I started paying into Social Security in
1964. After contributing every year since, through 2010, I chose to take my
retirement benefit when I was 62 years old.
The 2007 recession caused sales and income
to drop rapidly in the business I owned in St. Petersburg , Florida Gulf of Mexico and forced our
local economy into an even deeper recession. By June our sales plummeted
60 percent more and remained down about 40 percent for the remainder of the
year. My local customers were also suffering, so they did not need my
services. One large out of state customer provided nearly 80 percent of total
income during this time.
The small amount of money paid to my
business by BP was not enough to cover real losses. The nine-month wait
to receive that money set the stage for the inevitable. My thinking had
been that my business revenues would increase enough over time to keep my
business going. Hope was not enough, however, as the effects of the spill and
the down economy lengthened the depression-like business atmosphere. I finally
closed the doors September 2011. I was “officially” retired.
My father and stepfather both died within
weeks of their 62nd birthdays and, with the exception of their
death benefit, they did not receive a dime from Social Security. Nada! So, I feel lucky to actually have lived long enough to use some of the
money I paid into the Social Security system. I understand you get more
if you wait, but if you are dead I guarantee you will
not receive an iota of benefit. And, if you do apply early, you
have to live a long time before you start “losing” benefits. After 46
years paying in, I figured it was time to take what was owed me.
Applying for Social Security retirement
benefits is a very simple process. You do it online at socialsecurity.gov. They
have all your work and birth records so all you need to do is answer a few
simple questions and you are on your way. The questions mostly pertain to
a current address, to what bank do you want your benefit sent, and whether you
were married or not and, if married, to whom. You will then find out what week
of the month you will receive your benefit and what the amount will be.
My benefit arrives on the third Wednesday of each month. Simple.
In the four years since I elected to
receive my benefit my monthly payment has risen $93 per month, a rise of 6.4%
in four years. That’s an average of 1.6% a year. WooHoo! I am getting rich on Social Security. Oh, and so you know, whatever
percent Congress allows Social Security benefits to rise, if it comes out with
change dangling, say $1000.98, it is rounded down to $1000. That
may not seem like much, but it is a lot year over year to someone trying to put
food on the table and pay their rent.
Veterans disability benefits are not
affected this way. If your benefit payment comes to $130.94, the pennies
are left for you to spend on yourself. I receive a disability benefit
from the Veterans Administration due to an injury received while serving in Vietnam
Unlike many friends, some of whom stayed
with their employer for life, I worked all around the country. I earned a
lot of money, but I never worked for an employer that provided me with a
defined pension for a certain number of years' worked. The money I earned
gave me independence during my working life. I have much less money now,
thus less independence. And, if you are thinking I should have saved more
of my income, I did. Two divorces in my life, and two significant implosions in
the stock market in the first decade of the 21st century, ate through a
majority of the hundreds of thousands of dollars I saved. I also poured a good portion of what was then
left in my retirement savings into my business in 2008 through 2010 trying to
save it from the economy. It now appears as if I saved nothing. And, from what I read about jobs and the economy, I do not think I am the only "boomer" who retired because of the recession.
I have learned (and I am still learning) how to live on much less and, in a way, it is a refreshing change. I tried living outside the U.S.A. for a couple of years to save money, but I felt isolated by language. I would prefer the ability to spend more freely, but that is not possible now. I am not complaining, just telling the truth. Some of my friends sacrificed early. I, in my own way, chose to sacrifice now. I have traveled all over the world (5 continents and 48 states) and I have a lot of great experiences. Being single with no children means my choices have affected no one but me.
Who knows, maybe I will win the lottery!
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