Pat Baines, 78, of Charlotte, N.C. photo credit: Andy McMillan /Redux
Here is an interesting article on retirement from May 2014:
During his 26 years at a packaging company in Charlotte, N.C., Pat Baines climbed the ladder to become plant manager and then a vice-president. When a new company took over and asked Pat to transfer to a job in California, he chose early retirement, at age 62. That early retirement, plus the kids’ educations and two subsequent bear markets, left the Baineses seriously short on retirement savings.
Enter Baines’s second career, as a mail carrier for the U.S. Postal Service. Baines works a full-time shift, sorting the mail and delivering it by truck along his route in an affluent Charlotte neighborhood. To bolster the couple’s savings, he shovels money into his pretax retirement account; they live off the rest of his pay, along with Social Security and a few modest pensions. Baines plans to retire for good in two years—when he turns 80.
Working past 66 may not be everyone’s idea of a dream “retirement,” but for many baby-boomers, it could represent the future. A 2013 Wells Fargo survey showed that one-third of respondents expect to work until “at least 80” for lack of retirement savings.
Even working a few years past full retirement age—66 for those born in 1943 to 1954—can make the difference between living in relative comfort during retirement and scrimping to pay the bills. A steady paycheck means you have more time to save, and the nest egg you’ve accumulated can keep compounding, says Christine Fahlund, vice-president and senior financial planner at T. Rowe Price Investment Services.
Employer health insurance is another benefit you shouldn’t underestimate. At 65, you qualify for Medicare Part A, which is free and covers hospital service. You can also enroll in Medicare Part B (for doctor visits), Medicare supplemental coverage and Part D (for prescription drugs).
At bigger companies, employer-based coverage pays first. Because Part A is free, you have no reason not to enroll; at that point, you can also enroll in parts B and D if you want them. But if your employer insurance is better and cheaper than Medicare, stay on it. When you do finally retire, you can sign up for Part B and the other coverage without penalty or having to wait for open enrollment.
You may be tempted to add to your work income by taking Social Security at full retirement age. At that point, you won’t be subject to the earnings test, which applies if you claim benefits early.
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SCOTT NEEDS TREATMENT
retired and happy !! not bad for a former USPS employee.
Making us do more for less since 2012
Hey, Scott, where have you being living? Race, immigration and gun are used by both sides. And by the way, Cuba is a socialist Country. This Country has been made great by Capitalism, not socialism. And I don’t think the conservatives are friends of Cuba like the liberal democrats. Ever noticed that the cubans living in the USA all vote for the repubblicans, the party of President Lincoln who signed the declaration of emancipation for the slaves, opposed to all the Southern States which were all democrats? Have a nice day, pal.
What a hunk!
If you don’t sign up for Part B when you’re first eligible or if you drop Part B and then get it later, you may have to pay a late enrollment penalty for as long as you have Medicare. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn’t sign up for it.
In a generation or two unless labor can get its muscle back and some good Congresspersons in office (I’m not holding my breath) nobody will ever retire because the Republicans will have succeeded in stripping the middle class to the bone and leaving only the super rich alive. Anybody who thinks being a professional will guarantee you a piece of the pie need only look to places like Cuba, where doctors and physicists get about $90 a month. This is the GOP future whether we like it or not. But stupid people being stupid people, using race, immigration and guns as a smokescreen will keep those bastards in power, and they’ll be further influenced by organized evangelicals putting the country into a virtual theocracy. Are we glad to see Eric Cantor be defeated? Look at the guy who beat him. David Brat is nuts crazy and supports, among other things, a much stronger religious influence. That is a direct threat to the First Amendment Freedom of Religion, which outlaws compulsory religious participation. We’re losing our livelihoods and then we’ll lose our basic freedoms. There’s a lot more to the Constitution than the 2nd Amendment.
I am ready to retire anytime. I am 55. My house is paid off. I have no debts and my kids are out of college, with no student loans. How is this possible? Very simple. My wife and I have worked two jobs and been very careful about spending money. One car in the family, no restaurants, no fancy vacations, no fancy clothes, no wasting. Period. People have to have a priority list. Unfortunaly, the vast majority has the list up side down.
Welcome to the new America.
Of course, you can eliminate the Wall St. crooks and politicians from having to do this.
And (of course)something which is wholeheartedly supported by unions who intend to milk you out of every penny of dues that will keep their lifestyles going!