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. 

Start Getting your Ducks in Order

 It's the Labor day weekend, the last weekend of summer before fall hits. The days become shorter, the weather gets colder. It's time to change out your clothing inventory to prepare for the season. As we also change our clocks soon to fall back an hour, it's also a time to get your finances in order to assess where you are financially and also mentally. 

Am I on track to begin this journey to retire in a couple of years? Last week, I began looking at my finances. Right now, I need to "change" my frame of mind on this journey to eventually retire. 

Marin RV Park, CA 

MENTAL HEALTH 

I may be young to even consider retiring, but I think I'm ready to try other things as well. For the last 35+ years, I've held a job full time for the most part, except in 2002, where I took a year off to travel the world for a year. So no income was earned. Today, I'm examining my frame of mind to see if I'm going at it right. 

1. Am I really ready to retire? For the last few years, I've been hearing from friends and colleagues who have taken the next step in their working lives to leave their full time job and retire. Recently, I visited friends who were staying at a nearby RV park. I took a ferry over to their park and spent time with them and really asked them how they are feeling being fully retired. One noted, that they "wished they retired sooner". Both were under 60 years old when they retire. I imagine their finances were in order when they did it, but not sure how their mental were when the finally pulled the trigger to leave. I think I have to really be sure I have no regrets when I leave a full time job and venture to something new and different. I think this will be one of those things where I'll ponder if I did the right thing or not. 
   
   
2. How will I fill my days not working? This one is yet to be determined, but at least I'm asking the question, when your working, you have all this grandeur ideas of doing this, doing that, but when I'm asking that question, I have security, I have a job, no risk. But, when I ask this same question, I'm a little more measured in my answer, I don't have a job, I don't have yet an ideas on what I'd like to really do, my mind hasn't been set on this yet. I could revert to my hobbies, i.e. playing tennis, running, traveling, but will I be doing this alone or with others?  Will I end up reverting going back to work? So many thoughts in my head on how to approach this instance. 
   
   
3. Will I want to live in the same area after retiring? The only reason why I'm still living where I live is because of proximity to work. Some of my social connections are here, not many, but some. The location is central to where I'd like to live, there's familiarity, structure I'm use to. No adapting required. I could leave the city, or leave the state, or even live closer to relatives or friends, but how would I feel or how would they feel when they realize I've moved closer to them? Appreciated? or too close for their comfort? I hope my goal is to be content on where I land. This is one I'm quite not sure yet. 
   
   
4. Will healthcare be more accessible or not? What happens if I get injured or incapacitated? Will there be someone or a place I can turn to with ease? Will I be ready. I know healthcare is available when needed, but will it be centrally located for me to have access? Or do I even need to be concerned until I get way older? This is a mental health crisis I need to be prepared for when needed. 
   
   
5. Will a change in my relationship affect my retirement plans? As a single man, I have the ability to come and go as I choose. But if I'm in relationship, how will I manage this instance? Do I live on my own still and just meet up at each other's place and alternate? Do I move in, do I move to where that person is or vice versa? I think my best take is to be steady in my current situation and not may drastic changes, unless I'm absolutely sure it's the real thing. But again life is not guaranteed. 

Puerto Vallarta, Mexico 

One thing for sure is, I can make choices, but the choices I make will have an overall mental affect on me, possibly regret. But if I recognize the challenges, and adapt, I think I might be alright. I can always change my mind. But clearly, I want to make sure I feel good about my choices as I venture into my plans to fully retire. In the meantime, be happy and enjoy the sunshine.