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Old 08-24-2014, 05:30 PM
 
Location: Florida
4,365 posts, read 3,700,708 times
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From what you said financially you can retire.
If you can think about working less hours and and do some traveling. In short test drive retirement.

I would look at delaying SS as long as you can. This is like buying an inflation annuity.
Assume wife is not working.

Think about
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Old 08-24-2014, 05:53 PM
 
29,779 posts, read 34,867,277 times
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Quote:
Originally Posted by tom1944 View Post
Tuborg- I have time before I have to decide. The issues with Christie will have been long decided. I turn 57 in January so I have 5 years to make any real decision. If the COLA goes away on the pension side I will most likely stay at least 1 or 2 extra years. If for some reason the medical goes I would stay to 65.
Best of luck over the next five years much can get clarified. How tied are you to Jersey?
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Old 08-24-2014, 06:38 PM
 
338 posts, read 625,360 times
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Another NJ person here with a state pension (my DHs). The Cola certainly is a big issue. We retired 5 years ago and decided to stay in NJ despite the high taxes for family reasons. Our house is mortgage free and we have no debt.

I would say a big consideration for you is the amount of your savings. For DH and I, we are living very comfortably without touching our savings now. If the Cola is gone for good, we have sufficient savings that we can tap to maintain our standard of living as inflation erodes the buying power of the pension. I would say that would be a big consideration for you, unless you plan to move to an area with much lower cost of living.

Don't know what changes will be made to the medical, but my guess is it will be fairly moderate (at least to start!).

Good luck with whatever you decide.
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Old 08-24-2014, 07:50 PM
 
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I will be staying in NJ.
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Old 08-24-2014, 08:05 PM
 
Location: Prosper
6,268 posts, read 12,912,361 times
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I'd be careful how much reliance you place on your pension for future earnings. Forget about COLA, pension benefits themselves can be cut, a lot of state and city governments have had to cut back after the latest financial crisis. SS is no different. It was cut several times when my grandmother was receiving it.

I would place far more emphasis on the amount of savings you have. Could you live on your savings and 50% of your projected pension benefits for 25 years, factoring in the increasing health coverage costs and inflation?

The sad reality is, pensions are a long term, unsustainable enterprise. I had a pension with two companies in my life before, both were canceled, and I was given a lump sum at the time that of course was far below what I'd been told I would receive at retirement.

I'd play on the safe side... If you want to retire at 62, I'd figure you have 25 years of life after that to plan for. That's a long time. Try doing the math with just 50% of your expected earnings. In the long run, I bet you'll be glad you did.
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Old 08-29-2014, 10:05 AM
 
33,046 posts, read 22,057,675 times
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Quote:
Originally Posted by greyhorsewoman View Post
One consideration: Medicare doesn't kick in till 66, so you will still be paying some sort of health care deduction and it may be greater than what you pay now.

You mean we've been lied to all these years?
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Old 08-29-2014, 11:32 AM
 
2,429 posts, read 3,224,402 times
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At 54 I've been thinking about a lot of these questions. But I guess as most would gather -- a lot can change in five years. So, other than the OP starting to think about these issues, and using the next years to get in even BETTER shape financially, if retirement is more 5-plus years away, no decision can be made now anyway.

So now is the time to start getting familiar with the kinds of things one needs to consider, regarding taxes, Soc Sec, Medicare etc.....as of today -- how things work. So that, that part of the learning curve is already taken care of -- and IF anything changes between now and retirement....the person is able to understand how those changes affect the bigger retirement planning picture.

I know I've learned a lot more about various strategies regarding when to take Soc. Sec. and taxes for example.

OP, do you have longterm care insurance? What's are your plans for care -- Gd forbid your health goes south?
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Old 08-30-2014, 04:30 PM
 
Location: Los Angeles area
14,018 posts, read 17,737,509 times
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Quote:
Originally Posted by greyhorsewoman View Post
One consideration: Medicare doesn't kick in till 66, so you will still be paying some sort of health care deduction and it may be greater than what you pay now.
Medicare kicks in at 65, not 66.
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Old 08-31-2014, 05:20 AM
 
Location: Bella Vista, Ark
71,957 posts, read 83,625,334 times
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Quote:
Originally Posted by mathjak107 View Post
Well if you aren't working you are spending down the money you are not earning anymore as well as social security stops growing if you file early.

No one can answer the question ,only you can.
I think the medicare issue is probably of more concern than the increase in SS. It sounds like OP is about at his/her max in SS earnings. I was surprised to see a comment about medicare not kicking in until 66. We have friends from church, just turned 65 last year, as did my brother and they are both on medicare. Can someone clarify that for others who might be facing the same situation?

OP, except for the medicare issue, sounds like you are in pretty good condition regardless of whether you hang in there another few years or start enjoying life without a regular job. Good luck.

I will add, someone brought up figuring in things like inflation, etc. that is something totally impossible to predict, just like health issues or major disasters. This is where a professional financial councilor enters the picture.
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Old 08-31-2014, 05:25 AM
 
Location: Bella Vista, Ark
71,957 posts, read 83,625,334 times
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Quote:
Originally Posted by lancers View Post
I have to admit the thought crossed my mind. That isn't rich though he might be but nearly anyone would love those problems.

To work or not is an individual decision but if I didn't love getting up and going to work everyday I would quit tomorrow. If I had the money I would take a few years off and see the world.
Rich is a matter of how one looks at something: Let's just say, he is in an income bracket way above many retirees. I am a little surprised, with that type of retirement he is posing the question here and not talking to his financial councilor.
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