A huge decision and I’m terrified

A huge decision and I’m terrified. Over the last few weeks I have been leaning towards taking a disability retirement. The thought of having to rely on Social Security disability a small pension end a small monthly interest payment from my retirement savings absolutely terrifies me. I’ve done the math over and over so many times that I’m sure Mandy is tired of hearing about it. I honestly think we will do all right. Still, inflation could make that a lot more difficult in the long run. For the first 2 1/2 yeats because I have a supplemental long-term disability insurance policy we will be hundreds of dollars ahead every month and I think we will do fine there after but it is the unknown that is making me crazy right now. Another thing I have in my corner is that my wife has a very good job with benefits. I know I should probably just trust God and believe that everything‘s going to be OK but my mind doesn’t work that way. I have a very hard time shutting it down. What opinions and advice does the group have for me. Todd

Good advice for sure. Maybe they will reach out to me

Billybob,
Although cancer has been kept at bay due to bone metastasis I am not a good candidate for joint replacement. I have already had knee and shoulder surgery and my job is breaking me down. It’s just time.

Todd1963 said...
Billybob,
Although cancer has been kept at bay due to bone metastasis I am not a good candidate for joint replacement. I have already had knee and shoulder surgery and my job is breaking me down. It’s just time.

I see. Thanks for the clarification. If it's time, it's time. May you e able to come to a firm decision that leaves you at peace!

I had "Planned" on working till I was 68. Got laid off at 62 after 16 years on the same job...

I lived off unemployment and savings for a year.... Was going to wait as long as possible to claim SS.

When I re-did the math I came up with "why suck my savings dry NOW when I can get the SS check?" The bigger my saving is, the better I sleep.

Morning Jack,
Thanks for the advice. My employer sponsored short term disability lan only lasts 6 months. I have a supplemental similar to AFLAC that provides an additional 2 years of coverage. It will be reduced by the amount of social security I recieve

Retirement is always frightening. No matter your calculations, a person always has lingering fears they will run out of money. The foreseeable change(s) in economic policies (given the incoming presidential administration) can add to preexisting fears and uncertainty.

Another Brother opined you should see a tax planner. I concur. Tax planners and retirement counselors can advise you and help allay/minimize anxieties.

I have retired four times since 2003; it never seems to stick and I go back to work. My biggest "haul" came from my 2003 NYC pension. I could have taken a "death gamble" whereby my wife would received full benefits; the trade-off being that my monthly pension check would be less. After consulting with a reputable planner, we decided to protect her via my taking out a life insurance policy equal to seven years of my pension.

Take your time and choose wisely.

Godspeed.

NJ Fred

Brother Todd, my very good friend. As Elmer Fudd famously said....”be caweful....be vewy vewy caweful”. I want you to take the following very seriously and understand there are no do-overs with what you are thinking about.

First, SSDI is not an automatic for you. The Compassionate Determination process applies to getting you to the front of the line, but you still have to prove you are too disabled to do any kind of work. And you can’t apply while you are working. Same applies to your employer sponsored disability and individual owned disability. Read the definitions of disability and understand they will be very tight to follow them. They don’t like paying claims, remember. You just can’t pronounce yourself to be disabled and expect the benefits.

Start developing a strategy that you are sure will work and pursue it before you stop working. If you really are hurting why are you going to work every day? Unless there is a sudden thing like a heart attack or accident, most people have a history of missing a lot of work and seeing a lot of doctors about the condition and the employer finally says to the worker “you must really be disabled, let’s get the paperwork going”.

2. If you are too disabled to work then you are too disabled to play. Many people have had benefits rescinded and even sued for return of benefits when it is learned they weren’t really disabled in accordance with the agreement or law. SSDI will require you to regularly re-certify your disability until your age of nearly 67 (Full Retirement Age). After which you go on Social Security Retirement. Your disability insurance may do the same during the term of benefits. If you are receiving disability benefits and on Facebook you are hunting and fishing and skiing and snowmobiling up Mt. St. Helens what is to keep an investigator from seeing the posts? Insurance companies, employers and social security can and do use social media. You may want to be posting your limping and bedridden status rather than jumping a wake.....just sayin.

3. Spend a few dollars and meet with a very good disability specialist attorney for an assessment and legal and practical advice and direction. Learn the pitfalls and the requirements before you make a move.

All the best,

Jack

Try a "fund me"

Thank you . I have already met all the requirements . H.R. has signed off. I am good to go whenever I choose to go. It is my decision. I have spoken to Social Security at length. I am stage 4 and have failed primary therapy. I qualify. My knees are shot and knee replacement is a long shot at best. I qualify That is really not my concern. That is not even the point of this thread. I am not worried about today or even tomorrow. 5 years down the road or 10 years down the road yes that is what I am concerned about. I am definitely not worried about short term financials but advice on how to approach health care and Medicare and all the other things that go along with it. I have been trying to do this the smart way for the
Last 5 years. Have I missed anything. Is there a way to recieve 5% R.O.N.A. To boost my monthly income. Stuff like that. My hopes would be that some of you older and wiser gents might share your thoughts.

Just wanted to make sure you had all your ducks in a proper row. Go for it. Make it work and have as much fun as possible.

Todd, if you can make it work, you should do it. Better to go onto disability retirement than to lose the job and lose that benefit as well. I did it and don't regret one moment. It does take a while to wrap the no job thing around your head though. Once you get over it, you will find more time for what you really enjoy. Or, you might discover new things that you love. Any way, hope you find what is right for you.

Todd -

Getting back to the emotions associated with retiring, or planning for it, and being terrified and all, there is a theory that the process involves consistent, describable stages of emotions, that most people go through, in a way similar to those we have been told exist for dieing.

With death we're told the stages are: denial, anger, bargaining, depression, and acceptance.

According to the article below, there are comparable stages for retiring: planning, excitement, honeymoon, disenchantment, reorientation and stability.

Whether these categories relating to retirement are accepted psychological theory, or merely someone's notions, I can't say, but they're one take on the series of feelings people probably get when facing such a big change as retirement. Maybe worth a read:

https://www.actsretirement.org/latest-retirement-news/blog/2019/5/23/the-emotional-stages-of-retirement/#:~:text=the%20emotional%20stages%20of%20retirement.%201%20stage%201%3a,5%20stage%205%3a%20reorientation%20%26%20stability.%20more%20items

But one thing here is for sure. You are going about this very carefully, doing all the research you need to be doing, and the likely result is that you will have finally chartered a course that will serve you well.

Plus a number of us here are either already retired or, like you, are on the verge of it, so it is also very likely you'll be getting some very good advice here.

Best of luck, and I've got a feeling it will all work out well for you!