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A few months ago, England changed their retirement ago from 60 for women and 65 for men to 66 for everyone. In 2020 the retirement ago will be changed to 67. This means that people in England cannot collect a penny of social security until they are 66. After 2020 they have to wait until they are 67.
It is just a matter of time before the United States does the same thing because Social Security is broke.
I read an article recently that there is talk of making the retirement age 70 in the US. No social security payments until you are 70. What is really happening, I think, is they are hoping you will kick the bucket (die) before they have to pay you any social security.This is another reason, you need to create your own forms of cash flow so you can retire anytime you want to instead of waiting until the government will pay you Social Security.
Many of the people on my tours in Panama rely exclusively on social security for their living. Don’t let that happen to you!
In 2016, make financial security a priority.
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To add to the risks about Social Security, it is vulnerable to partial garnishment for IRS taxes, child support, alimony, and federalized student loan payments (if you were unwise enough to still have student loan debt in arrears at that age — including if you had co-signed on such a loan. Here’s a good article on that student loan mess:http://blog.credit.com/2012/08/my-social-security-income-is-being-zapped-for-student-loans/
Of course, if you can live on $750/mo (as the article discusses) …. for the rest of your life …. not that there’s any worry about rising prices of everything …. hey, then no worries.
And, as we’ve discussed on CFD before, the IRS (formerly limited by a 10-year statute of limitations for collecting debts owed to it) now benefits from a provision sneaked into the 2008 farm bill that totally erased that 10-year limit. That means they can go after you for the rest of your life on such debts. Prior to that legal atrocity, the only people with no statute of limitations were war criminals, those who lied to a court, and murderers. So now if you owe the IRS in a really bad way, your Social Security can be partially attached for the rest of your life. And, as the news reveals, starting in January 2016 if you owe $50,000 or more to the IRS, it can say “Sorry, your US passport is now not working, or your application is denied.”
So yes, a financial plan based on Social Security is very similar to planning a long hike over quicksand.
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