Right back at ya!
Thanks for the thanks.
One more year and I'll be a Free Man!
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Thanks for the thanks.
Pilot
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A couple more comments about SS.
In my earlier post I said if you can afford it, it's better to wait to draw SS. Note, I didn't say not to retire ASAP, just hold off on drawing SS until you have to in order to maximize your payment. Of course if many people in your family die young, take the money and run. But if you expect to live to a ripe old age, wait as long as you can to start drawing SS, which for some may be 62 and others may be 70.
The "full retirement" phrase is a scam. SS retirement used to be 65, then in 1961 they gave the option of early retirement at 62 at a reduced amount (25% reduction), calling 65 full retirement. "Full retirement" doesn't mean a thing except for calculating your penalty for retiring at a younger age, and that's based on when you were born. For a given birth year, for each month you delay, your payment increases by the same percentage regardless of whether you retire at 65 1/2 or 64 or 68 years and 7 months.
Earlier I said that for each year you delay, your benefit increases by 8%. That's an approximate figure and goes down slightly the younger you are, based on the age at which you can draw "full retirement".
In my earlier post I said if you can afford it, it's better to wait to draw SS. Note, I didn't say not to retire ASAP, just hold off on drawing SS until you have to in order to maximize your payment. Of course if many people in your family die young, take the money and run. But if you expect to live to a ripe old age, wait as long as you can to start drawing SS, which for some may be 62 and others may be 70.
The "full retirement" phrase is a scam. SS retirement used to be 65, then in 1961 they gave the option of early retirement at 62 at a reduced amount (25% reduction), calling 65 full retirement. "Full retirement" doesn't mean a thing except for calculating your penalty for retiring at a younger age, and that's based on when you were born. For a given birth year, for each month you delay, your payment increases by the same percentage regardless of whether you retire at 65 1/2 or 64 or 68 years and 7 months.
Earlier I said that for each year you delay, your benefit increases by 8%. That's an approximate figure and goes down slightly the younger you are, based on the age at which you can draw "full retirement".
JDgreen227
Super Member
Glad we could be supportive, that is what TBN members are like. Just FYI, when the state of Michigan offered an early retirement deal (50 years old, at least 30 years of service) back in 2002, my wife and I both jumped off the treadmill. I was 51, she was 50. Glad we took the deal because my father died at 69, my grandfather at 64, men in my family don't seem to live long, my dad worked till 64 and was gone five years later. The important thing about retiring is you HAVE to stay active. Good luck. BTW I am 60 now, cannot wait to be on easy street when I began drawing SS.
ronjhall
Super Star Member
Biggest jolt I got by retiring at 62 was medical cost. For wife and I it was over $500 a month. When I retired it was company offered insurance plan. Now that we are both on Medicare our cost is zero. Check this out before you retire.
MotorSeven
Elite Member
Ditto, but there is a way around that. just get insurance for "The Big One". We have a $5K deductible and pay for just about everything until that is reached per year. My wife and and I pay $330 a month & it includes a drug plan/dental plan and several preventive procedures.
I think insurance got out of hand, should never have been for "routine illnesses". It's funny when we do go in for that odd thing here or there. When it's time to pay they say, "We will file this with your insurance and then bill you the balance." I say, no, we have a $5K deductible, so I will pay the full amount now".....usually all I get is a blank look...they just don't know how to handle it:laughing:
brin
Super Member
Geeeez, Some of you guys seem to be anticipating your demise way too soon....It reminds me of when my Father in Law and I were standing by his workshop and he pointed around at his house , shop and pasture and said...Here I have everything I wanted and now I am 72 and no time left to enjoy it....I told him he was mistaken and had many years left...He smiled....He passed away when he was 86 yrs. old...Now let that be a lesson to all of you thinking you are going to take an early exit.
In this day and age family history is only a small part of how long you will live...with the medications we have now and the preventative treatments...folks are living much longer...So go forward, enjoy and prosper.
In this day and age family history is only a small part of how long you will live...with the medications we have now and the preventative treatments...folks are living much longer...So go forward, enjoy and prosper.
300UGUY
Super Member
Technology has pushed the price up, while improving outcomes. And more stuff is done on a outpatient basis. And of course the for profit hospitals, insurance companies, pharma, and medical device companies aren't doing it for charity.
two_bit_score
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Sounds like you would rather just not have it if anyone was going to make a profit providing it.
QRTRHRS
Elite Member
Glad that the medical insurance issue came up as I was going to ask what you folks retiring at 62 are doing?
I turned 61 on this past Friday and if I stay with my current job, I am thinking of retiring at 62. The workplace(s) these days seem to be just plain dog eat dog.
Having gone through a divorce, seen my 401 vaporize and a downsizing, financially, I could probably go until I drop. My wife being four years older than me just went on Medicare so she is squared away with medical. I guess if I have to, I will pick up a job driving school bus. Where I live, the bus company pays full medical even though it is part time work.
I am also looking at maybe going out to North Dakota to work in the oil fields until I turn 65.
300UGUY
Super Member
No, just making an observation about rising costs.
Redbug
Veteran Member
My take on SS early or not...
One thing to consider about taking Social Security at 62 vs 65 or later...If you take it at 62, (at the lower rate), you get an additional 3 years use of the money to enjoy it. The break even point of taking Social Security at 66 (vs. 62) is around age 77. The break even point for taking Social Security at age 70 (vs 66) is around age 81. See this chart on this link...
http://www.nysscpa.org/cpajournal/2006/606/images/ex1p43.pdf
Looking at this realistically in my mind, you might as well enjoy yourself while you can. When you get older, you may be "out of it" and won't be able to enjoy that extra money that you could have had between the ages of 62 and 65. If you don't need the money at 62...why not just get it and invest it? Then use it when you do need it. You never know what Congress will do in the future, so a bird in the hand is worth two in the bush.
The things people can do really changes between ages 60 to 65. Then when you consider what you can do between ages 65 to 70, I think mobility really begins to drop off, (and our brain function, too).
I hope this makes sense...some things cannot be calculated, such as pleasure and making the most of what life you have now, (use it now or you may not be able to enjoy it later...because you may be out of it in a nursing home or some place). The train may have left the station by the time you think you need to buy your SS ticket.
One thing to consider about taking Social Security at 62 vs 65 or later...If you take it at 62, (at the lower rate), you get an additional 3 years use of the money to enjoy it. The break even point of taking Social Security at 66 (vs. 62) is around age 77. The break even point for taking Social Security at age 70 (vs 66) is around age 81. See this chart on this link...
http://www.nysscpa.org/cpajournal/2006/606/images/ex1p43.pdf
Looking at this realistically in my mind, you might as well enjoy yourself while you can. When you get older, you may be "out of it" and won't be able to enjoy that extra money that you could have had between the ages of 62 and 65. If you don't need the money at 62...why not just get it and invest it? Then use it when you do need it. You never know what Congress will do in the future, so a bird in the hand is worth two in the bush.
The things people can do really changes between ages 60 to 65. Then when you consider what you can do between ages 65 to 70, I think mobility really begins to drop off, (and our brain function, too).
I hope this makes sense...some things cannot be calculated, such as pleasure and making the most of what life you have now, (use it now or you may not be able to enjoy it later...because you may be out of it in a nursing home or some place). The train may have left the station by the time you think you need to buy your SS ticket.
ultrarunner
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One comment to add...
My Dad never retired as all the men in the family before him.
He started SS at 70.5 and was passed away not too long after that...
He had Chemo and Dialysis first thing in the morning so he could get to work and open the shop...
The downside is he received very little from SS after 59 years of paying in...
The upside is Mom went from $600 a month on her SS to Dad's $1800... he said he wanted to make sure Mom wouldn't be caught short...
His Dad did the same and paid in to age 74 and my Step Grandfather paid in to age 84 and never took one penny of Social Security... his widow recieved about $3600 a month after he passed.
My Dad never retired as all the men in the family before him.
He started SS at 70.5 and was passed away not too long after that...
He had Chemo and Dialysis first thing in the morning so he could get to work and open the shop...
The downside is he received very little from SS after 59 years of paying in...
The upside is Mom went from $600 a month on her SS to Dad's $1800... he said he wanted to make sure Mom wouldn't be caught short...
His Dad did the same and paid in to age 74 and my Step Grandfather paid in to age 84 and never took one penny of Social Security... his widow recieved about $3600 a month after he passed.
Mudfarmer
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Retirement at age 65 was thought up and instituted by Otto von Bismark in the late 1800's. It was a wonderful social program that was financed by the fact that no good German ever really lived to that age.
Mf
Turbys_1700
Elite Member
I am 52 and have 17 years in the community college system...
At 60 I will have 25 years and can retire with full retirement from the state with no reduction in benefits...
I plan on working until I can get SS...
At my age early SS has been increased from 62 to 63 and some months I think...
I know that currently full SS for me is 66 and 10 months...
It's probably gonna go higher but the gov will not do away with it...
Our politicians are cowards and only want re-election...
At 60 I will have 25 years and can retire with full retirement from the state with no reduction in benefits...
I plan on working until I can get SS...
At my age early SS has been increased from 62 to 63 and some months I think...
I know that currently full SS for me is 66 and 10 months...
It's probably gonna go higher but the gov will not do away with it...
Our politicians are cowards and only want re-election...
JDgreen227
Super Member
This pretty much backs up my post earlier where I state my calculations about my taking SS at age 62 instead of waiting, and I calculated it would take me until age 78 to catch up. So you predict what I can do in the next 5 years will drop off sharply (I recently turned 60) well that gives me even more incentive to collect...get it and spend it before I go senile...:laughing:
ronjhall
Super Star Member
About 5 years before I retired company changed the retiree medical plan from providing insurance to providing a Medical Savings Plan with option to use that money to purchase a plan sponsored by the company. That plan cost was cheaper than what else I could buy elsewhere. When I went on Medicare 4 years ago, Company HR showed me where I could purchase a plan cheaper than what the company offers. Company plan cost a little over $500 a month for a couple. Plus Co-Pays and Deductibles. First plan we went on was a Advantage plan. Rates kept going up until it was costing as much as the company offered plan. But when you leave the company plan you cannot go back. My mother is in her 90's and has a Medicare Supplemental plan. Her cost are $0 for doctor and hospital visit. I went looking for a similar plan. Found the same plan my mother is on. BCBS would always send me to people that wanted to sell Advantage plans. Finally found a supervisor that sent me to someone that sent me a application. Applied and was accepted. $121 a month plus a prescription plan from Humana. Then Medical Saving Plan I mentioned above pays for that and my dental. Plus enough to pay for new glasses every other year.
When the company went to the Medical Savings Plan, future retirees wanted to do harm to management. Those that stayed on company plan still may want too. But if you want to manage this stuff yourself. It works out well.
Your company may not offer what my company does. Best thing to do is talk to company HR department. They may have some good option for you. Or you will know where you stand with retiree benefits from them.
Redbug
Veteran Member
By the way...in just a little over 2 years I will be a free man! I'm 53 now. I have been looking at all the angles. We have had everything paid off and I simply can't wait! I sure am glad I am not one of the younger people just starting out! I pity them! I feel like I am being given a whole new life! I am on the edge of something really great, too! All the saving and investing will pay off. No more difficult psychotics to work with. I am already putting them in their place as I get shorter, too.
My idea of what retirement is like:
"Remember when you were a little kid...before the big people sent you to kindergarten? Remember those seemingly endless days of play? Those days when you got up and ate breakfast, then went out to play? Then you'd come in for lunch and a nap, and then go back out to play until supper time? Then after supper you'd go out to play until dark or until bedtime...whichever you could get away with? Then you'd start all over the next day? Well, that's what retirement is like!!!".
This is what I think retirement feels like...
YouTube - Where the **** is Matt?
I even have my retirement song picked out! I play it now and again. Wanna hear it? Turn your speakers on and listen closely to the lyrics!
YouTube - Lindisfarne - Born At The Right Time
Life is too short and there are too many other things to do while you have your mind and health.
My idea of what retirement is like:
"Remember when you were a little kid...before the big people sent you to kindergarten? Remember those seemingly endless days of play? Those days when you got up and ate breakfast, then went out to play? Then you'd come in for lunch and a nap, and then go back out to play until supper time? Then after supper you'd go out to play until dark or until bedtime...whichever you could get away with? Then you'd start all over the next day? Well, that's what retirement is like!!!".
This is what I think retirement feels like...
YouTube - Where the **** is Matt?
I even have my retirement song picked out! I play it now and again. Wanna hear it? Turn your speakers on and listen closely to the lyrics!
YouTube - Lindisfarne - Born At The Right Time
Life is too short and there are too many other things to do while you have your mind and health.
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brin
Super Member
Redbug........I sure agree with the retirement song...With your permission I will make it mine too...! It is what I have come to believe....:thumbsup::laughing:
