I am thinking of retiring early from State government. I can retire, however I must collect my retirement 120 days after quitting in order to receive a certain amount PLUS medical benefits. (present age 49) OR I could wait five years., then collect my retirement and let it sit there until I am 55. I would receive substantially more retirement benefits, however I would be LOSING full medical benefits for my wife and I. Which option would you pick? Abner
Hmmm. I think I'm right when I say that you can't receive Medicaid or Medicare health benefits until you're 62 so if you choose the latter plan you'd have to figure out your medical coverage during those gap years. Not doing so could potentially be devastating. Medical coverage is important. Because of my own situation I've never checked out the details of Obamacare insurance (it varies from state to state, right?) but that might e one option for you.
You should be talking to a certified financial planner (CFP). There are lots of things to consider when considering retirement. My wife and I are so glad we went the CFP route.
I agree with Ian, it is best to speak with a CFP. I'm retired military thus my wife and I get Tricare. However, we still used a CFP.
Thanks guys I will run it by my CFP. I agree with what Kizmet says about the gap though. I don't want to be stuck without health insurance. The option that pays more money seems tempting, but I would be left with no insurance until I am at least 62 or 65. Insurance for two people is really expensive, which is why the probably sweeten the pot and entice you to take more money up front. Abs
Hmm. Losing medical benefits does sound kinda harsh for someone who is barely a decade away from old age.
Look at it as a cost-benefit analysis. How much more money will you get in the option that is without health insurance? How much will it cost to buy your own health insurance? Do the math.
