What About Retiring At 62...?

[ahorsewithnonam]

Originally Posted by jpd

One caveat...don't retire with the fear of dying...retire with the joy of living

What a great quote!!!!

[islandguitar]

Rokdog has some great advice on all this.........spot on!
One thing that hasn't been touched on,.....and YMMV......applying for social security, at least in my state, was one of the easiest bureaucratic accomplishments I've ever encountered. If you're thinking it's like going to the DMV or something similar, it's not!
I just turned 72 on Saturday, so I've been in the system for a while......my wife applied just two years ago.....same thing.............all done on the phone and online.....DONE!! Helpful folks who seem to be in your corner......don't let this aspect prevent you from moving on SS when you're ready!

[Cypress Knee]

I ran some numbers several years ago after getting a SS statement.

If I retired at 62 and started withdrawing SS, by age 67 I would have withdrawn $83K

By age 70, I would have withdrawn $136K. If I had started at age 67, my total would be $73K.

By age 75, my totals would be $221K withdrawn starting at age 62, $192K withdrawn starting at age 67, or $161K withdrawn starting at age 70.

The crossover occurs between 79 and 80.

At 79 my totals starting at 62 were $289K, 67 $287K, and 70 $288K
At 80 my totals starting at 62 were $309K, 67 $311K, and 70 $320K

So, if you expect to make it past 80, then wait until 70 if you can. If you think you will probably go before 80, then start at 62.

But talk to a pro first, and don't blame me if you make the wrong decision.

CK

[Glennwillow]

Originally Posted by Cypress Knee

I ran some numbers several years ago after getting a SS statement.

If I retired at 62 and started withdrawing SS, by age 67 I would have withdrawn $83K

By age 70, I would have withdrawn $136K. If I had started at age 67, my total would be $73K.

By age 75, my totals would be $221K withdrawn starting at age 62, $192K withdrawn starting at age 67, or $161K withdrawn starting at age 70.

The crossover occurs between 79 and 80.

At 79 my totals starting at 62 were $289K, 67 $287K, and 70 $288K
At 80 my totals starting at 62 were $309K, 67 $311K, and 70 $320K

So, if you expect to make it past 80, then wait until 70 if you can. If you think you will probably go before 80, then start at 62.

But talk to a pro first, and don't blame me if you make the wrong decision.

CK

I liked my job and so retired fairly late, age 68. At almost age 71 I still work remotely about 10 hours/week part time for the same company as a contractor. I like the work and I don't like worrying about money. I still have all the time I need for everything else I want to do during the day or the week.

My mother lived well past 90, my father to age 87, and I am in very good health, so I figured that I would need to retire later in life to make sure I had enough money to get by on.

Some people don't like the work they do for a living and can't wait to retire; or a lot of folks are pushed out of the work force into retirement because they cost too much. We're all different.

- Glenn

[jpd]

Originally Posted by ahorsewithnonam

What a great quote!!!!

Thanks Rod. Kinda like it myself

[Slothead56]

Originally Posted by Glennwillow

Some people don't like the work they do for a living and can't wait to retire; or a lot of folks are pushed out of the work force into retirement because they cost too much. We're all different.

- Glenn

Great point Glenn. I got the best of all worlds. Pushed out of my long term Corporate job at 55, back in a few months later at a competitor and then one more job change 2 years ago.

I’m 62 and feel 40-50 most days.

I plan on going another 3 years. I really like what I do, the money is very good and, frankly, I learned at 55 when I was off a few months that I didn’t do well without a bit of structure...at least at that point. Tons of hobbies and interests so boredom will not be a factor in a few years.

Nice to see as many folks chiming in on this that seem to be happy and doing well!

[seannx]

I also ran the numbers, and decided not to wait until age 70. Took SS at 66, and that monthly check plus getting Medicare made a big difference in how much I needed to work. Have been self employed for the last 35 years, enjoy what I do, and am still working 10–20 hours a week. That leaves lots of time for music, exercise, kids and grandkids, travel, and whatever else I feel like doing.
Lots of good info in this thread. It’s really important to evaluate the timing of filing for SS based on individual circumstances.

[RP]

Those who aren't anglers can substitute other retirement pastimes, but I think the message remains the same....

[Scootch]

I retired in May at 63 y.o. No regrets.

My birthday was in July, so I didn’t collect Social Security until then for the extra $12 bucks a month

I had a job with a pension, my home and car are paid off and with SS I am doing fine. My needs are simple. I don’t travel and am not extravagant. I have a bundle in a job assisted 401k type account and see no need to access that in any way so far.

I play at nursing homes and farmers markets with friends, raising money for a local folk festival. So I play out 3-4 times a week. During the summer I boat and fish. And garden. As well as play at yet another farmers market. So I stay busy, but not pressured.

It all boils down to whether you can swing it. Financially or mentally. Not having enough money when retired can make it not much fun. And if you’re a person that places his/her worth into your occupation, you might feel lost or valueless.

I started looking into it about 2 years ago. The numbers were right, the job was keeping me from doing what I really loved to do. I liked my job, but they were making changes I didn’t care for so I bailed.

I’m happy.

[rokdog49]

Originally Posted by RP

Those who aren't anglers can substitute other retirement pastimes, but I think the message remains the same....

I'm not an angler, but I have had some awesome days at my job when I worked.
Like landing a $1,500,000 order from a company in Taiwan just to mention one of many succcesses.
If you were in sales, you would understand.

[RP]

Originally Posted by rokdog49

...If you were in sales, you would understand.

For that matter, if I'd had a career as an adult that I really enjoyed, I'd probably understand.....

[dhodgeh]

Timely thread.....

I'm 63 and will be retiring in April, just a few days shy of my 64th.

I was planning on waiting until my normal retirement age (66+2) to file (we have more than adequate savings to allow for that), so I decided to run the numbers, and my cross over happens at 76.

This thread did get me thinking about this subject. All of the advisers I have talked suggested that I wait, and at this point, I see no need not to.

D

[JonWint]

Originally Posted by rokdog49

The word "affordable" is the key. Depending on what type of coverage you want and things like deductibles there are a myriad of choices. The sad facts are that the more affordable the premiums the more your "out of pocket" could be enormous. One of the reasons I waited until 66 was this very thing.
If you are of lower income, there is assistance but sadly, Medicare doesn't become available until you turn 65. Medical Insurance can be a huge factor in determining when a person is able to retire.

I retired at 62 (wife at 60). We had Medical insurance through ACA (Obamacare). Subsidy of premiums is based on income, not assets. So if you are living off non-income $ and are above low Medicaid limit, subsidy can be large. It's still available as far as I know; subject to change anytime.

[DCCougar]

Originally Posted by seannx

I also ran the numbers, and decided not to wait until age 70. Took SS at 66....

I don't get this "70" figure. At age 66 you get full social security! Of course, yes, if you keep working after 66, your "full social security" will increase. But I believe you definitely want to start taking SS at 66 or else you just lose those payments.

Whether you take SS early is (partly) a matter of whether you like your job, and whether you're ready to suddenly have no reason that you have to get out of bed after working full time for 40 years (can be rather a shock for some).

Rokdog gave a good summary of the situation, suggesting taking early SS was probably the way to go. But when you retire at 62 and take your lower SS, don't forget you're turning down several more years of income from your job. Of course, you've got to work for it, but still....

I took SS at 66, then kept working 3 days a week until 70. I liked that extra money - to buy guitars, of course! My job was OK, and mentally stimulating - as a paralegal in a small law office mostly researching and drafting legal briefs involving civil rights violations. I was glad to leave it all behind at 70 though!

[dkstott]

I retired at the age of 60 about 3 years ago & loved my job. The plan was to work until I was 62, but just couldn't handle another day dealing the newest boss. (9 bosses over a 11 year span)

Aside from the house which was paid off several year before I retired, we've never been in debt nor had big balances on credit cards.

So we've been surviving on my wife's salary so far. But later this year when I turn 64, I'll be applying for SS. The majority of my family have died long before they ever reached the age of 80 due to a variety of causes.

IMHO - The key to retiring is to get your finances in order long before you retire, have a hobby, enjoy the outdoors in some manner & maintain a daily routine of some type.

Sitting on the couch watching TV or Youtube is not a healthy retirement plan.