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Old 01-30-2010, 07:03 AM
 
Location: Sterling, VA
1,059 posts, read 2,962,198 times
Reputation: 633

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Quote:
Originally Posted by GMU View Post
Definitely. Also the facts that you are no longer paying:
-Contributions to the TSP/401k
-Social Security
-Medicare
-Money towards your basic retirement annuity

And also factor
-lower federal (and state if applicable) taxes based on your new income

So after all that, your "50%" retirement is now more like 80% anyway.
I receive Social Security benefits because of my age (69). From that income the following deductions: $96.50 for Medicare (it is not free despite everyone's assumptions), $40.80 additional for prescription drug coverage, $160 for supplemental benefits which supplements the Medicare allowed amount. The services that Medicare does not approve, the supplemental insurance will not cover either. I have to pay the full charge myself. Also, many doctors do not accept Medicare patients.

As I still work, I still have to pay taxes on my work income. Self employed tax starts at 15% as I do not have an employer to pay their half of the FICA. I also still pay federal and state income taxes. I am not complaining, I am glad I am able to still work, but making assumptions about how good you are going to live on Social Security income can bite you in the ***.

You need to plan ahead for how you will manage, don't assume you will live well on only Social Security income.
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Old 01-30-2010, 07:38 AM
 
361 posts, read 737,210 times
Reputation: 506
My kids are here so here I will stay.
Live modestly, work as long as I am able.
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Old 07-12-2013, 10:37 PM
 
55 posts, read 143,915 times
Reputation: 52
Northern Thailand

Sorry, seems that I have been asleep for about 6 years....... getting better though.... last time it was 20
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Old 07-13-2013, 09:47 AM
 
2,076 posts, read 3,429,575 times
Reputation: 2298
Quote:
Originally Posted by gonzolafacce View Post
Northern Thailand

Sorry, seems that I have been asleep for about 6 years....... getting better though.... last time it was 20
Wow, if a thread is going to be resurrected its nice it was by the OP. So, it sounds like you decided to stay there for retirement? There's a lot of threads about where to retire, here, over seas, etc. on the retirement forum. Surprised when I saw this here, before I realized it was an 8 year old one!
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