Dale, my husband, will have a birthday next week; this is a big one in that he will be “Full Retirement Age” as per the Social Security Admin. I've worked the numbers several times and his net retirement income looks to be more than he nets right now. Can this be right? The answer is yes as he has many things taken out of his pay now.
This is all well and good except that we are buying back several years of work from another county and if he retires before it is bought back we must either complete the purchase on the day he retires or just take what we have already purchased, the difference of a bunch of money in his pension. Unfortunately we are not in a position to pay the remaining buy-back hence Dale must continue to work until such time we can pay off the buy-back having saved the money.
When we first signed up for the buy-back, nearly 3 years ago, we thought that Dale would just retire at the end of 2011. We didn't plan for the fact that he would net more in retirement than work, even though I worked through the numbers so carefully.
Through my investigating though I also read about the fact that Dale can take a terminal vacation (sounds horrid, like a lingering disease) then retire at the end of that vacation. Again I made spread sheets for various scenarios. We think that he can leave on vacation on Jan 3, just after the holiday pay, then retire in April sometime. If we save our money and play our cards right we might pull this off.
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