Retirement Planning

Please approach this very thoughtfully and carefully - finding an expert would really be a good idea!

For starters: the earlier you start to draw social security, the smaller the payment - and it doesn't catch up later! Looking at my own statement (I'm 64) it will go up by at least $100  a month until I'm 70. If I start drawing now, I would get $700 less per month than if I I wait until I'm 70. Maybe that would be worth it for you - I can't say - but finding a financial planner is a really good idea. Perhaps your 401K administrator has some services to offer you.

Sorry to hear about your forced retirement! While everyone's situation is different, it's generally recommended to wait until full retirement age of 67 before accessing Social Security. Initiating at 62 can result in the loss of thousands of dollars per year in benefits.

You may want to consider consulting with a financial planner. My partner and I have worked  with Cheryl at Balance Financial Planning. She is super reasonably priced and an honest human. Hope this helps!

Are you contemplating "forced retirement" because of medical issues?

If not, my advice would be to not start drawing Social Security for as long as you can possibly wait, or until age 67, whichever comes first.  

There are "Now Hiring" signs up all over town.

I am now 73; I retired at 65 and wish I could have stuck it out s bit longer in order to receive a higher retirement income. I have a friend who was in your position. She took Social Security at age 62 and does not benefit from cost-of-living increases as much as she would have if she had waited until age 85 or older. She's always complaining about how poor she is. 

In terms of housing, the downside of owning a townhouse/condo is the unpredictable HOA dues and sudden assessments for things like roof repairs.  But unless you are lucky enough to be able to share a single family residence with a compatible housemate, all the "affordable units" in new, dense, highrise buildings have the same downside.

Are you affiliated with UCB? Can you check the housing office?

Would it be worth getting a housemate and keep your existing townhome?  Could you take in visiting faculty or postdocs who change from year to year?

Wishing you all the best with a difficult situation.

This is a very complicated set of questions, and I really think you should be getting advice from professionals.  That said, I will chime in on one aspect of your post.  

"I am also wondering if it is better to just take my social security now (I am 62) or wait (but I would be living on withdrawals from my 401K)."  I recommend that you look at what your annual benefits would be at each age from 62 to 70.  The benefits go up each year, but you have forgone the prior year[s].  How long would it take you to recoup the unclaimed benefits solely because of that increase?  That was the critical question for me, and the tipping point point turned out to be around age 68/69.  I ran it by my older brother [a long-time actuary for the state of New Jersey insurance department], and he agreed.  But every case is different.  

Can you make do for a period of time on 401(k) withdrawals?  Would that exhaust your assets?  Would you later be able to live on the increased Social Security benefits alone?  How much could you expect to gain from selling your townhouse?  Is that really a necessary step versus, say, a reverse mortgage.  These are the questions you need to ask yourself -- and preferably ask an experienced financial advisor.  A good place to start might be the North Senior Berkeley Center.  https://berkeleyca.gov/community-recreation/seniors  They may or may not offer this service themselves, but I would be very surprised if they did not at least have places to refer you to.
  
Best of luck

Hi, I have been contemplating similar issues for a while now. 
 As far as housing, you might try looking for an detached auxiliary dwelling unit (ADU) in a neighborhood that you feel safe. 

 as far as Social Security, the website has some good tools to see how your payments will increase over time, depending upon when you take it. 
 You should at least wait till 100% full retirement age if you; you can also figure that out online based on your birthdate, if you don’t know it already . 
If you wait till full retirement age, you can work part time and also receive Social Security. 
 I went to the Social Security office and requested a phone call at a later date. A retirement specialist called yesterday and it was very useful. 
 particularly as I have ex-spousal benefits. 

Finally, I hired a financial planning specialist to discuss retirement Planning.  If you happen to have money in any of the big financial institutions like Fidelity, you may be able to get that service free.

Good luck, it’s not easy out here in the desirable Bay Area! But I do believe solutions are to be found and hopefully there will be more and more….

Sue

You got a lot of good advice related to social security and seeing a professional.  I will add that some research I've done about housing.  I think there are some interesting co-ops you might explore and housing advocates that could help.  https://phoenixcommons.com/ has shared spaces and expenses so it seems a bit less expensive than a traditional townhome.  It seems like other options like this might exist.  You might try calling united way at 211 to link you so some low cost or free advice on both housing and social security. 

Original poster here.  Thank you so much for the advice, tips, and recommendations.  It points me to getting some handle on the numbers, and also possibly co-housing opportunities.  I appreciate the help!

I know you want to stay in the bay area but based on my mom's experience it's far easier finding less expensive options elsewhere. She found a nice and safe place in Seattle that she could afford on just her Social Security. https://www.humangood.org/northaven-west If things don't work here in the bay area you may want to consider widening your search to other cities.