COVID lockdown strikes again.

[jdfoxinc]

My wife worked for a large healthcare Corp. She was just notified that her position is one of many being eliminated. She was planning to work there till 70 (5.5 more years) to max out social security. With PTO and severance pay we have till Feb. To juggle the new budget.

[Murphy]

Sorry to hear of your situation. I will put in my prayers tonight and hope it changes in the very near future.

Murphy

[Winger Ed.]

Hate to hear that.
However; if she still wants to work, she might find another job, even part time that she likes better.

[elmacgyver0]

I started taking my SS at 68, figured it was a good compromise.
Been collecting it but not using it, work part time 3 days a week.
Hope things work out favorably for you and your wife.

[Handloader109]

I was planning 4 yrs ago to make it till I was at least 65, hopefully 66 and 8 months till full retirement. Well, at 58 plans changed. I just turned 62 this month and I've been lucky enough to work in the local census office since Jan. Looks like almost full year by the time things are finished. And at $19 an hour for easy office work (plus overtime occasionally) it's been good. I can put off till next year taking my SS. It just doesn't make sense to wait unless you are making really good money and LOVE your job more than being free from work. It will take me until I'm 78 and 8 months to catch up to my full retirement money if I take it in February. And If I waited until I was 70, I'd be 82 catching up max. Yes, My mom was 92 when she passed, but dad was only 78 and his dad was 82. Mom outlived all her siblings by 6 or more years and she was the oldest by far.

All that to say, the difference isn't worth it if she really would like to retire. 65 isn't a bad age one way or another. She can always work PT for a while if she wants to sock away some $.

[jdfoxinc]

Taking a 50% cut in pay to retire would put us in the poor house. Debt more than manageable on her current salary. We could sell the house but couldn't afford anything else in the Denver market. Kinda locked in to continuing here for the time being.

[Scott.M]

I'm going to take SS at 62, because tomorrow is a promise to no one.

I made sure that one income would cover everything. I retired at 47, 8 years ago, so far, so good.

[dangitgriff]

I plan to hang up my full-time job hat no later than 60. I’m 50 now. Multiple income streams from a part-time job, rental property in the Florida Keys and a prospective hunting camp in SE Ohio is in the works, hopefully sooner than later.
I would politely caution all who will be counting on Social Security income to make ends meet to not expect to count on it to remain in its current form, as either the payments will be reduced over time or inflation will reduce the purchasing power of your monthly installments.
R/Griff

[farmbif]

and I thought it was just a fluke that my best friends wife, a nurse, lost her job recently when the medical office where she worked shut its doors for good.

[Duckiller]

My parents sipported my grandparents. With prior planning and social security my parents were financially independent. I have a good pension. Social security helps. The way modern taxes are children will not be able to support their parents. The federal government is going to have to maintain social security. Either that or all retirees will be homeless. Given the amount of money paid out for Covid-19 maintaining social security should not be a problem.

[dangitgriff]

Millions of Americans who fashion their standard of living through carrying high debt loads are about to learn a painful lesson in Economics 101.
Prosperity starts with savings.
The magic money tree theory (also referred to as Modern Monetary Theory, or MMT for short) holds that debt and deficits don’t matter. We are all about to see what a lie that is.
R/Griff

[dangitgriff]

My parents sipported my grandparents. With prior planning and social security my parents were financially independent. I have a good pension. Social security helps. The way modern taxes are children will not be able to support their parents. The federal government is going to have to maintain social security. Either that or all retirees will be homeless. Given the amount of money paid out for Covid-19 maintaining social security should not be a problem.

The government green-lighted the Federal Reserve to create inflation on a scale never before seen in American history. 3.3 trillion dollars (and counting) pumped into the financial markets and Wall Street over four months does not make average Americans any better off, in fact it makes things much worse.
Helicopter money sent to all eligible Americans creates price inflation that more than offsets the “free” currency they receive.
R/Griff

[dtknowles]

My parents sipported my grandparents. With prior planning and social security my parents were financially independent. I have a good pension. Social security helps. The way modern taxes are children will not be able to support their parents. The federal government is going to have to maintain social security. Either that or all retirees will be homeless. Given the amount of money paid out for Covid-19 maintaining social security should not be a problem.

With how fast younger people were to throw older people under the COVID 19 bus I would not count on them to maintain social security so that old people won't be homeless.

Tim

[dtknowles]

The government green-lighted the Federal Reserve to create inflation on a scale never before seen in American history. 3.3 trillion dollars (and counting) pumped into the financial markets and Wall Street over four months does not make average Americans any better off, in fact it makes things much worse.
Helicopter money sent to all eligible Americans creates price inflation that more than offsets the “free” currency they receive.
R/Griff

If you adjust the amount of helicopter money for the rate of inflation eventually the poor and working class will be living off helicopter money since wages will be worthless.

Tim

[dangitgriff]

Absolutely correct.

[cp1969]

If you delay taking your SS as soon as possible, it takes years before you catch up to where you'd be otherwise.

For example, if you start drawing at age 62, by age 63 you've received 12 monthly payments. If you wait to age 63 to start drawing, you have to divide that sum you've already drawn by the annual difference in payments to figure out how many years it will take before you're actually ahead by waiting. Eventually, you will be ahead, but OTOH you might not live long enough to break even. I think that's why SSA offers that temptation.

[dangitgriff]

It is no stretch of the imagination to predict the SSA will gradually increase the FRA to 70 or older and move the “early” eligibility age up to 65 or older. I think it’s possible they’ll be in that range by 2030.
R/Griff

[Huskerguy]

When to take SS is a continuing dilemma for many Americans. It seems that many people I know just want that money ASAP at age 62, not thinking about the future. It may seem like enough money at age 62 but will it be enough in 10 more years? When taking it at age 62 you are giving up approximately 25%. Then each year after your FRA (full retirement age) you gain another 8% each year until age 70 along with the yearly increase. Every situation is different and you have to evaluate your financial needs not only now but in the future. For example, I made more money over the years than my wife who did a wonderful job raising our kids. I also get a pension from education and she will get half of that which she cannot live on. She will take her SS at her FRA of 66-2 and I will be 67 at that time. She has longevity genes in her family so she will likely live to be well into her 90's and since she will get the higher SS or hers or mine, I want her to be well taken care of. So it isn't always about one person and the current situation. In many cases, it pays for the lower income spouse to take theirs to supplement their income while the higher income earners SS gains more.

The other argument is to take it at age 62 and invest it. If you can invest all of it, which few people can or will do, it could potentially make more than the 8% the government will give you.

[facetious]

I have to agree with Huskerguy and add that if you are married you have even more options. In my case my wife is a year older than me. I quit at 62 1/2 but haven't started my SS yet but my wife did. My wife didn't work the last 20 something years so her check isn't big, but it with hers and my pension is almost the same as when I was working add a little from a IRA distribution and I got a raise to quit.. When I start mine at 66 1/2 she will get a bigger spousal benefit and survivor benefit if she out lives me. At my FRA together we will get almost the same from SS as we are getting now from pensions and savings . That will be a big jump in cash flow.

I know a lot of people think in terms of breaking even but the thing you need to think about is cash flow and longevity. You may get all your money back but if it's not enough to cover your costs each month you had better have the savings to cover the rest and inflation is going to eat any fixed income like pensions. By delaying the highest earners SS you are buying longevity insurance to have a higher cash flow at a time when inflation has degraded other income. Then by starting the lowest earners SS first write a way you get some income till then and it will jump up to half the higher earners.

[GregLaROCHE]

Being entitled to more doesn’t mean much if you’re not around to collect it. If you’re not doing something you love, 65 is a good age to start cashing in on what you’ve paid in and enjoy your retirement, however long that may be.

[Cosmic_Charlie]

When my Dad retired and started collecting his Navy pension, pension from the college he taught at and his social security along with my mother's, they got more money every month than when they were working. Their's was the last generation that will be able to pull that off. Plus they are both covered for medical. They are still living and have been enjoying retirement for over 20 years.

With no pensions and no medical coverage retirement will be much leaner for my wife and I. No regrets though, we have really enjoyed ourselves and our kids.

[Thundarstick]

Medical insurance premiums is a BIG sticking point to many early retirement plans! They're bringing in enough cash to live on, but not enough to pay a for a huge monthly insurrection premium. My plan is to retire early, but buying insurance until Medicare kicks in will be a huge factor when the time comes.
To the OP. What job did your wife hold? My wife's an RN that time is taking its total on, and she is looking to change from ER work to something less physical.

[MrWolf]

Remember also that good health is not guaranteed. Getting hurt and having to collect SS Disability vs what you were earning can be a significant difference. If possible look into a reputable disability plan.

[Scott.M]

The catch is so many people seem to believe they are going to live for ever, so they wait. Screw that.

[popper]

Just be careful if you (she) takes cobra and doesn't get the pharm adder - they will ADD for life!

[Cosmic_Charlie]

I call it medical larceny. Don't get me wrong, we have superb doctors and nurses. But the Healthcare conglomerates are vultures.

[jdfoxinc]

She is in IT. She has gotten several calls from former supervisors and co-workers with job leads. First interview tomorrow. I posted originally because I'm going through a medication change that is causing my depression to spike and being told she was being laid off sent me spiraling.

[Thundarstick]

IT is IT whether it's in a health care setting or financial setting, it's IT. I'm thinking there's a job out there for her. Take care of yourself, yes sometimes expressing it to strangers is better than worrying alone. I leave a lot of my cares at God's feet, but share a bunch of them as well.

[dangitgriff]

Best wishes for you both.

[jdfoxinc]

It's been an emotional rollercoaster, now my wife asked me what I think about her taking a position for the same money starting in a couple of weeks? Her severance would continue till Dec. 31., PTO still paid out lump sum, plus new salary coming in. Maby I will be able to die debt free.

[cp1969]

Debt-free and took SS at 62. I've actually accumulated money in retirement. Have had good health my whole life, so I went without health insurance from 62 to 65. So did my wife.

Being debt-free going in is probably the most important thing.

[Huskerguy]

Sounds like some things are coming together for you. Blessings for that.

Several comments about health insurance. I left a public sector school administration job to work in non profits with low pay and no health insurance.

Some may know about the health cost sharing organizations grandfathered under the affordable care act. Medi Share, Samaritan are two that come to mind, there are more. They aren't traditional insurance but cost sharing. I had it for several years and it worked great. There are limitations so check them out. Bottom line is no one needs to go without.

[Scott.M]

Sounds like some things are coming together for you. Blessings for that.

Several comments about health insurance. I left a public sector school administration job to work in non profits with low pay and no health insurance.

Some may know about the health cost sharing organizations grandfathered under the affordable care act. Medi Share, Samaritan are two that come to mind, there are more. They aren't traditional insurance but cost sharing. I had it for several years and it worked great. There are limitations so check them out. Bottom line is no one needs to go without.

No offense, but who cares about the Affordable Care Act when choosing one.

[dangitgriff]

I’m pretty sure the democrats in Congress will keep trying to restore the mandatory buy-in for the ACA. This is nothing short of socialism...and we can’t afford any more government intervention. The ACA needs to be repealed in whole form.
R/Griff

[dtknowles]

I’m pretty sure the democrats in Congress will keep trying to restore the mandatory buy-in for the ACA. This is nothing short of socialism...and we can’t afford any more government intervention. The ACA needs to be repealed in whole form.
R/Griff

So you want to go back to people being denied health insurance because of pre-existing conditions?

Tim

[jdfoxinc]

I will lock this thread if this discussion continues.

[Idz]

Before I retired several years ago I did a baseline calculation of the bare minimum income to survive. With no mortgage and looking at just food, utilities, medical insurance + copay, car insurance, house insurance, property taxes, and property maintenance I was shocked our baseline expenses were only $12,000/yr and nowhere near the 70%+ of pre-retirement income a lot of financial planners insist is necessary. If people eliminate the frills they can survive quite cheaply. We decided years ago that an 1800 ft2 older house was more than adequate for us and we didn't need a fancy expensive place. I'm the maintenance man since I've done that my entire life and I found that a lot of the 'licensed professionals' know less about systems they are 'certifed experts' than I can learn myself. That ability alone saves us $1000's per year. I highly recommend doing your own financial analysis and you'll likely be surprised.

[dangitgriff]

Absolutely correct, Idz.

[dangitgriff]

I will lock this thread if this discussion continues.

Anyone interested in an open discussion about the ACA can join in on the thread I just started.
R/Griff

[Txcowboy52]

I'm with you Scott ! Im counting the days down, 15 months good lord willing and I'm hanging it up ! 59 1/2 the wife can retire about 6 months before me. She is going to try and hang in until I hang nit up, but everyday she hates her job more and more.

[Huskerguy]

No offense, but who cares about the Affordable Care Act when choosing one.

True today. At the time of ACA, these were grandfathered and allowed to be considered equal to insurance. So having these plans took a ay the potential "fine" for not having insurance.

[facetious]

Idz is right in that you have to put this stuff on paper and see just what you need and and how much you will have coming in. Before I retired I had kept all my statements for bills, credit cards ,car and home insurance for the last few years. I averaged all the monthly bills and added 10% just to be safe and did the same for the the big yearly bills. I know about how much will go on the credit card each month, I went back several years and added up how much we put on it each month and averaged it out and found that it was about the same every month.I know how much cash we spend each week for things like food ,gas and other small things. I checked out the health care cost and with the ACA we were able to keep what we had for about what they withheld from my paycheck at work each month. I even did a tax form to see what the tax's would be like living on our pensions her SS. and some from savings and found we would have more after tax income then I had working.So I quit at the end of last year at 62 1/2 and am glad I did.