By a subscriber request, yesterday I did a video on what happens to your Social Security when you retire at 60. https://youtu.be/x2siQPG1d9c
That video got me thinking…a lot actually. In fact, I woke up at 4:30 with numbers crunching in my head. Yes, I’m an odd bird indeed.
But yesterday’s video was huge for me. Because it showed me proof that working an extra few years in some crappy old job you hate simply is not worth it, at least when it comes to the extra benefits you’ll get from Social Security.
In fact, what I showed is that if you work an extra 5 years or so, you’ll get an extra $500 a month in benefits. Which may sound nice. But when you think about it like this a full job, 40 hour work week, equals 2080 hours of labor a year.
Thus to work an extra 12,000 hours for an additional $6,000 year of benefits, just doesn’t seem like a good tradeoff to me.
In pure numbers way you live 20 years in retirement. Because you worked that extra 6 years you were able to capture an extra $6k a year in Social Security benefits. $6k a year times 20 years = $120,000,
$120k is the extra amount you’ll gain from Social Security for working an extra 12,480 hours.
If we divide $120,000 by 12,480 hours we get an hourly wage of $9.61. And that doesn’t even include the time spent commuting getting up in the morning etc.
Is it worth it? Especially at a job you hate??? I don’t see it.
So, I crunched the numbers for someone thinking the same at 55. Again, I just don’t see it.
Now, if you like your job, hey, more power to you.
Or if you have debt and need the cash, you probably need to stay put and not go raise chickens full time in the backyard.
But the amazing thing about having no debt is that if you can’t stand what you’re doing for work… QUIT!!! Do something you love.
You’ll be happier, more productive and maybe, just maybe you’ll make more income. I don’t know about the last part, but if you’re just staying on for Social Security money in the future, this video will show you why that’s a huge mistake.