Don’t expect too much from social security.
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If you’re a Social Security enthusiast (you have to have a few!), you may know that as of July, the average monthly Social Security retirement benefits are $2,007, or about $24,000 a year. However, you may wonder if retirees of various ages collect them, such as 62 or 72 years old.
I feel strange now. The average monthly profits for recipients of various ages are as follows:
The meaning of numbers
The numbers reflect a lot, including:
- There are fewer women than men, so there are likely fewer than men. And, in many cases, they often lose their workforce, as they tend to care for their children and parents.
- Some retirees collect small checks because they claimed profit early. (You can claim as early as 62. Doing so means collecting small checks, but collecting more checks.)
- Some retirees collect larger checks because they delayed their retirement (this could be a strong financial move).
Overall, the numbers aren’t that big. So don’t expect Social Security to pay even half of your comfortable retirement. It may not be.
It doesn’t help that Social Security’s Cost of Living Adjustment (COLA) is undoubtedly based on incorrect inflation measures. This is to track changes in the average price of household costs, such as food, housing, and transportation, calculated by the Urban Wage Workers and Officers (CPI-W) Consumer Price Index – calculated by the Bureau of Labor Statistics.
The consumer price index for seniors (CPI-E) is a better measure as it measures categories such as healthcare and housing more heavily.
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