I turned 66 years of age Sept. 8, which means were I still working, I’d have two more months on the job before I could retire with full Social Security benefits.
But I beat the system, having retired from my full-time, year-round career in journalism in March 2009, at the ripe old age of 53 years and six months.
My secret was treating my working career as indentured servitude, saving money to buy my freedom. I didn’t buy a house I could barely afford, or drive new cars every two years. I didn’t vacation in Vail in the winter and the Bahamas in the summer.
But our family also didn’t live like paupers and my son attended a semi-expensive private liberal arts college. We’ve been to Disney World and the seashore. We just didn’t light cigars with $20 bills.
My wife also worked when our son was young and, later, when he was in college. This allowed me to buy my freedom early. I try to encourage others to follow the model, but few are willing to do so. They have been conditioned to borrow, borrow, borrow and worry about tomorrow down the line.
Too many also buy into the propaganda being dispensed by so-called experts that you need millions of dollars to retire early, or else face destitution before you die. Those accepting that are prepared to die on the job.
There also is the matter of the garbage being spewed by the Social Security Administration, pointing out how much larger your monthly payments will be if you work until full retirement, or even beyond to age 70.
I took my reduced Social Security benefits at age 62, along with my pensions, for several reasons. Begin with the fact that the purchasing power of our dollars declines with time and that rate of decline is about to speed up as it does when inflation is high. And our inflation rate is climbing.
There also is the basic math that by retiring four years and two months earlier than full retirement age, and assuming I live a normal life expectancy of 78 years and change, I have collected monthly benefits for an additional 48 months over someone who retired on time.
Even Social Security admits that this is a long-term wash – you make approximately the same in benefit payments either way, assuming an average life expectancy. But, and it’s a big but, how many people are as healthy and vital at 66-plus years, or 70, as they were at 62? Not many that I know.
In my case, and perhaps yours if you bothered to look at it, your pensions likely are underfunded. I receive annual notices reminding me of the pathetic standing of my pensions. Forget the Pension Benefit Guaranty Corporation, which people think will save their pensions.
Local residents will know that was ineffective when Bethlehem Steel reneged on its pension promises. The secret is to be a pensioner of a public pension plan for governmental employees, or teachers, or postal employees.
In those cases, the federal government will ride to the rescue, creating money and raising taxes.
Private pensions are unlikely to get such bailouts.
And what of Social Security? Recent reports indicate full benefits will only be paid through 2033 if some action is not taken either to increase funding, or decrease payments to beneficiaries.
Once again, if you wait, you take your chances.
You might get less. Or, even if you do get what you expect, inflation might mean that you need the entire monthly payment to buy a loaf of bread and some meat to put between the slices.
My birthday present to you is advice to start saving money – the old pay-yourself-first philosophy. Cutting out a $5 cup of coffee a day or a pack of cancer sticks, AKA cigarettes, can make a big difference over time.
Your reward could be some extra leisure years in your old age. The decision is yours, but the earlier you start, the bigger the reward.
Sam Ross Jr's site 