Countdown to retirement

[georgina]

You and your wife are each receiving $4k monthly in Social Security? That is a nice chunk of change. You and your wife must have maxed our your SS income most years to receive that amount.

I will only receive $2k per month when I retire in 4 years, but I was a SAHM for a long time. DH is slated to receive under $5k when he retires next December and he maxed out his SS most years.

DH salary never made it to 6 figures, but by waiting until 70 to take SS he gets a little less $4000 (before medicare takes their cut). I was a long time SAHM also, and me taking half of his amount at FRA will be higher than taking mine would be.

 

[mousefan73]

There are local groups working tirelessly to overturn them. We aren’t the only state affected.

It also affects those like me who paid 40 credits + in and who will get foreign pensions. The WEP also comes in play and totally sucks. I spent half my life paying in the the US and German system. The US system will screw me later with the WEP

 

[mousefan73]

That's interesting. In my state, in this situation (which I am in), you do still get some Social Security benefits, but they are reduced. And I believe you have to have 10 years in Social Security to collect.

It's 40 credits that doesnt not equal always 10 years. You can max 4 credits a years, most do with full time jobs and get that in 10 years then. But if you work part-time you might need more than 10 years.

 

[OrangeBirdGirl]

I've been counting down the years until retirement when I started my first real job, lol! But in seriousness, retirement is right under 6 years away for DH and right under 8 for me. We'll each be 55 when we retire. Every so often now that retirement is starting to be in the somewhat near future it's re-running numbers. Deciding if we go sooner than we anticipated.

We know it's getting somewhat close when we see commercials for car sales and they offer 72 mos financing at a certain percent and I say to DH jokingly "look we could get this and it'd be paid off right when you retire".

We have to keep reminding ourselves we can't wish away our lives until retirement though as there's alot of amazing things that will happen between now and retirement. LOL well hopefully it's all amazing things.

 

[Minnesota!]

3111 days.

I will hit Rule of 90 the month after I turn 55. I have been counting down to that day for yeaaaaaars. I do plan on starting a new career doing something not-corporate. Maybe cheesemonger? Maybe work-camper? Maybe dog sitter?

But, I will have a nice pension and a decent 401.

 

[Disneybuckeye]

Interesting that everyone is retiring so young. That is something we never had any interest in. I am currently 60 and planning on retiring at 65 when I can obtain Medicare. DH is currently 67 and still working through at least the end of next year. He was a company president, but is now consulting for them about 30 hours a week. We both enjoy what we do and it keeps us occupied. We also both work from home which is a game changer.

We also subscribe to the work some and play harder theory. From September 2023 thru December 2004 we will have spent 2 weeks in Australia and 45 days at Disney including 2 wine and dine race weekends. We ski twice a year for a week each in Colorado and are looking for a condo to buy in Breckenridge. We spend a few weeks each winter working from our Florida home near Siesta Key to get some beach time and we spend Christmas there as a family. When we are in our Ohio home we work most Fridays at our lake house in Kentucky and then spend the weekend at the lake. We also have season Ohio State football, men's and women's basketball, and men's hockey tickets to keep us entertained.

I feel like if I retire I would be admitting I am old. I also might feel the need to cut back on our activities, or sell some homes, as I would worry about outliving our money. Yes, we have a financial advisor who says we are fine, but you still never know what the future holds.

 

[mousefan73]

Those that retire at 55 or so. What do you do about healthinsurance.. doesnt medicare kick in at 65? or am I missing something

 

[Disneybuckeye]

Those that retire at 55 or so. What do you do about healthinsurance.. doesnt medicare kick in at 65? or am I missing something

Medicare is 65, but I believe there are some exceptions for disability.

We have multiple friends who worked for a large CPB company and they were given free retiree health care with their early retirement packages, but that is not common. If one spouse still works they can carry it. Many people pay out of pocket for it also. I am way too cheap to pay thousands of dollars a year for insurance.

 

[White Cat]

Those that retire at 55 or so. What do you do about healthinsurance.. doesnt medicare kick in at 65? or am I missing something

Self pay.
Yes 65

 

[longboard55]

3111 days.

I will hit Rule of 90 the month after I turn 55. I have been counting down to that day for yeaaaaaars. I do plan on starting a new career doing something not-corporate. Maybe cheesemonger? Maybe work-camper? Maybe dog sitter?

But, I will have a nice pension and a decent 401.

Locally we have plenty of dog sitters, what I see is a real need is senior sitters, not health care related, but driving for errands, computer issues, hanging pictures, changing light bulbs etc. Anyone who has an older parent knows what a pain they can be with requests

 

[soccerdad72]

Those that retire at 55 or so. What do you do about healthinsurance.. doesnt medicare kick in at 65? or am I missing something

We’ll pay out of pocket for the 10 years or so until we get to Medicare age. My wife’s firm offers a discounted rate for retired partners, so that’s probably the route we’ll take. Part of the reason I’m waiting to retire until our younger son graduates college is because once he’s off our insurance our price will drop considerably.

 

[HopperFan]

As we can see from these posts ~ the plans vary greatly! From financial ability, to medical coverage, to pensions vs SSA, to how soon to collect SSA, to post retirement plans. It is a very complicated process, more so for some than others. There really is no instructions or path to follow that works for everyone.

DH retired in the spring at full SSA retirement age. There were several things that directed us to that age, medical coverage was a huge one. I am not full age until next year, I will wait to collect. We did not have to go on to Medicare until this year because we had full coverage through his job. Now we are on the Medicare/Supplement system and it's been quite the "pain" to obtain all our coverage and transition as all new doctors/dentists will have to be found, and DH is frustrated with the process.

Ours was further complicated because we have an adult DS who is fully/permanently disabled. He lost his health insurance with DH and we ended up having to hire a lawyer due to the government process planning to strip him of services. It was over 6 mos of stress dealing with that and lawyer. Me dealing with so many people/departments and as expected most everyone did not want to help. That along with other portions made "retiring" not the least bit celebratory for us. At one meeting I said "this is the beginning of the end" and I still basically feel that way.

At this point DH has been retired for 5 mos and in simple forms, I'll never be retired. I will continue as fulltime caregiver to DS, my daily work hasn't changed at all and I'll still continue my part time income. No one really talks about the stress of having someone retire, going from working 8-9 hours a day to ... not. There is real impact to the structure that has been in place for decades, especially when only one person is retired. Retirement absolutely impacts all parts of life, not just the financial.

 

[mikehn]

I have about 20 months left. Cant wait to stick my feet in the sand full time. But between now and then, Im busy looking for another house a little closer to the water.

 

[tvguy]

Interesting that everyone is retiring so young. That is something we never had any interest in. I am currently 60 and planning on retiring at 65 when I can obtain Medicare. DH is currently 67 and still working through at least the end of next year. He was a company president, but is now consulting for them about 30 hours a week. We both enjoy what we do and it keeps us occupied. We also both work from home which is a game changer.

We also subscribe to the work some and play harder theory. From September 2023 thru December 2004 we will have spent 2 weeks in Australia and 45 days at Disney including 2 wine and dine race weekends. We ski twice a year for a week each in Colorado and are looking for a condo to buy in Breckenridge. We spend a few weeks each winter working from our Florida home near Siesta Key to get some beach time and we spend Christmas there as a family. When we are in our Ohio home we work most Fridays at our lake house in Kentucky and then spend the weekend at the lake. We also have season Ohio State football, men's and women's basketball, and men's hockey tickets to keep us entertained.

I feel like if I retire I would be admitting I am old. I also might feel the need to cut back on our activities, or sell some homes, as I would worry about outliving our money. Yes, we have a financial advisor who says we are fine, but you still never know what the future holds.

I have run into a few retirees who look, not at their age, but years of service as a the guide to when to retire. If their employer has a retirement plan that allows you to retire after 30 years without an age requirement, they consider THAT as normal retirement time, they don't consider their age. I was on jury duty and there was a lady who had just retired from a job with the City at age 48. One of the attorneys mentioned that was rather young, and she snapped back that she put in her 30 years, and she was done with working. She started at 18. My brother retired from the Federal Government at age 55 with 30 years service. He will be 90 next month and has now drawn a Federal pension longer than he worked. And thanks to cost of living increases, his pension is more than he ever made working.

 

[kymom99]

Those that retire at 55 or so. What do you do about healthinsurance.. doesnt medicare kick in at 65? or am I missing something

Kentucky teachers can keep their insurance, but they are charged a surcharge. I am on my husbands insurance right now. When he retires I’ll go back to the teacher insurance.

 

[MGMmjl]

Those that retire at 55 or so. What do you do about healthinsurance.. doesnt medicare kick in at 65? or am I missing something

Where I work, we can keep the same insurance plan when we retire. The premiums are a bit higher for retirees, but the benefits remain the same.

I will be eligible to retire in 9 years at age 49. I plan on working well past that mark for the same company, but it is nice to have the option to retire after 25 years of service.

 

[georgina]

Locally we have plenty of dog sitters, what I see is a real need is senior sitters, not health care related, but driving for errands, computer issues, hanging pictures, changing light bulbs etc. Anyone who has an older parent knows what a pain they can be with requests

In some places there are organizations that help with that. An older friend whose husband went into memory care told me about one near us - they helped her with her computer. They charge a membership fee, but provide all kinds of volunteer services just like what you described. I just signed up to be a volunteer driver.

 

[tvguy]

We’ll pay out of pocket for the 10 years or so until we get to Medicare age. My wife’s firm offers a discounted rate for retired partners, so that’s probably the route we’ll take. Part of the reason I’m waiting to retire until our younger son graduates college is because once he’s off our insurance our price will drop considerably.

Our Financial Planner has all our worksheets going back 25 years and it is interesting to see how much the cost of health insurance has risen, increasing far more than the inflation rate. Our plan and savings were based on buying private insurance because 25 years ago it was much cheaper than COBRA coverage. As I mentioned upthread the Affordable Healthcare act has completely changed that. We did not qualify for subsidies. Our estimated costs for COBRA coverage in 2013, the last year before the Affordable Healthcare act went into effect, employer subsidized health insurance cost $500 for the two of us, private market insurance was $750, and COBRA coverage through my wife's employer was $1,000. When we retired in 2021 subsidized employer coverage was $600, private market insurance was $3,000 and COBRA was $1200 a month. So we ended up pushing back retirement until 18 months before we qualified for Medicare and filling the gap with COBRA. The pandemic also ended up making work much easier at the end of our careers. I worked 16 of my last 15 months from home, going back into the building a month before I retired. My wife had to go into the building the entire time as her specific job did not ever go remote, but since about 90% of her co-workers were working remotely, she was always the only one in her department on duty at the same time, and there were probably only about a dozen people in the building in total, instead of 120.

 

[Pea-n-Me]

We’re on the countdown, thankfully. Our approach is probably most like @tvguy ’s, just trying to get everything in order. For the first time in our lives we’re completely debt free, and it feels good! Recently we updated our wills and put the house in a revocable trust while we were at it. DH is older than me and qualified for Medicare before but opted to wait as he’s still working and had insurance at work for both him and me, so he’s beginning the process of signing up now. We met with a SHINE counselor to figure it all out. I can get my own health insurance at work, and I can get COBRA for 18 months up to 65 which I’m considering when the time comes. I have a Health Care Retirement Savings account I started contributing to at age 49, with some employer match (the only thing my company ‘matched’), so there’s a good amount in there - therefore health care costs for me from ages 63.5 to 65 is one worry off my plate. DH already has something he wants to do part time in retirement, sort of at his leisure. His skills are in demand and a big employer in the industry who’s a family friend has been asking him to come on board for years. He’s looking forward to that, actually. Will probably do something like 9-2 three days a week or so, but no pressure.

We’ve been working on getting the house in order for a while. Painted and updating landscaping. Will throw a roof on at some point. Major cleanout and ongoing renovations - we’ve already had three dumpsters and will need another when we clean out the attic. Getting as much updated as we can. Did a complete overhaul of our in-law apt which our DD will be moving into soon while she saves for a house. We’re putting a file together for her which has everything she needs to know should something happen to us. I haven’t decided yet what I want to do in retirement. Probably something different, I think. I love the idea of an errand service, I think I’d enjoy that. As a nurse my skills are also in demand, but I don’t want anything that’s going to put pressure on me, I’ve had more than enough of that! My commute isn’t necessarily long, but traffic-heavy, and 60-90 mins each way, so, after 40+ years of that, I’m done with it! Of course there is the possibility I’ll stay per diem or something, but honestly, my dream in retirement is a) not to have that sucky commute anymore and b) do something closer to home that’s different and maybe peaceful, for once. I don’t mind working and staying busy, I enjoy people and animals and such. It’s more the pressure of long and often crazy shifts, holidays, weekends, etc., and the constant demands from every which way, that I can do without.

Good thread, I like hearing all your ideas. I have to figure out at what age this will happen for me. Do I go earlier, with DH? Or do I hang on for a while. I see peoples’ medical issues they often have in their 60s and beyond so I don’t want to have regrets in waiting. OTOH I want to make sure we’re comfortable, too. I was surprised since our mortgage is gone how much we’re paying just in taxes and insurance alone. I mean, I know our payment had practically doubled, but didn’t realize the breakdown. It’s a lot. I imagine paying these alone must be very difficult for some. Our utilities are high, as well. We’re ‘reimagining’ even our TV systems so we can get rid of our big cable bill. Kids are helping as we don’t understand it all. But it seems to me with the one ONN TV we have, that costs of streaming have risen as well. And I hate having to fiddle with usernames and passwords and all that. Any thoughts on this?

 

[AlohaNow]

On the matter of health insurance, we have purchased our plan directly from BC/BS for 18 years now. It doesn’t matter where we work or what state we live in. We were on COBRA while I was pregnant after a job loss and we said never again will we be in this situation. It is grandfathered to pre-ACA conditions, so if we leave the plan we can never get it back. Our fear every year is that our group has shrunk so much that it will be canceled. Just got our letter last week with the new premium, so we are good for another year! It is based out of the DC area, so still plenty of people in it I guess. So we plan to continue to self-pay on that policy, or go out on the exchange if this plan disappears before then.

Kind of no point in explaining this, since this type of plan is no longer available to anyone (being pre-ACA), other than to say it should be the model for a national plan. Being dependent on a job for insurance is just insane to us at this point. Don’t get me started. I could write a book on this topic.