Retirement Timing
Hi Terry, I enjoy listening to you on WGN radio. My question is related to retirement timing. I am 67 years old and work for a major telecom corporation with over 40 years of service. I carry a pension and 401K as well as outside investments in stock and bonds, which has decreased in the past several months. I am considering retiring this year as I notice the interest rates continuing to rise which would affect my pension If I choose a lump sum payout next year. With inflation continuing to rise and the possibility a recession looming, would it be wise to retire this year or wait another year or so and continue to work. If I retire this year I would also get the COLA raise with my social security next year. What would you suggest for folks considering retirement in this turbulent financial time? Thanks
Terry Says
I would STRONGLY suggest that you keep on working as long as they will have you! Inflation — if it continues — will decimate the value of your monthly pension. You should let it grow as long as possible inside the plan. AND you should try to wait until age 70 to take SS. Your base payment will rise by 8% a year — and the new inflation numbers will be figured into that. And you’ll have your paycheck as well.
You may not have a choice if there’s a recession, and companies start making layoffs. Just go to work and smile and act like you’re there forever! (You can always change your mind if circumstances dictate.) Unless you have another important reason to retire — like health issues — please stick with your job, year by year!
Also, use this link to get set up with a fiduciary financial planner you can trust. Even a few meetings will show you what you might be missing — long term care insurance?, and estate plan??
