My Recent Transition and Social Security Delay Plan – Center for Retirement Research
After more than four decades on the job – as a rookie reporter in Chicago, then Dallas and Boston, and finally 13-plus years writing this blog at Boston College – I’ve decided to dramatically reduce my work hours.
I need my extra time when I’m not caring for my 88-year-old mother, who moved from Florida to a nearby assisted living facility. But I won’t retire, and that’s the point. I will continue with this blog but I will write less.
The financial and emotional struggles I faced in reaching this decision are no different than what many of my younger students face as they consider whether and when to finish.
First, finance. I turned 67 in June and am past my full retirement age under Social Security rules. This entitles me to full benefits but my monthly check increases every year I wait and will continue to increase.
Still, it was eye-opening to see that my check could be 30 percent bigger if I could stick to 70. Let me say it again: 30 percent more every month as long as I breathe.
I urge older workers to take 10 minutes to investigate what this means to you. Set up a personal MySocialSecurity account online. It will have a chart that shows the biggest increase in your monthly earnings if you delay until 67, 68, 69, 70. The estimates are very accurate, because they are based on your actual earnings. The chart also shows a significant contribution from early registration.
My husband and I would have managed financially if I had quit cold turkey now and waited for Social Security. But it would require sacrifice. We are not young, and we better not lower our comfortable standard of living.
Of course, not everyone can or wants to procrastinate. As my students have said, it is very difficult for people who are exhausted from years of working physically demanding jobs to continue well into their 60s. Some of these workers are at home, and they are really struggling.
On the other hand, there are boomers and perhaps some older members of Gen-X who can retire and are serious. Not all of their employers would agree with my strategy either. I’m lucky in that.
The emotional aspect of retirement is just as important as the financial considerations. I was hoping to have a good strategy to continue being productive as I got older. Unfortunately, the demands of caring for my elderly mother overrode that plan. It is common for women to stop working to take care of a parent or spouse. Now I understand why.
But I also can’t imagine going from my current, fragile state to having tons of free time. Working less is a happy compromise. While experts say boomers should have a retirement plan in place before they take the plunge, many of my retired friends assure me that this amazing life transition should — and will — happen. In time, I will see what my new life will look like.
This phase of my life is going to be, well, different. How did I get old?
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