income. No state income tax on any of it.
Get information, make plans, ask informed people good questions and make a choice to fit with you style of life.
Don't forget COLA on many pensions. My COLA activities have increased my pension nearly $700/month since initial retirement.
Get information, make plans, ask informed people good questions and make a choice to fit with you style of life.
Don't forget COLA on many pensions. My COLA activities have increased my pension nearly $700/month since initial retirement.
TomA in CA
Member
I farmed my entire working life. My farm losses offset my non farm income. I took ss at 63 so I get only $600 per mo. Fortunately I have income from a cell site lease so I am doing ok. I can still afford to farm a bit.
Pair-a-dice farm
Well-known Member
I agree with what your saying. Everyone has to review their situation. I have planned for retirement and can bank my payments from 62 to normal retirement, If I start pulling out that money at normal retirement over 25 years it's a tossup according to SS. If I live past 75, it would be rare in my family. And if I do I will still have other income.
If someone with a small business or a Farmer or their spouse has a high enough off farm income one can supplement the other as an employee of the farm or business by paying the maximum on that person while their combined AGI remains the same, and it only takes 40 quarters, then the beneficiary of the scheme can "quit" the farm job and both parties will draw the max, pretty common semi scam, of course congress criminals do it all the time. And, no, I do not have personal experience administering the scam, my Wife and I will not draw SS when I retire but I will never pay another nickel of federal or state income tax at that time either.
jimg.allentown
Well-known Member
Well, SS made a pretty decent retirement for me. I used my IRA to pay off the house. No more mortgage and no debt. Starting next year, I get about a 40% cut in my property taxes and medicare. I did the math before I took my SS, and discovered that there was little change in my standard of living. It got me away from an employer that had gotten nearly unbearable.
Since I worked as an employee rather than self employed for most of my working years, I got a decent amount for SS. As I figured it, about a third of my benefit pays my TOTAL living expenses. The rest is mine to spend or save as I prefer. HOWEVER, there is also a nice little nest egg in my coin collections should I ever need it. I also do some auto repair on the side that brings in a little pocket money. So far, retirement has been quite pleasant!
Since I worked as an employee rather than self employed for most of my working years, I got a decent amount for SS. As I figured it, about a third of my benefit pays my TOTAL living expenses. The rest is mine to spend or save as I prefer. HOWEVER, there is also a nice little nest egg in my coin collections should I ever need it. I also do some auto repair on the side that brings in a little pocket money. So far, retirement has been quite pleasant!
Relying on a state pension is even worse than SS, many state pension systems are on the verge of bankruptcy and the states with the highest payouts are losing tax payers wholesale to lower taxing states. I hope you have good luck but there won't be many young people that realize anywhere near those type of benefits in the future from public employers.
A timely topic for me as I retire tomorrow 4-30. I turned 62 in March wife will be 62 this summer. With all else combined I see no reason to continue working won't take that many years to accumulate what we'd get working longer. After 35 yrs managing a business I figure long enough. Of course insurance is a hit but a little 401k money a month handles that. Strange thing is that it's finally here it's not exciting though I've been ready to pass the headaches to someone else for awhile. Fortunately lots to do out here and looking to getting a few calves again. Haven't had any for a couple years. 8 grand kids also to hang out here this summer
MarkB_MI
Well-known Member
- Location
- Motown USA
Hmm. After the legacy of the Harding, Coolidge and Hoover administrations, I don't think it was necessary to enact a federal pension benefit for FDR and Harry to win the next seven elections.
They may call it an entitlement but the Supreme Court ruled some time ago you have NO vested interest in SS. It could be eliminated or changed at any time, regardless of how much you paid in or an employer paid in. So you don't have an account, you have a record of payments. Not a pleasant thought if it is something you will rely on for a lot of your retirement years.
We are looking at leaving corporate America in late 2018 when I'm 63 and the wife is 62, she'll have 43 years and me 38 at this company. We will both get a company pension, have SS each, 401K each and each with an outside IRA in an annuity. We'll also get a company partially paid health insurance, essentially the same plan we have as employees, just will cost us more once we are Medicare eligible. Our plan is to phase in the income, start with company pension (have to do that to get the medical) with some 401k withdrawals, then SS and annuities can kick in around age 66-67, slowing or stopping the 401k withdrawals so it will be available later to counteract inflation, or be available as mad money. My wife is an only child and her folks are up in their 80s so there is a small estate there she will get (and we get the joy of cleaning out their house). We should do OK since we are pretty frugal and have saved a good portion of income in the 401k over many years. No brainer since the company matches up to 6% contribution.
Yep- being as diversified as you seem to be sure gives 'peace of mind'. What you are depending on is quite similar to my situation when I retired in 2004 at 59 1/2. Everything has worked out as I foresaw it since then .......ahhhhh.......life has been good: no car payments, place paid off, low property taxes, no dependents (just the two of us); pretty much'foot loose & fancy free 
Then comes word that my pension is, most likely, going away after the first of the coming year :twisted:. We both began drawing SS early (get it while you can mentality) but may have to start drawing on our reserves sometime in 2016 BUT if the politicians have their way and our SS benefits cease then we will be left with our reserves which will probably carry us for another 8-10 years; by then I probably won't care but I do worry about what my wife will live on since I have a paltry amount of life insurance and she is younger than I am so will probably outlive me by 5-10 years. So, diversification is a definite plus as there doesn't seem to be any one thing that any 'workingman' can really depend on these days thanks to the constant 'meddling' by Washington . Oh well, just gotta 'keep on keepin. on, I reckon
Then comes word that my pension is, most likely, going away after the first of the coming year :twisted:. We both began drawing SS early (get it while you can mentality) but may have to start drawing on our reserves sometime in 2016 BUT if the politicians have their way and our SS benefits cease then we will be left with our reserves which will probably carry us for another 8-10 years; by then I probably won't care but I do worry about what my wife will live on since I have a paltry amount of life insurance and she is younger than I am so will probably outlive me by 5-10 years. So, diversification is a definite plus as there doesn't seem to be any one thing that any 'workingman' can really depend on these days thanks to the constant 'meddling' by Washington . Oh well, just gotta 'keep on keepin. on, I reckon Similar threads
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