Hammerlocke is a 1992 - 1993 nine issue DC Comics science fiction limited series written by Tom Joyner and Kez Wilson , with artwork by Chris Sprouse and Wilson.
84-482: In the near future, a space elevator called the Olympus Starbridge becomes the battleground between the world government and a radical environmentalist group. Its creator, the cyborg Archer Locke, known as Hammerlocke, is called out of retirement when his daughter is kidnapped by Hugo Tharn, leader of the ecoterrorists and a man determined to destroy the Olympus Starbridge and all it stands for. The series
168-531: A is approximately the same as pension wealth conditional on retiring one year later at age a +1. Nevertheless, a large literature has found that individuals respond significantly to financial incentives relating to retirement (e.g., to discontinuities stemming from the Social Security earnings test or the tax system). Greater wealth tends to lead to earlier retirement since wealthier individuals can essentially "purchase" additional leisure. Generally,
252-493: A 4.5% per year nominal rate of interest is assumed, then (using 1.045/1.035 in real terms ) pre-retirement and post-retirement net interest rates will remain the same, i = 0.966 percent per year and i = 0.966 percent per year. These assumptions may be reasonable in view of the market returns available on inflation-indexed bonds , after expenses and any tax. Equation (Ret-03) is readily coded in Excel and with these assumptions gives
336-593: A Benefits Calculators web page with several stand-alone online calculators that help individuals estimate their benefits and prepare for retirement. These include benefit calculators for spouses, calculators for persons affected by the Windfall Elimination Provision or the Government Pension Offset and calculators to determine a person's full retirement age or the effect of the earnings test on benefits. SSA also provides
420-539: A certain level of retirement expenditures. Some retirement calculators, appropriate for safe investments, assume a constant, unvarying rate of return. Monte Carlo retirement calculators take volatility into account and project the probability that a particular plan of retirement savings, investments, and expenditures will outlast the retiree. Retirement calculators vary in the extent to which they take taxes, social security, pensions, and other sources of retirement income and expenditures into account. The assumptions keyed into
504-430: A change to about 3% inflation and 4% investment return before and after retirement. Ignoring tax, someone wishing to work for a year and then relax for a year on the same living standard needs to save 50% of pay. Similarly, someone wishing to work from age 25 to 55 and be retired for 30 years till 85 needs to save 50% of pay if government and employment pensions are not a factor and if it is considered appropriate to assume
588-415: A country's tax laws or state old-age pension rules usually mean that in a given country a certain age is thought of as the standard retirement age. As life expectancy increases and more and more people live to an advanced age, in many countries the age at which a pension is awarded has been increased in the 21st century, often progressively. The standard retirement age varies from country to country but it
672-510: A euphemistic term for being terminated from employment before typical retirement age. While conventional wisdom has it that one can retire and take 7% or more out of a portfolio year after year, this strategy would not have worked very often in the past. Those contemplating early retirement will want to know if they have enough to survive possible bear markets . The history of the US stock market shows that one would need to live on about 4% of
756-854: A host of other topics (e.g., expectations, expenses, internet use, risk taking, psychosocial, time use). 2002 and 2004 saw the introductions of the English Longitudinal Study of Ageing (ELSA) and the Survey of Health, Ageing and Retirement in Europe (SHARE), which includes respondents from 14 continental European countries plus Israel. These surveys were closely modeled after the HRS in the sample frame, design and content. A number of other countries (e.g., Japan, South Korea) also now field HRS-like surveys, and others (e.g., China, India) are currently fielding pilot studies. These data sets have expanded
840-462: A life expectancy calculator to help with retirement planning. If a person first claims a retirement benefit at the full retirement age (FRA), the individual will receive a monthly benefit amount equal to 100 percent of the individual's primary insurance amount (PIA). If first claimed before the FRA, the monthly benefit amount is smaller than 100 percent of PIA and if claimed after the FRA the monthly amount
924-557: A portfolio of inflation-linked bonds, coupled with other income sources like Social Security, would be able to sustain. Current real yields on United States Treasury Inflation Protected Securities (TIPS) are available at the US Treasury site. Current real yields on Canadian 'Real Return Bonds' are available at the Bank of Canada's site. As of December 2011, US Treasury inflation-linked bonds (TIPS) were yielding about 0.8% real per annum for
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#17327944947401008-559: A proportion Z = 35.78% should be saved. Retirement calculators generally accumulate a proportion of salary up to retirement age. This shows a straightforward case, which nonetheless could be practically useful for optimistic people hoping to work for only as long as they are likely to be retired. For more complicated situations, there are several online retirement calculators on the Internet. Many retirement calculators project how much an investor needs to save, and for how long, to provide
1092-453: A reduced monthly benefit amount and a worker who claims at an age after the full retirement age (up to age 70) receives an increased monthly amount. The 90, 32, and 15 percent factors in the PIA computation lead to higher replacement rates for persons with lower career earnings. For example, a retired individual whose average earnings are below the first bend point can receive a monthly benefit at
1176-482: A replacement Social Security card or check the status of an application. A printed copy of the Social Security Statement is mailed to workers age 60 or older. In 2021, SSA began producing Retirement Ready fact sheets, available online and as part of the online Statement, that tailor retirement planning information to different age groups (young, middle age, and older workers). SSA also has
1260-526: A retirement calculator are critical. One of the most important assumptions is the assumed rate of real (after inflation) investment return. A conservative return estimate could be based on the real yield of Inflation-indexed bonds offered by some governments, including the United States, Canada, and the United Kingdom. The TIP$ TER retirement calculator projects the retirement expenditures that
1344-467: A safe real rate of return is zero. So in real terms , interest does not help the savings grow. Each year of work must pay its share of a year of retirement. For someone planning to work for 40 years and be retired for 20 years, each year of work pays for itself and for half a year of retirement. Hence, 33.33% of pay must be saved, and 66.67% can be spent when earned. After 40 years of saving 33.33% of pay, we have accumulated assets of 13.33 years of pay, as in
1428-463: A timely basis. The amount of the monthly Social Security benefit to which a worker is entitled, currently depends upon the earnings record on which they have paid FICA or SECA taxes and upon the age at which the retiree chooses to begin receiving benefits. That said, the U.S. Supreme Court ruled in Flemming v. Nestor (1960) that no one has a contractual right to Social Security benefits. Medicare
1512-458: A wealth of information on such topics as labor force participation (e.g., current employment, job history, retirement plans, industry/occupation, pensions, disability), health (e.g., health status and history, health and life insurance , cognition), financial variables (e.g., assets and income, housing, net worth, wills, consumption and savings), family characteristics (e.g., family structure, transfers, parent/child/grandchild/sibling information) and
1596-415: A zero real investment return. The problem that the lifespan is not known in advance can be reduced in some countries by the purchase at retirement of an inflation-indexed life annuity . To pay for pension, assumed for simplicity to be received at the end of each year, and taking discounted values in the manner of a net present value calculation, the ideal lump sum available at retirement should be: Above
1680-432: Is $ 168,600. Social Security is nearly universal, with 94 percent of individuals in paid employment in the United States working in covered employment. However, about 6.6 million state and local government workers in the United States, or 28 percent of all state and local workers, are not covered by Social Security but rather pension plans operated at the state or local level. Social Security payroll taxes are collected by
1764-478: Is a big factor that affects the success of an individual's retirement experience. Social Security plays an important role because most individuals solely rely on Social Security as their only retirement option, when Social Security's trust funds are expected to be depleted by 2034. Knowledge affects an individual's retirement decisions by simply finding more reliable retirement options such as Individual Retirement Accounts or Employer-Sponsored Plans. In countries around
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#17327944947401848-404: Is a right. In many Western countries, this is a right embodied in national constitutions. An increasing number of individuals are choosing to put off this point of total retirement, by selecting to exist in the emerging state of pre-tirement . Retirement, or the practice of leaving one's job or ceasing to work after reaching a certain age, has been around since around the 18th century. Prior to
1932-578: Is a separate program from Social Security, although disabled and aged (65 or older) Social Security beneficiaries qualify for Medicare. The financing for Medicare (United States) is also based on payroll taxes, trust fund reserves, and the taxation of some Social Security benefits. Workers in Social Security covered employment pay FICA ( Federal Insurance Contributions Act ) or SECA (Self Employed Contributions Act) taxes and earn quarters of coverage if earnings are above minimum amounts specified in
2016-764: Is assumed that interest, after expenses, taxes, and inflation is zero. Assume that in real (after-inflation) terms, one's salary never changes over w years of working life. During p years of pension, one has a living standard that costs a replacement ratio R times as much as one's living standard in working life. The working life living standard is one's salary minus the proportion of salary Z that should be saved. Calculations are per unit salary (e.g., assume salary = 1). Then after w years work, retirement age accumulated savings = wZ . To pay for pension for p years, necessary savings at retirement = Rp(1-Z) Equate these: wZ = Rp ( 1-Z ) and solve to give Z = Rp / ( w + Rp ). For example, if w = 35, p = 30 and R = 0.65,
2100-440: Is called efterløn and there are some requirements to be met such as contributing to the labor market for at least 20 years. Early and normal retirement ages vary according to the date of birth of the person filing for retirement. In France, the retirement age was 60, with full pension entitlement at 65; in 2010 this was extended to 62 and 67 respectively, increasing progressively over the following eight years. In Latvia,
2184-403: Is common to not include any house value in the calculation of this necessary lump sum, so for a homeowner the lump sum pays primarily for non-housing living costs. At retirement, the following amount will have been accumulated: To make the accumulation match with the lump sum needed to pay pension: Bring z to the left hand side to give the answer, under this rough and unguaranteed method, for
2268-493: Is funded primarily through payroll taxes called the Federal Insurance Contributions Act (FICA) or Self Employed Contributions Act (SECA). Wage and salary earnings from covered employment, up to an amount determined by law (see tax rate table), are subject to the Social Security payroll tax. Wage and salary earnings above this amount are not taxed. In 2024, the maximum amount of taxable earnings
2352-415: Is generally between 50 and 70 (according to latest statistics, 2011). In some countries this age is different for men and women, although this has recently been challenged in some countries (e.g., Austria), and in some countries the ages are being brought into line. The table below shows the variation in eligibility ages for public old-age benefits in the United States and many European countries, according to
2436-428: Is granted, according to the years of work and the average pay; this is usually provided by the employer. On a personal level, the rising cost of living during retirement is a serious concern to many older adults. Health care costs play an important role. Provision of state pensions is a significant drain on a government's budget. As life expectancy increases and the health of older people improves with medical advances,
2520-519: Is likely to be small. In general, declining health over time, as well as the onset of new health conditions, have been found to be positively related to earlier retirement. Health conditions that can cause someone to retire include hypertension , diabetes mellitus , sleep apnea , joint diseases , and hyperlipidemia . Most people are married when they reach retirement age; thus, spouse's employment status may affect one's decision to retire. On average, husbands are three years older than their wives in
2604-479: Is lowering balances. Without legislative changes, trust fund reserves are projected to be depleted in 2033 for the OASI fund. Should depletion occur, incoming payroll tax and other revenue would be sufficient to pay 77 percent of OASI benefits starting in 2035. With few exceptions, all legal residents working in the United States have an individual Social Security Number . Social Security timeline A limited form of
Hammerlocke - Misplaced Pages Continue
2688-445: Is the standard mathematical formula for the sum of a geometric series . (Or if i =0 then the series in braces sums to p since it then has p equal terms). As an example, assume that S=60,000 per year and that it is desired to replace R =0.80, or 80%, of pre-retirement living standard for p=30 years. Assume for current purposes that a proportion z =0.25 (25%) of pay was being saved. Using i =0.02, or 2% per year real return on investments,
2772-532: Is to, for example, enter "0% return, 0% inflation" inputs into the calculator. The Bloomberg retirement calculator gives the flexibility to specify, for example, zero inflation and zero investment return and to reproduce the graph above. The MSN retirement calculator in 2011 has as the defaults a realistic 3% per annum inflation rate and optimistic 8% return assumptions; consistency with the December 2011 US nominal bond and inflation-protected bond market rates requires
2856-459: The OECD . The retirement age in many countries is increasing, often starting in the 2010s and continuing until the late 2020s. Notes: Parentheses indicate eligibility age for women when different. Sources: Cols. 1–2: OECD Pensions at a Glance (2005), Cols. 3–6: Tabulations from HRS, ELSA and SHARE. Square brackets indicate early retirement for some public employees. In Denmark, early retirement
2940-577: The Social Security Administration (SSA). The Social Security Act was passed in 1935, and the existing version of the Act, as amended, encompasses several social welfare and social insurance programs. The average monthly Social Security benefit for September 2023 was $ 1,706. The total cost of the Social Security program for 2022 was $ 1.244 trillion or about 5.2 percent of U.S. gross domestic product (GDP). Social Security
3024-494: The 18th century, humans had an average life expectancy between 26 and 40 years. In consequence, only a small percentage of the population reached an age where physical impairments began to be obstacles to working. Countries began to adopt government policies on retirement during the late 19th century and the 20th century, beginning in Germany under Otto von Bismarck . A person may retire at whatever age they please. However,
3108-605: The 30-year maturity and a noteworthy slightly negative real return for the 7-year maturity. Many individuals use "retirement calculators" on the Internet to determine the proportion of their pay they should be saving in a tax advantaged-plan (e.g., IRA or 401-K in the US, RRSP in Canada, personal pension in the UK, superannuation in Australia). After expenses and any taxes, a reasonable (though arguably pessimistic) long-term assumption for
3192-426: The 90% multiplier in the first PIA bendpoint to 40–85% depending on the number of Years of Coverage. Foreign pensions are subject to WEP. A special minimum benefit, based on an alternative PIA calculation, is available for some workers with long careers but low earnings. However, it is rarely higher than the regularly computed PIA and thus few workers qualify for the special minimum benefit. 32,000 individuals received
3276-431: The PIA. Once the PIA is computed, it is indexed for price inflation over time. Thus, Social Security monthly benefit amounts retain their purchasing power throughout a person's retirement years. A worker who first starts receiving a retirement benefit at the full retirement age receives a monthly benefit amount equal to 100 percent of the PIA. A worker who claims the retirement benefit before the full retirement age receives
3360-562: The PIAs of a spouse or a deceased spouse. Aged spouse and divorced spouse beneficiaries can receive up to 50 percent of the PIA. Survivor benefit rates are higher and aged widow(er)s and aged surviving divorced spouses can receive 100 percent of the PIA. Federal, state and local employees who have elected (when they could) NOT to pay FICA taxes are eligible for a reduced FICA benefits and full Medicare coverage if they have more than forty quarters of qualifying Social Security covered work. To minimize
3444-613: The Penn Wharton Budget Model (University of Pennsylvania) projected depletion in 2032–2034, depending on the shape of the economic recovery in the U.S. following the COVID-19 pandemic. With regard to actuarial balance, the Social Security Trustees estimate a 75-year actuarial deficit of 3.61 percent of payroll. This is approximately the total payroll tax increase that would be necessary to keep
Hammerlocke - Misplaced Pages Continue
3528-979: The Social Security Act are: The SSA administers two of these programs (OASDI and SSI). The Social Security program in the United States pays benefits to three broad categories of individuals: retired individuals and some family members, disabled persons and some family members, and survivors. Within these broad categories, the program defines more specific types of beneficiaries. For example, spouses and divorced spouses are distinct categories, with somewhat different eligibility requirements. Survivor benefits include several categories including aged widow(er)s, aged surviving divorced spouses, disabled widow(er)s, disabled surviving divorced spouses, paternal and maternal orphans, and widow(er)s caring for minor or disabled children. As of 2023, there were about 66.8 million individuals receiving Social Security benefits. Individuals receiving Retirement Insurance Benefits constitute
3612-425: The Social Security Statement. The Statement can be accessed online by opening an online account with SSA called my Social Security . With that account, workers can also construct "what if" scenarios, helping them to understand the effect on monthly benefits if they work additional years or delay the start of retirement benefits. The my Social Security account also offers other services, allowing individuals to request
3696-422: The Social Security payments to those who have not contributed to FICA for 35+ years and are eligible for federal, state and local benefits, which are usually more generous, the U.S. Congress passed the Windfall Elimination Provision (WEP). The WEP provision does not eliminate all Social Security or Medicare eligibility if the worker has 40 quarters of qualifying income, but calculates the benefit payments by reducing
3780-474: The Social Security program began, during President Franklin D. Roosevelt's first term, as a measure to implement " social insurance " during the Great Depression of the 1930s. The Act was an attempt to limit unforeseen and unprepared-for dangers in modern life, including old age, disability, poverty, unemployment, and the burdens of widow(er)s with and without children. Opponents, however, decried
3864-581: The U.S., and spouses often coordinate their retirement decisions. Thus, men are more likely to retire if their wives are also retired than if they are still in the labor force, and vice versa. Researchers analyzed factors affecting retirement decisions in EU member states : Overall, income after retirement can come from state pensions, occupational pensions, private savings and investments (private pension funds, owned housing), donations (e.g., by children), and social benefits. In some countries an additional lump sum
3948-595: The United States may typically retire at half pay after 20 years of service, or three-quarter pay after 30 years, allowing retirement from the early forties. Military members of the US Armed Forces may elect to retire after 20 years of active duty. (See also: military retirement pay and military pension .) Iranian age of retirement was increased much in 2022 and 2023 to 42 years of work insurance payment record to avoid government social security bankruptcy. Recent advances in data collection have vastly improved
4032-503: The ability of researchers to examine questions about retirement behavior by adding a cross-national perspective. Notes: MHAS discontinued in 2003; ELSA numbers exclude institutionalized (nursing homes). Source: Borsch-Supan et al., eds. (November 2008). Health, Ageing and Retirement in Europe (2004–2007): Starting the Longitudinal Dimension. Many factors affect people's retirement decisions. Retirement funding education
4116-452: The ability to understand important relationships between retirement and factors such as health, wealth, employment characteristics and family dynamics, among others. The most prominent study for examining retirement behavior in the United States is the ongoing Health and Retirement Study (HRS), first fielded in 1992. The HRS is a nationally representative longitudinal survey of adults in the U.S. ages 51+, conducted every two years, and contains
4200-440: The age of entitlement to a pension has been increasing progressively since about 2010. Older people are more prone to sickness, and the cost of health care in retirement is large. Most countries provide universal health insurance coverage for seniors, although in the United States many people retire before they become eligible for Medicare health cover at 65 years of age. A useful and straightforward calculation can be done if it
4284-501: The combined programs together (OASI and DI) and focus on key measures such as trust fund depletion date, actuarial balance over a 75-year period, and comparisons of program costs to U.S. GDP. Regarding trust fund depletion, the Social Security Trustees in 2024, based on technical work by the Social Security Administration's actuaries, project the combined OASDI trust fund will be depleted in 2035. In 2021,
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#17327944947404368-454: The conventional wisdom saying that fewer people will retire since their savings have been depleted; however recent research suggests that the opposite may happen. Using data from the HRS, researchers examined trends in defined benefit (DB) vs. defined contribution (DC) pension plans and found that those nearing retirement had only limited exposure to the recent stock market decline and thus are not likely to substantially delay their retirement. At
4452-419: The effect of wealth on retirement is difficult to estimate empirically since observing greater wealth at older ages may be the result of increased saving over the working life in anticipation of earlier retirement. However, many economists have found creative ways to estimate wealth effects on retirement and typically find that they are small. For example, one paper exploits the receipt of an inheritance to measure
4536-496: The effect of wealth shocks on retirement using data from the HRS. The authors find that receiving an inheritance increases the probability of retiring earlier than expected by 4.4 percentage points, or 12 percent relative to the baseline retirement rate, over an eight-year period. A great deal of attention has surrounded how the Financial crisis of 2007–2008 and subsequent Great Recession are affecting retirement decisions, with
4620-465: The federal Internal Revenue Service (IRS) and are formally entrusted to the Federal Old-Age and Survivors Insurance (OASI) Trust Fund and the federal Disability Insurance (DI) Trust Fund, the two Social Security Trust Funds . Social Security revenues exceeded expenditures between 1983 and 2009 which increased trust fund balances. The retirement of the large baby-boom generation however,
4704-424: The first $ 1,174 of average indexed monthly earnings, plus (b) 32 percent of average indexed monthly earnings between $ 1,174 and $ 7,078, plus (c) 15 percent of average indexed monthly earnings over $ 7,078 For workers who turn 62 in the future, the 90, 32, and 15 percent factors in the computation formula will remain the same but the dollar amounts in the formula (called bend points) will increase by wage growth in
4788-520: The full retirement age that equals 90 percent of the person's average monthly earnings before retirement. The table shows replacement rates for workers who turned 62 in 2013. The PIA computation formula for disabled workers parallels that for retired workers except the AIME is based on fewer years to reflect disablement before age 62. The monthly benefit amount of a disabled worker is 100 percent of PIA. Benefits for spouses, children, and widow(er)s depend on
4872-783: The full spouse benefit for which they qualify. In addition, Social Security beneficiaries with low income and limited resources may qualify for additional income through the Supplemental Security Income (SSI) program. SSI is separate from the Social Security program, but it is administered by SSA. In 2022, 2.5 million Social Security beneficiaries received additional income through SSI. Social Security payments to beneficiaries, which totaled $ 1.23 trillion in 2022, are generally financed by payroll taxes on workers in Social Security covered employment, trust fund reserves, and income taxation of some Social Security benefits. The payroll tax rate totals 12.4 percent of earnings up to
4956-445: The graph. In the graph to the right, the lines are straight, which is appropriate given the assumption of a zero real investment return. The graph above can be compared with those generated by many retirement calculators. However, most retirement calculators use nominal (not "real" dollars) and therefore require a projection of both the expected inflation rate and the expected nominal rate of return. One way to work around this limitation
5040-485: The initial portfolio per year to ensure that the portfolio is not depleted before the end of the retirement; this rule of thumb is a summary of one conclusion of the Trinity study , though the report is more nuanced and the conclusions and very approach have been heavily criticized (see Trinity study for details). This allows for increasing the withdrawals with inflation to maintain a consistent spending ability throughout
5124-494: The largest group of beneficiaries, with 52.4 million retired workers or family members receiving monthly payments. Social Security Disability Insurance benefits were paid to 7.4 million disabled workers and 1.2 million dependents (children and spouses). About 5.8 million individuals, including 2 million children, received some type of survivor benefit from Social Security. Some individuals qualify for more than one type of benefit, but program rules on dual entitlement generally prevent
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#17327944947405208-427: The law. Workers with 40 quarters of coverage (QC) are "fully insured" and eligible for retirement benefits. Retirement benefit amounts depend upon the average of the person's highest 35 years of "adjusted [for inflation]" or "indexed [for inflation]" earnings. A person's payroll-taxable earnings from earlier years are adjusted for economy-wide wage growth, using the national average wage index (AWI), and then averaged. If
5292-661: The majority of their life. Job openings will increase in the next 5 years due to retirements of the baby boomer generation. The Over 50 population is actually the fastest growing labor groups in the US. A great deal of research has examined the effects of health status and health shocks on retirement. It is widely found that individuals in poor health generally retire earlier than those in better health. This does not necessarily imply that poor health status leads people to retire earlier, since in surveys retirees may be more likely to exaggerate their poor health status to justify their earlier decision to retire. This justification bias, however,
5376-469: The national economy, as measured by the AWI. Because the AIME and the PIA calculation incorporate the AWI, Social Security benefits are said to be wage indexed. Because wages typically grow faster than prices, the PIAs for workers turning 62 in the future will tend to be higher in real terms but similar relative to average earnings in the economy at the time age 62 is attained. Monthly benefit amounts are based on
5460-460: The necessary lump sum is given by the formula as (1-0.25)*0.80*60,000*annuity-series-sum(30)=36,000*22.396=806,272 in the nation's currency in 2008–2010 terms. To allow for inflation in a straightforward way, it is best to talk of the 806,272 as being '13.43 years of retirement age salary'. It may be appropriate to regard this as being the necessary lump sum to fund 36,000 of annual supplements to any employer or government pensions that are available. It
5544-468: The past, legislation has been enacted to prevent trust fund depletion. Should the trust funds be depleted, Social Security would still have revenue coming into the system from payroll taxes. The Social Security trustees estimate that revenue would be sufficient to pay 77 percent of the program's benefits. There has been debate about a trust fund depletion scenario regarding whether monthly benefits would be lowered or whether full amounts would be paid but not on
5628-423: The payment of two full benefits. For example, a person eligible for a retirement benefit and a higher spouse benefit will receive the full retirement benefit and a partial spouse benefit. The dual entitlement rules disproportionately affect women (7 million women in 2022 ) because historically they have earned less than current or former husbands and this leads to retirement benefits for women that are often lower than
5712-468: The penalty-free status is achieved and the 10% IRS penalty no longer applies. Social Security (United States) Bowles–Simpson Commission 2007–2008 financial crisis 2013 budget sequestration Related events In the United States , Social Security is the commonly used term for the federal Old-Age, Survivors, and Disability Insurance ( OASDI ) program and is administered by
5796-420: The person to work any longer (by illness or accident) or as a result of legislation concerning their positions. In most countries, the idea of retirement is of recent origin, being introduced during the late-nineteenth and early-twentieth centuries. Previously, low life expectancy , lack of social security and the absence of pension arrangements meant that most workers continued to work until their death. Germany
5880-545: The poor, dependent children, spouses, survivors and the disabled. Poor farms were common in the US before Social Security took effect, then most disappeared by about 1950. By 1950, debates moved away from which occupational groups should be included to get enough taxpayers to fund Social Security to how to provide more benefits. Changes in Social Security have reflected a balance between promoting "equality" and efforts to provide "adequate" and affordable protection for low wage workers. The larger and better known programs under
5964-439: The probability that the retirement plan will be successful. Retirement is generally considered to be "early" if it occurs before the age (or tenure) needed for eligibility for support and funds from government or employer-provided sources. Early retirees typically rely on their own savings and investments to be self-supporting, either indefinitely or until they begin receiving external support. Early retirement can also be used as
6048-539: The proportion of pay that should be saved: Note that the special case i =0 = i means that the geometric series should be summed by noting that there are p or w identical terms and hence z = p/(w+p). This corresponds to the graph above with the straight line real-terms accumulation. The result for the necessary z given by (Ret-03) depends critically on the assumptions made. As an example, one might assume that price inflation will be 3.5% per year forever and that one's pay will increase only at that same rate of 3.5%. If
6132-412: The proposal as socialism. Secretary of Labor Frances Perkins wrote that during a Senate Finance Committee hearing, Senator Thomas Gore (D-OK) asked "Isn't this Socialism?" She replied that it was not, but he continued, "Isn't this a teeny-weeny bit of Socialism?" The provisions of Social Security have been changing since the 1930s, shifting in response to economic worries as well as coverage for
6216-420: The required savings rates in the accompanying picture. Finally, a newer method for determining the adequacy of a retirement plan is Monte Carlo simulation . This method has been gaining popularity and is now employed by many financial planners. Monte Carlo retirement calculators allow users to enter savings, income and expense information and run simulations of retirement scenarios. The simulation results show
6300-520: The retirement age depends on the date of birth of the person filing for retirement. In Spain it was ruled that the retirement age was to increase from 65 to 67 progressively from 2013 to 2027. In the United States, while the normal retirement age for Social Security , or Old Age Survivors Insurance (OASI) was age 65 to receive unreduced benefits, it is gradually increasing to age 67 by 2027. Public servants are often not covered by Social Security but have their own pension programs. Police officers in
6384-431: The retirement, and to continue making withdrawals even in dramatic and prolonged bear markets . (The 4% figure does not assume any pension or change in spending levels throughout the retirement.) When retiring prior to age 59 + 1 ⁄ 2 , there is a 10% IRS penalty on withdrawals from a retirement plan such as a 401(k) plan or a Traditional IRA. Exceptions apply under certain circumstances. At age 59 and six months,
6468-502: The same time, using data from the Current Population Survey (CPS), another study estimates that mass layoffs are likely to lead to an increase in retirement almost 50% larger than the decrease brought about by the stock market crash, so that on net retirements are likely to increase in response to the crisis. More information tells of how many who retire will continue to work, but not in the career they have had for
6552-404: The special minimum benefit in 2019. The benefits someone is eligible for are potentially so complicated that potential retirees should consult the Social Security Administration directly for advice. Many questions are addressed and at least partially answered on many online publications and online calculators. The Social Security Administration (SSA) provides benefit estimates to workers through
6636-467: The system solvent for 75 years. The figure is designed to illustrate the size of the deficit. Legislation could close the deficit in ways other than raising the payroll tax rate. Because taxable earnings are a fraction of GDP, sometimes the system's finances are put into context by using GDP. Social Security's cost are currently 5.2 percent of U.S. GDP. Program costs will rise to 6.3 percent of GDP by 2076, and then decline to 6.0 percent of GDP by 2097. In
6720-702: The taxable maximum (the rate is 6.2 percent from workers and 6.2 percent from employers and 12.4 percent from the self-employed). The OASI Trust Fund and the DI Trust Fund are legally separate. For employees and employers combined, the OASI payroll taxes are 10.6 percent and the DI payroll taxes are 1.8 percent. In 2022, trust fund reserves for the OASI and DI programs were $ 2.7 trillion and $ 118 billion, respectively. Income taxation of some Social Security benefits brought in $ 47.1 billion for OASI and $ 1.6 billion for DI in 2022. Assessments of system financing often focus on
6804-527: The worker has fewer than 35 years of covered earnings, these non-contributory years are assigned zero earnings. The sum of the highest 35 years of adjusted or indexed earnings divided by 420 (35 years times 12 months per year) produces a person's Average Indexed Monthly Earnings or AIME. The AIME is then used to calculate the Primary Insurance Amount (PIA). For workers who turn 62 in 2024, the PIA computation formula is: (a) 90 percent of
6888-435: The world, people are much more likely to retire at the early and normal retirement ages of the public pension system (e.g., ages 62 and 65 in the U.S.). This pattern cannot be explained by different financial incentives to retire at these ages since typically retirement benefits at these ages are approximately actuarially fair; that is, the present value of lifetime pension benefits (pension wealth) conditional on retiring at age
6972-698: Was scheduled for a 2009 re-release in a trade paperback format with additional material added by the creators but this never happened. This DC Comics –related article is a stub . You can help Misplaced Pages by expanding it . Retirement Retirement is the withdrawal from one's position or occupation or from one's active working life. A person may also semi-retire by reducing work hours or workload. Many people choose to retire when they are elderly or incapable of doing their job for health reasons. People may also retire when they are eligible for private or public pension benefits , although some are forced to retire when bodily conditions no longer allow
7056-479: Was the first country to introduce retirement benefits in 1889. Nowadays, most developed countries have systems to provide pensions on retirement in old age , funded by employers or the state. In many poorer countries, there is no support for the elderly beyond that provided through the family. Today, retirement with a pension is considered a right of the worker in many societies; hard ideological, social, cultural and political battles have been fought over whether this
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