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When to Retire, 65 or 66
Posted by: Microman
Date: January 10, 2014 12:35PM
I know there are lots of Variables. And I just read an article on Vanguard about 70 being the new 65.

I turned 65 last November.

I have been on disability since December 18th, 2013 after Hernia Surgery. Go back to work next week.

Wife has been retired for over 3 years, and has a Defined Benefit Retirement as 30 years as a school teacher.

I worked and went to college to become a Lab Tech, earning $40/hr. And giving that up in this economy, seems foolish, but every time I turn on the news I see another person, dying at an age, that is younger than I am.

If I retire at 66 , I would get $2,181.00/month
If I retire at 65, I would get $2,060/month

I guess I could keep working and contributing to the 403b, and the match of 6% from my workplace for working a full year to December 31.

But sometimes life seems so short, just want to enjoy, but since I already cut myself back to part time, maybe I shouldn't complain.

Greatest feeling ever, going outside and looking up at the sky and just being healthy., and not caring what day of the week it is. Except Sunday… of course.



Edited 1 time(s). Last edit at 01/10/2014 12:36PM by Microman.
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Re: When to Retire, 65 or 66
Posted by: C(-)ris
Date: January 10, 2014 12:39PM
You are going to be the only one that can answer that. Do you need the extra $120 a month? I'm assuming that is in addition to any money you would save and the fact that you are making money and covering expenses with income for an extra year.



C(-)ris
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Re: When to Retire, 65 or 66
Posted by: h linamen
Date: January 10, 2014 12:52PM
If you wait until 66,you have given up almost $25,000 in SS money. It would take you almost 17 years to make that up at the rate of $120 additional per month. You best get as many Social Security payment as you can before the government squanders the fund.
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Re: When to Retire, 65 or 66
Posted by: bik
Date: January 10, 2014 01:00PM
Quote
Microman
... but every time I turn on the news I see another person, dying at an age, that is younger than I am.

You can't live you life based on fear of something you can't control and have no knowledge of.

If you and your wife are healthy, do what will give you the best quality of life for the next 5, 10, 15 years. Not the next one year.

Another way to look at it...
By working a little longer, you may have less time for leisure, but more money for travel.
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Re: When to Retire, 65 or 66
Posted by: davemchine
Date: January 10, 2014 01:34PM
It sounds like you are financially prepared to retire so I vote for retiring now. There are so many fun things to do and adventures to be had. Go do them now.



Ukulele music I couldn't find anywhere else.
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Re: When to Retire, 65 or 66
Posted by: Pam
Date: January 10, 2014 01:48PM
You're going to get the same amount of money. What differs is over how many years. If you can afford to retire, retire now. Between 65 and 66 you'll be working for $121 a month. Probably before taxes. Is it worth it?
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Re: When to Retire, 65 or 66
Posted by: Microman
Date: January 10, 2014 01:49PM
Just got back from Costco, and checking the thread.

Yes, besides the Social Security, would have IRA and 403b's and one of them is in a Fixed 4.5% account, and was planning on taking just the interest out….

Thanks for looking at all the angles.

Imagine 17 years to make up for $120 a month.

And my usual work hours are 5a.m. to 1:30 p.m., so thats nice, but I fall asleep when I get home,

Just stay healthy...
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Re: When to Retire, 65 or 66
Posted by: Michael
Date: January 10, 2014 01:59PM
Quote
Microman
I know there are lots of Variables. And I just read an article on Vanguard about 70 being the new 65.

But sometimes life seems so short, just want to enjoy, but since I already cut myself back to part time, maybe I shouldn't complain.

This is the issue, for me, assuming that the $120 per month isn't a critical issue. What do you want to do with your time? Do you like spending time with your wife? Is the part time work too much or ok?

My wife retired, then came to work at my college teaching for 3 years and now has retired again. I've started spending a lot more time away from the college and with her. I'm still full time, but I'm simply not working at the college nearly as much as I did earlier in my career. I don't retire because I think it would drive me crazy and I find the balance of being there about half time and with my wife half time just about right. Most of the time!
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Re: When to Retire, 65 or 66
Posted by: cbelt3
Date: January 10, 2014 02:12PM
"Will you still need me... will you still feed me...."
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Re: When to Retire, 65 or 66
Posted by: NewtonMP2100
Date: January 10, 2014 02:56PM
isn't the magic number......69......???



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Re: When to Retire, 65 or 66
Posted by: riley5108
Date: January 10, 2014 03:19PM
As others have said it's ultimately up to you. From what you say looks like a good time to retire if you have done the math. If the math works do it, I did at age 64 and never looked back. It's the best job I ever had.
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Re: When to Retire, 65 or 66
Posted by: WHiiP
Date: January 10, 2014 03:49PM
I vote for retire . . . since you are financial stable you CAN stop and smell the roses. Plant your own garden.
Enjoy.



Bill
Flagler Beach, FL 32136

Carpe Vino!

Fermentation may have been a greater discovery than fire.
— David Rains Wallace
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Re: When to Retire, 65 or 66
Posted by: DeusxMac
Date: January 10, 2014 04:26PM
What's your health coverage situation; for you and spouse? Any dependents?
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Re: When to Retire, 65 or 66
Posted by: richorlin
Date: January 10, 2014 04:58PM
There are too many variables and too many SS claiming strategies to make a "one-size-fits-all" recommendation. Here are some factors to keep in mind:

At whatever age you DO claim SS, that's the dollar figure you are going to get for the rest of your life. The SS actuaries have figured out that you will get the same total amount over your lifetime if you retire at 62 or 70. But, what if you are not average? How's your health? Relatives lived long or died early? Not everyone is the average.

Don't forget that the surviving spouse will get ;the higher amount of their benefit or their spouses benefit. If you are the higher earner, it would behoove you to wait as long as you can, until 70, to file. That would mean 32% more to the spouse tha if you filed at 66.

There are many claiming strategies that you can use to get the most money out of SS. Using me as an example: I retired from the Federal govt at 65. My wife and I are the same age (2 month dif). She plans to work another two years.
I originally was going to file and suspend at 66 and have her file for spousal benefits against my account. That way her benefits would increase until she hit 70 and then filed against her own account.
After some thought, we came up with a better strategy:
Since I was the higher earner we decided that she would file at 66 for SS and I would file for spousal benefits against her account.
That will give us an ADDITIONAL $4000 a year as opposed to the original plan ($16,000 vs $12,000)

If you need further help, just Google "Social security claiming strategies"
I hope this helps eliminate some of the confusion and worry.



richorlin



Edited 1 time(s). Last edit at 01/10/2014 04:58PM by richorlin.
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Re: When to Retire, 65 or 66
Posted by: Ombligo
Date: January 10, 2014 06:00PM
My father told me many years ago that retirement does not mean you quit working, only that you don't have to work.

Just a thought - if you don't need the money, then why not retire? You can donate your time to a group that needs it (maybe tutor at a local school). The other part to consider is that if you don't real need the money, there are others that do. Perhaps by giving up your job, a younger unemployed person will be hired and prosper. Why do you care about that person? Because that is one less person collecting tax funded assistance and contributing back to the system.

Ultimately it is your choice, and there is no right/wrong answer. The only answer is the one you decide is best for you.



“No persons are more frequently wrong, than those who will not admit they are wrong.” -- François de La Rochefoucauld

"Those who cannot accept the past are condemned to revise it." -- Geo. Mathias
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Re: When to Retire, 65 or 66
Posted by: mattkime
Date: January 10, 2014 08:13PM
sounds like you have your ducks in a line but it might be helpful to talk to a financial planner. your situation isn't likely to change dramatically in the next year or two and you could make a firm retirement plan.



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Re: When to Retire, 65 or 66
Posted by: space-time
Date: January 10, 2014 08:20PM
one year more or less is no big deal. the real question is when someone has to decide if they retire at 62 or 67, those 5 years make a huge difference.
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Re: When to Retire, 65 or 66
Posted by: rz
Date: January 10, 2014 08:40PM
Quote
Pam
Between 65 and 66 you'll be working for $121 a month.

This. I look at it that way in my retirement plans. $40/hr is approximately $80K a year. For that year, you're working full time, but you're only earning about $1,500 more than you would if you were retired. And as mentioned above, yes you'll get more money in the long run if you stay, but it'll take 17 years to break even. Retire now!
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Re: When to Retire, 65 or 66
Posted by: Don C
Date: January 10, 2014 09:01PM
I got a check in the mail with a cover letter that said, in effect, "You are too old to insure." It was the payout of a "whole life to 65" policy that my dad had taken out as part of a college tuition loan. I turned 65 and I the policy matured.

It got me to thinking that there is an end point out there someday. I don't know when it will be but I am pretty confident that that day is not moving forward for every day I continue working. If I am going to enjoy retirement, I need to get on with it. So I did. Did some contract work for my boss for a couple of years and now just have lunch with him once in a while.

It too join the chorus. If you don't have to work for the money, then retire and move on to the things you most enjoy.

Taking or not taking SSN is really a gamble. It all depends on That Day out there; if you knew when it is going to be, the decision would be simple math. Since it is an unknown, which is the best choice is for now unknowable.

Enjoy!
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Re: When to Retire, 65 or 66
Posted by: andypie48
Date: January 10, 2014 09:26PM
Just because you retire doesn't mean you have to sign up for Social Security right away. I retired at 63 and still haven't signed up for SS. I'll turn 66 in April, and am not signing up then; waiting until my cash cushion gets down to the minimum. Your benefits go up by about 8% for every year you wait.

If you don't immediately need the money, and you are in good health and have a family history of some longevity, I would advise you to wait and let the benefits build up 'til age 70, when the 8% increases stop. You aren't going to get 8% anywhere else. You can always sign up quick if that dread feeling of financial inadequacy strikes.
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Re: When to Retire, 65 or 66
Posted by: Microman
Date: January 10, 2014 11:12PM
andypie48 , I thought they figure your monthly SS by how much you make each year, and I thought the later years were weighted more.

So can't figure how not working could increase your monthly?

Clarify?
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Re: When to Retire, 65 or 66
Posted by: davester
Date: January 11, 2014 12:21PM
Quote
Microman
andypie48 , I thought they figure your monthly SS by how much you make each year, and I thought the later years were weighted more.

So can't figure how not working could increase your monthly?

Clarify?

The payments are based on both your lifetime average income AND your estimated number of years left to live (based on actuarial tables)over which they distribute the money you're going to get. Between the ages of 62 and 70 the years left to live number makes the largest difference in your payments. I just checked my SS status and found that if I retire at 62 I'll get something like $1800 a month but if I wait until I'm 70 it'll be more like $3500. There's also spouse benefits to consider.



"In science it often happens that scientists say, 'You know that's a really good argument; my position is mistaken,' and then they would actually change their minds and you never hear that old view from them again. They really do it. It doesn't happen as often as it should, because scientists are human and change is sometimes painful. But it happens every day. I cannot recall the last time something like that happened in politics or religion." (1987) -- Carl Sagan
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