I retired at 47..with less money than you have for certain. We planned to be mortgage free by the age of 50 and actually paid off the 2nd farm at 42. Are we rich? No of course not. Sold one farm back east moved to Wy and bought a small ranch. No debt for home or cars etc. Regrets?? heck no. Sure I'd like to have more money coming in but to heck with it. Remember it is about you and your "immediate" family..Not taking care of your kids or whatever. Is your wife ok with you pulling the plug? I do make a bit of spending money on ebay and doing gun shows etc..but mostly just keeping the mind working.. I'd be gone in a heartbeat if I were you. Don't go to work right away..let your body and mind relax and see what you really need to keep the old mind active and juices flowing. Remember you only live once..there ain't any coming back and trying again!! Good luck to you
Thinking about retiring early...
- Thread starter OMCHamlin
- Start date
I retired at 54 and never looked back. I am by no means in any upper tax bracket but I have managed my finances well. No credit card debt but I do use them and pay off balances before any interest can be charged. I have a very small mortgage and will always have a car payment. I'm still able to vacation a couple times a year and I'm doing exactly what I want when I want. I'm now 71 and have been enjoying myself for 17 years. LIFE IS GOOD!!!!!!!
HOUSTON RICK
Member
My dependents have too many entitlements. My retirement will be that ride down the crematorium conveyor belt.
Targets Guy
US Veteran
Sounds like you are in good shape if you want to do it. Check out the impact on your Social Security with no income between now and when you start to draw it.
I was similar to your situation when I retired at age 60 but I had a military pension and a civil service pension so have tricare and the federal govt retirement medical plan and now have social security as well (I am 71 now). We pay off the 15 year mortgage in 2019. I try to buy everything using the credit card (pay off the balance monthly) and I get a new Subaru every year or every other year so have no worries about car repairs.
It was scary but many do it and based on comments on this thread do it very successfully.
Good luck.
I was similar to your situation when I retired at age 60 but I had a military pension and a civil service pension so have tricare and the federal govt retirement medical plan and now have social security as well (I am 71 now). We pay off the 15 year mortgage in 2019. I try to buy everything using the credit card (pay off the balance monthly) and I get a new Subaru every year or every other year so have no worries about car repairs.
It was scary but many do it and based on comments on this thread do it very successfully.
Good luck.
Old Corp
Member
Retired at age 50 and really did enjoy that first year or so before boredom set in. Worked p/t at a couple of LGS's (and through a few panic-buying episodes). Then, unfortunately 'retail burnout' occurred and even that got old.
Moved to the coast and have just bought a house. Plenty to do, and can fish whenever the mood strikes.
Wife still works, we have no real surplus of funds, but still enjoy life.
Moved to the coast and have just bought a house. Plenty to do, and can fish whenever the mood strikes.
Wife still works, we have no real surplus of funds, but still enjoy life.
"...pay the house off first." I agree with that. I'd suggest get to zero debt before retiring.
Retired at 56; best decision ever.
I pulled the plug at 56 and the first 9 years were simply splendid. Unfortunately, my 'job' of caring for my Mom the last 2 years now takes up much of my free time.
That said, I don't regret a single thing about my decision. I CANNOT outlive my retirement income, and it is waaaaay more than enough to provide for my care should that ever be needed.
Mom will soon be in a nursing home. That when my fun begins anew. I will be visiting Las Vegas almost immediately. Key West will follow that trip. I will be spending 17 days in England this July. My travels for University of Maryland football and other sports are already booked. (Austin, TX, Madison, WI, and NYC are road games next season.)
My advice: Retire just as soon as your personal circumstances permit. You will be busier than ever.
Be safe.
I pulled the plug at 56 and the first 9 years were simply splendid. Unfortunately, my 'job' of caring for my Mom the last 2 years now takes up much of my free time.
That said, I don't regret a single thing about my decision. I CANNOT outlive my retirement income, and it is waaaaay more than enough to provide for my care should that ever be needed.
Mom will soon be in a nursing home. That when my fun begins anew. I will be visiting Las Vegas almost immediately. Key West will follow that trip. I will be spending 17 days in England this July. My travels for University of Maryland football and other sports are already booked. (Austin, TX, Madison, WI, and NYC are road games next season.)
My advice: Retire just as soon as your personal circumstances permit. You will be busier than ever.
Be safe.
One thing to keep in mind when making the decision on when to retire is this: Time vs money...Say you have one dollar and one hour. If you spend the dollar, no matter what you spend it on you can always get another one. But if you spend that hour no matter what you do with it you can never replace it. It's gone forever.
When I was 30 I was bullet proof and immortal. Now at 72 I know better and I try to appreciate every day and use it the best way I can. It may be just hunkering down in the house on a cold rainy day like today with Miss Pam but it's what makes me feel good. Got the Eagles "Hell Freezes Over" goin' on the 55 inch flat screen with all the great harmony through the surround sound. I have a full cup of coffee and 2 of my cats on my lap. And I have the TIME to relax and enjoy it.
When I was 30 I was bullet proof and immortal. Now at 72 I know better and I try to appreciate every day and use it the best way I can. It may be just hunkering down in the house on a cold rainy day like today with Miss Pam but it's what makes me feel good. Got the Eagles "Hell Freezes Over" goin' on the 55 inch flat screen with all the great harmony through the surround sound. I have a full cup of coffee and 2 of my cats on my lap. And I have the TIME to relax and enjoy it.
My consideration for retirement was "No Debt", 3-6 months income in ready savings, and the ability to live off of the guaranteed monthly income coming in so as to not touch the 401K/IRA money. That and health insurance coverage. I retired at 63 1/2 because I could only carry COBRA for 18 months before eligibility for Medicare to kick in.
Since retirement we have built a new Condo, Taken two trips to Europe, and one to Alaska. The peace of mind knowing that financially you can take care of nearly anything coming your way is comforting.
Since retirement we have built a new Condo, Taken two trips to Europe, and one to Alaska. The peace of mind knowing that financially you can take care of nearly anything coming your way is comforting.
Dad was hating work and finally decided to retire at 57. He and Mom had a antique depression glass business on the side for years before that so there was income coming in. He left his pension alone so Mom would have more income after he was gone. Guess he knew inside that was how it was going to happen. He always said it was one of the best decisions he ever made.
At 54 I am not thrilled working another 8 years, which is the plan, but I don't hate my job. I am debt free and the house is paid off. When Mom passes it will automatically be turned over to me. As said by others, the main thing I worry about is healthcare. I should have pension, savings and SS when I do decide to stop. If I had enough to cover me until 62 I would retire right now. It would be worth it to be able to spend the remaining years Mom has doing what she wants to do.
At 54 I am not thrilled working another 8 years, which is the plan, but I don't hate my job. I am debt free and the house is paid off. When Mom passes it will automatically be turned over to me. As said by others, the main thing I worry about is healthcare. I should have pension, savings and SS when I do decide to stop. If I had enough to cover me until 62 I would retire right now. It would be worth it to be able to spend the remaining years Mom has doing what she wants to do.
Well I am the opposite to most posters. Had a job with Uncle Sam (scientist at NIH) that people wanted but I enjoyed it so did not retire until I was almost 76. I was not under the old US pension system but the one Reagan put in. However, I still consult, publish and travel to lecture, so each to their own. Dave_n
Huskerguy
Member
Well, some good advice on here. My situation is VERY similar. I retired from the public education sector at age 57 (just turned 63) nearly the exact same amount you will receive. After retirementI stayed in education only at the private sector that pays very little but is very rewarding. Then I got very sick at age 60 and decided to quit and get my health back. I was blessed to have the best Dr. in the country find a really rare lung disease that left untreated would kill me quickly (10 years). As it turns out, there is not a cure but we can slow it down considerably. I say all that because you just don't know what is going to happen next at our ages. Bladder cancer? hmmm After I had decided to retire, the medication was working miracles and I thought I had more more big effort in me so I helped start a new Classical Christian School. Handed that over and said, no I am done now, I am really tired and need a vacation. Then another non-profit calls me up and needs some help. That was last July and I will done this month. The moral of the story is enjoy the time you have. It is short no matter how long it is. If something comes along and it looks like something you want to do or in my case, it helps some people then go for it. But you get to do it because you want to and not because you have to. Sounds like you have health issues so that is a huge consideration. We have been married nearly 44 years and just took a 5 day vacation for the first time in 30+ years. I have just not been one to take time off. No more. I want to enjoy life a lot more.
Now for the numbers part. Some have suggested going to a financial planner. In my area there are several planners who offer a free consult, you may have to go to one of their free evening meals. I have been to four different people, each with a different angle (annuities, insurance, mutual funds, etc) and all three said the same thing - I am on track and we should be good if our health holds out and they couldn't really suggest much different. Social security at 62 you lose a little over 25% of the full value compared to your full retirement age. We have visited the SS office and it was good to get an idea of both my wife and I. We did learn something there. If you anticipate health being an issue, take it at 62, save what you can of it and go from there. You have to live to be around 82 for it to break even between taking at 62 and full retirement age. The big catch is your wife, when you set it and she gets yours then you set it for her for as long as she lives as she gets hers or yours (at death) whichever is greater. Then you have your 401(k), (b), etc. Find a good place to park it and figure out how much risk you want to take. I was risky in my younger days, no more. I am looking for 4-5% return and will be happy for that to be gun and vacation money with some to spare. I don't the return to live on.
Have everything paid off - this is so freeing I can't tell you. When we talk finances and tell people we owe nothing they look at us in amazement. It is rare. People at our ages are taking second mortgages and buying new homes! I will buy a new vehicle in a couple years and will pay cash. Have some case on hand - 6 months would be nice. At your age you will go through two more rounds of autos at least. That is where if you can rat hole your SS at 62, you can buy them with cash in a few years.
There are other factors as well. What is your spouse going to do? Is she going to work, how much SS or pension will she receive? Is she about the same age or wants to work a little longer. In our case, my wife loves helping kids at school but it doesn't pay hardly anything. She gets good health coverage for a few bucks and a small pension of a few hundred when she does quit. She is nearly 62 and will work to at least 65. Your case sounds a lot like mine in that you can go like this:
57 - retire - 40K
62 - SS - 22,000 (just a guess)
Wife retires 62 - pension?
wife SS at 66 - 1,000 month
Wife refiles for SS at age 70 IF she took SS at full retirement age. At 70 she will get the best of hers or half of yours.
The big monster in the closet are two fold - inflation and taxes. Inflation is bound to come back at some time. The good thing is when it does, investments usually go up with it but there is a lag time. Taxes will eat you alive in retirement. You will have no deductions to speak of and nothing but income. Anything tax deferred is sitting target for Mr. Tax man. He scoffs at the Roth IRA because he can't get his hands on that.
Finally, do what you want to do. I got burned out helping families and everyone else's kids and families and now it is time for me and my family. Life is just way way too short. Sorry this is long but this is one of my passions in life!
Now for the numbers part. Some have suggested going to a financial planner. In my area there are several planners who offer a free consult, you may have to go to one of their free evening meals. I have been to four different people, each with a different angle (annuities, insurance, mutual funds, etc) and all three said the same thing - I am on track and we should be good if our health holds out and they couldn't really suggest much different. Social security at 62 you lose a little over 25% of the full value compared to your full retirement age. We have visited the SS office and it was good to get an idea of both my wife and I. We did learn something there. If you anticipate health being an issue, take it at 62, save what you can of it and go from there. You have to live to be around 82 for it to break even between taking at 62 and full retirement age. The big catch is your wife, when you set it and she gets yours then you set it for her for as long as she lives as she gets hers or yours (at death) whichever is greater. Then you have your 401(k), (b), etc. Find a good place to park it and figure out how much risk you want to take. I was risky in my younger days, no more. I am looking for 4-5% return and will be happy for that to be gun and vacation money with some to spare. I don't the return to live on.
Have everything paid off - this is so freeing I can't tell you. When we talk finances and tell people we owe nothing they look at us in amazement. It is rare. People at our ages are taking second mortgages and buying new homes! I will buy a new vehicle in a couple years and will pay cash. Have some case on hand - 6 months would be nice. At your age you will go through two more rounds of autos at least. That is where if you can rat hole your SS at 62, you can buy them with cash in a few years.
There are other factors as well. What is your spouse going to do? Is she going to work, how much SS or pension will she receive? Is she about the same age or wants to work a little longer. In our case, my wife loves helping kids at school but it doesn't pay hardly anything. She gets good health coverage for a few bucks and a small pension of a few hundred when she does quit. She is nearly 62 and will work to at least 65. Your case sounds a lot like mine in that you can go like this:
57 - retire - 40K
62 - SS - 22,000 (just a guess)
Wife retires 62 - pension?
wife SS at 66 - 1,000 month
Wife refiles for SS at age 70 IF she took SS at full retirement age. At 70 she will get the best of hers or half of yours.
The big monster in the closet are two fold - inflation and taxes. Inflation is bound to come back at some time. The good thing is when it does, investments usually go up with it but there is a lag time. Taxes will eat you alive in retirement. You will have no deductions to speak of and nothing but income. Anything tax deferred is sitting target for Mr. Tax man. He scoffs at the Roth IRA because he can't get his hands on that.
Finally, do what you want to do. I got burned out helping families and everyone else's kids and families and now it is time for me and my family. Life is just way way too short. Sorry this is long but this is one of my passions in life!
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Badger Matt
Member
I'll be watching this thread closely. I too have a military pension and we're working toward paying off the house without dipping into tax-free retirement investments. I'm also looking for 20-25 acres where I can hunt, plant some veggies and fruit, and piddle around during retirement.
OP
OMCHamlin
US Veteran
Exactly!!!
Philadelphia Patriot
Member
I'm "retiring" when I hit 55. Between my pension, lifetime healthcare, the deferred comp, and my fiance's retirement account (by the time she retires, she alone should have over $1-million in her accounts), we should be all right. She'll probably still be working when I retire. She's a mechanical engineer and is the breadwinner in the family. I just want to make sure wherever we're living at the time, our house is paid off.
That's the plan.....now I'm just waiting for God to laugh at me.
That's the plan.....now I'm just waiting for God to laugh at me.
686fan
Member
If you think you can afford it, I'd say retire early. My Dad worked hard all of his life & then passed away a month before he could retire.
Life's too short to spend it all working.
Me, I expect to retire when I turn 107.
Life's too short to spend it all working.
Me, I expect to retire when I turn 107.
Qc Pistolero
Member
If it might be of some help;was in charge of sales for Eastern Canada.All went well when the companie was sold to another one out of Qc.I was then 58.Told my wife that that was it;I retire.After 4 days at the chalet finishing a bottle of good red wine,I told her I wasn't so sure about it.She was laughing all the way saying she knew I wasn't ready.
From then on,I started getting myself ready.You know,it's not easy to shave everymorning telling to yourself that one of these days,you're going to say bye bye boss.But when it gets to be now,the truth hits you;you're old!I'm of no more use.This fact is harsher than the financial fact(you don't have to get up early in the morning to go to work but some money is deposited in your bank account.....it shouldn't be!!)Well,after now a little more than a year,I must say that:
A)you get used to the money in the account being there for not working;after all you haven't stolen it.It's yours.
B)people,once they know you're retired call you to help out so that you feel like you're still working
C)money is not everything:it costs less living while you're not working and if still insecure,you can find a part time job but spending more time with wife and children is a powerfull compensation(of course some of that time being at the shooting range).
After saying all this,after 1 1/2 year into retirement,I do not regret it.It's normal to feel insecure at first but keep saying to yourself that the little bird fetches its today's feed without worrying about tomorrow's.Sometimes,we humans worry too much.I've worried enough in my life...from now on,for the few years that's left to me,I leave the worrying for when I'll be in my grave...plenty of time then to worry.'till then,I'll just have fun!Life is so short!
Qc
From then on,I started getting myself ready.You know,it's not easy to shave everymorning telling to yourself that one of these days,you're going to say bye bye boss.But when it gets to be now,the truth hits you;you're old!I'm of no more use.This fact is harsher than the financial fact(you don't have to get up early in the morning to go to work but some money is deposited in your bank account.....it shouldn't be!!)Well,after now a little more than a year,I must say that:
A)you get used to the money in the account being there for not working;after all you haven't stolen it.It's yours.
B)people,once they know you're retired call you to help out so that you feel like you're still working
C)money is not everything:it costs less living while you're not working and if still insecure,you can find a part time job but spending more time with wife and children is a powerfull compensation(of course some of that time being at the shooting range).
After saying all this,after 1 1/2 year into retirement,I do not regret it.It's normal to feel insecure at first but keep saying to yourself that the little bird fetches its today's feed without worrying about tomorrow's.Sometimes,we humans worry too much.I've worried enough in my life...from now on,for the few years that's left to me,I leave the worrying for when I'll be in my grave...plenty of time then to worry.'till then,I'll just have fun!Life is so short!
Qc
I retired at 61, five years ago. Was in a corporate management/executive position. Worked there 39 years, great company, but I was burned out.
I have a six figure pension and a lot in savings. And we had zero debt. Financially it was a no brainer.
I am glad I got out of the rat race, but I sure have been bored at times. I want to travel but wife does not want to. So be sure you and the Mrs are on the same page. When you are home 40-60 hours more per week, things change. And I would be sure to have zero debt and understand what health insurance will cost you.
Good luck.
I have a six figure pension and a lot in savings. And we had zero debt. Financially it was a no brainer.
I am glad I got out of the rat race, but I sure have been bored at times. I want to travel but wife does not want to. So be sure you and the Mrs are on the same page. When you are home 40-60 hours more per week, things change. And I would be sure to have zero debt and understand what health insurance will cost you.
Good luck.
Did your medical costs change significantly when you became eligible for Medicare coverage?
Bozz10mm
US Veteran
I retired at 62 with a 20 year military pension and SS, the wife and I do okay financially. We live a pretty simple life and I cut out a few unnecessary expenses like beer and cigarettes. 
Still paying on the house and just bought the wife a newer (2015) car.
Being together all day takes some adjusting and getting used to. She was a full time home maker and resents, a little bit, that she can't retire too.
Still paying on the house and just bought the wife a newer (2015) car.Being together all day takes some adjusting and getting used to. She was a full time home maker and resents, a little bit, that she can't retire too.
