Should I retire at 62?

My brother and I had a conversation, last night, about a relative who is debating early retirement.  His job recently went away and finding another at his age would be pretty hard.  He questioned the difference in monthly income he’d lose if he takes early Social Security retirement.  The question posed is should he retire now or wait till he reaches 66?

My first question was does he need the money?  In his case social security would pay him approximately 500 dollars less, now, than if he waited a few more years.  He probably could wait, but life would be better with the income.  In his case the answer is obvious, take the money.  But what about me?  This conversation got me thinking about my own retirement -  should I retire at 62 or wait till 66?

Some people really laugh when I say I am passionate about being retired.  For much of my adult life, when asked about my dream job, I answered “That’s simple – I want to be retired.”   So now  I ask the same question -  should I take social security at 62 or wait till 66?

According to several people I’ve asked, I should take it at 62 if I no longer have a work related income.  However, if I take it at 62 and earn more than $14,160 in any year up to age 66, I must pay a portion back.   The question still holds – should I take early retirement and continue to work or should I arrange my employment situation so I can stop working at age 62?

For me the difference in monthly SS income is approximately $500 or $6,000 per year.  That difference would remain in effect forever, if I take early benefits.  On a purely economical basis, is it worth it?  A loss of $6,000 for 4 years seems like a lot, but look at the income side.  If I receive $1,500 per month for those four years or $18,000 a year, that’s a total of $72,000 that I would receive.  If I wait till 66 the added amount would be $6,000 per year.  So how many years would it take to make up the difference? 72 divided by 6 is 12 years.  Yes it would take 12 years to make up the difference in lost income if I wait till age 66 to retire.

I guess the question should really be – will I have enough non- work related income to give me a comfortable retirement, or will I have to continue working?  If I have to continue to work, then the penalty might not be worth it.  If I can truly retire, then I am beginning to think that the lower benefit would be worth it.

I still have a few years to decide, but now that the reality is getting close, I have to work harder to stash money away and not suffer the penalties associated with work related income.  The question still looms – Should I take early retirement or wait till I reach 66?

Posted in Your Questions Answered | Comments Off

It He Too Young?

JC,

I just started dating a much younger guy.  My friends say he is too young for me, but we really enjoy each others company and having him around make me feel good again.   I am 55 and he is 30.

What do you think?
Aaron

Let’s look at this from two different directions.
First, the analytical.  He is 25 years younger than you are now.  That means when you are 80 he will still be in the prime of his life.  Frankly, I have to ask if a 55 year old guy would really want to be with an 80 year old?  Also, what if you, at 80, are not in the greatest of health?  Will your lover/partner want to be taking care of you or would he rather be out with the guys enjoying himself?

Age frequently gets in the way of relationships and I can understand that many people say that age is just a number.  I know of one couple with a 20 year difference between them.  They are very much in love afer being partnered for over 20 years.  The older of the two has some health issues and does require some care from his partner.  That said, the younger one in the couple cherishes his partner and says it could have been him needing care even at the younger age.

My second thought is as follows.
How do the two of you relate to the others life style?  Do you get along with his friends?  Do you enjoy his music?  Does he enjoy yours?  What do his friends say about you dating him?  Do they accept you into their social circle?  Do your friends accept him into your circle?

These are important questions since the two of you will have to enjoy each others life styles for many years to come.  If he is not accepted or you are not accepted then it will become stressful for both of you.  It’s more than just the two of you in a house – it’s the two of your worlds which could collide or run parallel smoothly.

If the two of you really love each other.  And, if the two of you really are committed to each other.  And, if there are no identifiable health issues right now, then here is what I would do in your shoes.

I would sit my lover down and have a heart to heart discussion about the analytical side of your relationship.   Ask him if he understands what could happen as you both age?   Discuss the issues I just mentioned and openly look around to see if there are any issues you are ignoring.

Then take it slowly.  Address the potential issues as they emerge.  Stay the course and see if you really love each other or if it’s lust that has kept you together so far.

Posted in Your Questions Answered | Comments Off