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Thread: Thinking I might retire on 12/1!

  1. #11
    Senior Member flowerseverywhere's Avatar
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    Sounds great except make sure you truly understand Medicare. It is an 80/20 plan and is not free drug coverage is a separate section. Check it out very carefully. Most people buy a supplemental insurance and who knows what that will be in six years.

  2. #12
    Senior Member razz's Avatar
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    For peace of mind, take a good look for a job near home and then decide for sure. Sounds like a safe bet.
    As Cicero said, “Gratitude is not only the greatest of virtues, but the parent of all the others.”

  3. #13
    Senior Member iris lilies's Avatar
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    Quote Originally Posted by rosarugosa View Post
    My goal was to retire at 62, but I just might pull the trigger now, suddenly and unexpectedly. There are two major factors at work here. First of all, I used to enjoy my job, but this past year has really sucked and I am not having a good time in the least. I'm working 10 -11 hours a day, and still don't feel like I am ever getting ahead. I like the people I work with, but I'm not enjoying my work anymore, and it just feels like an endless purgatory of meetings and relentless e-mails. Secondly, our health plan is changing very much for the worse on 1/1/18 for both active employees and retirees, but those who retire by 12/1/17 can keep the 2017 PPO plan. If I retire now, my pension will be less, but if I work until 62, my pension gains will be more than offset by increased OOP medical expenses. My company has a tradition of letting retirees stay with the plan they have at the time of retirement (although naturally the price tag keeps going up, just like for active employees). There is never a guarantee of this, but that is how it has always worked in the past.
    I am 59.5, so I can start taking distributions from my 401k without penalty.
    Looking at our current net income and expenses, we can replace all but $600./month with a combination of the following:
    • 4% 401k distribution
    • DH's part-time job pay
    • DH can take early pension from former FT job
    • My pension
    • A couple of very minor tweaks to our spending


    I figure I can get a part-time job closer to home, very possibly at the hospital where DH works. They have lots of positions posted. I want to do something simple and straight-forward that feels productive. I don't want to go to meetings anymore!
    Once I hit 62, I will have my CD ladder maturing and that would be more than enough to plug that $600/month gap from age 62 to 65, and once I'm 65 my health care costs should decrease due to medicare eligibility. I'm hoping to wait until 67+ to start SS and collect the full benefit.
    I"m not a risk-taker by nature, and I've always had steady employment with this same employer (I've been there for 39 years). My DH is supportive of the move. Any thoughts or input? I kind of feel like I'm not quite ready, but realize I might always feel like I'm not quite ready. And in other regards, I am more than ready!
    I am not clear on your health care i surance plan. "Letting you keep" your current health care plan (bringing up the spectre of a past President, haha) means what for paying for it? Do you pay for it or do they, or is a it a combination? I'm sure you have investigated the cost, but it can be significant if you are payng the bill.

    Here, I am not confident that $600/month is easy to make for senior citizens getting a job. But you are in a highly populated, different environment so you know the job market there better than I know it.

    All of that said, good for you, you are probably ready to retire. I kicked that job thang to the curb when I was 60.

  4. #14
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    Quote Originally Posted by catherine View Post
    If there is ONLY a $600 gap that you can easily plug with a part time job if you want to, I say go for it! Why wait??
    +1

  5. #15
    Williamsmith
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    Quote Originally Posted by rosarugosa View Post
    My goal was to retire at 62, but I just might pull the trigger now, suddenly and unexpectedly. There are two major factors at work here. First of all, I used to enjoy my job, but this past year has really sucked and I am not having a good time in the least. I'm working 10 -11 hours a day, and still don't feel like I am ever getting ahead. I like the people I work with, but I'm not enjoying my work anymore, and it just feels like an endless purgatory of meetings and relentless e-mails. Secondly, our health plan is changing very much for the worse on 1/1/18 for both active employees and retirees, but those who retire by 12/1/17 can keep the 2017 PPO plan. If I retire now, my pension will be less, but if I work until 62, my pension gains will be more than offset by increased OOP medical expenses. My company has a tradition of letting retirees stay with the plan they have at the time of retirement (although naturally the price tag keeps going up, just like for active employees). There is never a guarantee of this, but that is how it has always worked in the past.
    I am 59.5, so I can start taking distributions from my 401k without penalty.
    Looking at our current net income and expenses, we can replace all but $600./month with a combination of the following:
    • 4% 401k distribution
    • DH's part-time job pay
    • DH can take early pension from former FT job
    • My pension
    • A couple of very minor tweaks to our spending


    I figure I can get a part-time job closer to home, very possibly at the hospital where DH works. They have lots of positions posted. I want to do something simple and straight-forward that feels productive. I don't want to go to meetings anymore!
    Once I hit 62, I will have my CD ladder maturing and that would be more than enough to plug that $600/month gap from age 62 to 65, and once I'm 65 my health care costs should decrease due to medicare eligibility. I'm hoping to wait until 67+ to start SS and collect the full benefit.
    I"m not a risk-taker by nature, and I've always had steady employment with this same employer (I've been there for 39 years). My DH is supportive of the move. Any thoughts or input? I kind of feel like I'm not quite ready, but realize I might always feel like I'm not quite ready. And in other regards, I am more than ready!
    Secondly, our health plan is changing very much for the worse on 1/1/18 for both active employees and retirees, but those who retire by 12/1/17 can keep the 2017 PPO plan. If I retire now, my pension will be less, but if I work until 62, my pension gains will be more than offset by increased OOP medical expenses. My company has a tradition of letting retirees stay with the plan they have at the time of retirement (although naturally the price tag keeps going up, just like for active employees). There is never a guarantee of this, but that is how it has always worked in the past.”

    There must be a contradiction in here somewhere.....so your health plan is changing very much for the worse for both active and retirees..............you are going to retire early and sacrifice pension gains because you feel “locking in” lower medical expenses is more valuable. But didn’t you just say retirees are having their healthcare plan change for the worse?

    62 seems to be the magic number you planned for.....would it be a waste of money to hire a financial planner / retirement counselor to give you a second opinion before you sign the papers?

  6. #16
    Senior Member iris lilies's Avatar
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    Quote Originally Posted by Williamsmith View Post
    Secondly, our health plan is changing very much for the worse on 1/1/18 for both active employees and retirees, but those who retire by 12/1/17 can keep the 2017 PPO plan. If I retire now, my pension will be less, but if I work until 62, my pension gains will be more than offset by increased OOP medical expenses. My company has a tradition of letting retirees stay with the plan they have at the time of retirement (although naturally the price tag keeps going up, just like for active employees). There is never a guarantee of this, but that is how it has always worked in the past.”

    There must be a contradiction in here somewhere.....so your health plan is changing very much for the worse for both active and retirees..............you are going to retire early and sacrifice pension gains because you feel “locking in” lower medical expenses is more valuable. But didn’t you just say retirees are having their healthcare plan change for the worse?

    62 seems to be the magic number you planned for.....would it be a waste of money to hire a financial planner / retirement counselor to give you a second opinion before you sign the papers?
    She says that if she retires before the health insurance change (12/1/2017) she thinks she can keep her current plan. Thus, the 12/1/2017 date.

    I would also ask: is your current plan really so sacred? I dont know how much the OP uses health care services but unless it is specialized care, I am not sure that is worth much.

  7. #17
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    Quote Originally Posted by Williamsmith View Post
    Secondly, our health plan is changing very much for the worse on 1/1/18 for both active employees and retirees, but those who retire by 12/1/17 can keep the 2017 PPO plan. If I retire now, my pension will be less, but if I work until 62, my pension gains will be more than offset by increased OOP medical expenses. My company has a tradition of letting retirees stay with the plan they have at the time of retirement (although naturally the price tag keeps going up, just like for active employees). There is never a guarantee of this, but that is how it has always worked in the past.”

    There must be a contradiction in here somewhere.....so your health plan is changing very much for the worse for both active and retirees..............you are going to retire early and sacrifice pension gains because you feel “locking in” lower medical expenses is more valuable. But didn’t you just say retirees are having their healthcare plan change for the worse?

    62 seems to be the magic number you planned for.....would it be a waste of money to hire a financial planner / retirement counselor to give you a second opinion before you sign the papers?
    I took this to mean that if she retires BEFORE 1/1, she can get in on the old retirement plan, and the higher cost plan is for post 1/1 retirees, not pre 1/1/18 retirees.

    I like the idea of a financial planner, but they may push you to stay. Iris Lily's post got me thinking-if you have to make up a 600 shortfall for two years, would that mean making enough to come up with 600 dollars more a month--so more like 1000 a month before taxes and savings? That would be hard for me to do here. Menards is paying 11 dollars a hour. So I think that would be 22 hours a week or so? Plus commuting, etc. bringing it up to 27 hours a week. Don't know what the hospital pays; I tried getting jobs in hospitals and never had any luck.

    Are you then looking at lower paid part time job for 2 years? Would quitting make that the new reality?

    I went to parttime with same employer when my health was shot from full time there. Last year I made a fourth of what I made full time, and still worked a lot.

  8. #18
    Williamsmith
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    I guess that my thought was ....it is a big IF ....to assume the healthcare plan will always remain the same without any significant changes. I understand that the employer has already provided the heads up that the healthcare plans will be less desirable going forward for current employees and what OP has now will not be available. Seems like this might inspire others to consider early retirement which might be what the employer is looking for anyway.

    As as far as supplemental part time work.....my first part time job after retirement paid one fourth what my full time job did. My second one paid approximately one third but it was seasonal so I went without income for half the year. I could have gotten a part time or even full time job that paid half in the same field as my full time but then I decided...what the heck is the sense in that?

    I still think having someone crunch the numbers and provide you honest unbiased feedback would be valuable given the enormity of this decision. I’d be looking for some confirmation that this is the way to go....and then I’d plunge in without looking back.

  9. #19
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    My first thought is ... your health is more important! But, it may be wise to see what a fee-based financial planner thinks???? I was happy I did this before retiring. He actually showed me a few things I could do differently. It also validated that I was doing the right thing!

  10. #20
    Senior Member rosarugosa's Avatar
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    Some clarifying points:
    DH has some significant health issues. Current plan has $600. deductible and $3000 OOP maximum. New plan will have $3000 dedt and $8000 OOP max.
    As an active employee, I'm paying about $300/month for our medical ins. My cost as a retiree would be $934, plus $60. for dental (I forget what I'm paying currently for dental).
    If I retire by 12/1, I can keep the plan with the $600 dedt and $3000 OOP through 2018. Not sure what 2019 will bring (well I'm pretty sure it won't be anything better as far as health ins goes!)
    We live in a high population area with a robust job market. I'm currently putting in about a 65 hour workweek with the commute. The hospital where my husband works got all excited when he applied for a transport job and assured them he could pass a criminal check. I think I might like to apply for the Support Associate job which sounds like my dream job at this stage of my life:

    Support Associate 24hrs/wk day shift
    Description

    Functions as a team member on a patient care unit with overall supervision by the registered nurse and unit nurse director. In conjunction with other team members provides a friendly, comfortable and supportive environment for the patient during their hospital stay. Provides support services to direct care givers and patients through assuring a clean and ready environment, patient call light response, stocking and environmental support. Duties directly related to patients are provided with direction from RN. Essential duties include some meal tray delivery, cleaning equipment, delivering and stocking supplies, and maintaining the unit environment meets safety standards.

    Qualifications

    Required:
    Ability to concentrate and pay attention. Ability to read and write English. Must see, hear and speak well. Must be able to deal with different types of personalities and people with different cultural backgrounds. Also must be able to work with people who are different ages. Basic Computer Skills.
    Preferred:
    No prior experience necessary; however, some regular work experience preferred.
    High school graduation/equivalence preferred.

    According to DH, a lot of these part-time, non-medical jobs at the hospital hire older workers as well as younger workers. A lot of folks do them as side gigs, there are some teachers, some students and some work there just for the benefits, and make their real money doing something else. We're also within walking distance of a mall and a lot of retail stores, and the 7-11 across the road is always looking for help. If I hated it, I could just quit.

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