Cruising in the Caribbean
I couldn’t wait to retire! I had had enough of working after 38 years. I had been a saver my whole career so I took the plunge! This seems to be the best time of my life, doing what I want to do, hanging out with Kerin, more time with family and hobbies like playing instruments, reading, puzzles, going to the beach or the pool, traveling, so much to do! I think it is very important to have hobbies and goals in retirement. It keeps you active and healthy and your mind alert. In other words, it keeps you younger longer!
It used to be that you could start collecting Social Security at age 65. Now of course, they have what is known as the Full Retirement Age (FRA) which, depending on when you were born, could be between 66 years, 2 months to 67 years old. If you want to, you have the option of taking Social Security at age 62 but there is a huge loss of income over the years if you take it early. Social Security expects people to take their full benefit at their FRA. You can also wait until age 70 which maximizes the amount that you can receive per month.
As we age and move into retirement, medical issues and there costs can become a huge issue. It’s one thing to get insurance through work, if available, it’s another to pay it on your own. Medicare helps a lot but you also have to do your homework about whether to get straight Medicare, Advantage Plans or a Medicare Supplemental Plan. There is a lot to consider as you reach 65 so you need to access your situation. You can enroll in Medicare 3 months before your birth month, to 3 months after your birth month.
The end of a perfect day in Retirement – Thank You Lord!
Here are some helpful links:
So when is the best age to collect Social Security? 62?, FRA?, 70? Here is the answer that everyone hates to see – It depends! OK then, depends on what? I think the most important factor is our state of health. Are you 62 or approaching your FRA but in very good health? Of course, as we get into our 60’s there is bound to be some aches and pains. Hey, we are slowing down, but that doesn’t mean we are in declining health. Are you pretty much healthy, no major illnesses or diseases? Family history is important here as well. Were your parents and grandparents in good health late in life? In other words, if you expect to live for another 25 – 30 years or so, you should think about holding off on getting your Social Security benefits since the monthly amount you receive will get larger and larger until age 70. The other major consideration in my mind is your financial record. Can you afford to not take Social Security without hardship? For some people, that is all the money in old age that they will receive. But if you have pensions, IRA’s or other income, you may want to reconsider applying for Social Security too early since the later you start (until age 70), the more you stand to gain over time.
We all know that Healthcare always goes up, it never comes down. As we age, more problems develop and costs can get out of hand. When I decided to retire, I still had a couple of years to go before I reached the Medicare age of 65. I decided to take COBRA from my employer. This is the medical insurance you can get when you leave your company. Unfortunately, it is very expensive. You pay your 20% portion plus the employer’s 80% portion. OUCH! And it doesn’t last forever, I think it’s usually 18 months, that was what I got. I then needed a plan for the next 6 months after COBRA ran out until I reached 65 and Medicare. Those two years where expensive! I’ve since turned 65 and am now on Medicare! As stated in the Medical section above, Medicare comes alone by itself or you can get an Advantage Plan or a Supplement to original Medicare. I signed up for an Advantage Plan that offers a Medicare Part B Reduction. This is not offered everywhere but I think that most states have it now. It pays a portion of your Part B monthly premium. As of 2022, the Part B premium costs $170.10 monthly. My Part B Reduction plan, or giveback, as it is sometimes known, pays $145 of the monthly $170.10 so I end up paying only $25.10 per month. Not a bad thing at all! Part B premiums are taken out of your Social Security if you take that. I have chosen not to take Social Security yet so I pay my Medicare premiums directly to Medicare.