My Late-Life Transition and Plan to Delay Social Security
After more than four decades of working – as a rookie reporter in Chicago, then Dallas and Boston, and finally 13-plus years writing this blog at Boston College – I have decided to dramatically reduce my hours of work.
I need more time for myself when I’m not taking care of my 88-year-old mother, who moved from Florida to an assisted living facility nearby. But I am not going cold turkey into retirement, and that is the point. I will continue this blog but will write less.
The financial and emotional issues I wrestled with in reaching this decision are no different than what many of my baby boomer readers are dealing with as they think about whether and when to wind down.
First, the financial. I turned 67 in June and have passed my full retirement age under Social Security’s rules. This entitles me to my full benefit but my monthly check has increased every year that I’ve waited and will continue to grow.
Still, it was eye-opening to see that my check would be about 30 percent larger if I can hold out to 70. Let me repeat that: 30 percent more every month for as long as I am breathing.
I urge older workers to take 10 minutes to investigate what this means for you. Set up a personal MySocialSecurity account online. It will have a chart showing the hefty increases in your monthly benefits if you delay until 67, 68, 69, 70. The estimates are pretty accurate, because they are based on your actual earnings. The chart also shows the big hit from signing up early.
My husband and I would’ve managed financially if I was retiring cold turkey now and waiting for Social Security. But it would’ve required sacrifice. We’re not getting any younger, and we’d rather not lower our fairly comfortable standard of living.
Of course, not everyone can or wants to delay. As my readers have pointed out, it is extremely difficult for people worn down by years of working in physically demanding jobs to keep going well into their 60s. Some of these workers are in my family, and they really struggle.
At the other extreme, there are boomers and probably some older members of Gen-X who can afford to retire and are eager to. Not everyone’s employer would go along with my strategy either. I am lucky in that respect.
The emotional aspect of retiring is just as important as the financial considerations. I had hoped to have a well-honed plan to remain productive as I age. Unfortunately, the demands of caring for my elderly mother dashed that plan. It is common for women to drop out of the labor force to take care of a parent or spouse. I now understand why.
But I also can’t imagine going from my current, frazzled state to having loads of free time. Working less is a happy compromise. Although experts say boomers should have a plan for retirement before they make the move, my many retired friends assure me that this dramatic life change has to unfold – and it will. In time, I will figure out what my new life will look like.
This stage of my life is going to be, well, different. How did I ever get this old?
Squared Away writer Kim Blanton invites you to follow us @SquaredAwayBC on X, formerly known as Twitter. To stay current on our blog, join our free email list. You’ll receive just one email each week – with links to the two new posts for that week – when you sign up here. This blog is supported by the Center for Retirement Research at Boston College.
Comments are closed.
Kimberly,
I have always enjoyed your blogs and look forward to continuing read them, if only on a less frequent basis as you ease into phased retirement. This has been my first year of winding down and I have thoroughly enjoyed giving up the regular writing deadlines that dictated my professional life for more than 40 years. I continue to offer in-person and online webinars on Social Security and Medicare to financial professionals and their clients, but on a more relaxed schedule than in the past. I’ve given myself permission to discover a new pace in retirement, playing more Pickleball, exercising more and saying “yes” to impromptu invitations to lunch or a museum outing. Good luck with your next chapter.
Thanks, Kim. I enjoy reading your work and find all of the content on CRR@BC very helpful and informative. Best of luck with your pending transition!
The lower payment you’d be receiving now until you finally do take it. That’s a lot of money you don’t ever get. Then you get a higher payment. Is the difference going to ever make up for the years you didn’t take?
Congratulations. I have been a fan reading your column for years. It is terrific. Enjoy your leisure. I took Social Security at 70, retiring slowly over the last three years. I still feel a little guilty when I get up in the morning, drink some coffee and read the NYTimes, WSJ and WashPost with no requirement to do much of anything else. It is luxury.
When-to-claim strategies are super confusing especially when, according to Social Security, there are between 6,000 to 9,000+ claiming age combinations. My wife and I were planning on waiting until 70, but in researching our personal data and breakeven point, decided to claim at 67.
Kim, the best to you on your new direction — it sounds like a wise one! I’m glad you’re continuing to work on this enlightening blog. Yes, there are times when we all have to allow life to “unfold.”
How did we get this old? I can still picture the house at 824 University and “walking” somehow, home from Nicks. Good luck!
Beautiful insights and refreshing transparency!!
Kimberly,
Press on!
You’ve “done” good. You will be missed.
Hope you figure out how to contribute your smarts on a part-time basis.
Sincerely, Ted Leber
What would the calculus be if you had been born when your mother was 40 and you were now 48.
Congratulations and welcome to retirement. I highly recommend it. Many years ago there was a tv commercial for an insurance company that informed the viewers: Failure to plan is planning to fail. For some reason it struck a chord and made an indelible impression on me. Now some 35 years later I’m glad it did. Thank you for your blogging information.
I appreciate these blog entries – Kimberly, you’ve done a great job, and I hope you continue!
Kim. I appreciated your comments on waiting later in receiving social security benefits.
Just wanted to point out that there is a loss of dollars that you would have received, that must be taken into any consideration when you’re making the decision
It’s time to slow down and be there for you mother. I’m wishing all the best.
Hi Kim,
I train public employees on their retirement benefits in Washington state. When asked, “What else should I be looking at?” I recommend that pre-retirees develop a transition plan for early retirement. (Not just an idea but a who-what-where- when plan.) I suggest that they consider ways that can stay physically active, socially engaged and mentally stimulated. I encourage them to adopt or maintain a few activities now that will keep them moving, connecting, and pro-actively thinking in early retirement. These activities won’t eat up all their free time. They don’t have to be what retirees plan to do with the rest of their life. But having a few activities on the calendar will keep a retired body in motion. Because a body in motion stays in motion, a transition plan can prevent a retiree from the rapid downward cycle that we all hear about. The activities can and will change. But having an engagement to look forward to on the calendar gives you a reason to get out of bed in the morning and could help in the cultivation of a meaningful and enjoyable next act.
What a wonderful collection of advice, kind thoughts and words of wisdom from my readers. The blog will continue and I sincerely want to thank you for reading!
I’ve always enjoyed your blog and I’m glad you’ll still be writing. As others have said, keeping in mind that waiting until 70 leaves a lot of money on the table, you can always opt to take your benefit at any time between now and then, should you change your mind. Whatever you choose, best wishes to you in your next chapter.