I’m kinda phasing in retirement.
I’m collecting my hospital pension because I was forced to, and I draw down my retirement savings because I need to spend that money before I’m 70 because at age 70 I will have to collect Social Security. The idea here is pay less taxes before my income makes a jump higher.
I have another pension at Grumman, but if I wait to collect when I’m 72 I get bigger payments. Age 72 is when I’m forced to collect this pension. With Social Security I’m forced to collect at age 72. Know that my Grumman Pension has a cost of living adjustment to keep up with inflation. Awesome…
There are phase ins to my strategy because it will take a lot of money to live past the age of 100.
In a recent article many Americans really don’t have retirement savings, nor enough money to retire. Only about 28% have pensions, and I am lucky enough to have two pensions.
When I have my full retirement income, somehow I will be in the top 2% on the retirement income graph. If I add in “Maggie’s retirement income we end up in the top 1%. Maggie’s alone in in the top 3.5%, but she has mucho savings.
These numbers are skewed lower because so many people of retirement age have not a lot of resources or savings.
I am still surprised to learn as retirees that we are rather rich. The counter though is my guess is that about 2/3rds of Americans can’t afford to retire.
WWW.SmartAsset.com has a very useful tax calculator that allows one to do some financial planning. Here in New York I get a $20K state tax exemption on my pension. If it were a state or federal pension it would be 100% tax free income. Refine the search with “retirement tax calculator.”
In the long run having a defined benefit plan (pension) is the most money if you plan on living past 82.
I’m kinda proud that I lived well below my means to have the savings as a “bridge” to allow me to defer collecting my Social Security and my second pension for increased benefits. I literally had enough money to not work and live on savings for a few years.
For me it did not pay to work because increases to my hospital pension were discontinued. I’m so happy I was able to swing retiring at age 62 instead of 66 1/2. Pretty much an almost 5 year vacation. Why work when you can play? Past the age of 60 we are on borrowed time where anything could happen.
Anyways in my case hard work and living below my means paid off.
Cal