Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am just bouncing the numbers around with the wife as I'd like to retire early if the numbers are close enough to make very little difference.....my numbers for SS would be $133 less per month at 62.....not enough to keep me working in my eyes, as long as everything else comes together. Just doing the math.......5 years goes very fast
I am just bouncing the numbers around with the wife as I'd like to retire early if the numbers are close enough to make very little difference.....my numbers for SS would be $133 less per month at 62.....not enough to keep me working in my eyes, as long as everything else comes together. Just doing the math.......5 years goes very fast
Some questions:
Where is health insurance coming from until you both get to Medicare at age 65?
Do you have a handle on what your Medicare premiums and supplemental premiums will be? It's not free.
You say you have a pension. Is it COLA protected? Most pensions get crushed in a period of big inflation. There were horror stories about people who retired in the 1970's with a pension and were crushed by a decade of hyperinflation. We have a President who wants to juice the economy. That could be very inflationary.
What's your wife's story for Social Security? What about survivor benefits for your pension? If you start collecting at age 62 and keel over a couple years later, does that put your wife at poverty level?
Where is health insurance coming from until you both get to Medicare at age 65?
Do you have a handle on what your Medicare premiums and supplemental premiums will be? It's not free.
You say you have a pension. Is it COLA protected? Most pensions get crushed in a period of big inflation. There were horror stories about people who retired in the 1970's with a pension and were crushed by a decade of hyperinflation. We have a President who wants to juice the economy. That could be very inflationary.
What's your wife's story for Social Security? What about survivor benefits for your pension? If you start collecting at age 62 and keel over a couple years later, does that put your wife at poverty level?
Medical insurance is the big one for the 3 year gap. I can stay on employer an and pay the full cost....including wife. I do believee the pension does have cola, and if I pass, the wife would continue to collect fully. We plan to move south where the col is ridiculously cheaper than current residence. We will, or should be totally debt free, carry little / no mortgage and should be in a good financial position for most anything. The wife just wants to collect as much as possible....says I worked for, I deserve it
Medical insurance is the big one for the 3 year gap. I can stay on employer an and pay the full cost....including wife. I do believee the pension does have cola, and if I pass, the wife would continue to collect fully. We plan to move south where the col is ridiculously cheaper than current residence. We will, or should be totally debt free, carry little / no mortgage and should be in a good financial position for most anything. The wife just wants to collect as much as possible....says I worked for, I deserve it
If you are going to move out of state - sounds like several states away, does your current employer have a plan that would even cover you out of state? That's without even looking at costs.
You don't lose money if you file for SS at age 62 and live to 90 vs file at age 66 or 70 and live to 90. 90 is just an example. You just get smaller checks, but more of them.
For me, retiring younger was more important than a few hundred more a month in 4 years.
actually not true . live to 90 and delaying is ALWAYS the larger amount accumulated , especially because cola's are on bigger checks . delaying can actually produce as much as a 5% real return by age 90 and a 6% real return at 95 . there can be a difference of as much as 200k in accumulated payments just at age 85 .
it would take filing early and investing in a balanced fund and having the best out comes in markets and rates to match that . without investing counted the difference is not even close between the accumulation filing early vs 70 and seeing 90 or 95.
Last edited by mathjak107; 03-17-2017 at 05:27 AM..
I would not do anything until you know what your medical coverage will cost and as posted we have no idea what that will look like in 5 years.
I agree 100%, just playing with numbers and getting opinions on the way I calculated them....and always good to hear of those little items I may not have taken into consideration. Health may come into play, as there are some issues that are currently causing problems, it's just how long can I deal with the pain and discomfort after a days work.
It is great that you are taking an interest in developing an income vs expense plan for the future. If you are like most people, the more you research and compare different and more mature models and calculators, you will find a smaller consensus range as to what matters to you and has the biggest impact. Your current numbers mean nothing, as you said, you are playing around and exploring. Many have noted that you can read about somethinh a hundred times, but until you actively participate in what you are reading about, you never get a true appreciation for what it is, whether painting, photography, a sport, exercise, even negative things such as dieting, recovering from surgery, pain management etc. Armchair experts and Monday Morning QBs have little respect from me. I would be curious, like others, as to why you chose 80 though. Younplan in case you live, not assuming you will die. If you die earlier, it makes no difference, if you live longer, it does.
To state the obvious, $150/mo income makes little difference to someone with $10k/mo income and no debt. It is huge for someone that only has $1200/mo, and debt. For some, delaying to FRA is $800/mo increase, or to 70, $1800/mo. If that is all tax free, then the amounts are compounded. My wife took hers at 62. The actual dollar amounts are small enough, that it would make little difference financially to us, but it made her immensely more happy to collect, and that was important to me (and her). I will delay as long as possible to maximize our COLA income for life, whether I am dead or not, and not put the burden on her and faith in the markets. If the only way one can delay filing is to work longer, that is gigantically different than for someone that can retire at any time, and when to file is instead a matter of whether purchasing the increased annuity from SS is worth it to that individual. Because if that is all it is, then it is a far easier decision.
I really wish a valid way to predict your biological age existed...it would make planning more decisive.
actually not true . live to 90 and delaying is ALWAYS the larger amount accumulated , especially because cola's are on bigger checks . delaying can actually produce as much as a 5% real return by age 90 and a 6% real return at 95 . there can be a difference of as much as 200k in accumulated payments just at age 85 .
it would take filing early and investing in a balanced fund and having the best out comes in markets and rates to match that . without investing counted the difference is not even close between the accumulation filing early vs 70 and seeing 90 or 95.
This appears to be a dramatic example of someone with a huge benefit. The average is close to $1,400/month. Obviously with a $2,941 benefit at age 65 that example is clearly higher than average, so equally obviously with a higher benefit they will be hit harder and skew the break even point because their penalty for early filing will he higher no? A 5% reduction per year from a $2,900 benefit is clearly larger than a 5% reduction of say $1,800 or whatever the average benefit is for someone 65
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
