Retirement

[JimT]

It will go up 8 percent of what your 62 year old check would have been. Then will start year after you start things up. I’m sure you are maxed out so almost 60 grand for 5 years you passed up already. One should start studying their options at 60. For you self-employed people pay the max in not the min. There should be a course in SS and Medicare taught in school. Fastest way for politician to get unelected is talk about cutting SS.

There is a course taught, it’s called “Socialism 101.”

 

[JimT]

Figure up how much you can collect during the 8 years from 62 to 70 and compare that to how long after you reach 70 it will take to get that back.

Just make sure you deduct the Federal and state income taxes you pay on SS during those 8 years in your analysis.

 

[JimT]

One other item to remind folks -- GET on Medicare if you are over 65! I have some friends who say they can't be bothered. Well unless you have some kind of incredible plan with your employer, you are making a big mi$take.

As self-employed, under Obama "Affordable care", in 2020 I was paying over $1400/mo for health care coverage, with very high deductibles. Now I am paying about $450/mo total with Medicare fees, Blue Shield Supplement, and AARP (United HealthCare) Prescription coverage. My Medicare bill is currently $445 billed every two months ($222.50/mo)

Two HUGE differences I have noted with Medicare, beyond the monthly costs:

1. I can go to pretty much ANY Doctor or Clinic I want. Before many physicians refused my coverage. After going on Medicare I have changed my GP, my Oncologist, My Urologist -- all for the better.

2. Out of pocket fees have decreased dramatically. I generally walk out of any doctor's office these days with ZERO co-pay. Before it seemed I could never leave ANY office without forking over a $75-$100 payment.

3. Patient share of test fees have declined. Two years ago I had a neck MRI. I paid $350 on site. Two months ago I had the very same MRI at same lab and paid $65 out of pocket.

Someone is going to have to pay for all those underpriced services.

Redirect Notice

 

[M-61]

I didn't know you could call SS.

You sure can. Each region has a 800 number and then the office closest to you has one also. PATIENCE......they do not always answer the phone. And as I said make an in person appointment. They know more about you than you do about yourself. It was amazing how quickly my questions were answered. Many acquaintances have had the same experience.

 

[hogpatrol]

One other caveat for those that wait and think they'll have a nice retirement after 70. What if your wife's or SO's health goes south before that time?

 

[300_whisper]

I retired when I was 44 in 2002. I should of retired after the 6th grade if I knew it was going to be like this. A job is nothing but work.

What did you do to retire at 44, if you don’t mind me asking?

 

[Nick Caprinolo]

When I was a financial planner, I found it best to run the numbers to find out what tack to take that best fits a person's objectives and ability to manage their own money. Taking one's SS early, like at age 62, when it's not really needed can be a much better choice than waiting. . . IF one can be disciplined and has the ability to do well at investing it; and assuming one's health and family genes are good for longevity. The words I used to get so tired of saying . . . "it all depends".

I took my SS at 65 years old. I was still working a well paying job and gaining another pension to boot. Now each year I worked added a higher percentage to my SS benefits. I received the regular benefits and then an increase based on the past years earnings. I don't think I would have done as well if I had waited to to age 70.

 

[JimPag]

What did you do to retire at 44, if you don’t mind me asking?

My last job that I worked was for the Massachusetts Turnpike Authority. I got hurt on the job and fought them for about 5 years until they called my lawyer and wanted to settle up with me. They gave me a lump sum settlement and they pay me 80% of my pay every month until I'm on the wrong side of the dirt.

 

[searcher]

Correct . . . it has been raised. Here's a sample from my SS document from last year:

View attachment 1268581

That page shows why one wants to work until full retirement age - and not just to get the higher benefit - but because they screw you if you earn money elsewhere. If one works to full retirement age - they don't do that. My mother retired early back in the 80's. She recently sold some stock and they reduced her social security for a year because of it. I have been eligible for a few years now - but no way will I take it till I'm at full age. I realize some are in a tougher position - but being able to grind it out for a few more years is usually worth it unless one has severe medical problems that look to bring the reaper early.

 

[Straightshooter1]

That page shows why one wants to work until full retirement age - and not just to get the higher benefit - but because they screw you if you earn money elsewhere. If one works to full retirement age - they don't do that. My mother retired early back in the 80's. She recently sold some stock and they reduced her social security for a year because of it. I have been eligible for a few years now - but no way will I take it till I'm at full age. I realize some are in a tougher position - but being able to grind it out for a few more years is usually worth it unless one has severe medical problems that look to bring the reaper early.

Like I mentioned before and like I've so often said . . .

it depends!

 

[300_whisper]

My last job that I worked was for the Massachusetts Turnpike Authority. I got hurt on the job and fought them for about 5 years until they called my lawyer and wanted to settle up with me. They gave me a lump sum settlement and they pay me 80% of my pay every month until I'm on the wrong side of the dirt.

Im not sure if this is awesome, terrible, or somewhere in between.

 

[Dave@MAM]

I retired when I was 44 in 2002. I should of retired after the 6th grade if I knew it was going to be like this. A job is nothing but work.

Dang, you never really worked long enough to know what a job is really about.

 

[JimPag]

Im not sure if this is awesome, terrible, or somewhere in between.

To me it was a blessing. I can live with my injury. I don't have to pay taxes on any of it because I get Accidental Disability Retirement, and The Massachusetts Turnpike Authority was fazed out. It was a private entity that was owned by bondholders. It was a high paying political job working on the Pike. You had to know some state Senator or State Representative to get a job on there.

 

[hoz53]

You sure can. Each region has a 800 number and then the office closest to you has one also. PATIENCE......they do not always answer the phone. And as I said make an in person appointment. They know more about you than you do about yourself. It was amazing how quickly my questions were answered. Many acquaintances have had the same experience.

I went to one of the SS offices around here. It was closed due to covid and the only thing you can do is drop documents off to the guard. The staff work from home now. I was filing for Medicare and I had to do it from home On internet. For SS office You have to call and wait for them to answer phone or leave message. They were very helpful to me.

 

[hoz53]

My last job that I worked was for the Massachusetts Turnpike Authority. I got hurt on the job and fought them for about 5 years until they called my lawyer and wanted to settle up with me. They gave me a lump sum settlement and they pay me 80% of my pay every month until I'm on the wrong side of the dirt.

No wonder you have 800# of powder Jim—-lol

 

[hoz53]

Just make sure you deduct the Federal and state income taxes you pay on SS during those 8 years in your analysis.

Lots of people don’t earn enough to have to pay taxes on their SS however I don’t believe I’ll be one of them. My dad didn’t even have to file a Fed return the last ten years of his life.

 

[hoz53]

"Call that number. It's free"! Joe Namath. View attachment 1268673

One thing about filing at 62 Hog is I think when that rule was made people’s life expectancies were much lower. Effectively that means people are drawing their SS for more years Than in the past and at a relatively younger age. As you know they have raised the full retirement age, which should have been done. I think they should raise the early age to. My Dad passed 2 years ago. He and his employers paid in a total of 40,000 his whole life time to SS. He drew for 30 years and the total amount he got was around 400,000. I wonder what the average lifetime SS benefit for people passing this year is. I think that like my dad most come out pretty good compared to what they paid in. The full retirement age used to be 65 for everybody. I bet since that was put into effect the average life expectancies have went up more than five years so filing at 70 now would be like filing at 65 in say 1960. If it weren’t political suicide for The pols the SS full retirement age should be raised to 70. Not doing that is just breeding more of this entitlement that is so popular these days. Oh Geez I almost talked myself into it

PS- not singling you out, just wanted to get this in the thread.

PSS. I was curious so I looked into this. SS was signed into law in 1935 and started paying monthly benefits in 1940. The average check in 1940 was 22.71. The avearage male life expectancy in 1940 was 65 and the full retirement age was set then by SS at 65, obviously many people didn’t draw much Of a life time benefit. The creators of SS never imagined many people would draw SS for 30 years. Average male life expectancy in 1998 was 79. It’s about the same now. That is 14 years longer than in 1940.

 

[hogpatrol]

I have to check but IIRC, SS was only instituted for old age pensions. Now it covers disability benefits and there are over ten million people on those rolls. I suspect the full retirement age will again be raised.

 

[300_whisper]

I have to check but IIRC, SS was only instituted for old age pensions. Now it covers disability benefits and there are over ten million people on those rolls. I suspect the full retirement age will again be raised.

Thats why I’m not counting on it. SS is not even a consideration in my retirement goals/plan.

 

[Texas10]

Today I heard through the grape vine that I was retiring next year. Not unless I win the lottery lol. I am going to try all little bit of a different scheduling process and have not taken in much work recently because I am trying to get caught up but retirement is not in my future for a very very long time probably ever. Just FYI

You're fortunate in that your avocation (building rifles) can keep you just as busy and probably well enough funded as your 9 to 5 job. Having a side business can forestall the feeling of worthlessness that accompanies so many retirements. I'm convinced that feeling of dread is what cuts short the lives of so many retired workers.

I'm almost 70 and simply cannot afford retirement, nor can I stand the idleness and unanswered need to build something after so many years in the aircraft business. So I'm doing it again working 60 to 70 hours a week building UAS aircraft for a startup business. I couldn't be happier!

Retire? NEVER!