Got laid off, time to start taking social security?

[el_fantasma]

My last day was Friday. I’ll still get paid for three weeks so I can job search and then get one month severance with my last check. I’m 65 and in the tech field so job prospects are poor. For sure I’ll apply for unemployment which is $450 a week for 26 weeks. My neighbor suggested I also apply for social security even though I’m 8 months from “full retirement age”. By starting social security early I’ll get $100 less per month for as long as I live.

So I took the 8 months of social security and divided it by $100 and the break even point is 18 years. In other words, if I die before 18 years I would be ahead by taking social security now.

From what I have read, here in CA you can get both unemployment and social security without one reducing the other. Hey I’m no slacker, I’ve paid into both these for 50 years so I think I’m due.

Anybody been through this, am I missing anything? Sorry for all the personal details.

[Warrens69GMC]

too many factors. Do you have ira, 401, savings etc.

Any passive income?

Your current bills/mo.


Might want to talk to a CPA.

[1968aj]

here is what I did. I started my online social security application the day I was old enough. I did not complete the application and continued working for another 8 months. then I decided to go ahead and retire. I went to the social security office in person and started paperwork. lady in office asked me if I wanted my application to be retroactive back to 8 months earlier when I started the online paperwork. I said sure didn't know I could. my first check was for a little over $10;000.

[BR3W CITY]

How many people were laid off? If its a large workforce in a specific sector, you may qualify for "displaced worker" versions of unemployment. I was laid off from a union contractor (possibly different rules?) but was given an extra couple months of $$ because the sector I worked in (construction circa 2008) was hit by mass layoff.

[Stocker]

I'd start with a trusted financial advisor. If you don't have one yet, do your best networking & research to find one. A good qualified financial expert can lay out possibilities you'd never consider on your own.

[davischevy]

Most advisers will say file as soon as possible. My mother has beat the system drastically. She never worked out much and is now 91 years old. One of us has been paying her benefits for years.

I'm not knowledgeable enough to advise but I rolled the dice. I still have income, so I waited until I was 66 to file for benefits. If I live to be 83 I will break even on the benefits, but if I had filed earlier, the income would have reduced the benefits severly.

The most disappointing part of going on SSI is the Medicare and supplement premiums. I was paying a lot less for private healthcare. I wish they would give us a choice of private insurance or Medicare.

As far as the job market, I am of the opinion, if you want to work, there will be something out that that fits you. The great thing is now, you have time to think outside the box, because you have no pressure worrying about income.

I see opportunities often, but I tried working once and didn't much care for it.

[Stocker]

Originally Posted by davischevy

Most advisers will say file as soon as possible.

Maybe our guy is the exception.... that's not the advice he gave us about filing for benefits. We've been with him quite awhile and he has guided us through a lot of potential minefields. He always looks at the long-term pluses & minuses and makes sure we understand the consequences of our decisions.

I guess the key is connecting with the right advisor, then building a relationship of trust. Easier said than done.

[Steeveedee]

I retired at age 62 and commenced taking my SS money right then. According to my financial guy, I didn't have to take it and would have a bigger check starting when I was 65. But the money comes out even at age 81. I have one uncle who may still be alive, as some people on my mother's side live into their 90s. On my dad's side one uncle lived past 58, and died when he was 64. I'm 65, so pretty much living in uncharted waters. I'm scooping as much SS money as I can out before I die. I could really die at any time, one never knows what is around the next corner.

[LockDoc]

-
The wife and I started drawing it when we turned 62. I get a small pension along with it so we make it OK. I tell everyone "at my age I'm not trying to see how much money I can make, I'm trying to see how much money I can spend"...... If I leave any for the kids it won't take them long to spend it, so I might as well enjoy it while I can.

LockDoc

[67ChevyRedneck]

While you don't know what tomorrow holds...we're not talking 2 or 3 years here, we're talking about waiting 8 months? And really only 6 with the extra pay you're getting.

Personally, I'd do my best to hold out those extra few months. $100 extra per month is nothing to sneeze at and I'd rather have that then file a few months early.

You didn't mention insurance, how does that shake out in all of this?

[Boog]

You know, all things don't go as planned. You just never know if you will even wake up in the morning much less still have a job tomorrow. The future is so uncertain more so for us older dudes. I need to work until I'm 70 but I am doubting if it will be with the company I have been with for 27 years. Changes come and I resist change. I haven't checked into medicare and medipac but I know my parents had to live really close to their purse. I think they said their health insurance cost them about $800 per month. My mom receives a pension benefit of $100 per month after 44 years working in a garment factory. That is their free money each month. Dad didn't have a pension and now he is gone.
I said I need to work until 70 or so but I would retire today if I thought I could. I can't blame anyone for cashing in early.

[special-K]

I'm waiting to get more per month the years I live. I'm not worried about what my total is. I only want the money while I'm alive and having more each month is better living.

[davischevy]

25% of my check is withheld for Medicare.

[Boog]

And you have to buy a "supplemental" policy to go along with it for some of the things medicare does not cover. That's just nutz.

[pritch]

Yeah, if wasn't for healthcare, I'd go out tomorrow. Well, not quite. But because I'm a 'surviving spouse' I can draw SS at my 60th birthday. And that's coming right up. And (I think) I can draw on Kim's account while mine builds up to full. I think that's the only way one can still do that, be a surviving spouse. I'd like to earn at the level I am for a couple more years, then I guess I'll have to get a cardboard sign that says "Will work for insurance"

[papawswrench]

I was working when I reached Full Retirement Age, so i signed up then for SS. Made a big difference in the $$ coming in, plus I could make as much as I could with no penalty If you take it early, you have a limit on earnings before they take more off your SS check. I put SS in the bank for several years and spent some of it. Now I am retired and so is Mama, so between her teacher Retirement and my SS, we are doing OK.

[davischevy]

If their are any young guys looking at this, if your company has a 401K.....participate in it.

It's the easiest way I know of to get a 4% raise.

[el_fantasma]

Thanks guys for all the comments, I feel that you are each my friend. I checked the SS website and the difference between taking SS now and in 8 months is $186, not $100. So I’m not going to file after all. With that decided, I’m going to start a job search, I might as well. For me this involves about a week of prep for the technical interviews. After the week is up, I’ll open my profile on dice.com and hopefully find something. If I don’t, I’ll take UI and take from,savings for the short fall. My wife is two years younger and we under her insurance so that’s not an issue yet. Wish me luck and thanks again for each of you that responded.

Rob

[flashed]

Very interesting thread , Im not quite there yet so of no useful help but Im learning a lot . I did not know I could draw survival benefits off my wife at 60 . Can I still work full time and do that ?

[special-K]

I know one thing, the Social Security Agency is there to help in any way they can with any questions you have. They are a gov't agency at the giving end, the opposite of IRS. It's free and exact help on anything related to this. Make an appointment and go talk. Even the info online can get confusing. These people will explain anything, no confusion.

I'm not done working making money yet. I hope to continue once I start collecting full benefits, which is when the penalties against income over $19k (approx) end and you keep it all. I'm self-employed and can work on my own terms a lot and plan to do so once collecting... pick and choose what I can handle... or have time for. I also plan on creating things to sell in my shop. I see my retirement as the mixture of work, play, & chores as I would have liked it to be all my life. Never planned to end up doing nothing. I think staying engaged with people is important. If I'm no longer working for myself, due to physical limits, I'd like to keep some sort of job. I just don't want a lot of responsibility/stress. Like work where everybody is there to enjoy themselves. I'd be there for the social value as much as the income.

[el_fantasma]

Originally Posted by special-K

I'd like to keep some sort of job. I just don't want a lot of responsibility/stress. Like work where everybody is there to enjoy themselves. I'd be there for the social value as much as the income.

My friend offered me a job delivering irrigation parts for his store. It pays $19/hr and is part time. I’m intrigued by this, I’d be getting out and meeting people, have some cash and something to do. Maybe if the job search doesn’t pan out and after UI dries up. . . .

[Indian113]

For the Member's that are 65 or older , Have you looked at Medicare Health Plans at No Cost to you offered in your area? Site is www.medicare.gov I am insured with one and it seems to be working well for me. It even has a Drug plan. You have to sign up during Open Enrolment or after you have Lost Current Insurance.

[Coley]

Originally Posted by el_fantasma

My friend offered me a job delivering irrigation parts for his store. It pays $19/hr and is part time. I’m intrigued by this, I’d be getting out and meeting people, have some cash and something to do. Maybe if the job search doesn’t pan out and after UI dries up. . . .

I think that sounds like a really interesting idea worth investigating. A simple change that continues to not only keep you active and engaged...but is paying you is a great way to wind down.

Everything I have seen about people that shift to 'sudden' retirement don't do well. This included my B.I.L who retired from the investment industry due to pressure from his previously retired wife....he was extremely restless and somewhat unhappy for a few years until he got the 'hang' of it.....doing better now..
Regardless, people who haven't planned for retirement often miss their previous social environment and they miss a reasonable sense of daily purpose as well as getting paid....more or less.
This is very much the case with men....not as much tho' with women.

Also, even in your 60's don't count yourself out of the work force. The continuing and growing failure of the younger demographic entering the work force to measure up in terms of needed conscientiousness and responsibility has re-opened the door for older workers who are simply....better workers and are in higher demand that you might guess.
The computer business that services all my computer needs etc has staff that is probably 50% or more of guys over the age of 40-45....and only a couple of younger ones in there and that is a very busy, progressive company.
Another friend of mine is a manager with an industrial supply company and he will no longer hire young people under the age of 30....but he has to interview them.
They simply do not have the reliability and people skills of an older generation that is still active in the work force....so again, more opportunity for 'older' workers.

Regardless, I would definitely be looking to finding work that continued to provide a daily purpose and income while i considered what my day by day by day life was going to be when I finally retired.
Sounds like you have some very good options out there.....

My two bits
Coley

[67ChevyRedneck]

Originally Posted by davischevy

If their are any young guys looking at this, if your company has a 401K.....participate in it.

It's the easiest way I know of to get a 4% raise.

I'm assuming SS will either be defunked or severely reduced by the time I'm able to retire (+/-30 years) and plan to have enough to live off of without it and still retire around 60 with a part time or lower stress job just for insurance purposes. I'm a civil engineer and I can't see doing/dealing with this crap until I'm 67. No thanks.

[Boog]

Dangit all. I've not wanted to think about ssi and medicare before now but since this topic has come up I am starting to poke around a bit. I'll be 65 in Jan and just now I see I have only a 7 month time frame to sign up for medicare. I didn't think I wanted to sign up for that as long as I still worked full time and had group coverage. It looks like I am still required to sign up or possibly pay a penalty. grrr.