Retirement Notice to my Employer

This week I plan to notify my employer that I will be retiring. I've elected to give 3 month's notice as my employer's retirement office asked that we submit our notice to start processing our retirement paperwork. I think this notice is more than generous to allow my office to locate or provide contingency plans for my upcoming departure. 

Sadly, as I prepare for this decision to notify my employer, a few outlying events have happened that may affect my employer, but not necessarily me. One, being that my employer relies on heavy federal funding to continue with services and medical studies in the coming year(s), they've decided to implement a hiring freeze. So, no replacement for my position but probably hire a temporary employee in the meantime. I don't know how long a hiring freeze will be in place, but I feel that will be an inconvenience. Two, in light of the economy, my speculation will be that we may head into a recession. People will keep a close eye on their finances and be mindful of purchasing big ticket items, i.e. home, car, or large appliances. And three, possibly inadequate staffing may be a challenge for my employer. 

But, as I make my notice known to my employer, I wonder if I will be going into a different time to that may be "poor timing" to retire? Could it be anxiety? Or hesitations with some of these uncertainties? Like everyone else before me, I need to be calm and be steady in my decision. I'm at third base, getting ready to slide into home base and be excited to celebrate my next chapter in life.

San Francisco, CA - Oracle Baseball Park 

My last couple of years of planning is coming to fruition, but I didn't expect to receive a curveball that makes me second guess my decision to retire. I could only hope I manage to think of all the scenarios that I will encounter have been answered. 

Some people whom I've shared my desire to retire asked me, "Why?", "You've Got More Years to Go!" "What Will You Do?" These are just some of the questions or comments I've heard. For me, it's a desire to try something else, spend time with family, friends, a whole host of things. But many financial advisors like to say, "What will you retire TO?" I get that, but there's more to being at the same job for several years, there's got to be more I can do. I'm financially ready for the most part, I've met the Maslow's hierarchy of needs beyond physiological needs to safety & security. I'm trying to hit the top of the pyramid tip to full self-actualization - desire to become the most that I can be at this stage and age in my life. Is that so bad? 

Source: https://www.simplypsychology.org/maslow.html

Next up is feeling the moment I give notice and the after affects which I will no doubt learn as this week draws near and the weekend arrives. Stay tuned on how I'll learn my decision to leave my current position, learning of the unknowns...

Reviewing Your Social Security Benefits

Recently, I took the time to look at my options and outcomes on when to collect social security benefits when retiring. I've been curios off and on over the years on how much I would be entitled upon retiring. 

As I get closer to retiring, there are some things to consider when making that important decision. 

ELIGIBILITY REQUIREMENTS 

Social security taxes are taken out of your paycheck so you can get a monthly benefit in your 60s. Although, these days, quite a few people are considering retirement before 60 but not taking retirement benefits until full retirement age.

On the https://www.ssa.gov/retirement/eligibility website, it states the following: 

You're eligible if: 

• You're 62 or older 
• You've worked and paid Social Security taxes for 10 years or more 

They keep track of how many years you've paid social security taxes. 

Check your Social Security account to see if you're eligible. 

PLAN FOR RETIREMENT

You can plan for monthly retirement benefit any time between age 62 and 70. Social security calculates your payment by looking at how much you've earned throughout your life. The higher the longer you wait to apply, up until age 70. It's really up to you when you'll collect and based on your own personal needs. Personally, I may take it at my full retirement age which on social security states for my age of birth, is 67 years old. 

There's some other factors that can affect your amount of retirement monthly benefit. 

• Paying for healthcare - eligible to get Medicare at age 65 and the sign-up process for Part A (Hospital Insurance) and Part B (Medical Insurance) is completed through Social Security. Once you sign up for Part B, the cost will be taken out of your monthly benefit amount. Plan ahead for this reduction. 
• Withholding taxes from benefit payments - you may pay federal taxes on your benefits if your combined income (50% of your benefit amount plus any other earned income) exceeds $25,000/year filing individually. You can pay the IRS directly or have taxes withheld from your payment. 
• Continuing to work - Before Full Retirement Age (between age 66 and 67), your benefit payment will be temporarily reduced if you earn more than your earnings limit this year. You can work after (FRA) and earn as much as you'd like without reducing your benefit payment. 
• Knowing your "Full Retirement Age" - (FRA) is a point in time between age 66 and 67, which social security use to determine your benefit amount, as well as your family's benefits. Regardless of your (FRA), your payment will be higher the longer you wait to apply, up until age 70. 
  
  SOURCE: https://www.ssa.gov/prepare/plan-retirement

There's so much to consider in deciding when to receive benefits. In my case, I have to think of the following: 

• HOW MUCH TO RETIRE - do I have enough in addition to Social Security? 
• COST OF LIVING - will my way of living be less or more? 
• CHOOSING AGE TO RETIRE AND COLLECT - do I really need to wait until (FRA) or age 70 to get maximum

It's quite daunting at first, but if I do careful planning I just might make the right move on this. 

Stay tuned as my decision might be sooner versus later.