Deciding when to retire is a life altering decision with many items to consider.
Financial security is a large part of the decision.
Are you Social Security eligible?
- Under the federal Social Security System, you can retire at age 62, however, there are financial reductions if you retire before your specific “age of retirement.” The “age of retirement” for federal Social Security is based on your birthdate.
- If you retire before your “age of retirement” there is an amount of earnings you are allowed before it impacts your Social Security.
- The federal Social Security Administration can provide you with the information specific to you.
Are you Medicare eligible?
- Most individuals are required to enroll in Medicare at age 65.
- If you are receiving Social Security benefits, the cost of Medicare Part B will be deducted from your Social Security benefit.
- If you do not receive Social Security or you do not receive enough Social Security benefit to cover the cost of Medicare, you will be billed for Medicare Part B. Some retirees are bills quarterly and some monthly.
- If you are not Medicare eligible or not of age to receive Medicare, what is the cost of health care coverage? Your health care coverage may be through your former employer or you may need to enroll in a health care plan through the market.
What will be your MainePERS pension?
- Your MainePERS pension is determined by your years of service, the average of your highest three years of earnings and your age.
- MainePERS has different percentage reductions in your benefit if you have not reached the retirement age of your plan.
- You can contact MainePERS for your specific information and estimated benefit amounts.