Sunday, August 2, 2020

Post- Working Life

Retirement has become a topic on several blogs.  I'm now about ten years out from that, so it's something on my mind too.

A few years ago I was at a car rental place getting shuttled from one lot to the other.  I struck up a conversation with the older gentlemen who was driving me.  He told me he was a retired superintendent from GM.  Knowing that his retirement benefits are gold plated, I asked, "what are you doing this for?"  He told me after he retired he stayed home for six months.  He couldn't stand it, and found this easy, part-time job just to keep busy.  He told me about his former co-workers who retired and just sat around at home: "They're all dead now"

In the US medical benefits are the big challenge.  If you have to go on the open market to buy medical insurance at age 61 you will pay up for it big time.  The husband of a close friend retired from a giant corporation at age 58.  He was promised post-retirement healthcare.  About 18 months into retirement they were informed that the company would no longer provide healthcare, but would give them the value of their medical insurance benefit -- $10,000 annually.  They had to go shopping on the open market, and of course they didn't qualify for any subsidies.  They got a crappy policy for nearly $25,000 annually.  These people are loaded, so it really didn't impact them, but for most people it would hurt.

For me the magic number is 63.5.  At that point I can pay cobra for 18 months and make it to Medicare at age 65.  I really don't hear too many people complaining about Medicare.

Then what to do?  Moving to a retirement community really doesn't appeal to me.  Having a simple base of operations -- think smaller condo, and traveling for six plus months of the year is what I want to do.  There are plenty of places in the world where I could spend a few months in an AirBnb, live inexpensively, and explore a different country.  Penang, Vietnam, Bali.....just a few places I could go.

It's a complicated calculus.  The longer you work, the more money you have, but the less time you have.  How many of us know people who retired and then passed away within a year?  Making the most of your time is key. 

If I had a low stress, 40 hour per week, job paying like $80k with benefits, it would be easy for me to work longer.  I'd have better work-life balance.  I could make the most of my time.  That might be the answer if I could get such a job in my early 60's.  A freelance, work from anywhere job would be great during retirement.

Some of my co-workers are talking about working to age 67 in order to get max social security.  Crazy I say.  No way will I stay working full-time until 67.

Lot's to think about.

3 comments:

  1. Rob, your absolutely right Health Insurance is outrageous in cost. Most people have their health insurance through their employer, which offers lower cost and mostly decent coverage. Occasionally, you will get lucky and get to work for a major employer who has outstanding benefits.

    People who retire and do not have a purpose to get out of bed will die quickly. Everyone needs a reason to get out of bed in the morning. As long as your enjoying yourself and have a hobby, part time job, etc. then chances are your going to be just fine.

    Medicare is not the best insurance in the world and there are lots of things that it doesn't cover and what it does cover usually isn't in full. So you will want a supplement to help pay for what medicare doesn't cover. Medicare isn't free, it's deducted from your SSI. Likewise a supplemental insurance policy won't be free either.

    There is a reason why were all told to save for retirement, it's because it's expensive to live without a job. You will still have unplanned expenses, plus have to pay for food, housing, etc. I started at a young age and had a nice nest egg. Then I lost my job in the 2008-2009 downturn in the economy. One of our cats got sick and my husband was retired at that point and going into Bankruptcy. I wound up robbing from my 401K to help us be able to live as well as to pay the large medical bills for our cat. I found myself starting over and have a small amount tucked away today. I will have to get much more aggressive in saving or there is no way I will ever be able to retire.

    There are always employers who want to hire on a part-time basis. It's better for them because they don't have to offer benefits. Once you do retire, if you want to work on a part-time basis you should have no problems finding work.

    I hope that your able to live out your dreams, have great health insurance and live a long fulfilling life! Take care.

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  2. me - age, almost 66. so far so good on medicare. eligible for SS at age 67. still working. why? cause I like it.

    and that dude was correct about having a purpose. my late MIL retired at age 60. she sat on her ass for 18 years until she died. she drove all her friends and her 2 sons away with her bitterness, and she started listening to fux news and scamvangelists.

    working keeps your brain active and alert.

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  3. I agree with AM...you need a purpose to get up. It keeps your brain going!

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