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Hello Everyone, I have an interesting situation and hoping someone can give me some advice. I turned 62 last Christmas (12/24/55) and chose to continue working mainly because of the cost of medical benefits. My wife doesn’t work and is 10 years younger than I. I thought I would work until 63 and hope that the premium tax credit would help me with medical benefits until 65 when I could apply for Medicare. Unfortunately for me, I really dislike my job. It is a challenge every day lately to get through the day.
I live a very simple life, and over the last 15 years saved everything I could. I was able to pay off my home last year. I have no debt and need about $1,200 a month to live the life I currently lead. When I log into the Social Security website, my estimated benefit is currently $1,707 a month at the age of 62. That number has slowly risen over the last years. A couple years ago it was $1,585; last December on my birthday it was $1,679. If I was to work to FRA (66 and 2 months) my benefit would be $2,289. I have an IRA and 401k at work and I hope to not have to touch it the first few years of retirement to see how things go.
So here is my main question, if I was to quit my job today, what should I do? So far this year I have earned $25,000. (Typically earn between 55 and 60k a year) This year I have taken a few extra early outs so I will probably come in between 50 and 55k for 2018. I understand that if I start my social security now, I will be penalized 1 dollar for every 2 earned over $17,040. If I’m at my breaking point at work, should I just quit and not start my social security benefit until next year because of the penalty phase that I am now in? I’m worried that starting now and being penalized, somehow will affect my future benefits. I’m not sure how it works. Or would you start your benefits as soon as possible and just pay the penalty for this year? I have some money in my emergency fund that can get me through the rest of 2018 if it would be better to delay the start of SS benefits until the New Year. I realize the $1,707 will probably decrease as it is based on my making the 60k I made last year.
I’m pretty clueless to how this all works, I really appreciate any advice that could be given.
Hello Everyone, I have an interesting situation and hoping someone can give me some advice. I turned 62 last Christmas (12/24/55) and chose to continue working mainly because of the cost of medical benefits. My wife doesn’t work and is 10 years younger than I. I thought I would work until 63 and hope that the premium tax credit would help me with medical benefits until 65 when I could apply for Medicare. Unfortunately for me, I really dislike my job. It is a challenge every day lately to get through the day.
I live a very simple life, and over the last 15 years saved everything I could. I was able to pay off my home last year. I have no debt and need about $1,200 a month to live the life I currently lead. When I log into the Social Security website, my estimated benefit is currently $1,707 a month at the age of 62. That number has slowly risen over the last years. A couple years ago it was $1,585; last December on my birthday it was $1,679. If I was to work to FRA (66 and 2 months) my benefit would be $2,289. I have an IRA and 401k at work and I hope to not have to touch it the first few years of retirement to see how things go.
So here is my main question, if I was to quit my job today, what should I do? So far this year I have earned $25,000. (Typically earn between 55 and 60k a year) This year I have taken a few extra early outs so I will probably come in between 50 and 55k for 2018. I understand that if I start my social security now, I will be penalized 1 dollar for every 2 earned over $17,040. If I’m at my breaking point at work, should I just quit and not start my social security benefit until next year because of the penalty phase that I am now in? I’m worried that starting now and being penalized, somehow will affect my future benefits. I’m not sure how it works. Or would you start your benefits as soon as possible and just pay the penalty for this year? I have some money in my emergency fund that can get me through the rest of 2018 if it would be better to delay the start of SS benefits until the New Year. I realize the $1,707 will probably decrease as it is based on my making the 60k I made last year.
I’m pretty clueless to how this all works, I really appreciate any advice that could be given.
Thank You!
I'll take a stab as my SS figures are similar to yours. But the first question is do you want to reveal how much you have in your retirement accounts? It's pretty common for poster to do this so we can see where you are. That way we can see if it is beneficial for you to draw from that and delay SS, filing at 62 has a lot of negative ramification for the rest of your life.
At 62 with a 52 year old wife that's a whole lot of time to be funding your medical coverage by yourself until Medicare.
Hello Everyone, I have an interesting situation and hoping someone can give me some advice. I turned 62 last Christmas (12/24/55) and chose to continue working mainly because of the cost of medical benefits. My wife doesn’t work and is 10 years younger than I. I thought I would work until 63 and hope that the premium tax credit would help me with medical benefits until 65 when I could apply for Medicare. Unfortunately for me, I really dislike my job. It is a challenge every day lately to get through the day.
I live a very simple life, and over the last 15 years saved everything I could. I was able to pay off my home last year. I have no debt and need about $1,200 a month to live the life I currently lead. When I log into the Social Security website, my estimated benefit is currently $1,707 a month at the age of 62. That number has slowly risen over the last years. A couple years ago it was $1,585; last December on my birthday it was $1,679. If I was to work to FRA (66 and 2 months) my benefit would be $2,289. I have an IRA and 401k at work and I hope to not have to touch it the first few years of retirement to see how things go.
So here is my main question, if I was to quit my job today, what should I do? So far this year I have earned $25,000. (Typically earn between 55 and 60k a year) This year I have taken a few extra early outs so I will probably come in between 50 and 55k for 2018. I understand that if I start my social security now, I will be penalized 1 dollar for every 2 earned over $17,040. If I’m at my breaking point at work, should I just quit and not start my social security benefit until next year because of the penalty phase that I am now in? I’m worried that starting now and being penalized, somehow will affect my future benefits. I’m not sure how it works. Or would you start your benefits as soon as possible and just pay the penalty for this year? I have some money in my emergency fund that can get me through the rest of 2018 if it would be better to delay the start of SS benefits until the New Year. I realize the $1,707 will probably decrease as it is based on my making the 60k I made last year.
I’m pretty clueless to how this all works, I really appreciate any advice that could be given.
Thank You!
any income in the year prior to filing does not count . after you start to collect the first year you have to hold at 1420 a month for the rest of the year . second year you can earn up to 17,040 for the year before giving back
Doesn't matter. One time only exemption for income earned in excess of the SSA limit for the year in which you retire. A person can retire in December with their entire annual earnings and no SSA reduction is imposed for that year.
Thanks for the reply. Sure, My portfolio is a little over $500,000 at the moment. I was around 550 a few months ago before this correction. My IRA, Wife's IRA, and 401k at work. I'm sure i have to much in my emergency fund, $30,000, but I've been dumping more into that over recent months because of my dissatisfaction at work. There have been a few days when I really felt like just walking out and I figure with 10,000 of that I can get to 2019.
I have all my retirement accounts in aggressive growth funds, which i know at my age is wrong. I have just been slow to move some of that around to safer spots. I guess I feel comfortable enough with 1,700 a month benefit and 1,200 needed to get month to month, I've stayed aggressive.
Doesn't matter. One time only exemption for income earned in excess of the SSA limit for the year in which you retire. A person can retire in December with their entire annual earnings and no SSA reduction is imposed for that year.
depends what you mean by retire .
if they filed in november so they got their first check in december then the monthly limit for nov and dec is 1420 each
@mathjak107, MI-Roger
Wow, that's amazing that the income I've earned so far this year doesn't put my into the penalty. Thank you so much for that information.
Dave's message is a little scary though.
Quote:
At 62 with a 52 year old wife that's a whole lot of time to be funding your medical coverage by yourself until Medicare.
I'm wondering if I should gut it out as long as I can and retire near the end of the year.
Is there a way to find out exactly what your SS benefit will be, I wonder about that $1,707 estimate and how close that might end up being.
Thanks for the reply. Sure, My portfolio is a little over $500,000 at the moment. I was around 550 a few months ago before this correction. My IRA, Wife's IRA, and 401k at work. I'm sure i have to much in my emergency fund, $30,000, but I've been dumping more into that over recent months because of my dissatisfaction at work. There have been a few days when I really felt like just walking out and I figure with 10,000 of that I can get to 2019.
I have all my retirement accounts in aggressive growth funds, which i know at my age is wrong. I have just been slow to move some of that around to safer spots. I guess I feel comfortable enough with 1,700 a month benefit and 1,200 needed to get month to month, I've stayed aggressive.
Thanks again for trying to help!
Again your figures are close to mine here too but we will realize a substantial bump when we sell our house and relocate. That 30 grand in your emergency fund is a good idea, not only for emergencies but to draw from if the market tanks. I'm aggressive too for my age (59) but not that aggressive. I'd suggest you dial it back at least a tick or two and mix in some bonds.
But the health care is the big issue. You just can't get away from that and it does not look like you have enough to fully fund coverage for that long. Wife has no benefit options?
@mathjak107, MI-Roger
Wow, that's amazing that the income I've earned so far this year doesn't put my into the penalty. Thank you so much for that information.
Dave's message is a little scary though.
I'm wondering if I should gut it out as long as I can and retire near the end of the year.
Is there a way to find out exactly what your SS benefit will be, I wonder about that $1,707 estimate and how close that might end up being.
if they counted the income prior to filing no one could collect in mid year . so they have special rules for year 1 .
up until you file the income is exempt. once you file you have to stay under 1420 per month for the rest of the year . starting in january you go to the 17,000 limit and give back .
No, she has some health issues, I've never pushed her to work. She is from Singapore and has never worked in this country. We have been married for 20 years now. Her country will not allow her to hold dual citizenship so she has been a resident alien all these years. Because of our age difference, she has held on to her citizenship in the event something happened to me she could always return to her country. Will she be able to get medicare at 65 as a resident alien? I will be 75 when she hits that age, and that's pretty old for people in my family. Longevity is not our strong suit unfortunately.
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