Your Retirement Age

[Parasaurolophus]

Unless I move to better pastures, it's mid-70s at the earliest.

[Morden]

It seems like Americans retire later--perhaps because of medical insurance coverage. I would get my full pension at age 58, but don't think I will stay that long.

[arcturus]

When I was young, I thought I would work forever, since I could not see any reason to quit.

Now, I am fully cognizant that in 2027 I will be eligible for retirement benefits (access to health insurance being the prime benefit) at my current university and that same year marks the year in which I will have completed 35 years of SS-eligible pay with at least $1k of income (oh, those years of only working during the summers...). I have sufficient savings that I can retire at any time, but hope to make it at least 6 more years to increase the base level of social security (increasing at about 1.5% per year, as I fill in those years of $0 income) and to have access to the university retirement benefits. I'll have to see how things look at that point - I have witnessed deadwood professors in my department and I don't know if I would be willing to join their cadre just to keep pulling in a paycheck.

[mamselle]

But you, being you, will probably keep the parenchymal juices flowing....

M.

[Juvenal]

I have been adjuncting one course (fall semesters) since I retired at ca. seventy.  Health problems ("not single spies, but in battalions") this fall have convinced me that at seventy-seven it was time to say farewell.  I had my course taken over and I have graded my very last exams.  I gave the class an extra five points on the last exam as a token of thanks for--well, for being the "last."

[mamselle]

Poignant....

But keep posting here!

M.

[Pomegranate]

I have been adjuncting one course (fall semesters) since I retired at ca. seventy.  Health problems ("not single spies, but in battalions") this fall have convinced me that at seventy-seven it was time to say farewell.  I had my course taken over and I have graded my very last exams.  I gave the class an extra five points on the last exam as a token of thanks for--well, for being the "last."

I feel, I will likely leave in this way, going for it until whenever my health doesn't allow me to. Do you know whether you will continue to live where your university is located? Or do you have plans to move? I know, those who retire by 65 or earlier usually have plans to relocate, but how about those of us who like to stay as long as possible?

[mleok]

Among the checks and balances would be the Defined Benefit Retirement plans (the traditional pension).  Once one maxes out on the time function of the benefit, the only way to get more retirement dollars is to increase the salary component.  However, eventually, hopefully anyway, one realizes that they are only actually working for a small percentage of the salary and the non salary benefits.  Those non salary benefits may be outweighed by the idiocy of admincritters!

For instance, IF one has maxed out the time at say 30 years, and the formula is as low as 2% times years of service times average high year salary....(Sometimes LAST 5 year salary).  Under this formula (which is likely on the low side of benefits) the retirement benefit would be 60% of salary.  Working only gathers 40% more.  The question then becomes, IS putting up with those Admincritters worth the extra 40%? 

Also, the 40% is a theoretical cap.  Remember that IF you work, you pay for social security taxes on ALL of your wages, while you are working you will be contributing to retirement (even though your benefit will be maxed, or nearly so).  Using my own deductions, working would mean that I am paying 7.6% in social security type taxes, 6.6% in retirement, and almost $50 for parking just for the opportunity of NOT retiring.  So now you are working for about (40-15)% of salary and that is before paying your marginal income tax on the additional earnings, dropping the value further!  Finally, there are the other expenses of work clothes, special cleaning that is required, and the opportunity costs that working creates. 

That's a good point, I currently contribute 8% to my pension, and social security tax, and I accrue 2.5% per year of service, so I only need to serve 35 years in order to match my take home salary in pension payments, and by that measure I can max out at age 69. It's possible to game the system by accepting a mid level administrative appointment just prior to retirement, which would increase the pensionable income basis from a 9 month academic year appointment to a 12 month calendar appointment.

[Juvenal]

I have been adjuncting one course (fall semesters) since I retired at ca. seventy.  Health problems ("not single spies, but in battalions") this fall have convinced me that at seventy-seven it was time to say farewell.  I had my course taken over and I have graded my very last exams.  I gave the class an extra five points on the last exam as a token of thanks for--well, for being the "last."

I feel, I will likely leave in this way, going for it until whenever my health doesn't allow me to. Do you know whether you will continue to live where your university is located? Or do you have plans to move? I know, those who retire by 65 or earlier usually have plans to relocate, but how about those of us who like to stay as long as possible?

No plans to move.  Decades of "stuff," and far too many books, makes the thought of re-locating moot.  Anyway, I'm surrounded by physicians (but try to get an appointment).  I will surely leave the current "just adequate" home feet first.

[secundem_artem]

Got my Medicare card in the mail today.  Hoping to retire at age 70.  That said, I want to be gone at least 1 year before somebody says, "Somebody really needs to talk to that guy." 

[aside]

Nearly two years ago I posted 71 on the high end, 68 on the low end.  That will not change due to financial considerations, yet the pandemic and the administrative nonsense that takes up much of my time make me wish it could be sooner.

I don't plan to truly retire, but I do plan to end my outside employment. I will remain active in research and creative activities, yet do so on my own schedule.  Working from home last year has taught me that I need not fear retirement.  I will never be bored.

[clean]

Quote from: clean on November 14, 2021, 12:31:14 PM
Among the checks and balances would be the Defined Benefit Retirement plans (the traditional pension).  Once one maxes out on the time function of the benefit, the only way to get more retirement dollars is to increase the salary component.  However, eventually, hopefully anyway, one realizes that they are only actually working for a small percentage of the salary and the non salary benefits.  Those non salary benefits may be outweighed by the idiocy of admincritters!

For instance, IF one has maxed out the time at say 30 years, and the formula is as low as 2% times years of service times average high year salary....(Sometimes LAST 5 year salary).  Under this formula (which is likely on the low side of benefits) the retirement benefit would be 60% of salary.  Working only gathers 40% more.  The question then becomes, IS putting up with those Admincritters worth the extra 40%?

Also, the 40% is a theoretical cap.  Remember that IF you work, you pay for social security taxes on ALL of your wages, while you are working you will be contributing to retirement (even though your benefit will be maxed, or nearly so).  Using my own deductions, working would mean that I am paying 7.6% in social security type taxes, 6.6% in retirement, and almost $50 for parking just for the opportunity of NOT retiring.  So now you are working for about (40-15)% of salary and that is before paying your marginal income tax on the additional earnings, dropping the value further!  Finally, there are the other expenses of work clothes, special cleaning that is required, and the opportunity costs that working creates.

That's a good point, I currently contribute 8% to my pension, and social security tax, and I accrue 2.5% per year of service, so I only need to serve 35 years in order to match my take home salary in pension payments, and by that measure I can max out at age 69. It's possible to game the system by accepting a mid level administrative appointment just prior to retirement, which would increase the pensionable income basis from a 9 month academic year appointment to a 12 month calendar appointment.

Check the rules... some places will count your summer pay as well, not just your 9 month salary, so some on the Pension Plan work the last several summers to bump their pay.  Also, check to see if there is a maximum number of years credit that you can apply.  In other words, some places will not let you earn too much (ie replace your full wages... in other words, some places limit you to 30 years work credit TIMEs the % for each year worked)

[Morden]

In our defined benefit plan, the amount you can receive increases for years served up to 35. I don't know if people who serve longer have to still pay into the plan.

[Cheerful]

Working from home last year has taught me that I need not fear retirement.  I will never be bored.

Nice insight.  Such a realization sounds reassuring and positive.

[Volhiker78]

This thread prompted me to email my director that I'll be fully retired in 3 years (Age 68).  The last year I'll only work on the last grant that I am a co-investigator on so essentially done end of next year.   I'm not too worried about being bored.  I have some things I'd like to do  in terms of adult learning and volunteer work.  There is also a very good chance of another move on the horizon.  One thing I have noticed since the Pandemic is that my energy level isn't what it was in my 50'x.   Hopefully,  the energy level won't go totally to zero anytime soon!