Early retirement

Your numbers are totally bogus! The difference is not 8%, it is 5% per year from 62 to FRA, and 8% per year from FRA to 70. A far cry from 8%.

So, a person due $20,000 at FRA will only receive $15,000 if they file at 62. If they file at 70, they will receive $24,800. Difference of $9800 or 65% more income per year, not 8%. That is serious money!

If the person lives to be 82, the person who filed at 62 has received $300,000. The person who filed at 70 has received $297,600, they are even. Plus the 70 filer gets nearly $10,000 more a year.

Which is better? Who knows? Who has any idea how long they will live? Who knows whether investments will give good returns or bad in the short term? Nobody does. So there is a case that can be made for early filing, and there is a case to be made for later filing.

But saying those who file later did not plan, that is wrong and ignorant. Likewise making a case based on fake numbers.

 

I'll be lucky to live to 62. I'm taking mine as soon as i get there!
and yes, I've planned well.

 

Your gonna make it TurboDiesel !!!

 

Expected longevity is a serious factor in making a reasonable choice. Shorter definitely favors earlier. Those with a higher longevity expectation might find it better to wait.

It gets more complicated for couples, but there are online tools that help work it out, and any financial advisor worth anything can as well.

 

I would like to make a serious downshift around 45 and hang up it up for good at 55 and start a small business to keep me occupied. I'm not sure if that's going to be feasible, but that's the beat I'm marching toward. If it works out, great...if it doesn't then I'll just keep working till 55. It would take a major run of bad luck for me to keep working into my 60's...but that's entirely possible too.

45 is only 7 years away. Just need to keep my head down and keep on plowing money into savings. It's getting easier. I've pretty much lost all desire for new vehicles, toys, etc.

 

I worked and worked, took all the overtime I could handle, worked holidays, and was in the military reserves after my active duty. I retired at age 45 from the reserves, 53 from civil service, and 67 from my part time and per diem work. stared collecting SS at age 62. All my jobs had great medical care plans. I will tell you that I put away what I could planning for my retirement. My SS was never much because I had been civil service and didn't pay SS from that job. They cut my SS to less than half of what it would be had I not worked for civil service, I had way more than enough good years to get SS. Anyway, I am doing better now than I had anticipated. I just hope I live long enough to enjoy it. my mobility is very impaired so things are not all what I had in mind. My advice is to do as much as you health and money will allow while you are able to do it. Tomorrow is really unknown even when you plan ahead.

 

I will take a look. Just did some quick math on the income versus waiting. Not trying to fire anyone up or convince anyone to do my method, and I may do something different when Zero hour is near.

 

there is also the “catching up” on taking income early against waiting and receiving more. My pension plan with the DROP is 25 years to not take the DROP and receive about 6% more on my pension. East choice.

 

according to my latest SS statement if I retire at 62 I'll get $1746/mo or $20,952/yr. I'll be 62 this Dec.
If I add 8% increase per year I'll be at 2375/mo at 66, SS says At FRA (66 1/2) I'd be at 2394/mo. or $28,728/yr. So pretty close to 8% increase/yr.
After that if I wait till 70 then the rate drops to over 6%/yr increase. SS says at 70 I'd get $3065/mo. or $36,780/yr.

I got the original 8% from my Daughter, she works at an Investment place that deals with high dollar clients.
She was pretty much right according to my statement.

I think everybody SS is different too. I stopped paying in over a decade ago but I paid in more than most in the previous 14 years as I was self-employed.
In the last couple of years of working I paid myself more so that I was maxing out my SS contribution.
So not a cut and dried thing. I know alot of people that were self-employed, most are sitting on SS till at least FRA, some longer.
They all are in a better place than most and have options, like me.


But yes, I agree with your statement about filing later. It what I was trying to get across to the post I was responding too.

 

I don't have any type of pension.
I was self employed and I had to rely on myself.
Fortunately everything worked out for me.
I'm fairly diversified. So I have lots of options and can pull money to live on from different sources depending upon taxes etc etc.

 

if you do not file at 62 and die at 69 you get ZERO.

 

That's what scares me. My Dad passed at 55. Lately some of my friends and people I knew of, have left us. Folks in their late 50's & 60's.

 

with family history, I'll be lucky to ever get a cent.

I subscribe to Money Talks newsletter with Stacey Johnson. this just came today. It might not be for everyone...
5 Reasons You Should Not Delay Claiming Social Security

 

If family is any indication I'm golden.
on my Moms side her and all her brothers are in the upper '80's and '90's.
One died a couple of years ago at 101.

On my Dads side they all lasted in to the upper '80's and my Dad is 87 now.

Of course there is a few in there that died earlier, suicide, car accidents and one brother with Leukemia that never made it to 50.

 

i think its safe to say, with the food that Americans eat, living to a ripe old age is a thing of the past...

 

I retired at 61 and started SS at 62.
My wife is 5 years older than me. She worked for the county and had very little SS pints.
My wife collects a little under $1000/month (half of my SS) She couldn't collect that money until I filed for SS. If I would have waited until full retirement age. I don't know if I would have been a head with her not collecting the spousal share.

 

I couldn’t agree with this statement more sir. So sad .

 

bushpilot, I have no suggestion for you except my own observations about myself. I had 4 fairly close associates in my field, commercial hvac, die with in a one year period...all in their early to mid 50's. I was 60 at the time when the 4th and very good friend died of a massive heart attack and on the way home from the wake, I told my wife 'That's it... next summer when I turn 61, I am outta here". That death was my epiphany. I realized that evening that the stresses I accepted with my job was contributing to my daily headaches, high blood pressure and general irritability at and in situations that never ever bothered me in the past. It was a rude awakening that I firmly believe has kept me out of the grave. Within weeks of retirement my daily headaches became a thing of the past and my generally jovial self re-emerged. Now, mind you I absolutely LOVED my occupation and took it as serious as anyone could so its not like I hated my job, but possibly that seriousness was the most major contributing factor to the physical anomalies that had surfaced.

So...in short, I couldn't have cared less about if I would've had enough income to sustain us in retirement, it was important to just 'be here' for the little lady, whether well off or not. We started our lives together with nothing so we felt we could go back to that and be happy if necessary. Fortunately we haven't had to cut back on anything at all and are still able to contribute to our 'plans' at very near the same rate as before retiring. I took a 9% hit on my union pension because I officially retired three years early on paper, but in actuality it was four years. I took the hit on Soc Sec as well and feel no ill effects as yet. My wife also retired one year before me but her teachers union allows her to work half-time without jeopardizing her retirement. My union provided my family plan insurance for $200/month (until Medicare at 65) and as my union is self-insured doctors visits cost nothing at our own 'in house' health facility. All these factors allowed the comfort factor to my decision to walk out early.

So, please don't think I'm preaching to you and don't take it the wrong way, but if you are lucky one day you will just 'know' the time is right. I am convinced had I not retired when I did, my life would be over by now so hanging in for more money would've not really helped either me or the missus. ESPECIALLY me. LOL. Now that I've been retired for 6 years, I wish I would've headed out to pasture at 55 because there is NO doubt we would been just fine. One old guy told me that he'd never talked to a man on his deathbed that said he wished he'd have spent more time in the office....

The best things in life are free...but they're a bit better if you have a cushion stashed away...just in case. Be well, be happy and go with your heart about when to walk out the door. Heck man, you probably aged a bit just reading this freakin' book I just wrote. Thank you for taking the time for a different perspective...IF you read it to the end....that is.lol

 

I subscribe to this newsletter. Very informative.
The 10 Golden Rules of Becoming a Millionaire