I worked for my company for more than 10 years and planned to stay until retiring.
I thought that wouldnt happen for another four or five years.
Ive been collecting unemployment and applying for jobs.
But the jobs havent materialized, and I know the unemployment will eventually come to an end.
Im considering throwing in the towel, retiring and collecting Social Security.
My retirement savings in my 401(k) and Roth IRA are modest.
I was counting on having a few more years of letting that money compound.
Theres no one elses income to fall back on.
I could make things work with my retirement savings and Social Security, but things would be tight.
Should I start collecting Social Security now or hope for a miracle in this terrible job market?
-Ready to Retire Already
Dear Ready,
Youve been job hunting for four months in a pandemic.
Your retirement plans have been interrupted.
Like millions of Americans, youre stressed about the $600-a-week federal unemployment bonus nearing its expiration.
Youre looking at two big decisions right now:taking Social Security earlyand leaving the workforce early.
Retiring now presents a double whammy.
Life-altering decisions are best avoided when youre under extreme duress.
No Interest Til Almost 2027?
But in the more realistic scenario that this isnt possible?
You have my blessing to withdraw what you should probably survive the next few months from your retirement account.
We often tell someone whos newly laid off that finding work is their new full-time job.
But even during good times, job hunts usually involve a lot of rejection.
Remember: You have a stable work history.
Your skills didnt suddenly lose their value when the pandemic arrived.
Focus on keeping your options open for now, knowing that these awful times will eventually pass.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
