Planning on social security?

[Mo]

@FF, you're correct. My example wasn't a great choice, just an attempt to illustrate a point about the number of zeros.
I suspect that most people, even in the ERE crowd, will earn enough credits to qualify. Since it only takes $1120 in earnings to get a credit. Thus anyone earning $4500 in a year gets the full 4 credits.

[Mo]

Here's a question open to all who have an interest in the SS benefits issue:
From Q3 2001 to Q1 2005, FICA taxes were withheld from my paycheck. Recently, it has been acknowledged that these earnings were FICA exempt. I can have the FICA contributions refunded to me (about $11k), with interest, but I lose the value of the contributions if I do so. Meaning, I lose the credits and the value of the contribution to my ultimate SS benefit.
If I take the refund, I'll be knocked back down to 34 credits, and my benefit will go down by at least $130 per month.
So, what do you think-- take the refund, or not?

[George the original one]

If you're within two decades of claiming SS, then I would not take the refund. $11k @ 4% safe withdrawl rate is only $36.66/mo and SS is promising you $130/mo. Significant difference!

[JohnnyH]

SS will default, or be inflated to nothing, under the baby boomers...
I SS still exists in 30-40 years and is paying 40% (based on gold value) of what it is today, I'll eat every hat I own.