Waiting to 65 to retire - death risk versus finances

[Kirk W]

12 hours ago, hemsteadc said:

I think I was rather lucky to be concerned about retirement when I was 30.

 

I would call that smart, not lucky. Most of us don't really think much about retiring until we get close to the age where our friends and coworkers are leaviing. I was fortunate in that my dad was 35 when I was born and he was still working at 70, when he cautioned me about putting a plan in action to be able to retire. Dad was farming when SS was introduced and so didn't become part of it until 1957. It isn't so much what your plan is as it is that you have a plan and work with the plan. Life has no guarantees and neither do plans, but your are much more likely to succeed if you have some goals and a plan to reach them. 

[rnsmth]

There are three questions that matter, financially, when it comes to early retirement:

How much do you need?

When do you need it?

How sure are you that it will be there?

 

 

[Randyretired]

9 hours ago, rnsmth said:

There are three questions that matter, financially, when it comes to early retirement:

How much do you need?

When do you need it?

How sure are you that it will be there?

 

 

For most of us we can only make an educated guess for these numbers.  Health care costs are up at unprecedented rates and of course inflation is a factor for everything else.  We keep a large portion of our savings invested and that isn't guaranteed either.  We were lucky to retire early and in that time I have seen the cost of nearly everything double.  We also have company provided health care, which turned out to be worth more than we even imagined. 

[Kirk W]

3 hours ago, Randyretired said:

We were lucky to retire early and in that time I have seen the cost of nearly everything double.  We also have company provided health care, which turned out to be worth more than we even imagined. 

We had that as well, partly through good fortune and partly due to plannng by sticking with an employer who offered those benefits. I don't know if my former employer still offers those benefits or not. 

[Randyretired]

9 minutes ago, Kirk W said:

We had that as well, partly through good fortune and partly due to plannng by sticking with an employer who offered those benefits. I don't know if my former employer still offers those benefits or not. 

Just a couple of years after we left the heath care plan was significantly reduced.  The company also tried to reduce our benefits but "the judge" didn't buy it.

[Kirk W]

8 minutes ago, Randyretired said:

The company also tried to reduce our benefits but "the judge" didn't buy it.

Just wonderng who you retiried with? I was with 3M Co. and they have worked hard to protect their retiree benefits, even after problems created by the the ACA.

[Randyretired]

US West was our employer.  My DW had enough years to take an early retirement offer and I took a buy out.  The benefits are hers and she has very kindly let me tag along.

[Randyretired]

The ACA also conflicted with our plan but the judges order ruled the day.

[Jack Hall]

As has been said over and over here- Every person has to find their own path. That said- here is my story- I am a retired Optometrist.  I LOVED doing what I did, mainly because of the many interesting people I met.  I once told my wife "I know a lot of stuff that is really true, because I have been taught by experts- my patients".  I was self employed, and because we have simple needs and a paid off mortgage, it was not necessary for me to work full time.  I recruited other O.D.'s (optometrists) to work for me, and reduced my work week to 4 days a week at 62 or so. At about age 58, we started taking diving trips to foreign locations- Grand Cayman, Galapagos, Indonesia, Australia, etc. etc., and I simply got other O.D's to cover for me while we were gone. At age 67, I reduced my week to 3 days per week.  Between 67 and 70, I tended to work around 150 days per year. I did not take Social Security until age 70-1/2 because I did not need the money- I was still working.  In 2012 (I was 64) we bought a used travel trailer and started doing weekend and 4 day trips. We also took multiple 2 week and 3 week trips. We sold the trailer for salvage in 2018 because water damage made it unusable. I also sold my office (for very little) effective Jan 1 2018.  In 2019, we bought our current Holiday Rambler trailer and have been running the tires off it.  We probably have over 6 months of nights in it this year, mostly as 5 to 10 night trips, but one as a 30 day trip. I do NOT regret waiting to retire, but I loved my work and I also semi-retired to a 4 day work week at 62, and we took probably 5 to 6 weeks vacation (one to two weeks at a time) beginning when I was 60.  By continuing to work (and continuing to fund my SEP at the max), I was able to increase my retirement fund and my SSA benefits grew at 8% per year for the years between age 65 (when I was first eligible) and age 70.  This was at a time when a GOOD investment was returning 4% to 5%.  Now, I am fully retired and able to live on my SSA benefits alone, with my retirement income being extra money to spend on trips and the kids.  I am VERY lucky, and my wife and I both recognize it.  But again- we do not live an expensive life, except for our expensive trips.  And I have a life expectancy to something in the mid-90's if the insurance quizes are right,  Dad finally quit driving at 92, so there is a good chance that I wil get there.  I go into such detail, because others younger than me may read my story and find it informative and useful.

[Kirk W]

2 hours ago, Jack Hall said:

Every person has to find their own path.

Welcome to the Escapee forums! Your story is an interesting one. So now at 73 you are happy with what you have done, and that is a good thing. Since I am 6 years older than you, I'm in a slightly different position but you will be where I am what will seem like a very short time. We are finding that the questions we ask ourselves have changed markedly over the past 2 years. I am fortunate to have a similar geriatric family history but am also realizing that no matter how favorable that history may be, I probably have 20 +/- years to be here. Since leaving a large estate was never a part of our plan, we have begun to rethink much of what we once believed.

Thank you for sharing your thoughts and experiences. 

[Steven@146]

I don't think there is a single formula for when to retire, take SS and or transition to full time RV living. Not really. Everyone has life lessons, experiences and financial factors that weigh in to the decision, also along with changes in society and changes in employers benefits and compensation.

The baby boomer generation which the wife and I are a part of, maybe the last great generation of the so called traditional thinking, traditional living and retirement style of moderate income folks. Time and changes in society ran out for some at the tail end of the boomer generation, they didn't make it all the way till traditional retirement and had to changer their strategy in the last few years before retirement.  Younger people today 20-40 year old will need a different strategy/plan than we did or thought. Will SS or even health care like it is today, still be around in its present form, I wouldn't bet on it. The 50 year olds are stuck, too young to retire traditionally and to old to start over.

In our life experiences, both of our employers, (major companies) in our last few working years started reducing benefits, eliminated pensions and eliminated all health care after retirement, if you could make it till retirement before getting laid off. We saw family members in their early 70s that did not have health problems, suddenly got cancer and past less than 6 months later. Others are in their mid 80s, health problems and are shut ins, just existing till their final transition and those living in nursing homes Etc.

We retired a little early, 64 and 62 and are financially stable, but we will not be taking trips to Europe on vacation. In good health so far, I'm now on Medicare and the Wife has a zero premium ACA plan.  We both took SS as soon as eligible, transitioned to RV full time living, took money from selling our house (more than doubled our money)  and invested some of it conservatively for future needs. We will full time covering the country until we want to stop, probably due to age, health or some other factor.

We left the rat race, stress and crapola long behind and don't regret it one minute, are having the time our our lives!

 

[Kirk W]

34 minutes ago, Steven@146 said:

We left the rat race, stress and crapola long behind and don't regret it one minute, are having the time our our lives!

I certainly agree with that part! We have 3 sons in their 50's and all are working toward a retirement plan, but no two have the same plan. 

[lg61820]

I have spent several days, using intermittent times each day, re-reading this entire thread.  I found it interesting that everyone seemed to think that their plans for retirement were the best.  That is great!  

My situation is similar to many.  I took a state government job in my early 40's and worked 21 years. However, husband and I divorced prior to my retirement but agreed to a split of assets that was satisfactory to both of us.  I get a pension each month from my employment and get SSA based on his income I will draw on my own account when I reach 70 if not needed before.

I am financially secure, but I miss working.  I think it's a lack of discipline on my part that I accomplish very little when not employed.  I have recently taken a job doing similar work, but at a reduced wage.  

I have spent the past few years taking custody of one to three grandchildren.  That seems to be over at this point.  Therefore, I plan to spend the next year working and getting the house systems in order to get a good sale price and then leave on my fulltime adventure in my T@b tiny camper.  

I'm excited for the future at age 68 and think that's a great thing.

 

 

[sandsys]

3 hours ago, lg61820 said:

I have spent several days, using intermittent times each day, re-reading this entire thread.  I found it interesting that everyone seemed to think that their plans for retirement were the best.  That is great!  

My situation is similar to many.  I took a state government job in my early 40's and worked 21 years. However, husband and I divorced prior to my retirement but agreed to a split of assets that was satisfactory to both of us.  I get a pension each month from my employment and get SSA based on his income I will draw on my own account when I reach 70 if not needed before.

I am financially secure, but I miss working.  I think it's a lack of discipline on my part that I accomplish very little when not employed.  I have recently taken a job doing similar work, but at a reduced wage.  

I have spent the past few years taking custody of one to three grandchildren.  That seems to be over at this point.  Therefore, I plan to spend the next year working and getting the house systems in order to get a good sale price and then leave on my fulltime adventure in my T@b tiny camper.  

I'm excited for the future at age 68 and think that's a great thing.

 

 

That is indeed a great thing. I hope it turns out as lovely as your dreams.

Linda Sand

[Kirk W]

11 hours ago, lg61820 said:

I found it interesting that everyone seemed to think that their plans for retirement were the best.

In my case, I'd not go so far as to say that my retirement plan was the best that I could have done, but it has been satisfactory. No question that we could have begun saving for retirement much sooner along with any number of other better choices, but even with the less than ideal beginnings, we have come out OK thus far and baring a total economic collapse, we should live out our remaining years in relative comfort. The key is not to have everything that we want, but to be happy with what we have, no matter how much that may be. I know that there are others who have more than I have, but that's OK.

11 hours ago, lg61820 said:

I'm excited for the future at age 68 and think that's a great thing.

That is the real answer to a happy future life! Follow your dreams and enjoy what you have. It really doesn't matter what anyone else thinks that you should want. 

[justRich]

"You can always make more money - you can't make more time."

someone once said.

 

[packnrat]

hows being forced into retirement at 63 due to bills one can not pay? as none secured creditors can not go after a pension or ss payments.

my biggest fear is having to pay into the obama scam, for two years. any way affordable around that?

sure i lose a good $700.usd a month (payout numbers via the ss pages) by not working till 67. but worth it ?

[Kirk W]

2 hours ago, packnrat said:

as none secured creditors can not go after a pension or ss payments.

The law treats pension income substantially the same as Social Security checks. Child support and government debts, like taxes and student loans, can garnish your pension check, but most other creditors cannot. In regard to 401(k)s and IRAs, the former are generally safe from garnishment by commercial creditors as long as the money stays in the account, thanks to the Employment Retirement Income Security Act of 1974 (ERISA). A creditor might not be able to garnish your pension or Social Security check, but the creditor can take the money after you deposit it into the bank, up to the legal limits. The best way to avoid credit problems is to live within your income.

How to Respond to Debt Collectors if You Are Retired

Edited June 21, 2022 by Kirk W
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[Jaydrvr]

There's no way I would take social security before age 70 unless I was wealthy and didn't rely on social security alone. The penalty is too much. The calculation is, of course, about your life span. If you think it'll be short, go ahead and take it. I would personally get another job to get me through. There are jobs unfilled everywhere. I would think it'd be fairly easy to get something to transition to a better retirement age. Jay

[GlennWest]

70 is 4.5 years away for me. As a welder question if my eyes will let me work that long. We are dept free. 

[Kirk W]

4 hours ago, GlennWest said:

70 is 4.5 years away for me.

I took an early retirement package at 57 and SS at 62. As I am now nearly 80, I realize that I'd have had more in pension if I had worked longer and in SS if I had not taken it immediately, but I would not have the extra years of memories. To me, those are worth far more than the extra money that I would have gained.

[packnrat]

On 6/21/2022 at 4:54 AM, Kirk W said:

The law treats pension income substantially the same as Social Security checks. Child support and government debts, like taxes and student loans, can garnish your pension check, but most other creditors cannot. In regard to 401(k)s and IRAs, the former are generally safe from garnishment by commercial creditors as long as the money stays in the account, thanks to the Employment Retirement Income Security Act of 1974 (ERISA). A creditor might not be able to garnish your pension or Social Security check, but the creditor can take the money after you deposit it into the bank, up to the legal limits. The best way to avoid credit problems is to live within your income.

How to Respond to Debt Collectors if You Are Retired

yea... sure. predatory credit company's. price gouging at the pumps and the high cost of everything cause of that.

balances are increasing as not possible to pay them off any longer. but yes i did buy stuff on the cards. including weekly food.

one card went to 39,99 % interest on me. two others closed the accounts in fear. while i had a debt with them. two others keep lowering my limit as i was paying them off, so reported as a high risk, having such a 'high" balance to limit deal. so my credit score got tanked. higher costs have forced me to stop buying all the drugs (and "other things") my Dr says i must take. the stress of all this plus taking care of my mom keeps my bp at what the DR's say is way too high. as in stoke numbers. heck the DR who did my dot this year faked the numbers to just keeping me working. in may next year? will he fake them again?

as to the bank limits. -i can keep one USD less than two months payments in there and it would be untouchable. these days who can do that with there income? government is another thing. but most do have limits. except for the irs they can take it all.

loosing 1/2 of my income a couple years back did not help. and as a class A truck driver a second job is not possible. on duty hrs thing.

so for me at this point. is a chapter 13. retire early. (medical thing?). sell off all of my "stuff".

but at 63 i am just tired. been working hard since i was a brat at the age of 9. but did have a couple three years off for a crushed leg, cancer, and a broken neck. (different times of life here).

[Kirk W]

47 minutes ago, packnrat said:

balances are increasing as not possible to pay them off any longer. but yes i did buy stuff on the cards. including weekly food.

Quote

How to Manage Credit Responsibly

1. Borrow only what you need! ...
2. Pay your credit card bills in full every month. ...
3. Don't ignore your service agreements. ...
4. Build a budget. ...
5. Use no more than 30% of your available credit limit. ...
6. Focus less on your credit score, and more on developing positive, lifelong habits.

 

[Zulu]

2 hours ago, Kirk W said:

How to Manage Credit Responsibly

Your unsolicited advice won’t work for everyone.

[packnrat]

yes i bought the stuff. but sometimes income levels get hurt bad.

used to be every time a bill came in. it was paid in full. no problem.

i have been struggling for years now, even trying to work with the predatory cc holders. but the down turned economy, rising gas, food, everything, heck even my po box fee has gone up every year now for the past three years. and raising taxes, has now hurt me even more.

mail theft requires me to have a po box, but even they get broken into these days.

 

want to buy some of my stuff?  heck i will even sell my fifth wheel.