In a few months I'll be 64. I just looked at my Social Security statement.
They have full retirement at 66 and 6 months.
There is a benefits slide gadget that lets you dial in the anticipated month of retirement.
Example, if I retire at 65 and 6 months, the difference is <$245 a month. If I retire a year early, I will receive $31,500 I would not have received if I wait another year.
You all know where I'm going. It would take 11 years to break even for the amount I received for the one year of early retirement.
Since this is supplemental to our overall retirement plan, it's looking pretty tempting.
Did you go out early? Do you regret it?
Do you wish you went out early?
Are you thinking along my same lines?
Am I an idiot for thinking to go out early
I know many of you are retired, I'd like to talk about it.
Thanks,
Jeff
I think it's a personal decision that has to include a number of factors. Personally I did retire early and have thoroughly enjoyed it with no regrets. The odd part was that "termination" date was a Friday, but at 7:00 AM on the following Monday the calls started coming in from head hunters asking me to be a "contractor" to perform exactly the same duties I had been doing as an employee. I could have easily gone back to work for over double the money I was making, but with no benefits. The jobs however were the ones I hated having to do even as an employee. They included things like shutting down production facilities and distribution centers as well as moving production lines from one plant to another. I had my share of that over the years and had no desire to repeat it. Essentially it would have destroyed the relationship I had worked to build with co-workers for over 20 years.
My retirement at 57 was part of a buyout. That's a bit of a misnomer in that the "buyout" added years of service to be used for calculating a pension, and a bonus added to the 401K. I say misnomer in that neither of these benefits could be accessed until the age of 62 or the time you were eligible for Social Security. Essentially we were on our own financially until these benefits kicked in. At the time of Social Security/Medicare eligibility the funds could be accessed without penalty, but until that time the only financial assistance was allowing the employees to continue purchasing health insurance with a small company subsidy.
One thing available from our company in those days was the fact that at the time of Social Security eligibility we could personally take charge of our 401K, and take any pension due as a lump some. Not knowing the future viability of the company, or the possibility that it could be sold almost all severed employees took advantage of that option.
Along with financial considerations you also need to include your families health and personal goals. If you are reasonable healthy, would like to travel, have outside hobbies and interests you'd like to peruse, and don't have overwhelming financial obligations I would certainly take advantage the opportunity. In my case it took nearly 2 years (along with travel and other fun activities) to complete a "honey do" list that had been accumulating for years.
The only downside (so far) to retirement is that all those relationships developed over the years are hard to maintain. Many people have moved to be closer to relatives, or warmer climates, and sadly some have passed away. There was a group that met weekly for breakfast at a local restaurant, but since the advent of Covid19 that's at least temporarily on hold.
