What About Retiring At 62...?

Murphy Slaw · #1 02-10-2019, 06:39 AM

I realize the SS check will be less, but males in my family rarely make it much past 70 so I'm seriously considering this now. Will be 62 next Feb.

When should one start the process? Before the birthday or do you have to wait until you're 62.

If your birthday is in Feb., is there any benefit in working Jan. of a new year or does it just go off of the last fiscal years (5 ? ).

What about gigging for $. If you are drawing SS and decide to gig a little (or work a little part time), do they deduct that from your income next year/month, how do you legally report earning money on the side? I have a friend who's scared to do anything for fear it'll mess up his check.

Rumors say you can make all you want after 66 without claiming Jack. True?

Man, I need to bone up, but all my old friends hang out in guitar Forums....

Educate me old dudes.....

RP · #2 02-10-2019, 06:48 AM

I retired at 60 after 30+ years as a Special Educator. I was just plain tired although I did tutoring on a part-time basis for a few more years. I took the hit and began to draw Social Security at 62. I didn't make enough side money for it to affect my SS checks so that was not a concern. Like it or not, our bodies (and minds) begin to break down in various ways at a certain point so isn't it preferable to retire and enjoy it when you're best able? I don't have an iota of regret about retiring at 60 and have found retirement a really wonderful time in my life. The best thing about retirement IMO is having the option to do whatever you want.....

Bunnyf · #3 02-10-2019, 07:18 AM

I retired early too and have no regrets! Id rather take less, enjoy it sooner and adjust my life style as needed. Though my husband and I were lucky enough to make decent salaries and considered ourselves comfortably middle class, I grew up fairly poor (one of seven kids, father a Newark NJ cop, mom housewife), so I have pretty simple taste and “needs”.

As for when to apply, I think they suggest about 6mo before your bday. Your eligibility date is the 1st day of the month of your birthday and when you get your check depends- day 1-10 get it on 2nd wed, 11-20 on 3rd wed, rest on 4th, directly deposited to your bank acct.

As for working, you can make a small amount(like less than 14k) age 62-66. you do pay tax on it but it doesnt reduce your ss bennie. At 66, you can make more (I think about 34k). After 70, you can make as much as you want.

Basalt Beach · #4 02-10-2019, 07:23 AM

I retired before turning 60, and before I did so, the book "Get What's Yours" was recommended to me by retirement specialist. Several friends have also recommended it as well. It is worth the read.

Paddy1951 · #5 02-10-2019, 07:30 AM

The whole SSI thing can get complicated. I think the best thing you can do is to speak with an SSI representative before making any decisions. Do it in advance of a birthday.

The folks at the SSI offices have the latest and ACCURATE information. They can show you each possibility and point out how things change with one choice or another. I found doing this to be worthwhile.

Each state approaches SSI differently, too. Some tax it, some don't. Again, best to talk to a representative, so you know where you stand, legally.

If you have a financial advisor, that person may be in a position to do things for you.
You will still have to apply for SSI.

Finally, even if you cannot or will not get Medicare, there is a relationship between receiving SSI and Medicare and you need to establish that too.

If you do retire, have a plan. Golf, fishing, card clubs, painting, etc. are all good but you do need purpose. A reason to get up in the morning.

buddyhu · #6 02-10-2019, 07:32 AM

if you delay the time you start taking your SS benefits, the amount increase by 8% a year. So if you postpone for just 6 months, you will get 4% more each month for as long as you are alive. This is much more than the interest you can get in a bank CD, and since the 8% is basically guaranteed, it is a better return than you should expect from stocks and mutual funds. So if you have other savings, and it is more than just a small emergency fund, consider drawing down the other savings a bit before you start taking SS.

I retired at 58, but I haven't yet started drawing Social Security, and I am 65 and 1/2.

Of course, if you have no other savings, the circumstances you have described may still prompt you to retire and start taking SS benefits right away. It just depends on whether you are comfortable with the lifestyle you will be able to afford.

I have really enjoyed my retirement, so I would hope that you will have an opportunity to do the same.

RP · #7 02-10-2019, 07:42 AM

I'm guessing that nobody has ever laid on his deathbed and wished he had a few more years to work....

srick · #8 02-10-2019, 08:52 AM

Still going at 65 - and aiming for 70.

Why? I am self-employed as a dentist, and while that's not as freeing as you might think (I have a boss that has no regard for my personal time), there is a certain amount of flexibility and a lot of control. My days are challenging and stimulating; I never come home at the end of the day bored. But, often, I'm too tired to practice guitar or stay up late (we are up at 5:20 am). It's a field where you need to be 100%. There is no easing off on the accelerator for me. I never want my patients to say, "He's a nice guy, but he's starting to lose it now that he's older."

We've got a big wedding coming up, we will both need updated cars and there is health insurance to be purchased. We will be downsizing, but that comes with its own costs. I am not making any bets as to how long my life will be, but am hoping it is long and fruitful. So the later we can dip into savings, the better. I am thankful for my family and all of my gifts.

And besides, I'm never going to make it in Nashville, so I'll keep doing what I am good at!

best,

Rick

PS - there is a do-over clause with social security in case your retire and change your mind. My advice is to talk to a Certified Financial Planner and let him\her advise you. Our guy was very good about projecting through the "best of" markets and the "worst of" markets. His mantra is, "It's an equation, just a math problem with a lot of variables." I like that because it takes the emotion out of the decision.

frances50 · #9 02-10-2019, 09:28 AM

Quote:

Originally Posted by Bunnyf

I retired early too and have no regrets! Id rather take less, enjoy it sooner and adjust my life style as needed. Though my husband and I were lucky enough to make decent salaries and considered ourselves comfortably middle class, I grew up fairly poor (one of seven kids, father a Newark NJ cop, mom housewife), so I have pretty simple taste and “needs”.

As for when to apply, I think they suggest about 6mo before your bday. Your eligibility date is the 1st day of the month of your birthday and when you get your check depends- day 1-10 get it on 2nd wed, 11-20 on 3rd wed, rest on 4th, directly deposited to your bank acct.

As for working, you can make a small amount(like less than 14k) age 62-66. you do pay tax on it but it doesnt reduce your ss bennie. At 66, you can make more (I think about 34k). After 70, you can make as much as you want.

At my full retirement age, which will be 66, I can make as much as I choose and not pay a penalty. (I was born in 1954)

MarkWW · #10 02-10-2019, 11:32 AM

I retired around 60 and am now turning 67 soon. I took SSI at 62. No regrets other than it sneaks up on ya a little unless you have it all planned out. I did not but was pretty tired at 60.

No one has an accurate actuarial table for each individual. My Dad passed at 74. His brother was in his 60's. their middle brother just passed at 90. My grandfather died of a stroke at 57. What do you do with that information? I guess just hope you don't run out of moola and don't buy TOO many guitars!

Ghostpicker · #11 02-10-2019, 11:43 AM

Quote:

Originally Posted by RP

I'm guessing that nobody has ever laid on his deathbed and wished he had a few more years to work....

I retired at 57 after 30 years in education. (67 now) My pension from State Teachers Retirement was enough to keep me "comfortable". I waited until 66 to file for SS. I've never regretted the decision to retire early. I've found that when you're retired your needs more simple. I don't spend half the money I did when I was working. (At least not on clothes, car expenses, etc. Toy's like guitars, that's another matter altogether.) I say life begins at retirement go for it.

DoryDavis · #12 02-10-2019, 11:46 AM

I have heard (and am not sure) that if you take SS at 62, you have the option of paying all that money back just as you reach 65, and start at the new rate. I've heard that several times but never found out for sure...

Steve DeRosa · #13 02-10-2019, 12:13 PM

My wife and I both retired from teaching in June '16, at 62 and 63 respectively, and never looked back - loved working with the kids, but got sick and tired of the endless (and unnecessary) paperwork...

Both receiving a government pension and retiree benefits - enough to cover our needs as well as finance our mutual GAS...

Haven't needed to tap into either SoSec or TDA's yet - market's been a little upsy-downsy so we may be moving some funds depending which way things go, but not really hurting at this point...

We (actually my wife, who has the banking/accounting background) made a plan early on and we stuck to it - had a couple hiccups over the years but we're doing OK...

frankmcr · #14 02-10-2019, 12:27 PM

60-something is the new 30-something.

muscmp · #15 02-10-2019, 12:33 PM

your first line says it all. you have to take your present health into consideration as well as family history.

i took it at 62 as my dad and uncles didn't make it past 65. mom's side wasn't much better. my health is great. i walk 3.3 miles per day and eat the best i can.

play music!