Age 64 and my job is being eliminated

[CarolineH274163]

 I was just informed my job will be ending on May 29th. I am 64 years old and am wondering if it's better to take my 12 weeks' severance and use it to try to find another full-time job, or if I'm better off taking my SSI now (knowing I'll only earn roughly $1,350 a month) and then looking for a part time job to supplement. The SSI I'd make would be roughly what one of my two monthly paychecks is, after taxes. I don't own a car but do have a bus pass I automatically put $100 on when the limit goes down to $5, right now my employer pays for my pass so that will be another expense. 

I know finding a job at my age is extremely difficult, and since my skill set is administrative assistant / receptionist / secretary, I also know AI will probably be taking over those jobs sooner rather than later. 

The good news is that my condo is completely paid off, but I have a HELOC I've taken out for $65,000 that will need to be paid in full in 15 years. My husband's finances are totally separate from mine, he's covered by both Medicare and Medicaid, plus federal retirement, so financially he's in a good place.

 I'm so confused right now -- I really wouldn't mind retiring, except I'm afraid financially I'll be in trouble.  I have money saved for retirement, but I don't think I could access it until I'm 65 if not later. Right now, I'm not factoring any of it in. I'll be 65 in late January next year and can revisit this question then. 

 Right now, I'd appreciate any advice anyone has. 

[GailL1 · Accepted solution]

@CarolineH274163 

1st let’s get the terminology straight - SSI is Supplemental Security Income = it is a charitable (welfare) payment administered by the SSA for those who do not have enough Social Security hours earned for a decent benefit and they are over the age of 65, blind or are deemed disabled by the SSA.

So it sounds like you are instead talking about Social Security RETIREMENT benefits.  

You can file for your Retirement benefits now at age 64 BUT your benefits will be reduced because you are filing for them before your Full Retirement Age (FRA) and they will stay reduced because of this.

It sounds like you know about the Annual earnings limit reductions if you EARN over a certain amount while getting benefits when less than FRA.  Also if you are gonna file for Retirement benefits now, get the severance BEFORE you file or it will count as earnings against your retirement benefits and may cause a reduction depending on the amount.  Severance is earnings.  

Being less than FRA, you can do a WITHDRAWAL of your application and your benefits within 12 months from your start date BUT when you file for the WITHDRAWAL, you have to include the amount of money that you have already been paid in these benefits and anybody that might be getting benefits from your record is also withdrawn.   You only get (1) withdrawal on your benefits so decide carefully.  If you do not send back the payments that you have already received with your Withdrawal form, then they just ignor it, so both have to be done together - withdrawal form and the paid back benefits and it all has to be done withing that 12 month period.

There is not a difference in paying for a HELOC or HEL and having a mortgage payment, they are in essence, the same thing - in fact your interest payment on the HELOC or HEL is probably higher than on a regular mortgage. It is still an expense that has to be paid - paying it off sooner rather than later (meaning paying extra principal) is best so that the line is available for any emergencies that might come up with the condo’s repair and maintenance.  Yes, you can use it for other things outside of that, it just isn’t tax deductible under the IRS rules if that is the case.

Not sure why your husband has MEDICAID along with his medicare since your were also working and he gets a federal retirement too - I assume you two live together - might want to make sure he is eligible for that MEDICAID along with his Medicare - the income limits for a Medicare Savings Program are pretty low for an single and a couple to qualify for MEDICAID.  That is all I will say on that point - just odd but few details are given.

You will have to do something about your own health insurance and that maybe an added expense until you can qualify for Medicare and then there is the Part B premium that you will have to pay (maybe) and Part D premium and copays/coinsurance and  then there is the decision of how you will pay your part of the cost that OG Medicare or a Medicare Advantage plan does not pay.  

Edited to add:  You have access to a 401K or IRA earlier than full retirement age - they are just taxed when received but without penalty if done properly.

Your FRA is 67 - that is the age when you will get your full benefit’ any earlier and it is reduced.

Remember you should be able to draw some unemployment benefits right now.

Sounds like you might need to do some added research before making the decision to file for your Social Security retirement benefits.

[CarolineH274163]

 You're right, I keep getting Retirement Benefits and SSI mixed up.

My husband qualified for Medicaid as he is disabled - he's in a care facility now so we don't live together anymore. He had a caregiver at home while I was working, but after a while it became apparent that I wasn't able to assist him like he needed -- he fell in the bathroom; I wasn't able to lift him back into his power chair nor onto the bed. 

 The more I think about it, the more I think I'm better off using my severance, PTO payout, and any unemployment I qualify for as a cushion while I look for another full-time job - whether working from home or in an office. If I haven't found anything by the end of the year, I'll revisit   takiing retirement benefits and working either full time or contract work. 

[GailL1]

@CarolineH274163 

Yes, I think that is a good plan.

Pay down that HELCO / HEL as fast as you can, you would be surprised how adding just a few hundred as you can will take off years on that debt.  

Widen your scope of job searches - your talents could easily be transferred to other jobs - remember somebody has to feed all that info into the AI brain for it to be effective whether by scanning or direct input. If you see or hear of a need, put yourself out there even if it is a very small employer that may need help with office things.  Your talents may be conducive to what staffing agencies like INDEED need too.  If you don’t mine working here and awhile then there awhile - wherever the bus / transportation will take you if you want to stay away from driving ( not having a car saves money- with gas prices and insurance rates - definitely a savings without them.

Once your employer health coverage ends - apply for coverage via your states marketplace and see what your can find for your health insurance - since you have no income then you might qualify for MAGI Medicaid if the state where you live expanded this coverage but come next year you will have to work 80 hours a month or go to school or volunteer to keep it going - other details are being worked out in the various states so stay tuned for that one - may only go up to age 64, too. 

Yea, I thought that might be the only reason why your husband had Medicaid - that is why I asked about the living together - So sorry but I am glad that he being care for now so that you don’t have that worry or expense.

Having a condo is probably good too - then from what I understand, many of the large ticket maintenace repair items are covered in your HOA fees so no $ 50 K roof jobs like I had last year - yea, I bought the best - I guess I thought I was gonna live forever and didn’t want to have to do it again in my lifetime.  It will out last me by many years. 🥴

You will be fine - just take it as it comes and watch expenses - If you start feeling down - just come there and gripe - we can take it and will understand.

Good Luck ~

[AngleS694104]

Honestly, I’d treat the 12 weeks severance like a little runway and test the waters first. A lot of places still need reliable admin people, even if it feels doom-and-gloom with AI talk right now.

[CarolineH274163]

 Between the severance, the PTO payout, and Unemployment, I think I'm ok for pretty much the rest of the year. I'm planning to take a week between my last day and the start of looking again just as a "vacation". I'm lucky I saved all the job website links I used in the past -- something like 24 links total. In the past, unemployment required me to prove I'd made at least two attempts to find a job, including sending out resumes and applying online. My weekly goal was a minimum of 10, maximum of 15 attempts, no need to push it since I wanted to leave time for interviews, etc. I still have the spreadsheet I used so I can start a new page for this new bout. Depending on how it goes, I may also do as I've done in the past and sign up with   temp agencies as well. Two of my past jobs started as temp jobs that turned into fulltime ones. None of my jobs in the past lasted longer than seven years, I was laid off from nearly all of them, let go from one when I wasn't able to keep up with increased quotas (handling phone calls while I worked from home, that one also lasted seven years). I've only quit once without having something else lined up, and that was the job before my latest one. I had to leave that one because, as my husband pointed out, "It isn't normal to be so stressed that you cry after every shift." 

 Also, luckily, my health insurance is through my husband, so I'm fully covered. I stayed with him because the insurance that was offered through my last employer was the worst I'd ever had to deal with. What I have now isn't perfect by any means, but I know how to work within the system, and my current doctor gets me.

 I've already seen a couple options that sound like exactly what I want -- front desk or administrative assistant for a small office or a small area within a large office. I just need to find something I can hold onto for three more years, or until I turn 67 (although I'd REALLY like to be able to work until I'm 70).

[GailL1]

@CarolineH274163 

Don’t forget hospitals - their hiring is booming and where there is medical staff, there is a need for clerical type help.