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Old 08-24-2014, 08:12 AM
 
2,394 posts, read 2,063,137 times
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At 62 my net pension and social security will be greater than my net salary. That is because I have deductions from my salary that I will not have when I retire. SS deduction/pension contribution and health care contribution.
At my current salary my take home prior to taxes but with the 3 deductions I listed will be $85,600 while my pension and social security will be $87,600. That includes taking the pension option leaving my spouse 100% of the pension.
Every year I continue to work my pension and ss net income increases by $3,000 so if I stay until I am FRA my retirement income would be $102,600.

I love my job but could also see about doing something else at 62.
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Old 08-24-2014, 08:14 AM
 
Location: IGO CA
350 posts, read 371,230 times
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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.
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Old 08-24-2014, 08:15 AM
 
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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.
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Old 08-24-2014, 08:20 AM
 
Location: MMU->ABE->ATL->ASH
9,127 posts, read 17,145,055 times
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Health Care Costs,

At your income level
85% of your SS Check will be taxable, Don't for get to calculate that in.

But sound like your are ready to go.. So if the number work, then go...

What is your retirement activity plan will it work at the income level?
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Old 08-24-2014, 08:31 AM
 
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I will be receiving health care from my job. I will contribute 1.5% of my pension for coverage. When Medicare kicks in the policy becomes the secondary coverage. I pay 7% of my income for the same coverage now.
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Old 08-24-2014, 09:00 AM
 
Location: Florida -
8,764 posts, read 10,845,692 times
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Even though your focus is on finances, and apart from inflation or 'unknowns', it sounds like this is not really a financial decision. If you didn't 'love' your job and seriously wanted to retire now, would anything hold you back? At some point (now or in the next few years), you will 'pull the plug' and actually retire. What will be different then versus now (other than a few more bucks)?

How long do the men in your family live? ... Is their health typically good throughout? Are you looking forward to retirement -- or worried that you will be bored and unproductive? What is your retirement plan and where does your family stand? Do you have retirement/home dynamics that you would like to avoid? Do you have retired friends? A pro/con analysis has always helped me make this type of decision.

There is nothing 'magic' about retirement ... or work. I retired at 61 and have never regretted no longer working ... but, there are times now when I'm at a loss to find something meaningful that I want to do. But, we are in a comparable financial situation to yours and it's always better to not have to worry about income or health, ... whether retired or not. -- Good luck!
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Old 08-24-2014, 09:57 AM
 
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You also have to factor in how much inflation is going to reduce your purchasing power, what your expenses will be, and how much savings you have to cover anything extra needed.
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Old 08-24-2014, 10:13 AM
 
Location: SW Florida
9,759 posts, read 7,038,572 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.
Unless they've gone and changed things in the last year, Medicare kicks in at age 65. It's SS that kicks in at a full retirement rate at age 66 for those born between 1943 and 1954.
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Old 08-24-2014, 10:43 AM
 
5,392 posts, read 6,536,800 times
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I do believe we can hit a point of diminishing returns financially for retirement where it becomes a question of what extra money you gain may be of diminishing value to what you must do/spend/gain/endure. It may become the question of "How much is enough? Is my spouse, if any, cared for?" and if you reach that point, fine.

Then it becomes subjective and quality of life things that you can consider in your decision. Do you just love what you do and it makes you happy to do it? Is your physical health impacting upon your day to day life or ability to work? etc.

One thing that was on my list of make sure you do was to make all purchases of major items so that at retirement I had no outstanding monthly bills. That helps. And an advantage that worked for me is that my employer asked me to stay 2 months longer so I applied that $ toward fixing things in my house that had chosen that moment to burst. Although I had savings intended to go for house maintenance when needed, that extra salary helped smooth that out.

Good luck and enjoy whatever you do
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Old 08-24-2014, 11:10 AM
 
29,782 posts, read 34,871,258 times
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Quote:
Originally Posted by tom1944 View Post
At 62 my net pension and social security will be greater than my net salary. That is because I have deductions from my salary that I will not have when I retire. SS deduction/pension contribution and health care contribution.
At my current salary my take home prior to taxes but with the 3 deductions I listed will be $85,600 while my pension and social security will be $87,600. That includes taking the pension option leaving my spouse 100% of the pension.
Every year I continue to work my pension and ss net income increases by $3,000 so if I stay until I am FRA my retirement income would be $102,600.

I love my job but could also see about doing something else at 62.
What do you have in the way of investment funds. You could do a 62/70 SS withdrawal plan with the lower beneficiary taking at 62 and the higher taking spousal at 66 and their full at 70. If you have a compounding COLA for your pension it will still along with SS be increasing because of the COLA. You have health care coverage unless your former employer bails on that. If you continue working you will be giving take home pay away. Hmmmm working for less money. How much cushion is there between your expenses and take home pay? I just realized you are in a Jersey so many assumptions might go out the window. Especially health care.
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