By Debra A. Perry
Disclaimer: This article is for enjoyment and information purposes only. Author is writing based on personal experiences and is not a professional retirement advisor qualified to give advice. Seek professional and family advice if this article leads to questions affecting your personal situation.
Woo Hoo! You’re retired! Are you ready to be retired? Now what will you do? Who will help you out when you get old? All of these are very valid questions you should be asking yourself when you begin your retirement phase. I will address three important aspects of retirement: 1. Are you financially prepared to retire? 2. What do you do with all this time on your hands? 3. The importance of family during the retirement stage of your life.
So, I would have to say, based on the experiences of my parents and grandparents, that the single most important aspect about retirement is having enough money to survive. And, if you want to live comfortably, it’s not just about survival … it’s about having enough money to go and do things, and to buy stuff that you want to make you happy. Social Security is not going to make you rich! In fact, $1,386 was the average monthly Social Security payment received by retirees in 2017 (www.APlaceforMom.com, Senior Living Blog, Dana Larsen, 20 April 2018). No doubt about it, it’s expensive to retire. You have a house to put over your head, you have utilities that go along with the house, you have groceries you have to eat, you have the cable and phone bills that keep you connected to society and friends and family, you have a car, car insurance, and gas so you can get around town, and then there’s health care expenses and all that goes with that. And, none of that is including emergency costs that arise to your home, appliances, car, health, and so forth. Before you retire, it’s best to sit down with a professional and/or a family member and draft a budget outlining all of your expenses and income so you can see where you stand financially.
Unfortunately, according to statistics, “74 percent of Americans are not ready for retirement” (www.A PlaceforMom.com, Senior Living Blog, Dana Larsen, 20 April 2018). Ideally, it’s best to make life changes before you retire. However, some folks decide to retire early. Sounds great, huh? Social Security allows you to retire and collect Social Security benefits as early as 62. But, full retirement age (FRA) is currently 66 and six months for those who are turning 62 in 2018; FRA will continue to rise in two-month increments until it reaches 67 (www.rothira.com/what-to-expect-from-social-security-in-2018).
Who would want to wait 4.5 or more years to retire when you can retire at 62? I’m sure there’s many circumstances surrounding individuals who do retire early, like loss of job, health concerns, being financially secure, and so on. But, in my case, my parents retired early and were not financially prepared to do so. So, they went back to work, only to be hit with a large bill from Social Security because they made too much money while working! What? You can’t make as much money as you want in retirement? The answer is no – not until after you pass FRA. In fact, the income limit to make while drawing Social Security and being under the FRA is $17,040; after that they “deduct $1 in benefits for every $3 you earn” (www.ssa.gov/planners/retire/whileworking.html). My parting words when thinking of retiring, is that it’s best to make sure you are financially ready to retire and that you get with both a professional and your family first to aid you in making that decision.
Part two will be in the next issue and covers after you retire.
