Hello, almost 66, considering retirement

[jetaylor]

I'm 66, spouse 66, thinking about leaving the workplace. Joining this group to learn from others and share my experience (if I have any of worth). We've accumulated enough in a self-directed IRA (mostly from a previous employer's 401K and lump sum pension) to live off stock dividends when I decide to retire. Social Security and a small pension from my current employer will round things out comfortably. Recently wondering about filing for SSA benefits right now, turning down Medicare part B, and just staying employed (enjoying my current job and medical) … looks like that is possible, but I'll put that question in another forum.

 

[MBAustin]

Welcome jetaylor! If you haven't found them already, we have a helpful list of things to think about as you're making your decision:

Some Important Questions to Answer

It sounds as though you might be financially ready but not sure you're personally ready. We have a name for it here - "OMY" for one-more-year syndrome. Most of us would advise not to let it trap you if you really want to retire.

 

[brucethebroker]

Run projections on SS benefits at age 70 vs. 66 for both of you. Results may be surprising and encourage thoughts on how to put the benefits off for a few years more, even if you need to spend more of your "nest egg" the first few years.

Welcome, by the way.

 

[DogGone]

It is shockingly advantageous to wait until 70 if you are in good health. The payments go up significantly.

You can log on to their website and see for both of you.

If you have a very unusual question, like I did about stopping at 52 and result on payments at 70, you can call them but be braced for a 50-60 minute wait tiime.

The person was very helpful and knowledgeable once I got them on.

 

[O2Bfree]

You mentioned you're still enjoying your job. Are there things you'd rather be doing instead of going to work each day? If not, then maybe you should continue working awhile longer. How would your spouse feel about that? Have the two of you made any retirement plans that you're looking forward to, travel, more time with family, or anything that you'd be putting off?

Also, consider that while you may still be quite healthy, health problems can come out of the blue as we get older. By the time you decide to retire, something may have come up with you or your spouse, scuttling any plans you may have for retirement activities.

 

[albireo13]

Staying employed benefits the employer. They keep you pushing the load down the road for another few years.
What do you want to do? (keep money and numbers out of that question)

 

[Oz investor]

welcome jetaylor ,

make sure you ( and your spouse ) have a full medical check before you wave good-bye to your job

this will give you more facts to base your future budget on ,

since you enjoy your current job , it would be a shame if you left with regrets ( and unnecessary hassles )

 

[Souschef]

There has been a lot of discussion on what age to take SS. IMO, if you take SS at 66 rather than 70, you have 4 years worth of payments
The break even point is about age 73. If you factor in the present value of the future earnings, the age increases.

 

[Midpack]

There has been a lot of discussion on what age to take SS. IMO, if you take SS at 66 rather than 70, you have 4 years worth of payments
The break even point is about age 73. If you factor in the present value of the future earnings, the age increases.

My own calculations and almost everything I've ever read put the breakeven point for 62, FRA and 70 all at over 81 years old

Depending on taxes, inflation, and investment returns, the range of break-even ages goes from 81 to 86 1/2. There is a similar range of break-even ages in the comparison of benefits begun at age 66 to age 70—from the age of 84 to nearly 87.

https://money.usnews.com/money/blog.../13/whats-your-social-security-break-even-age

At what age will you break even and begin to come out ahead if you delay social security? Here are a few examples:

• If you file at age 66 instead of 62, it takes until ages 77 to 78 to break even.
• If you file at age 70 instead of age 62, it takes until ages 80 to 81 to break even.
• If you file at age 70 instead of age 66, which is FRA, it takes until ages 82 to 83 to break even.

https://www.piershalefinancial.com/blog/break-even-age-for-social-security

And there are many more calculations online, but I've never seen one that showed a breakeven of 73. FWIW

 

[Bamaman]

Social Security and Medicare are two different programs.

By all means retire and avoid starting your Social Security if you're in good health and can afford it. We all just have "X" days remaining on this earth, and it sounds as if you've earned your retirement.

Go ahead and start your Medicare now. Every year after 65 years of age, the premiums go up 10%.

 

[Katiek]

Welcome. Sounds like you have positioned things well to have a number of good choices.

 

[Bir48die]

Just reading the obituaries today. Many people died in their 60’s and early 70’s. Knowing people and many stories of early deaths is what motivated me to retire early. By all means do what makes you happy but I was fortunate enough to have a decent nest egg to enjoy life at this point. Yes I’m in good health and no history of ailments but already buried a wife in her 50’s. So, I’m out. Do what is comfortable to you and your family

 

[joeea]

I'm 66, spouse 66, thinking about leaving the workplace. Joining this group to learn from others and share my experience (if I have any of worth). We've accumulated enough in a self-directed IRA (mostly from a previous employer's 401K and lump sum pension) to live off stock dividends when I decide to retire. Social Security and a small pension from my current employer will round things out comfortably. Recently wondering about filing for SSA benefits right now, turning down Medicare part B, and just staying employed (enjoying my current job and medical) … looks like that is possible, but I'll put that question in another forum.

So you are thinking about leaving the workplace, and at the same time wondering about staying employed at your current enjoyable job?

Do what you enjoy. If you enjoy your job more than you would enjoy being unemployed, then keep working. If you would enjoy not working more, then don't work.

Play around with https://opensocialsecurity.com/ for help determining when it would be optimal to begin collecting social security benefits.

 

[HI Bill]

Welcome! It sounds like you have the financial aspect of retirement covered, based on what you've told us. Do you have something you'd rather be doing than work? If so, retire! If not, keep working... ER is not for everyone. Just ask the 68-year olds in my office. I had to tell them I'm planning to be a photographer/writer so that they could understand my desire to retire early!

 

[Mdlerth]

Maybe Part B has different requirements than Part A

Go ahead and start your Medicare now. Every year after 65 years of age, the premiums go up 10%.

Maybe I misunderstand; it wouldn't be the first time. But don't you get a pass on the Medicare late-enrollment penalty if you are still covered by employer-provided insurance? Note: I think COBRA doesn't count, nor does retiree coverage. You have to be still actively employed.

 

[WestUniversity]

I don’t think I saw it mentioned in another post, and in case you are unaware, you can run your numbers through FIRECalc if you’re concerned at all about your retirement finances...

Https://www.firecalc.com