Short Term Disability at 60

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Bassman
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Short Term Disability at 60

Post by Bassman »

I am 60 years old, turning 61 in March. My plan is to retire between 65 and 67. I do not have short term disability through work. I do have enough cash to last 5 months without pay. Do I need short term disability insurance? I googled, do i need short term disability at 60, but get mixed answers.
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cheese_breath
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Re: Short Term Disability at 60

Post by cheese_breath »

How do you plan to support yourself more than 5 months if you become disabled? Do you have a family depending on your income?
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SpaghettiMonster
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Re: Short Term Disability at 60

Post by SpaghettiMonster »

Do you have long term disability? If yes, then I’d say skip the short term if you have enough money to cover your expenses for the elimination period.

If you don’t have long term disability, then you could be in trouble if you’re disabled and your 5 months of reserve runs out.
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JoeRetire
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Re: Short Term Disability at 60

Post by JoeRetire »

Bassman wrote: Tue Jan 12, 2021 8:28 am I am 60 years old, turning 61 in March. My plan is to retire between 65 and 67. I do not have short term disability through work.
You don't have it because it isn't available through your employer? Or because you choose not to purchase any?
I do have enough cash to last 5 months without pay. Do I need short term disability insurance? I googled, do i need short term disability at 60, but get mixed answers.
If you are working, and you/others are depending on your income, you need disability insurance. Sounds like you are choosing to self-insure and that might mean you are under-insured. What happens if your disability lasts longer than 5 months? What will you do then? Do you have long-term disability insurance?
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Small Savanna
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Re: Short Term Disability at 60

Post by Small Savanna »

You're planning to retire in 5 to 7 years, but if you had to retire unexpectedly this year, could you? If you could, then you can probably risk going without disability insurance. I'm 60 and thinking of dropping mine; I haven't set a retirement date, but can retire any day I get tired of working.
SpaghettiMonster
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Re: Short Term Disability at 60

Post by SpaghettiMonster »

Small Savanna wrote: Tue Jan 12, 2021 9:58 am You're planning to retire in 5 to 7 years, but if you had to retire unexpectedly this year, could you? If you could, then you can probably risk going without disability insurance. I'm 60 and thinking of dropping mine; I haven't set a retirement date, but can retire any day I get tired of working.
To add to that, if you had to retire unexpectedly this year with the possible added expenses of the disability, could you? Depending on what has disabled you, some expenses may go down while others may increase.
BogleMelon
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Re: Short Term Disability at 60

Post by BogleMelon »

cheese_breath wrote: Tue Jan 12, 2021 9:41 am How do you plan to support yourself more than 5 months if you become disabled? Do you have a family depending on your income?
Isn't short term disability is as short as 6 months anyways?
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BruDude
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Re: Short Term Disability at 60

Post by BruDude »

Mutual of Omaha is the only company that sells a true short term disability policy on the individual market. It is very expensive with very limited benefits. Not worth it IMO.
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Bassman
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Re: Short Term Disability at 60

Post by Bassman »

My current job does not offer short term disability, so I would have to purchase it on my own. In 14 months I could retire and collect social security. I would need to move to an area with a lower cost of living if that was the goal. But I could sell my coop and have some money. So, if I needed to stop working at 62, I could do it. I currently live in NYC and have a coop that I could sell and still have money to move. I am single and have no dependents.
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cheese_breath
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Re: Short Term Disability at 60

Post by cheese_breath »

How's the market for coops there? Could you sell it within five months?
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JoeRetire
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Re: Short Term Disability at 60

Post by JoeRetire »

Bassman wrote: Wed Jan 13, 2021 9:13 am My current job does not offer short term disability, so I would have to purchase it on my own. In 14 months I could retire and collect social security. I would need to move to an area with a lower cost of living if that was the goal. But I could sell my coop and have some money. So, if I needed to stop working at 62, I could do it. I currently live in NYC and have a coop that I could sell and still have money to move. I am single and have no dependents.
So it all boils down to how lucky you feel.

You can skip paying for insurance, at the risk of stopping work before you want to, moving, and collecting a reduced social security benefit for the rest of your life.

I'm assuming you haven't had short term disability insurance before. What prompts the question now?
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Topic Author
Bassman
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Re: Short Term Disability at 60

Post by Bassman »

The coop market is good in my area. So I think I could sell it if things got really bad in my life.

Basically what prompted it was me looking at my overall personal finance and looking at various guides as to what I may need. I did have it at my previous job a few years ago.

To be clear, I have no desire to stop working right now. My real goal is to switch jobs and make more money so that I can invest more and retire comfortably when I desire to. If I like working and am healthy, I'll work longer. If I don't make more money and am sick of working, I'll retire and practice music.
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