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More gloom and doom. I'm 65, in the vanguard of the Boomers, retired over three years ago and fully intend to stay that way until I drop.
A quick glance of your posting history shows that almost every one of them contains a link to one news story/source or another. I much prefer to trust my instincts, knowledge and experience.
"My advice is above all don't retire," he says. "If you like your job at all, hold onto it. Because getting back in in this era is essentially impossible."
You can also learn how continuing to work will affect your benefits.
For example, suppose you're a single woman who was born in 1949 and earns $60,000 a year. According to the calculator, you would receive $1,126 a month if you filed for benefits at 62. Wait until 70, and you'll receive $2,123 a month.
Based on average longevity rates, filing at 62 would produce lifetime benefits of $392,000. Waiting until 66 would produce lifetime benefits of $483,000. And postponing benefits until 70 would deliver $535,000.
I've heard people espouse the idea "retire at 62 and get all you can get" but something told me that was a wrong approach and waiting until later would bring more.
The lady in the example nearly doubled her benefits just by working eight more years. I toyed with the idea of going the 62/70 plan with my wife collecting at 62 but we are going to put that off as well. I am a year and a half older than she is and if she retired now, she just turned 62, she would get about $600/month but if she waited until 66 she would get around $1,075/month. That is a lot of money guys, $475/month will pay for a lot of stuff like all my utilities, property taxes and insurance which is a lot when you live on a fixed income.
And why not, until I retire we don't need money from SS, we'd just blow it, so the smarter thing to do is save it until you need it.
As for me if I work another 5 years and 9 months my SS at 70 would be $2,838 which would bring my wife and I a combined SS benefit of $3,913 which is a whole lot better than the $2,200 we would have received if we both had started to collect at 62. On $2,200 my wife and I would do ok but just ok. Starting 10 years ago we have structured our lives to be able to live on that if I found myself unable to work longer than 62 but there would be no extras like restaurant outings, cruises or trips every few months to see the grand kids. We'd basically be home bound and without money I am miserable.
But on $3,913 you don't have to feel sorry for us, we will do just fine, thank you.
I must admit I didn't save what I should have saved but by working just four extra years, that and my wife putting off her benefits for four years, the extra $1,713/mo in income goes a long way in making up my past sin of being a spendthrift. Working four extra years repairs a lot of sin. Even one extra year, from 66 to 67, can easily make over $100-$150/mo difference for the rest of your life. Something to think about.
So for me it's Hi Ho, Hi Ho, it's happily off to work I go!
Another thing to consider is SS has COLA built in... saved money might not and what happens to that $400k you got saved if inflation hits like it did in the late 70's robbing you of 12% every year for 5 years?
The money difference is enticing. For people who don't need the money, I say wait. I retired when I felt like it and have not regretted one minute. The difference in what I would have received at 70 is great. The good thing is now I know how much I am getting, I can see how to check my deposit, get in my car, get to the bank, get to the train station and get to the airport whenever I choose, without any assistance. I may be able to do the same at 70, but time and health are not promised. I am enjoying my decision.
I am not saying that anyone is not making a good decision to wait. I did what was best for me and loving it right now. I, like Curmudgeon, plan to stay retired until I drop.
There will always be a ready 'host' of annecdotal stories about people reaching retirement age before they are financially prepared. But, does that mean the sky is falling on 'everyone' who falls into the 'boomer' age bracket? I think not.
Yes, we are facing a horrific recession that will likely continue on for a few more years. Yes, a large number of people have been 'downsized, outsourced, squeezed-out -- or have otherwise lost their jobs. But, 90% are still employed and Americans have faced crisis before (wars, depressions, gas shortages, cultural revolutions). If the sky really does fall, it will fall on all of us, not just the 'boomers.'
The thing about panic is that it really doesn't solve the problem/s precipitating it. It's time to plan and prepare ... not to worry one's self into a crippling state of fear-based paralysis.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I expect to work until 67, but have many friends still able to retire at 55
with a good retirement after 30 years work at the same place, with the possibility of social security kicking in at 67 to result in more than the made working.
With my wife and the retirement plus SS and personal investments should be enough as long as SS is still there and pay what they say they will when they send out their statements.
I plan on going to work until they roll me out. I am single, broke, have nothing, and just need to keep paddling as fast as I can...maybe eventually I can turn this pitcher of cream into butter and crawl out. Probably not. At some point I will have two pensions, in addition to whatever Social Security I get, and my 401K. The good news, with our screwed up tax laws, I am better off to save 20% of my pre-tax income, because if I had the money, it would just go to taxes anyway, and put me in a higher bracket. So, I am just biting the bullet and putting the money in the 401k.
With my wife and the retirement plus SS and personal investments should be enough as long as SS is still there and pay what they say they will when they send out their statements.
Not holding my breath though.
There is only one way SS will not be there and that is if we have a Greek type crisis which is possible. Other than that SS will be sent out even if the government has to rob and pillage to do it.
Of course if we have a Greek moment pensions and savings is gone anyway. We will all be reduced to being well dressed but eating out of garbage cans. I hope that never happens.
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