7 Signs That Now's Not the Right Time to Retire

[Common Sense Party]

#1) Romney is President.

Just kidding. The article doesn't really say that.

It does, however, have some fairly obvious, common sense tidbits, that some people either choose to ignore, or circumstances compel them to do so:

Don't retire if you still have financial obligations--like a mortgage, credit card debt, student loans, etc.

Don't retire just because you're now eligible for Social Security--that doesn't mean you'll have enough income

Don't retire if you haven't planned for healthcare costs

Don't retire if you expect stock market returns over the next 20-30 years to make up for what you haven't saved--we're probably not going back to double-digit decades for a while

More details here:
http://finance.yahoo.com/news/7-signs-nows-not-time-070043230.html

What do you think?

[SheilaT]

1. It all boils down to this:

Plan ahead. Very carefully.

I have a co-worker who has various health issues. Every so often she'll say she ought to just retire on disability. I gently try to point out to her that since she can still do her job (and she does it very well) she isn't eligible for disability. And then, some other day she'll say she won't ever be able to afford to retire. It's clear, from the two somewhat mutually exclusive statements, that she has only thought about retirement in rather general terms.

I'm just turned 64 myself, and I recognize that I should delay collecting social security until age 70, if I possibly can. But the temptation to start collecting at age 66 is very strong, although if I do that I will probably work for a couple more years.

[Common Sense Party]

2. I'm not there yet myself (about 20 more years for me), but I can imagine

the pull of retirement will be pretty temting, tough to ignore.

Intellectually, I know my SS benefit check will be about 8% bigger every year I wait until 70, but emotionally, the siren call of hanging it up will sound pretty loudly.

[RebelOne]

3. I started collecting Social Security when I turned 65.

I continued working until I was 71 and then was laid off. If I had not been laid off, I would still be working. But because I knew I could not find another job at my age, I decided to retire. I wanted to work longer to get more money into my 401K. My company was generous with severance pay. I got $10,000 over a 6-month period. When that was depleted, I started to collect unemployment. When I could not collect any longer, I had to depend solely on my Social Security.

I have money in my savings from my 401K, but I am trying not to go into it. Fortunately, my expenses are low. I own my mobile home and my car is paid. I have no credit cards. So I just have the usual monthly expense of utilities, car and home insurance, plus cable, Internet and phone. Fortunately, I only have to fill up car once a month, so I am saving money there as compared to filling it up weekly when I was working. I do not spend a lot on food as I am a vegetarian.

My monthly income from Social Security is over $14,000, minus Medicare payments of $100. I am not doing too badly. I just had to learn to scale back my spending on stuff I didn't need.

[A HERETIC I AM]

4. Are you aware of the Required Minimum Distribution rules....

Regarding 401(k) plans?

Just as with IRA's, at the age of 70 1/2 years old, you are required to take out at least a minimum amount each year or pay a penalty.

Google "401(k) RMD rules"

[Common Sense Party]

6. And it can be a very painful penalty.

50%! Ouch!

[SheilaT]

5. Another thought here.

Just because you have a mortgage is not in and of itself a reason not to retire.

I bought a house at the tender age of 61. 30 year mortgage. Even given my excellent health, I have no intention of continuing to work until I'm 90. But I will be paying careful attention to what my expenses are compared to my income before I do stop work, whenever that may be.

Actually, what I'm going to be very tempted to do once I'm eligible for Medicare, is leave my current job and do temp work. Take a job for a few weeks or months, then take time off to do other things, such as travel. Still haven't decided on that. What I will want to do is have good sit-down with the temp agencies in town and see what they tell me. I know that they can't guarantee steady temp work, but if they think it's realistic, I may do it.

Currently I work part-time and have benefits meaning health care and leave accrual. I'm very fortunate.

[kjackson227]

7. I totally agree...

I'll be retiring in one to two years, and I have a mortgage that will be paid for in seven. But, my bigger concern is with health insurance since I'm nowhere near the age to get medicare. Our plan at work costs more than $700 for retirees, and will probably go up another $100 next year. Hopefully, the ACA/Obamacare exchanges will offer more and CHEAPER options when it kicks in in 2014.

Also, there's a great manual called "Your Retirement Planning Guide- Ready or Not" that is great to help anyone who's planning on retiring to get their post work lives and finances in order (we offer this manual to our employees in our human resources department). I also think a big mistake for retirees is not taking into account inflation (which some say should be calculated at 3-5%.