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Old 10-17-2018, 01:29 PM
 
Location: Lexington, S.C.
10 posts, read 8,472 times
Reputation: 67

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Interesting read. I turned 65 last month. I am walking out the door for the last time on Dec 31st from my state job to help my adult son (only child) in his small but growing business. I have not and will not receive a salary for my labor (past and future) but have asked him to apply what he would have paid an employee back into his business. I really don't see how anyone can start a business now a-days without some assistance or one heck of an inheritance. My wife and I are doing as much as we can physically but not fiscally to help him get established in a career/business he built out of a hobby in hopes he can at some point financially stand on his own. I have a military retirement that will meet most if not all our needs and my wife and I have saved all our lives for this day. I never had the boat or the motorcycle or the... that I always wanted and am just now realizing the benefit of those LBYM years. I do not plan on filing for SS until 70 and will just adjust my spending to protect what investments my wife and I have. It's interesting how our priorities change as we age.
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Old 10-17-2018, 02:49 PM
 
2,775 posts, read 993,967 times
Reputation: 3213
Quote:
Originally Posted by GeoffD View Post
Yep. I have the spare $200K to be able to defer collecting from 62 to 70. It's an extra COLA-protected $20K per year for the rest of my life to defer to age 70. Why wouldn't I take that deal?


I have no clue when I'm going to retire. I'll retire when somebody doesn't want to pay me my usual high tech wages to telecommute doing what I do for a living. That might be in a few months. I might work the whole decade of my 60s. I've accumulated enough wealth that I'm OK if I stop working now at age 60. I have much better cash flow if I work more years.
But many donít so thatís why they must continue working until 70. Itís good to be able to have the option to retire early and use savings to hold off taking SS.

As I keep saying if you have that option take whichever makes your retirement as enjoyable as you can.
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Old 10-18-2018, 10:54 AM
 
Location: Buckeye, Arizona
268 posts, read 106,906 times
Reputation: 282
I retired at 55 with a pension. I'm just finishing my retirement job now at 63, worked part-time for the last 8 years. Wife retired at 56 with a pension and has been disabled because of cancer since she was 57 so she is on Medicare and receiving her social security. I will probably take my social security at 66 and 2 months (my FRA) but may take it sooner . . . still contemplating that.


I am currently paying the maximum into a 401k through my part-time position for the last 4 years, which I plan to use as my buffer in the interim. Making monthly withdrawals until FRA.
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Old 10-18-2018, 12:00 PM
 
5,426 posts, read 3,448,244 times
Reputation: 13709
Yes, I retired at 62 and did so suddenly, without fully planning to.

I had my 62nd birthday and suddenly I absolutely could not wait to get out of there!!

And psychologically I just couldn't wait to retire after turning 62, so I was out the door 6 weeks later.

I was thrilled to retire and I'm still thrilled 8 years later. I love it.

Retiring at 62 worked out really well in all ways, and I'm very happy I did so.

Life seems particularly short and brief to me - so I'd recommend to anyone and everyone who can retire at 62 to do so.

Life goes very very fast in retirement - so I'd recommend retiring as quickly as possible to capture life - if possible, and if one is psychologically and financially fit for retirement.
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Old 10-18-2018, 06:54 PM
 
605 posts, read 188,794 times
Reputation: 638
Quote:
Originally Posted by lifexponential View Post
Hi folks. I had been on disability but recently got a job. I'm 62 and change almost 63 and when I told Social Security about my new job, well now I'm not going to get the disability I had been getting for awhile and that's fine, I was geared for that. But once I stop getting those benefits, I can have the option of filing for retirement, but it's not going to be the full retirement age.
They sure ding you for that.
I for one feel it's not fair because why wait until you're so old you cant even enjoy the benefits you get!
So with that said, anyone here file for retirement early?
My choices are "retire" at 62 to qualify for medicare savings programs then make less than $1400 a mo. still working part time. But who and where, do you get jobs limited to just $1400 mo???

Since my husband is older, and women live longer, to wait is stupid. Yet that is my decision. I cannot see how we can survive otherwise.

I chose to work until 70 yrs+ though maybe, if I tried, it could be earlier.Medicare savings programs might not be around by my age.
At 70 I'll hopefully have the resources to pay for our medicare part b, medigap, a drug prescription plan, & dental plans. Luckily, our house will be paid off when I am 60, cars paid off and no debt. So we should get by fine. Our interests revolve around nature so we need very little $$ to make us happy

My SS at age 70 is only $1250 a mo. but it will hopefully cover our healthcare. We will live off of husbands SS of $1250 a mo. Fortunately, our home will be paid off, and otherwise, no debt.

Our high COLA area means $1250 mo. is really not enough $$ to live on. In retirement, we'll need to rent out the back of our house which contains a bedroom, private bath, + laundry facilities for $375 or so a mo. With that, we can get by fine.

I have a 401K plan and will cash it out to use as our emergency fund whenever I depart my employer. Either at age 62, which is unlikely, or at age 70. Working just one 24 hr shift provides my medical & dental benefits, accident & life insurance. There is no incentive to retire at 62 with these benefits offered. Likely, I'll be waiting until age 70.

.

Last edited by BumbleBeeHunter; 10-18-2018 at 07:23 PM..
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Old 10-18-2018, 09:50 PM
 
Location: VT; previously MD & NJ
2,202 posts, read 1,345,129 times
Reputation: 6336
Quote:
Originally Posted by BumbleBeeHunter View Post
My choices are "retire" at 62 to qualify for medicare savings programs then make less than $1400 a mo. still working part time. But who and where, do you get jobs limited to just $1400 mo???

Since my husband is older, and women live longer, to wait is stupid. Yet that is my decision. I cannot see how we can survive otherwise.

I chose to work until 70 yrs+ though maybe, if I tried, it could be earlier.Medicare savings programs might not be around by my age.
At 70 I'll hopefully have the resources to pay for our medicare part b, medigap, a drug prescription plan, & dental plans. Luckily, our house will be paid off when I am 60, cars paid off and no debt. So we should get by fine. Our interests revolve around nature so we need very little $$ to make us happy

My SS at age 70 is only $1250 a mo. but it will hopefully cover our healthcare. We will live off of husbands SS of $1250 a mo. Fortunately, our home will be paid off, and otherwise, no debt.

Our high COLA area means $1250 mo. is really not enough $$ to live on. In retirement, we'll need to rent out the back of our house which contains a bedroom, private bath, + laundry facilities for $375 or so a mo. With that, we can get by fine.

I have a 401K plan and will cash it out to use as our emergency fund whenever I depart my employer. Either at age 62, which is unlikely, or at age 70. Working just one 24 hr shift provides my medical & dental benefits, accident & life insurance. There is no incentive to retire at 62 with these benefits offered. Likely, I'll be waiting until age 70.

.
Medicare starts at age 65. It is NOT a savings program. Has nothing to do with what age you retire.

If you don't have an employer health care plan at age 65, you have to go on Medicare. Part A is free, Part B has a monthly fee and if you don't start it at 65 you will pay a penalty. Suggest you go to Medicare.gov for more information.
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Old 10-19-2018, 09:07 AM
 
605 posts, read 188,794 times
Reputation: 638
Quote:
Originally Posted by ansible90 View Post
Medicare starts at age 65. It is NOT a savings program. Has nothing to do with what age you retire.

If you don't have an employer health care plan at age 65, you have to go on Medicare. Part A is free, Part B has a monthly fee and if you don't start it at 65 you will pay a penalty. Suggest you go to Medicare.gov for more information.
This is what I was referring to
https://www.medicare.gov/your-medica...vings-programs


My HSA balance of 85K would likely eliminate us for the program anyhow. Just occurred to me.
I am healthy so working beyond 65 with employer sponsored health & dental is very possible
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Old 10-20-2018, 06:03 AM
 
Location: R.I.
977 posts, read 605,084 times
Reputation: 4232
Quote:
Originally Posted by mercedesmarcelina158 View Post
I retired from a job with the Federal government at age 60. I receive a pension and something called Special Supplement, which is like early Social Security (a bit less) until I turn 62. My pension eats up about 1/3 of my health insurance expenses. I plan to apply for early Social Security as soon as I turn 62. The reason is that I don't want to touch my 401K. If I take SS at 62 I get less but it's guaranteed income for life. Whereas my 401K is not guaranteed income, once I run out of money there that is it, it's gone. So for me the answer is simple. The break even point is also an interesting factor, I collect less, but for longer. If I take it at FRA then who knows what may happen to me? I may be too old, or ill, or dead (given family longevity) to enjoy my retirement.
As someone who will also be a FERS retiree I always find it interesting reading about the choices other FERS retirees makes based on their own personal retirement needs and plans.

I am currently age 61 and will be 62 in February. In my personal situation retiring at 62 would not be the best choice for me for several reasons. And one of the main reasons is I will only have 18.7 years of service at that time which means the FERS pension multiplier with less than 20 years of service will be 1.0 instead of 1.1. And for me although I plan to work to my FRA retiring at 62 instead of 63.7 when I hit the 20 year service mark that equals around a $4,300 annual loss of pension income for the rest of my life. And that $4,300 is basically the annual cost of my FEHB BC/BS Standard, dental, and vision coverage.

So for me working that additional 1.7 years which in the process I will forfeiting my age 62 Social Security benefit during that time I will be leaving of that benefit on the table around $31,600. Sounds like a good chunk of money to leave on the table but not compared to during that same time I have earned from working 5.5 x that amount, gained $4,300 annually to my pension, and increased my TSP/401K balance by around $35,000.
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Old 10-20-2018, 06:29 AM
 
1,137 posts, read 569,984 times
Reputation: 4370
Quote:
Originally Posted by Nightengale212 View Post
As someone who will also be a FERS retiree I always find it interesting reading about the choices other FERS retirees makes based on their own personal retirement needs and plans.

I am currently age 61 and will be 62 in February. In my personal situation retiring at 62 would not be the best choice for me for several reasons. And one of the main reasons is I will only have 18.7 years of service at that time which means the FERS pension multiplier with less than 20 years of service will be 1.0 instead of 1.1. And for me although I plan to work to my FRA retiring at 62 instead of 63.7 when I hit the 20 year service mark that equals around a $4,300 annual loss of pension income for the rest of my life. And that $4,300 is basically the annual cost of my FEHB BC/BS Standard, dental, and vision coverage.

So for me working that additional 1.7 years which in the process I will forfeiting my age 62 Social Security benefit during that time I will be leaving of that benefit on the table around $31,600. Sounds like a good chunk of money to leave on the table but not compared to during that same time I have earned from working 5.5 x that amount, gained $4,300 annually to my pension, and increased my TSP/401K balance by around $35,000.
You have a good plan. People often make the mistake of fretting about leaving 'money on the table' without understanding what that means in the long run. The 31K you are 'losing', LOL, is more than made up for by the additional income from working and savings increase.

'Working longer' is what a particular poster here often calls 'the silver bullet'- and for good reason.
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Old 10-20-2018, 06:40 AM
 
Location: Knoxville, TN
1,249 posts, read 590,159 times
Reputation: 2747
Quote:
Originally Posted by Beach Sportsfan View Post
Correct just in past few years I have seen three co- workers pass away all less than 70 and still working trying to max out their SS. That wonít be me, I have seen my health now at 60 not be what it was just a few years ago. So 62 is my reach. I will have a pension and if I take SS at 62 I wonít need to touch my savings for living. So the only question for me is SS at 62 or using savings to file at FRS.
I am in a similar situation. I am taking social security at 62, which I turn next month. My preference is to live on my cash flow and preserve my savings. Truth is, with 3 years in a government job that didn't pay into social security (no pension from that, so no penalty) and 10 years as a stay-at-home mom, my social security is not going to be all that much in either case. When xx% more at FRA translates into just a few thousand dollars, it is not worth the wait. I have been a diligent saver, so I can afford to live comfortably, not extravagantly, but then I never have been extravagant, nor do I care to be. I have seen several high school classmates pass away over the last year. I was not squandering my 60's on a job I no longer enjoyed.
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