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
Thinking about retiring early...
- Thread starter OMCHamlin
- Start date
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.
Huskerguy
Member
A couple more comments. I have talked to a lot of people who are around the same age as me - 57-64 or so and they are all saying the same things. They are tired and worn out and everything is getting on their nerves at their jobs. That happens and work gets harder and we are not as efficient as we once were - that age thing does catch up with us.
I solved health care with a Christian ministries policy that will take care of things to age 65. There are three of them grandfathered under Obama Care. I have mentioned that on here before.
When I first set out to retire two years ago I don't think I was ready. Job offers came immediately and it was too easy to say yes. Now, I am ready to make that transition to doing things on my time frame and the biggest hurdle I have is getting past the feeling that I am not earning my keep by not working. We get so programmed to work, we think that is our life I am learning it is not.
So in the earlier post I hit the money part, this one is more the psychological part which is huge. Have fun and enjoy the ride!
I solved health care with a Christian ministries policy that will take care of things to age 65. There are three of them grandfathered under Obama Care. I have mentioned that on here before.
When I first set out to retire two years ago I don't think I was ready. Job offers came immediately and it was too easy to say yes. Now, I am ready to make that transition to doing things on my time frame and the biggest hurdle I have is getting past the feeling that I am not earning my keep by not working. We get so programmed to work, we think that is our life I am learning it is not.
So in the earlier post I hit the money part, this one is more the psychological part which is huge. Have fun and enjoy the ride!
Hamlin. You far better off than I was when I pulled the plug many years back. Just lost my first wife & re married [Mistake] & living in a duplex [rented]. No money but the last of 7 kids. Started a handyman business to make ends meet. I was 57 at the time.Made a go of it until SS came in @ 62. Now many years later having out lived 3 wives I'm living with a daughter & son in law in a cottage had built in 1992. Happy as I can be. Still have most of my hunting guns & use them each season. The collection of old Smiths are long gone. Don't worry about money It's much cheaper when you retire.
cowart
US Veteran
Mine went way down. Prior to 65, I was paying more than $400 a month. Medicare runs about $100 and gets deducted painlessly from my social security deposit.
Most doctor visits only cost $5, with specialists running $40. YMMV
OP
OMCHamlin
US Veteran
Lots of thoughts in many different directions, but all good stuff to think on. I appreciate you guys that have already done it, sharing your perspective on it. Most of you seem to think it's doable and not a bad idea. Those that are like me, still in the planning (pondering) stage have given me things to consider as well. Thanks much to all of you all...
Keep your thoughts coming, I'm still reading and learning!
Keep your thoughts coming, I'm still reading and learning!
Qc Pistolero
Member
Like you Americans like to say:''half the fun is getting there''.
Make that planification an enjoyable thing.Afterall,you're thinking about something nice to come.Make sure you have one or 2 hobbies that you enjoy.Your idea of having a part time job for a few months is a good one to help you make a transition.Good luck and enjoy.
Qc
You gotta have a purpose...
Knew a guy that loved to trout fish. He retired planning on spending his time trout fishing. A few weeks later he was back at work.
Everybody has their own situation. I was forced to retire early due to health, but was able to spend time with our boy, which was great. A lot of people don't feel 'needed' anymore. You gotta have a purpose.
Knew a guy that loved to trout fish. He retired planning on spending his time trout fishing. A few weeks later he was back at work.
Everybody has their own situation. I was forced to retire early due to health, but was able to spend time with our boy, which was great. A lot of people don't feel 'needed' anymore. You gotta have a purpose.
Lee's Landing Billy
Member
Please, read and memorize this above. Please, it is very important! We have been debt free for 10 years. It changes your life. The minute you know there is absolutely NO reason that you have to go to work..it becomes a pleasure.
OP
OMCHamlin
US Veteran
So we were on a telcon with our financial planner till like 2315 last night, we spent a bunch of time on taxes, some on planning a retirement budget drill (see if we can live to a post retirement budget for X amount of time prior to actual retirement), and although we spent comparatively little time on "how to pay the house off", she laid out sources of non-penalty incurring funds available within like 15 minutes that could fund the mortgage payoff. That's good. By God, I can do this...
I personally wouldn't retire until the house is paid off. I would want zero debt. Health insurance is the big one. You are lucky to have that covered. In this modern time of corporate slavery (or the golden handcuffs if you prefer), it doesn't matter how well you have prepared. Companies that are big enough to be self insured and .gov are the only sources for quality health insurance now. Without saving enough to pay cash for every foreseeable health care need (and how do you predict that?), no one can retire any more.
Kframerbluvr
Member
If you figure the difference between the base pension, hazardous duty supplement, health insurance credit, and what I currently make with nearly thirty six years on the job, I am probably working for minimum wage or less. Add the drastic cost increase for health insurance after retirement and the fact that my disabled bride cannot stay on my policy after I retire pretty much determines that I stay as long as I possibly can. If you and your spouse can keep quality health coverage after retirement, you are indeed fortunate.
My wife worked as a hospital pharmacist prior to her illness and wants to put off relying on Medicare for her healthcare as long as she can.
My wife worked as a hospital pharmacist prior to her illness and wants to put off relying on Medicare for her healthcare as long as she can.
Retired at 68.5. Would have worked longer if health permitted. Now have my own little machine shop business building sight pushers and lock plugs for S&W revolvers. Right now, it's keeping me busier than I want to be. Health insurance for my wife is costing almost $800/mo. She will be eligible for Medicare in two more months. Don't know if I'll ever actually retire. Don't know if I actually want to.
Retired at age 51 at 62% of my high 3. Sold my (mortgaged) house and took enough away in equity to build one free and clear. Owe on monthly bills, no other payments. Between dumb luck and being frugal, doing fine.
Can't put a price tag on FREEDOM.
Can't put a price tag on FREEDOM.
