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Retirement - when is it time?

JazzGal said:
Everyone that I know that retired by 55 really regretted it and cautioned against it. Most of them died pretty young. And money seems to go faster than expected. It never turned out like they planned.

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Retirement doesn't have to mean quitting work. There are a lot of things I would like to do that could be considered menial labor. I would like to be a waiter for a while, a bar tender (hopefully on a cruise ship), work at a gas station for 6 months, drive a bread truck, become a stewardess and fly multi-nationally, work for a river rafting expedition company [MENTION=2036]b_line[/MENTION], manage a state, county or Forest Service park, work at a boat shop again as a mechanic and sales person, get on a fire fighting crew, work in a brewery, become a train operator for UTA...
 
franklin said:
Retirement doesn't have to mean quitting work.
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After I am done with my business I see myself being involved with local soccer or basketball leagues. Could do score keeping, scheduling, etc. I always loved organising sports events. Might even do some refereeing or coaching as long as I am in decent shape. May go and play in some rock /metal cover band for fun. There is so many possibilities to be involved in the things you love but never had a chance of doing it because all your time was taken by your work since you needed to make a living.
One thing for sure, I won't be stressing out about not having a purpose if I am not working 9-6 5 days a week.
 
Stoked said:
You can draw as early as age 62 but your FRA (full retirement age) will be 67. That is when you get your 100%. Now they base it off of your highest 35 years but you only need 10 years of coverage to be eligible. Obviously the more and longer you pay the more you get back. Everyone's payment varies according to their individual work history. An "average" 100% is probably 1,400-1,500 a month.

Now once you file that is the amount you are locked in at. So if you decide to draw it at age 63 you would be reduced for taking it 48 months(4 years between 63 and 67) early. Once you draw that amount is locked in and that is your payment.

Also there are work limits to how much you can continue to make and draw your SSA benefits. For retirement it is 16,920.00 (in 2017) per year which comes out to be 1,410.00 gross per month. Only you going to work and getting paid and self employment count towards that limit. The year you reach FRA (age 67 for you fish0 that limit jumps to 44,880 per year. Once you are actually FRA you no longer have an income limit.

Edit: Moe is correct in that you can wait until age 70 to draw to maximize your payment. That is the last month it will increase by waiting. But all calculations on your amount starts with what you would get if you took it at FRA.
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I'm certain this will never be available to those of us my age who make good financial decisions. I work with people receiving the max FRA benefit ($32,244 a year, or $2,687/mo), make plenty of money on the job and are double covered with our insurance and medicare.

I am currently paying for all of this and will most certainly benefit little if any for it. They keep preaching "They told us". No, you voted and told me. I hope you can leave a little inheritance to remove the piano you've placed on my generation's back.
 
franklin said:
I'm certain this will never be available to those of us my age who make good financial decisions. I work with people receiving the max FRA benefit ($32,244 a year, or $2,687/mo), make plenty of money on the job and are double covered with our insurance and medicare.

I am currently paying for all of this and will most certainly benefit little if any for it. They keep preaching "They told us". No, you voted and told me. I hope you can leave a little inheritance to remove the piano you've placed on my generation's back.
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There is always the chance that it is gone by the time most of us get there. Yet another reason not to make it the center piece of your nest egg. But they have been talking about "fixing" it for my entire life. Plan on it being gone and be happy if/when you draw. Pressure your representative to push solutions.

There are a myriad of reasons the program is struggling. Shrinking worker to retirement recipient ratio, dramatically increasing #s of disability recipients, Congress raiding the trust fund and a cap on SSA taxable earnings for example.
 
franklin said:
Retirement doesn't have to mean quitting work. There are a lot of things I would like to do that could be considered menial labor. I would like to be a waiter for a while, a bar tender (hopefully on a cruise ship), work at a gas station for 6 months, drive a bread truck, become a stewardess and fly multi-nationally, work for a river rafting expedition company [MENTION=2036]b_line[/MENTION], manage a state, county or Forest Service park, work at a boat shop again as a mechanic and sales person, get on a fire fighting crew, work in a brewery, become a train operator for UTA...
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You can come help me for a few weeks of planting and harvest.
 
Stoked said:
You can draw as early as age 62 but your FRA (full retirement age) will be 67. That is when you get your 100%. Now they base it off of your highest 35 years but you only need 10 years of coverage to be eligible. Obviously the more and longer you pay the more you get back. Everyone's payment varies according to their individual work history. An "average" 100% is probably 1,400-1,500 a month.

Now once you file that is the amount you are locked in at. So if you decide to draw it at age 63 you would be reduced for taking it 48 months(4 years between 63 and 67) early. Once you draw that amount is locked in and that is your payment.

Also there are work limits to how much you can continue to make and draw your SSA benefits. For retirement it is 16,920.00 (in 2017) per year which comes out to be 1,410.00 gross per month. Only you going to work and getting paid and self employment count towards that limit. The year you reach FRA (age 67 for you fish0 that limit jumps to 44,880 per year. Once you are actually FRA you no longer have an income limit.

Edit: Moe is correct in that you can wait until age 70 to draw to maximize your payment. That is the last month it will increase by waiting. But all calculations on your amount starts with what you would get if you took it at FRA.
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Damn. Great response and great info

Thanks to moe too.
 
MVP said:
Can you elaborate more? Why they regretted it?
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Stoked said:
I speak with new retirees at a constant pace. At least a dozen per week. Something I have seen the majority of people struggle with is they have gone from a life of purpose and structure to nothing. They are not prepared for the mental blow and subconsciously they get depressed and lonely. After that they tank fast in overall health.

You need to replace the sense of purpose and social interaction you get from work with something.
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Stoked's answer pretty much covers it.
 
franklin said:
Retirement doesn't have to mean quitting work. There are a lot of things I would like to do that could be considered menial labor. I would like to be a waiter for a while, a bar tender (hopefully on a cruise ship), work at a gas station for 6 months, drive a bread truck, become a stewardess and fly multi-nationally, work for a river rafting expedition company [MENTION=2036]b_line[/MENTION], manage a state, county or Forest Service park, work at a boat shop again as a mechanic and sales person, get on a fire fighting crew, work in a brewery, become a train operator for UTA...
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This all sounds good, but the reality tends to be different. Everyone I know that retired early said similar things (well, maybe not quite as many dreams as you have), but life happens and gets in the way. For example, that is the time that you start having to deal with aging parents, you start having medical issues of your own, your children and grandchildren often need you to bail them out of their bad choices/circumstances, financial market fluctuations, etc. There are a multitude of reasons that the big plans of the young do not happen when you get older. All I know is what people have told me, and that is not to retire too young or you will regret it.

I certainly commend all of you who do what they can to save and to stay healthy. Don't put either of them off. You get old faster than you can imagine.
 
fishonjazz said:
About SS, I'm 40 right now. When can I start collecting the max amount available to me and about how much do you predict that to be? Does it depend entirely on how many years I have worked and at what salary?
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I'm 46 and just coincidentally looked into this a few days ago. The regular amount starts at age 67 (used to be 65), and the max amount is age 70. And I think the minimum age you can start collecting is age 62, but it's at a reduced rate. How much you get does depend on how much you've paid into the system (both in terms of number of years, and in terms of annual salary). Here's a calculator you can use: https://www.ssa.gov/oact/quickcalc/.
 
JazzGal said:
This all sounds good, but the reality tends to be different. Everyone I know that retired early said similar things (well, maybe not quite as many dreams as you have), but life happens and gets in the way. For example, that is the time that you start having to deal with aging parents, you start having medical issues of your own, your children and grandchildren often need you to bail them out of their bad choices/circumstances, financial market fluctuations, etc. There are a multitude of reasons that the big plans of the young do not happen when you get older. All I know is what people have told me, and that is not to retire too young or you will regret it.

I certainly commend all of you who do what they can to save and to stay healthy. Don't put either of them off. You get old faster than you can imagine.
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I'm on a pension so it makes little sense for me to continue working here any longer than I must. For one thing, my wife gets hardly anything if I die while working. OTOH, if I retire she will get a lifetime benefit. So I have a duty to retire ASAP, and at that point I probably won't be interested in another professional position but will continue working for health benefits if nothing else.

As far as unexpected expenses goes, we are currently on path to make as much in retirement as we do now but without a house payment. Anything we get from SS will be a complete boon. Any shock I would get in retirement would be no different than if I were still working in a profession.
 
of course it depends on each individual situation, but many people stay involved after official "retirement" by serving as consultants back to their original employer, or within the industry, or they serve on committees or IRB's or stay involved in their profession in some way


on a related note, here's another question to ponder - would you want to live in an "Active Adults" community or no?

I've know people who have done it and loved it, but others tried it and couldn't wait to get out. Personally, I like having a variety of ages around. Although I will say, since my next door neighbor appears to have moved out and left her home to her 28 year old son who's turned it into party central 7 nights-a-week, young adults have less appeal to me, at least those living next door to me.
 
I don't want to be in an adults community either. I want grandkids spending the weekend, family get togethers, the sound of kids and pets on the street...
 
We are a worn down nation who works too hard, and doesnt give its people enough benefits.

Social Security is the best thing we have for all, and it's constantly being attacked, and threatened.

Anyways, can I retire now? I'm ready to get a camper and travel europe until I pass.
 
MVP said:
That's very nice of you, I certainly won't be able to afford it or planning on that, unless I win lottery or something. Kids can get student loans and pay it off after graduating IMHO. The sooner they learn to stand on their own feet the better.
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MVP - is it impossible to enter almost any good universtity in Canada without fee if you are clever enough i.e graduate high school/secondary school with the best grades and are otherwise talented enough? Of course, the parents must still provide general living expenses if needed.
 
lauriandres said:
MVP - is it impossible to enter almost any good universtity in Canada without fee if you are clever enough i.e graduate high school/secondary school with the best grades and are otherwise talented enough? Of course, the parents must still provide general living expenses if needed.
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Like anything it depends. dalamon would be better person to answer this question as he just got accepted into medical school ( not sure if his parents are sponsoring him or he got student loan ). My daughter got accepted into athletic therapy program and her grades were certainly not the best and she is taking student loan.
 
MVP said:
Like anything it depends. dalamon would be better person to answer this question as he just got accepted into medical school ( not sure if his parents are sponsoring him or he got student loan ). My daughter got accepted into athletic therapy program and her grades were certainly not the best and she is taking student loan.
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Whats the interest rate on student loans? Ours increase with CPI so my accountant has told me not to worry about paying them off in a hurry as its not a bad debt.
 
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