Retirement and social security

[Steve S]

I'll be 62 in February and according to my Social Security Statement that I received yesterday, can receive $1499 a month if I retire. I've never really thought about it so have some questions.

If I begin getting these payments at 62, will they last until I pass away or will I eventually run out of money?

I also have a question regarding survivor's benefits where it says that my child will receive $1521 a month if I die this year. My youngest is 25 and my other one is 29. Who will get the monies?

[BlacksHole]

This implies you were born in 1949, same as me. Please note that the full retirement benefit from social security does not kick in until you are 66. I.e., retiring at 62 is early retirement and it reduces the monthly payment you will get - check on line for the proper tables. Social Security is supposed to be for the rest of your life. However the financial problems being experienced by the gov't may affect what you receive in the future, especially as large numbers of us do retire. I do not believe that either of your children will ever get a monthly payment based on your social security as I believe that amount would be for dependent children up to some age which is I believe less than your kids current ages.

[MakiSupaStar]

Watching this thread with a keen eye. I turn 40 this month.

[Steve S]

Originally Posted by BlacksHole

This implies you were born in 1949, same as me. I do not believe that either of your children will ever get a monthly payment based on your social security as I believe that amount would be for dependent children up to some age which is I believe less than your kids current ages.

Yup, 1949...seems so long ago now. In looking at the social security chart, if I wait until I'm 66, I'll be getting $2,067 per month and if I work until I'm 70, it'll be $2,815. I've watched other people retire and it saddens me to see some of them pass away 2 or 3 years after they finished working. My parents both died in their mid 70's but had no significant health problems. I've been a diabetic for the past 10 years so my time might be shorter.

Work is not bad and I'm lucky to have a job but as I get older, it's getting harder and harder to have the motivation to get up and go to work. I've been working every day full time since 1968 and would love to not have to leave the house every morning.

I'm fortunate to have a hobby of playing music which provides me with an outlet to pursue my passion and to connect with people outside of my job. The people who I play music with are VERY different than those who I see every day at work. The people who I work with don't know that I play music while the musicians don't know what I do at work.

I didn't think that my adult "kids" would get any monies.

[snappytom]

I am by no means an expert, and I am also years away from dealing with this.

Your sons can forget about your survivor benefits assuming they are not dependent on you in any way. A spouse would be eligible for survivor benefits.

The question of whether take SS now or at 66 can only be answered by you, your personal situation, and your desires.
- Can you live on $1499 a month ?
- Do you enjoy working enough to go another 4 years ?
- How is your health ?
- Can you afford insurance ? Medicare does not start until 65
- Taking SS now means you are locked in at the reduced benefit (although there will be Cost of Living adjustments). When you turn 66 it does not bump up to the higher benefit level.

There are tons of other things to consider. Do you know anyone who understand this well enough to help you make decisions ? Beware of anyone who will be getting paid to "help" you through this process.

[Deluge Of Sound]

Originally Posted by MakiSupaStar

Watching this thread with a keen eye. I turn 40 this month.

Please, by the time you're eligible to get Social Security it will have been gone for at least twenty years.

[Steve S]

Originally Posted by snappytom

I am by no means an expert, and I am also years away from dealing with this.

Your sons can forget about your survivor benefits assuming they are not dependent on you in any way. A spouse would be eligible for survivor benefits.

The question of whether take SS now or at 66 can only be answered by you, your personal situation, and your desires.
- Can you live on $1499 a month ?
- Do you enjoy working enough to go another 4 years ?
- How is your health ?
- Can you afford insurance ? Medicare does not start until 65
- Taking SS now means you are locked in at the reduced benefit (although there will be Cost of Living adjustments). When you turn 66 it does not bump up to the higher benefit level.

Do you know anyone who understand this well enough to help you make decisions ? Beware of anyone who will be getting paid to "help" you through this process.

$1499 a month is not much but my house will be paid off so my expenses will be down. I love my job, just have gotten tired of going to it every day. It is my health that I have concerns with. I've been a diabetic for the past 10 years. Not on insulin yet but I always have to watch what I eat. It's the age when I'm eligible for Medicare that has been my goal. I have been looking at what it cost for health care and it's scary. At this point, 65 seems like a long way away even if it's only 3 years.

I know a person who is a financial planner and have thought about asking her but my wife feels that she's only intested in making me part with my money.

[muzikman7]

I'd hold out until I was 65 three years isn't all that long if you think about it.

[-Kramer-]

One of the biggest questions I would have for you is, what other sources of income would you have (401(k), pension, rental income, etc.)?

[Steve S]

I also have a 401 from 25 years of working for the State of Washington and my wife's mother passed away recently leaving us some of her monies, not sure how much but it's probably around $200,000. We did have rentals but sold all of them off.

Both of us have diabetes though...

[rosanne]

The cost of medical insurance is huge! If I were you I would wait until Medicare kicks in. If your wife is covered under your policy then that is another reason to keep working. Medicare will not cover her until she is 65.

If there is a Social Security office near you then why not make an appointment and go talk to them. They can explain the ins and outs to you.

I retired at age 59 and could not believe the amount I had to pay for medical insurance, even though I had no medical issues.

Take a good look at your lifestyle and your monthly expenses. That will give you a good idea of what you need to live on. Just remember that costs only go one way - up.

[Steve S]

Originally Posted by rosanne

The cost of medical insurance is huge! If I were you I would wait until Medicare kicks in. If your wife is covered under your policy then that is another reason to keep working. Medicare will not cover her until she is 65.

If there is a Social Security office near you then why not make an appointment and go talk to them. They can explain the ins and outs to you.

I retired at age 59 and could not believe the amount I had to pay for medical insurance, even though I had no medical issues.

Take a good look at your lifestyle and your monthly expenses. That will give you a good idea of what you need to live on. Just remember that costs only go one way - up.

Thanks everyone for your inputs. With my health condition, it's probably not a good idea to quit working until I'm eligible for medicare.