I’m a Gen X Retiree: 6 Things I’m Doing Financially Until I Can Receive Social Security
Written by
Laura Beck
Edited by
Jenna Klaverweiden
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Julie M. is living the dream of many. She retired pretty early at 57 after two decades in healthcare administration. Now 58, she’s navigating the challenging period between early retirement and Social Security eligibility.
Here’s how she’s making it work.
The Rule of 55 Withdrawal Strategy
For Gen Xers who retire early, accessing retirement funds without penalty can be tricky.
“I left my job at 57, which allowed me to tap into my 401(k) using the Rule of 55 without paying the 10% early withdrawal penalty,” she explained. “I worked with my financial advisor to set up systematic withdrawals that should last until I can claim Social Security at 67.”
Health Insurance Bridge Strategy
A big consideration for soon-to-be retirees is health insurance.
“The biggest challenge was healthcare coverage,” she said. “I opted for COBRA for the first 18 months since I knew my medical costs would be high that year. Now I’m on an ACA plan with decent coverage for $485 monthly, thanks to the premium tax credits.”
Part-Time Consulting Income
Julie hasn’t completely left the workforce.
“I consult about 10 hours a week from home, bringing in around $2,000 monthly,” she said. “It’s enough to cover my property taxes and utilities without touching my retirement accounts more than necessary. Plus, it keeps my mind sharp.”
Real Estate Income Stream
Smart property decisions are helping fund her pre-Social Security years as well. “When my mother moved to assisted living, I kept her house instead of selling it,” she stated. “The rental income covers her care costs, and once she passes, that $2,200 monthly rent will help bridge my income gap until Social Security kicks in.”
Strategic Roth Conversions
Julie is using these lower-income years strategically when it comes to her retirement accounts. “I’m gradually converting portions of my traditional IRA to a Roth while I’m in a lower tax bracket,” she explained. “Yes, I pay taxes now, but this will reduce my required minimum distributions later and give me more tax-free income options in my 70s.”
Living Location Arbitrage
One of her smartest moves was geographic.
“I sold my house in Connecticut and bought a smaller place in North Carolina near my parents,” she said. “I want to spend their remaining years with them and honestly, the cost of living difference means my retirement dollars stretch about 30% further. Sometimes I miss the convenience and excitement of living near NYC, but my bank account doesn’t.”
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