To Retire At 56? Or Rough It Out...

[bows00]

Turning 50, I just completed a required federal retirement class this afternoon, and I am in contemplation...The class covered all the income scenarios based on when you retire, and I just couldn't get over how much our pension (in addition to Social Security) jumps at 62 years of age. Our pension multiplier becomes 1.1% of basic pay for every year in service (vice 1% of basic below 62 years of age). I currently have enough years in service to retire at 56 and start my second life in the philippines, and that is still my current plan. And this plan was solidly planted in my mind, especially while nursing my Post Philippine Depression (PPD) from my 2 week vacation in Olonganpo. And the decision is validated when I see friends (and celebrities) dying in their 50's and early 60's (i.e., Steve Jobs, Davy Jones - which just happened today for example). But the class got me thinking...At 56, I will be comfortable at retirement, but it won't compare to 62. So the question is one of time and money. Keep working and put off my dream till 62? Or give it a shot at 56 while I'm still young(er) to get a faster start at enjoying the PI life style...I also realize you only live once...so maybe I already answered my own question, but I just want to be sure I am not justifying my decision with desire only... any feedback from retired expats will be appreciated.

[Mugs]

cannot live a great retirement life without lots of money. i got an offer i could not refuse to stay so my plans are put off for a little longer.

[Dave Hounddriver]

I retired at 52 years of age. I had 'just' enough income to maintain the minimum lifestyle I expect in Philippines. I have been doing it 4 years now. I am surrounded by guys with a lot more money who are 65 plus. I would NOT trade my life for theirs. No way, no how, no chance that I would sell or would have sold 13 years of my life for any amount of money over and above my minimum requirements.Would I like more money? Hell yeah! But not gonna work until 62 to get it. If it became essential then I would consider some typw of employment where I went back to the west to work for 4 to 6 months a year then returned here. But I don't see that happening.All that being said, I hope all the other expats in the world keep working until they are 70 before coming here. (Said 'tongue in cheek'), because there are already enough of us 'young' guys here. While we are in the minority, we get lots of attention. More so than that guys who are 65 plus because there are lots of those.

[ancienrocka]

"All that being said, I hope all the other expats in the world keep working until they are 70 before coming here. (Said 'tongue in cheek'), because there are already enough of us 'young' guys here. While we are in the minority, we get lots of attention. More so than that guys who are 65 plus because there are lots of those. "Heck mate, I'm 65 and I got just as much attention as you when we were out together!!

[scott h]

Keep working, need you to contribute more to my social security..lololol...seriously brother. I am retiring on my 55th birthday (this Oct) and kind of kicking my self for not pulling the plug earlier. That said. my pension starts immediatly, i will start my SS at age 62 and my Asawa will wait for the higher %. So over time we will get incremental "wage" increases. Yes I could stay in a little longer, and live with a bit more income every month. But is that slight standard of living increase really worth it? I think not! Carpe DIem is say

[Tatoosh]

I was a federal worker bee type. I was faced with the same dilemma and I pulled the trigger at 56. Each of us have our own path and circumstances. But it would depend on your health, both physical and mental, your expectations for your remaining life. You have someone you love? You wake up with a kiss and hug? Someone to come look after you if you are sick? Rub your back and put a cool rag on your forehead if you have a fever? But it really is variable. I know guys with wonderful wives. Some have great in-laws. Some don't. Some wives marry to shop. Or to get an education for their children from a previous marriage. Others want a chance to go overseas. You don't really know until you get in the mix how it will turn out. And how you will adjust to the Philippines. A couple of visits here can help you gauge if you want to hang you hat here, but until you've been here a couple of years, you don't know for sure. Will corruption and being a "second class" citizen start to really rub you the wrong way? Or do you laugh and go on about enjoying yourself after dealing with whatever problem popped up? I ended up in the ICU twice, once on a respirator, the second time with a priest ready to say last rites. I'm not yet 62. If I had ended up dead, no amount of money made by working until I was 62 could replace the years I've had here. Good and bad, retiring was the best decision I've ever made. But that is for me, your mileage may vary.

[JJReyes]

"All that being said, I hope all the other expats in the world keep working until they are 70 before coming here. (Said 'tongue in cheek'), because there are already enough of us 'young' guys here. While we are in the minority, we get lots of attention. More so than that guys who are 65 plus because there are lots of those. "

You can start taking Social Security benefits at age 62 or double your pension by waiting until 70. There is also a 7% chance you won't make it to 70. Because of the current economic situation, there is a significant increase in the number of Americans starting their Social Security benefits at age 62 rather than waiting for full benefit at age 65, 66 or 67 (depending on when they were born). This change to starting benefits at age 62 was not expected. The word is Washington, D.C. will be making "adjustments" to the rules after the November 2012 election. Edited March 2, 2012 by JJR

[MikeB]

Good advice from Tatoosh. I waited till 62 because I wanted at least the minimum SS, the 2 small pensions I have from previous employers were already locked in at a fixed amount for life. But there are no more pensions in the private sector, only the federal govt can afford it lol. It was tough to walk away from a good paying job but I have no regrets. I would visit a couple of more times at least before making the decision.

[Mike S]

You can start taking Social Security benefits at age 62 or double your pension by waiting until 70

Interesting ...... I didn't know that ..... the difference between what I got at age 62 and what I would have gotten at full SS benefits at age 66 was only $400 per month more ..... but maybe that was just me ......

[Tukaram (Tim)]

I sure can't tell you what is right for you, but here is my situation...I'm 48 and I am trying to get out by 50. If I stay until 60 I will have my 80 points, which is our "magic number" for retirement. But If I quit working at 50 I can live on my small VA disability until 55, then I can start taking my retirement from work. It won't be as much as if I stayed but I can't sell another 10 years of my soul. I just can't justify working until I am too old to enjoy myself. Then once I hit 62 I can get a small Social Security check, they will penalize me outrageously because my current job does not use Social Security and they consider it "double dipping"... which is bullsh&t because I paid in for over 20 years and should get my full amount... but I digress... So by quitting at 50, then taking retirement at 55 my annuity from the State will pay for my lifetime and the lifetime of my beneficiary. My VA will pay for my lifetime, and who knows about Social Security but it will be so small as to not matter to much. (maybe I can start packing in August?)Matter of fact if one of you will buy my house from me now I can quit tomorrow! I was on a 2 year plan to pay off all my debt and accidentally got it done in 6 months. So the house is the only thing keeping me here. And it will take a year just to get all my crap sorted out and sold. :tiphat:ORI can stay until I max out my retirement... like my brother did at the fire department... then retire with arthritis in the spine! ?????? that, mate!~Edit~ Oh yeah, I keep forgetting there is a profanity filter. How bizarre. But I didn't notice the "f" word as I typed anyway so #$%$@#$%^ it. :hystery:

Edited March 2, 2012 by Tuka Ram