One thing to keep in mind - Retiring from the job you are at does not mean you have to retire all together. If you can go to a different job, or just make it for a year, you can still delay collecting from SS for a year, or more.
-
Welcome back Guest! Did you know you can mentor other members here at H-M? If not, please check out our Relaunch of Hobby Machinist Mentoring Program!
Can we talk about retirement?
- Thread starter Janderso
- Start date
As an investment advisor once said - "you can retire anytime. Do you like mac and cheese or do you like lobster". In short retirement is all about planning. I did what is now known as "FIRE" with a highly motivated wife and we were done before age 50. And have never looked back. I could tell you about multiple jobs, 7 days a week, etc but you get it.
My parents each died before they quit working despite have the means to retire.
I your case, I would advise retirement if you can keep financial goals. It's all about planning and sticking to it.
My parents each died before they quit working despite have the means to retire.
I your case, I would advise retirement if you can keep financial goals. It's all about planning and sticking to it.
- Joined
- Nov 14, 2016
- Messages
- 3,010
I don't know why but from an early age retirement and benefits have been very important to me. Neither of my parents or any of the adults I grew up around claim to have been the source, although both my parents had state jobs with good benefits and retirement as did many of their friends. Since nobody has taken credit for this drive to retire well, I guess I'll just put it down to I don't like working. 
That can't be it, because if that was true then I've made a mess of it by working a lot. Even in retirement I keep going back to work, what an idiot.
Like you I also started putting money away from the start of my career, 10% at first, then 15% and the last few years I was doing 20%. I discovered that this actually has two benefits, one of which I've never heard mentioned. The obvious is you have a sack full of money for retirement. The second, is you have been living that far under your salary, which brings you closer to your post-retirement income. The last 5 years or so I was only living on 80% of my pre-tax salary, and our youngest son was only a few years old, so my wife wasn't working for much of that time. Admittedly money was pretty tight there for a bit, but we are frugal by nature.
Take away all the SSDI, retirement contributions and other deductions that they don't take out of retirement income, and add in the hidden costs of working like driving 50 miles a day and I found I wasn't actually bringing home much less than when I was working. We have a 6 year old so with me home my wife was able to go from part time to full time at the hospital. We are actually doing better financially since I retired than almost any other time since we've been married (21 years at the end of the month).
Retirement does not suck, I just wish I could find more time to enjoy it. My supposed to be part time retirement gig supporting fires has kicked my butt this year, I just added up my hours and I've worked just short of 1000 hours in 115 days. I'm supposed to be free after this weekend, come on rain!
You are describing the never ending debate over take SS as early as possible or wait for the maximum benefit. The pro side is, that is money you get that will take years to catch up and money you get if you die before reaching the next break point. In my case full retirement age is 67, so I can get five years at 70% vs waiting until I'm 67 for 100%. If I wait until I'm 70 I can get 124%.
I have always been taught to take the money and run with it, unless you need the higher monthly benefit to live on (in which case something probably went wrong in your retirement plans). Working between 62 and your full retirement age does have some impact on the decision due to annual earning limitations. Having a spouse with a limited work history, a much younger spouse or young dependent children in the house is also something to consider, as their survivor benefits will be impacted by when you start your benefit. It doesn't sound like any of those are a factor for you.
It is something of an academic problem for me. I have a firefighter retirement, and they like to get us out fairly young so they don't end up paying line of duty death benefits (job related medical deaths have a sharp increase after age 50, and go vertical after 60). Part of my retirement is an offset equal to 50% of my SS benefit @ 62. At 62 this supplement goes away so I either find another source of income (work
) or start drawing SS at that time. I also got to keep my medical into retirement, so medicare is also not a factor for me.
That can't be it, because if that was true then I've made a mess of it by working a lot. Even in retirement I keep going back to work, what an idiot.
Like you I also started putting money away from the start of my career, 10% at first, then 15% and the last few years I was doing 20%. I discovered that this actually has two benefits, one of which I've never heard mentioned. The obvious is you have a sack full of money for retirement. The second, is you have been living that far under your salary, which brings you closer to your post-retirement income. The last 5 years or so I was only living on 80% of my pre-tax salary, and our youngest son was only a few years old, so my wife wasn't working for much of that time. Admittedly money was pretty tight there for a bit, but we are frugal by nature.
Take away all the SSDI, retirement contributions and other deductions that they don't take out of retirement income, and add in the hidden costs of working like driving 50 miles a day and I found I wasn't actually bringing home much less than when I was working. We have a 6 year old so with me home my wife was able to go from part time to full time at the hospital. We are actually doing better financially since I retired than almost any other time since we've been married (21 years at the end of the month).
Retirement does not suck, I just wish I could find more time to enjoy it. My supposed to be part time retirement gig supporting fires has kicked my butt this year, I just added up my hours and I've worked just short of 1000 hours in 115 days. I'm supposed to be free after this weekend, come on rain!
You are describing the never ending debate over take SS as early as possible or wait for the maximum benefit. The pro side is, that is money you get that will take years to catch up and money you get if you die before reaching the next break point. In my case full retirement age is 67, so I can get five years at 70% vs waiting until I'm 67 for 100%. If I wait until I'm 70 I can get 124%.
I have always been taught to take the money and run with it, unless you need the higher monthly benefit to live on (in which case something probably went wrong in your retirement plans). Working between 62 and your full retirement age does have some impact on the decision due to annual earning limitations. Having a spouse with a limited work history, a much younger spouse or young dependent children in the house is also something to consider, as their survivor benefits will be impacted by when you start your benefit. It doesn't sound like any of those are a factor for you.
It is something of an academic problem for me. I have a firefighter retirement, and they like to get us out fairly young so they don't end up paying line of duty death benefits (job related medical deaths have a sharp increase after age 50, and go vertical after 60). Part of my retirement is an offset equal to 50% of my SS benefit @ 62. At 62 this supplement goes away so I either find another source of income (work
) or start drawing SS at that time. I also got to keep my medical into retirement, so medicare is also not a factor for me.
- Joined
- Jun 12, 2014
- Messages
- 4,824
In many cases it depends if it is ones sole source of revenue or you have difference sources, if you plan to fully retire and/or you have another source of income. I turned 65 and haven't taken SS yet, but will probably start it next year before I turn 66. You also need to factor in that if you do take SS early then you will not be drawing from other retirement sources and you will earn some additional income off of that and it will grow. One also needs to factor in ones health, family history and also COVID. These days I would rather have the money sooner than later. Other individuals I know that are married, the wife had a pension and took SS at the normal retirement age, and the husband waited until he was 70 to take his, getting 7% return/year is pretty decent these days. So everyone is different.
As far as Medicare, it is a slippery slope understanding the different plans, supplemental insurance and Medicare Advantage. Medicare Advantage looks attractive upfront, but I would caution people to fully understand what one is giving up. Under Medicare Advantage, you sign up with a provider that operates as a Health Maintenance Organization (HMO), as such you are limited to their providers and their treatment centers, in addition they have their own covered services, and some treatment's may not be paid for that would have been paid by regular Medicare. The HMO typically only serve a particular geographic area, where Medicare is anywhere in the US. Had a friend who enrolled in Medicare Advantage and had to get cardiac ablative therapy for an arrhythmia, didn't go so well and ended up in the hospital overnight. The HMO would not cover some of the procedures and he was facing 5K in costs that would have been covered under standard Medicare. He was able to switch back to regular Medicare because there is a grace period when you first sign up for Medicare Advantage. Once you have signed up for Medicare Advantage, there can be some issues going back to regular Medicare and you want to get a supplemental insurance, they are not obligated to sign you up and they can deny a preexisting illness. So do not be so quick to sign up for a Medicare Advantage program until you speak to an advisor that gives you the full picture.
www.cnbc.com
As far as Medicare, it is a slippery slope understanding the different plans, supplemental insurance and Medicare Advantage. Medicare Advantage looks attractive upfront, but I would caution people to fully understand what one is giving up. Under Medicare Advantage, you sign up with a provider that operates as a Health Maintenance Organization (HMO), as such you are limited to their providers and their treatment centers, in addition they have their own covered services, and some treatment's may not be paid for that would have been paid by regular Medicare. The HMO typically only serve a particular geographic area, where Medicare is anywhere in the US. Had a friend who enrolled in Medicare Advantage and had to get cardiac ablative therapy for an arrhythmia, didn't go so well and ended up in the hospital overnight. The HMO would not cover some of the procedures and he was facing 5K in costs that would have been covered under standard Medicare. He was able to switch back to regular Medicare because there is a grace period when you first sign up for Medicare Advantage. Once you have signed up for Medicare Advantage, there can be some issues going back to regular Medicare and you want to get a supplemental insurance, they are not obligated to sign you up and they can deny a preexisting illness. So do not be so quick to sign up for a Medicare Advantage program until you speak to an advisor that gives you the full picture.
Use caution when ditching your Advantage Plan for original Medicare
If part of your intention is to get a Medigap policy when you make the switch, be aware that your coverage could be delayed or denied altogether if you have a pre-existing condition.
Last edited:
- Joined
- Nov 26, 2015
- Messages
- 4,804
I retired at 53yo. I get my monthly pension from the state and I get a weekly supplement from my employer (until I turn 62). I will be filing for my SS when I hit 62. I have been working since I was 13yo. I have had 2 sometimes 3 jobs at a time and working 7 days a week. It was weird at first to not have a job to go to, but after awhile the being retired thing sunk in and I am so glad I can do anything I want at anytime. It is nice to enjoy life because basically I am 2/3rds dead with only about a 1/3rd of my life left.
- Joined
- Nov 14, 2016
- Messages
- 3,010
My goal is to have government assassins coming after me in about 80 years because they are tired of paying me just to have fun.
- Joined
- Apr 28, 2014
- Messages
- 3,590
"" Can we talk about retirement? ""
Nah, I rather not...
No one in my family ever believe in the importance of carrying insurance or planning a pension.
I hammered the opposite into my boys and I tried to practice the same.
Didn't quite go as planned.
I was/am vested in (3) plans.
One of the plans was a company sponsored plan. Well the company got bought out and the 'buyers' were allowed to raid the pension, emptied it out, and shutdown the company. I didn't work there that long but the folks who had 20-40 years there lost everything.
Then comes the class-action suit(s) and the only people who get any money are the lawyers. . .
The other two were suppose to provide health care when you retire. Guess what changed January 2020?
And on one of the final two, I can't get a 'balance' until I submit my retirement plans.
I guess in hindsight I should have gone for 401K's instead of company sponsored plans.
Seems like those of us born after the mid '50s are subject to a changing landscape when it comes to retirement.
A good friend put in 30 years at the company where I only put in 11.
He just retired in the past year. When we hired in there was one heck of a nice retirement medical plan promised. That is no longer the case.
He has had to scramble to keep health insurance.
I remember all those old 'guys' I've worked with over the years who were still working because they got bored (or the wife ordered them out of the house...) and talked about the fantastic retirement plans they had from their former employers, full medical, great pension, etc.
I wish that were still the case. Maybe it is for some.
Nah, I rather not...
No one in my family ever believe in the importance of carrying insurance or planning a pension.
I hammered the opposite into my boys and I tried to practice the same.
Didn't quite go as planned.
I was/am vested in (3) plans.
One of the plans was a company sponsored plan. Well the company got bought out and the 'buyers' were allowed to raid the pension, emptied it out, and shutdown the company. I didn't work there that long but the folks who had 20-40 years there lost everything.
Then comes the class-action suit(s) and the only people who get any money are the lawyers. . .
The other two were suppose to provide health care when you retire. Guess what changed January 2020?
And on one of the final two, I can't get a 'balance' until I submit my retirement plans.
I guess in hindsight I should have gone for 401K's instead of company sponsored plans.
Seems like those of us born after the mid '50s are subject to a changing landscape when it comes to retirement.
A good friend put in 30 years at the company where I only put in 11.
He just retired in the past year. When we hired in there was one heck of a nice retirement medical plan promised. That is no longer the case.
He has had to scramble to keep health insurance.
I remember all those old 'guys' I've worked with over the years who were still working because they got bored (or the wife ordered them out of the house...) and talked about the fantastic retirement plans they had from their former employers, full medical, great pension, etc.
I wish that were still the case. Maybe it is for some.