How did you decide when to retire?

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BarbBrooklyn
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How did you decide when to retire?

Post by BarbBrooklyn » Sat Sep 15, 2018 1:53 pm

I posted recently on a VERY old thread about making the decision to retire, or not, at the top of one's earning potential, but at a point when one's job has become less than satisfying.

So, I'm 65. Working for the great city of NY in a fairly stressful place dealing with parents of disabled children. Saying "no, your child can't have our program" is a very hard conversation to have. Telling folks that their children were disabled was much easier...that's what I'd done for the previous 17 years.

I can take a reduced pension amount 58K, protecting my spouse who has no retirement savings due to 2008 downturn job loss. I seem to have (unbelievably) 1M in retirement assets in 403B, rollover IRA and 457.

He makes 50K per year and is not looking to retire this year. Our only debt (and it's only in my name) is mortgage, 141k@ 3.5%. Housing costs are 2K per month

If he takes SS at FRA, in 2019 he gets 2200 per month and I get 1100 as spouse. At 70, my SS is much higher than his, about 3300 per month.

Any thoughts are appreciated. And no, I'm not humble bragging. I'm asking the hive mind for advice.
BarbBrooklyn | "The enemy of a good plan is the dream of a perfect plan."

delamer
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Re: How did you decide when to retire?

Post by delamer » Sat Sep 15, 2018 2:02 pm

Your mortgage may be your biggest debt, but you have expenses other than your mortgage debt.

How do your total retirement expenses (including income taxes) compare to your total retirement income?

vested1
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Re: How did you decide when to retire?

Post by vested1 » Sat Sep 15, 2018 4:47 pm

I retired 2.5 years ago at 63.5 when it became apparent that my last employer of 4 months lied through their teeth concerning promises they made before I took the job. My wife retired 6 months earlier after finally reaching age 62, having wanted to retire and bringing it up on a regular basis for the previous several years.

I would list your expenses plus average discretionary spending then compare income in retirement to ensure those needs are met. Remember that once you retire you will be paying less in taxes with the elimination of FICA, and less in retirement contributions, so take that into account. Make sure you have established an emergency fund of at least 6 months total expenses, 12 months is better.

The biggest surprise for us was health care costs. In the U.S., citizens are basically abandoned at age 65 IMHO, at the mercy of their previous employer's bottom line and ever increasing insurance costs. You will likely pay (currently) $134 each for Medicare part B, but that's only the beginning. Deductibles and non-covered procedures continue to increase. Vision and dental are normally cancelled once you reach Medicare age.

I was one of the ones who empathized over the horror stories of others concerning health insurance costs, but figured that would never be me.

I considered us extremely lucky in that my wife's comprehensive retiree health insurance covered us both past Medicare age for $100 a month, making it unnecessary to purchase Medicare supplemental or Part D. That lasted 1 year. We got a notice last week from her previous employer that they are cancelling her insurance effective 1/1/2019, and are handing her coverage over to a private company that charges unknown as yet premiums for less coverage. Today I got a notice from my previous employer's insurance through AT&T that it no longer qualifies as Medicare supplemental nor Part D, and they suggested I look elsewhere for coverage. There goes the plan to transfer our coverage to them, though most doctors in our area wouldn't take their insurance anyway because it covers so little, even though it costs 4 times as much as my wife's. My wife takes a medicine that costs $1,200 a week retail. It looks like we'll go from paying $10 every 90 days to about $450 a month deductible (best offer so far) for that medicine alone in addition to the much higher rates of insurance on top of Medicare part B.

My wife filed for SS at age 65 when I turned 66 (FRA) and I filed spousal on her benefit. Our plan is for me to delay until age 70, and hopefully this newest hit on healthcare costs won't derail that plan.

Sorry to sound discouraging, but I'm a bit angry about continued broken promises. I suggest establishing a healthy safety cushion that can tide you over through unexpected/nasty surprises.

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Watty
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Re: How did you decide when to retire?

Post by Watty » Sat Sep 15, 2018 5:53 pm

BarbBrooklyn wrote:
Sat Sep 15, 2018 1:53 pm
I posted recently on a VERY old thread about making the decision to retire, or not, at the top of one's earning potential, but at a point when one's job has become less than satisfying.
When I was going through my 50's I had one year when I went to three funerals of people that were more or less my age. None of them were close friends or relatives but it does get you thinking.

About a year before I actually retired a guy at my office did not show up for work on Monday morning. He lived along and was not answering his cell phone. We had the police do a welfare check and he had died unexpectedly over the weekend. He could have easily afforded to have retired but he wanted to wait until he was 65 so he could go straight on Medicare. He died two months short of his 65th birthday.

The numbers added up so I retired just before I turned 59.

With you being 65 and you husband probably being a similar age the odd of you both being alive and in good health in ten years are not fantastic. You can't count on having a lot of "good" years together.

I didn't see your expenses or try to follow your numbers but I would suspect that there is not a lot of reason for you to work any longer

drawpoker
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Re: How did you decide when to retire?

Post by drawpoker » Sat Sep 15, 2018 6:01 pm

If your job is very stressful it will shorten your life. Stress is as bad for you as high blood pressure, diabetes, or heart disease.

Go ahead and retire at 65. Enjoy the things you could never do when you were working full-time. :D :D :D

SQRT
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Re: How did you decide when to retire?

Post by SQRT » Sat Sep 15, 2018 6:15 pm

I decided to retire when the hassle of working started to exceed the added savings from continuing. This depends on 2 factors 1) your attitude towards your job and 2)how much more you can save if you continue working. This happened shortly after I reached FI but it took me about 3 years to train my successor and negotiate my way out. If your current salary is large in relation to your savings it will be more difficult to retire,at least from a financial perspective. Conversely,if your current salary is low it will be much easier.

This type of thinking assumes your spending in retirement is flexible, that is you can productively put more income to “good use”. If your planned spending in retirement is very fixed with no flexibility, the timing is easier. From a financial perspective, retire when you hit your “number”.

I would say if you can save say 10% more each year the financial incentive to stay is pretty high. If it’s under 5% much less so. But it depends on other factors as well, of course. Such as health, family issues, nature of your work, whether you enjoy your work.
Last edited by SQRT on Sun Sep 16, 2018 8:50 am, edited 1 time in total.

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bertilak
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Re: How did you decide when to retire?

Post by bertilak » Sat Sep 15, 2018 6:30 pm

delamer wrote:
Sat Sep 15, 2018 2:02 pm
How do your total retirement expenses (including income taxes) compare to your total retirement income?
That clinched it, along with an analysis of how well my investments would keep up with inflation.

But the idea snuck up on me until all of a sudden it was a real consideration. The financial analysis was just due diligence on a decision that had (almost) already been made.

I think the time for "real consideration" will be obvious when it comes. Job satisfaction will be a big part of it so I suspect the OP is already at this stage.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

delamer
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Re: How did you decide when to retire?

Post by delamer » Sat Sep 15, 2018 6:37 pm

bertilak wrote:
Sat Sep 15, 2018 6:30 pm
delamer wrote:
Sat Sep 15, 2018 2:02 pm
How do your total retirement expenses (including income taxes) compare to your total retirement income?
That clinched it, along with an analysis of how well my investments would keep up with inflation.

But the idea snuck up on me until all of a sudden it was a real consideration. The financial analysis was just due diligence on a decision that had (almost) already been made.

I think the time for "real consideration" will be obvious when it comes.
Right.

If you haven’t done the analysis then you aren’t ready to retire. You need to know how income and expenses compare. If expenses exceed income, then you either need to reduce expenses or increase income in order ro retire

Having a handle on finances is “necessary but not sufficient,” in terms of the retirement decision.

2pedals
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Re: How did you decide when to retire?

Post by 2pedals » Sat Sep 15, 2018 6:37 pm

Between your pension and SS you will have more than 100k plus an assumed 4% safe withdrawal rate that gives you about 140k in income. Also your previous post said your pension is cola adjusted. 100k cola adjusted income and 1M savings looks sweet, but you need to define your expected expenses. It is hard to know, expenses are highly individual.

Bottom line, if you are not a big spender you can retire. :beer

MJS
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Re: How did you decide when to retire?

Post by MJS » Sat Sep 15, 2018 8:07 pm

On a more social note ... is there a departmental procedure that especially annoys or grieves you? Annual personnel review, quarterly report, the week after ProgramG funding runs out? Retire before it comes due.

If you get holiday pay, think about working thru MLK Day. Consider earning enough in 2019 to fund your IRA for the year. Note that vacation time counts toward IRA earnings, but untaken sick leave compensation doesn't (although it does count towards IRS tax earnings.)

Check to see if your health insurance expires on the day you retire or at the end of that month.

If someone in the department retired recently, invite them to lunch ... and find out any gotchas to be aware of.

Being retired has been incredibly relaxing & educational for me. I wish you the same joy.

prairieman
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Re: How did you decide when to retire?

Post by prairieman » Sat Sep 15, 2018 9:54 pm

Ten years with a chronic cancer, an awful new supervisor, and the ability to afford retirement made me leave earlier than I had originally planned. It came much to the surprise of all of my coworkers because I had loved my job until the last year and they were unaware that I had the resources. I wanted to leave on good terms and that might not have happened had I stayed and fought with my new supervisor.

The Wizard
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Re: How did you decide when to retire?

Post by The Wizard » Sun Sep 16, 2018 3:53 am

In my case, I was pretty good money wise for retirement and was taking additional time off for travel while still employed full-time.
It got to be a bit stressful trying to catch up on my engineering work after being gone for 7-10 days every two months so I decided I didn't need that stress.

I set my retirement date for October, 2012 but as that approched, work was too interesting so I delayed quitting. I finally cut loose on March 8, 2013.

I setup my net retirement income to be a bit more than my net working income, so a detailed analysis of my expenses wasn't really needed. I did a spreadsheet analysis of basic expenses anyway and found them to be about half of my income, thus allowing plenty extra for travel, etc, so I was happy with that...
Attempted new signature...

retired early&luv it
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Re: How did you decide when to retire?

Post by retired early&luv it » Sun Sep 16, 2018 5:34 am

I can't advise on finances, but to answer the question how did you decide to retire? I got a new boss. After he made several really stupid decisions I decided to take a reduced pension and get out faster.

pennywise
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Re: How did you decide when to retire?

Post by pennywise » Sun Sep 16, 2018 7:19 am

I will receive a pension, and my company's policy is that there is a penalty which reduces the benefit amount by 20%, permanently, if a worker retires before age 62--regardless of when one begins collecting. So because I am a stubborn person who hates leaving money on the table, that is how I decided to retire starting the day after my 62nd birthday which is now 11 months away :D

That's the short answer. Longer answer is that within the past few years the combination of a new manager at work with whom I don't connect or respect, and the purchase of a dream vacation/retirement home has caused me to re-prioritize my goals about what will yield the most daily joy and long lasting sense of peace and contentment.

The tipping point of course is the concurrent analysis as others have mentioned of where we are WRT retirement resources. Financially my husband and I have sufficient income that money should not be a concern when we both retire. He just turned 65 and will retire at the end of the year-and plans to spend most of his time at that vacation/retirement paradise home.

To sum up, how I decided to retire is by figuring out that I want and can afford to enjoy the remaining years of my life in a beautiful place with the person I love most, without the stress and aggravation of a job any more. Once that happened the decision was pretty easy!

Ron
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Re: How did you decide when to retire?

Post by Ron » Sun Sep 16, 2018 8:42 am

I retired at the age of 59, 11 years ago.

The company I retired from, after almost 30 years, eliminated their pension plan in the early 80's, replaced by a 401(k) and cash balance plan. The only retirement benefit I receive is an annual tax-free contribution to a HRA (Health Reimbursement Account) that pays for most of my/wife's retirement health expenses. Along with a small VA disability payment, our medical expenses are totally covered, along with having a small amount carried over to subsequent years. That means that when I retired had little to do with any company supplied retirement income. It all depended on if I could retire from my own financial perspective.

The decision to retire for me was an easy one. My company maintained the same corporate name during the time I worked there, but went through four different changes of ownership, along with four different management styles. While the first two were reflected of norms in the U.S. the last two reflected the norms of the foreign corporate owners, each reflecting the management styles of both northern and southern Europe.

While the first three styles of management were more based on cooperation and sharing of solutions to corporate challenges, the last was based upon the premise of "my way or the highway"; there was no room for discussion, even though quite often their solutions/direction were based upon the premise of "this is the way we do it", rather than answering the question of "is there a better way".

Let's just say that my BS bucket became full. In fact, by the time I left it actually was overflowing :annoyed .

I was fortunate to be financially independent when I retired, along with no desire to remain at a company that operated under vastly different norms than what I was used to in the early days.

- Ron

Dottie57
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Re: How did you decide when to retire?

Post by Dottie57 » Sun Sep 16, 2018 9:26 am

I found Bogleheads several years ago. I received recommendations to figure out my expenses. I did that after much resistance. Then added healthcare back in and taxes of course and I had a good number. Running firecalc and I-orp many times convinced me I had enough to retire. When employer offered a very good early retirement package, I jumped.

The big, big key is to really delve into your expenses. Know what are “must have” expenses. Know what are expenses you can eliminate.

P.S. Thanks go to the Bogleheads who helped me figure my finances out. I was lost when it came to figure expenses. After some very gentle help , retirement became reality.

J295
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Re: How did you decide when to retire?

Post by J295 » Sun Sep 16, 2018 9:34 am

We had always planned to retire early, and did it at age 53. I spent about five years before retirement really drilling down on early retirement. One author answered your question on when to retire as follows:

Ask yourself:
1. Do I have enough ($$$)?
2. Have I had enough (Of work)?
3. Will I have enough (to do when retired)?

dknightd
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Re: How did you decide when to retire?

Post by dknightd » Sun Sep 16, 2018 12:28 pm

I'm still deciding when to retire. I have not really liked my job for the last few years. I still have deep respect my immediate bosses. But the culture here is going downhill. I'm in academia. And that is trickling down. The people I work with are great. But bean counting is slowly working its way though the system. Their boss tells them to account for beans, and that gets passed down.
I was originally planing to retire in a few years. But I've been accelerating my savings.
I'll probably pull the plug when I have enough saved to pay my expenses without working. Which could be soon since I can probably reduce my expenses as needed and still be OK. I planned my retirement to cover my expenses, with a little bit of fun money. I think I'm ready to give up some of that fun money to have more years to enjoy it.
I want to leave on good terms. Probably the sooner I leave the better. YMMV

GeoffD
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Re: How did you decide when to retire?

Post by GeoffD » Sun Sep 16, 2018 2:02 pm

I don't understand the OP's issue. $58K in "reduced" pension, $1 million in tax deferred portfolio. Eventually at age 70, another $40K in Social Security benefit ignoring what their spouse does. Only $25K of housing cost and it sounds like much of it is co-op/condo/HOA fees since the mortgage amount is so low. Of course you can retire on that.

trueblueky
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Re: How did you decide when to retire?

Post by trueblueky » Sun Sep 16, 2018 2:38 pm

Youngest finished college in June 20xx with no debt. That July took me over another year of work. Retired in August same year, age 60. DW and I relocated to be near our only surviving parent.

So, a mix of family and financial factors.

fanmail
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Re: How did you decide when to retire?

Post by fanmail » Sun Sep 16, 2018 4:01 pm

GeoffD wrote:
Sun Sep 16, 2018 2:02 pm
I don't understand the OP's issue. $58K in "reduced" pension, $1 million in tax deferred portfolio. Eventually at age 70, another $40K in Social Security benefit ignoring what their spouse does. Only $25K of housing cost and it sounds like much of it is co-op/condo/HOA fees since the mortgage amount is so low. Of course you can retire on that.
It's not a money issue, it's an emotional and planning one.

littlebird
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Re: How did you decide when to retire?

Post by littlebird » Sun Sep 16, 2018 4:10 pm

We asked ourselves if it was possible to do so.

Hockey10
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Re: How did you decide when to retire?

Post by Hockey10 » Sun Sep 16, 2018 4:20 pm

When I was happy at work, I never thought about it.

When I was unhappy at work, and we were financially in good shape, and I saw in the obituaries each day that people younger than me were passing away, I started to seriously think about it. This went on for a year or so until I finally decided to retire.

flyingaway
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Re: How did you decide when to retire?

Post by flyingaway » Sun Sep 16, 2018 4:36 pm

dknightd wrote:
Sun Sep 16, 2018 12:28 pm
I'm still deciding when to retire. I have not really liked my job for the last few years. I still have deep respect my immediate bosses. But the culture here is going downhill. I'm in academia. And that is trickling down. The people I work with are great. But bean counting is slowly working its way though the system. Their boss tells them to account for beans, and that gets passed down.
I was originally planing to retire in a few years. But I've been accelerating my savings.
I'll probably pull the plug when I have enough saved to pay my expenses without working. Which could be soon since I can probably reduce my expenses as needed and still be OK. I planned my retirement to cover my expenses, with a little bit of fun money. I think I'm ready to give up some of that fun money to have more years to enjoy it.
I want to leave on good terms. Probably the sooner I leave the better. YMMV
I am also in academia. Our former chair retired at 60 and died at 70 last year. Our secretary retired at 62 and died a week ago at 71.

m@ver1ck
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Re: How did you decide when to retire?

Post by m@ver1ck » Sun Sep 16, 2018 4:46 pm

Maybe it would make sense to make a trip to India or similar country to source a year's worth of meds...
They'll be way cheaper. $200 should buy you a year's worth of supplies...

BarbBrooklyn
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Re: How did you decide when to retire?

Post by BarbBrooklyn » Mon Sep 17, 2018 3:45 am

Thanks so much to you all for your thoughts! I think I needed confirmation that it was time to pull the plug. I'm very fond of "hive mind" validation.
BarbBrooklyn | "The enemy of a good plan is the dream of a perfect plan."

fourwheelcycle
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Re: How did you decide when to retire?

Post by fourwheelcycle » Mon Sep 17, 2018 6:42 am

flyingaway wrote:
Sun Sep 16, 2018 4:36 pm
I am also in academia. Our former chair retired at 60 and died at 70 last year. Our secretary retired at 62 and died a week ago at 71.
My father retired at 62 after seeing too many friends retire at 65 and die at 68 or 70. He is now 96, played golf twice a week until age 92, and only sold his house and moved to an independent living retirement center at 93.

I always planned to retire at 56 since we had good savings and my wife had a job she loved where she expected to work until at least 63. At 56 I found I still enjoyed my own job so I kept working. By age 60 my long time boss had retired and my workplace had changed considerably, so I pulled the plug. They still needed me at work for one key role, so I continued as a part-time consultant until age 67, working mostly from home and setting necessary meetings at my preferred times. My wife and I are now arriving at age 70. She is finally retiring and we are just beginning SS and RMDs.

bearcub
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Re: How did you decide when to retire?

Post by bearcub » Mon Sep 17, 2018 6:59 am

My megacorp merged + we got new bosses. Not nice to say the least. When offered severance package I jumped at it to the surprise of many cause I was 49. I seen the wrting on the wall. Worked some parttime + temp jobs. Wife got ill so doing the caregiver thing. Glad I can be their for her. Never missed my old job for a second. Never looked back. Also lived a minimalist lifestyle + saved alot over the years thanks to reading one of Jack"s books. Also thanks to the Bogleheads at this site.

flyingaway
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Re: How did you decide when to retire?

Post by flyingaway » Mon Sep 17, 2018 7:15 am

Next year my younger son is supposed to get out of college and get a job (fingers crossed). I will be eligible for buying my employer's health insurance. The market holds up at the current level so I am financially independent. These are the three conditions that must be satisfied for me to retire next year at 55. I don't know what will happen next year.

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CyclingDuo
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Re: How did you decide when to retire?

Post by CyclingDuo » Mon Sep 17, 2018 7:25 am

fourwheelcycle wrote:
Mon Sep 17, 2018 6:42 am
I always planned to retire at 56 since we had good savings and my wife had a job she loved where she expected to work until at least 63. At 56 I found I still enjoyed my own job so I kept working. By age 60 my long time boss had retired and my workplace had changed considerably, so I pulled the plug. They still needed me at work for one key role, so I continued as a part-time consultant until age 67, working mostly from home and setting necessary meetings at my preferred times. My wife and I are now arriving at age 70. She is finally retiring and we are just beginning SS and RMDs.
That sounds like a very ideal transition you had the past 10 - 14 years!
"Everywhere is within walking distance if you have the time." ~ Steven Wright

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Kitty Telltales
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Re: How did you decide when to retire?

Post by Kitty Telltales » Mon Sep 17, 2018 7:47 am

BarbBrooklyn wrote:
Sat Sep 15, 2018 1:53 pm


He makes 50K per year and is not looking to retire this year. Our only debt (and it's only in my name) is mortgage, 141k@ 3.5%. Housing costs are 2K per month

If he takes SS at FRA, in 2019 he gets 2200 per month and I get 1100 as spouse. At 70, my SS is much higher than his, about 3300 per month.

Any thoughts are appreciated. And no, I'm not humble bragging. I'm asking the hive mind for advice.
Well my advice is to stagger your retirements. Why not give yourself some time at home alone before he retires. That's now our situation but in reverse since I'm 10 years younger. My husband "sort of" retired 2 years ago from academia, although still finishing some research projects after his official date. He has just been really retiring this past summer, and he's still not quite there. It's been a good thing that one of us had to get up and go out the door. However I've had to learn not to ask, "what are you doing today dear?" I save that question for the end of the day. Staggering your retirements may give you both some needed space.

I keep saying that I'll retire when I feel he has fully retired, plus completed a few house projects. Then it's time to travel and play.

Gretchen
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Re: How did you decide when to retire?

Post by Gretchen » Mon Sep 17, 2018 10:03 am

We both retired on timing not of our choosing, but fortunately we were ready anyway.

DH was in the youth-oriented film business, and got eased out around age 60. He did some consulting the first year, and never worked for pay since. Now at age 70, he is now so busy with his photography that he wakes up in the morning worried about all the self-imposed work he has to do.

I worked for a consulting firm that was structured so we got paid handsomely for every hour while working, and got no pay in between assignments. The work dried up in late 2014, but I stayed on the roster and retired officially last year.

In both cases, we had our finances structured so that we adapted without pain. Some of this was good planning; we'd both maxed out our retirement accounts nearly every year since we were first eligible. The rest was sheer luck. FIL was living with us when DH retired, and he chipped in for DS's college expenses. I held stock in my second-to-last company (privately held), and the company was sold near the very peak in 2006, so we had unexpected liquidity just when we needed it.

MandyT
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Re: How did you decide when to retire?

Post by MandyT » Mon Sep 17, 2018 6:10 pm

I found myself in an unusual situation in which medical insurance considerations led me to retire *earlier*.

I was a tenured faculty member at a university. It used to be that anyone who was eligible to retire (most commonly, at least 55 years old with at least 10 years of service) was eligible for retiree medical. In 2015 or 2016, a committee was convened to try to contain costs, and they ended up phasing out eligibility and subsidies based on age and longevity, with employees under 5 years of service not eligible at all. I would have been in the category of needing to be at least 60 years old with at least 20 years of service credit. The years of service would have been no problem, but I had been toying with the idea of retiring at 58 with the ability to bail out sooner if I really felt that I needed to.

These new rules were applicable to anyone retiring on or after January 1, 2018, which gave me a short window to retire at 55 in 2017 under the old rules. I hadn't considered retiring so early, but FIRECalc simulations were promising. Retiring at 55 is perhaps the least frugal thing I have ever done, but the annoyances at work had been adding up, and I didn't like the idea of committing myself to five more years. (I understand that retiree medical is not written in stone, but the whole way the university is handling it makes me feel that they are committed to preserving it for current retirees. If things get so bad that they have to discontinue it, I'm pretty sure that the misery level would be quite high for those still working.)

So far, I'm very happy with the way things are working out.

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SeeMoe
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Re: How did you decide when to retire?

Post by SeeMoe » Mon Sep 17, 2018 8:41 pm

We found a solid 5 Star CCRC with excellent long term care facilities on campus near several top notch hospitals that are nationally known, and world class specialists are within easy reach. The CCRC has a substantial reserve for future improvements , and has good, caring managers. Very satisfied with a new 2,700 square foot, 2 car cottage too.( Entrance fee came from our Vanguard investments, which gave us leverage. Lots of leverage finding what we wanted!)

SeeMoe.. :beer
"By gnawing through a dike, even a Rat can destroy a nation ." {Edmund Burke}

GCD
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Re: How did you decide when to retire?

Post by GCD » Tue Sep 18, 2018 2:46 am

My wife and I lived on the amount of our projected pensions. Everything above that went into savings. The day I qualified for my pension I retired.

likegarden
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Re: How did you decide when to retire?

Post by likegarden » Tue Sep 18, 2018 8:38 am

Some of the posters are so lucky making it to 65. I got really stressed out at 62 1/2 and retired then. But half a year later I was fine again and continued to work half time as a consultant at my former employer until 65, and further on and off to 69. Financially all is fine here.

Dottie57
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Re: How did you decide when to retire?

Post by Dottie57 » Tue Sep 18, 2018 8:45 am

61year old here. I decided when my company offere a very nice retirement package that went into affect in March. The jib was stressful. So I took the package.

It is an adjustment. But after taking care of myself and recovering from an ulcer, I feel like life is returning.

Grt2bOutdoors
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Location: New York

Re: How did you decide when to retire?

Post by Grt2bOutdoors » Tue Sep 18, 2018 9:13 am

fanmail wrote:
Sun Sep 16, 2018 4:01 pm
GeoffD wrote:
Sun Sep 16, 2018 2:02 pm
I don't understand the OP's issue. $58K in "reduced" pension, $1 million in tax deferred portfolio. Eventually at age 70, another $40K in Social Security benefit ignoring what their spouse does. Only $25K of housing cost and it sounds like much of it is co-op/condo/HOA fees since the mortgage amount is so low. Of course you can retire on that.
It's not a money issue, it's an emotional and planning one.
Agree. The OP should figure out now what she’ll be transitioning into from current occupation. She’ll want to spend her time meaningfully especially since spouse will continue to work. Boredom is an early ticket to decline, mentally and physically. After working for 50+ years, it will be an adjustment, however welcome it is to relieve her from the stresses of dealing with parents.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

flyingaway
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Re: How did you decide when to retire?

Post by flyingaway » Tue Sep 18, 2018 9:18 am

Many people say that, if they continue to work, it is not for money.
Well, I have reached FI early this year and I continue to work. It is not because I love my work, it is because of the uncertainties. Eventually it is about money. If I have three times as much as I have now, I swear that I am going to retire and you can find me on the beachs of Bora Bora.

SQRT
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Re: How did you decide when to retire?

Post by SQRT » Tue Sep 18, 2018 9:39 am

flyingaway wrote:
Tue Sep 18, 2018 9:18 am
Many people say that, if they continue to work, it is not for money.
Well, I have reached FI early this year and I continue to work. It is not because I love my work, it is because of the uncertainties. Eventually it is about money. If I have three times as much as I have now, I swear that I am going to retire and you can find me on the beachs of Bora Bora.
Agree that “having enough money” is open to interpretation. That is, what about a contingency in case the market crashes. Or what about having a little more in case you have unexpected expenses or develop more expensive tastes? When I retired I figured we had a pretty big cushion,maybe 50% of spend. Turned out the financial crises used up some of that and we were easily able to put the rest of the cushion to good use. In the end was glad we had the “cushion”. Always better to have a contingency cushion, but eventually you just have to “put the pin in”.

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Sandtrap
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Location: Hawaii😀 Northern AZ.😳 Retired.

Re: How did you decide when to retire?

Post by Sandtrap » Tue Sep 18, 2018 9:54 am

Some thoughts to ponder:

1. Consider posting a "portfolio review" so others can give better input based on a comprehensive review of your financial picture going forward. Otherwise it's a bit of "guestimating".

2. Some folks seem to age in "dog years" after 60. Health problems crop up. Lifestyle compromises have to be made. And, quality of life can change as well. Given this, can you retire with enough of a financial "cushion" to cover unforseen expenses and lifestyle changes?

3. Is partial retirement an option is you feel you need to save more before full retirement?

4. If you retire now with "adequate" finances but later find that your financial position is weak. Would you be able to adapt, improvise, and overcome?

For DW and myself, we were financially able to retire but I enjoyed working so continued. But, health issues made the decision obvious after a point. When quality of life and peace of mind has to be compromised, then retire if one is financially able to.
j

carolc
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Re: How did you decide when to retire?

Post by carolc » Tue Sep 18, 2018 10:19 am

When my brother died unexpectedly at 46 (I’m 5 years older), I made a decision to do what I could to retire at no later than 60 because you just never know how much time you have left. My partner and I met that time frame and now, 5 years later, we are traveling and really enjoying our days without the morning start of an alarm clock. No regrets!

carolc

dknightd
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Re: How did you decide when to retire?

Post by dknightd » Sat Sep 22, 2018 9:24 am

I've pretty much decided to retire 5/31/19. I'll let the people I work with know soon, so they have time to think about how best to use my skills for the next 9 months, and to figure how, or if, they want to replace me. I'll officially let HR know 30 days in advance, in case they decide to have an early retirement inducement. I think I probably have enough to retire on. I'm done with this job. I might try to pick up some side jobs after I retire, but likely only if they fall in my lap, or I really need the money. I think we have enough fudge room in our expenses to still feel happy. This is probably one of the hardest decisions I've had to make.

edit: My wife retired a few months ago. I promised her I'd work one more year. If I had not done that I might retire in 30 days, then take 30 days of vacation.

ByThePond
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Re: How did you decide when to retire?

Post by ByThePond » Sat Sep 22, 2018 4:23 pm

I'm in the process of retiring from academia. I guess now that it's September and I'm not actually working, I might as well consider myself officially retired.
Financial independence came several years back, but I loved my job and the people I worked with, and the money was good to boot.
What prompted me to pull the plug at 64, a year or two before I'd planned, was the exacerbation of an old injury, and the realization that I might not be as physically able in the future. There are still active things I want to do.
The continued strong market made it easier, and I'm taking advantage of it by annuitizing funds with TIAA as part of a liability matching portfolio.

So, basically, it was health reasons and the ability to retire that decided me.

MnD
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Re: How did you decide when to retire?

Post by MnD » Sat Sep 22, 2018 5:05 pm

I decided in 1990 to retire end of August 2018 at age 56. Father in-law passing away in 1989 at age 66 less than one year after retirement and father passing away in 1990 at age 68 about 18 months after a partial retirement had something to do with that decision, but not everything. Set savings rates, other financial goals and plans as best we could in order to achieve this while still enjoying the present. About 9 months ago I decided end of November 2018 would work out much better for everyone so I extended my career by 3 months till then. All financial goals exceeded by a fair margin, no debt, no mortgage, kids are moved out and self-sufficient. Really busy and engaged at work but totally "over it" on anything past 10 weeks. Can't wait! Will turn in my paperwork to HR next week.

RadAudit
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Re: How did you decide when to retire?

Post by RadAudit » Sat Sep 22, 2018 10:42 pm

Things just came together. I had recently settled my parents' estate. The youngest kid had just graduated from from his master's program. I had met my number.And, work stopped being fun. Seemed like the time to go.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The Calvary isn't coming, kids. You are on your own.

2015
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Re: How did you decide when to retire?

Post by 2015 » Sat Sep 22, 2018 11:09 pm

Work had been fun. Then one day and every day thereafter I'd seem to hear B.B. King's "The Thrill Is Gone" every time I darkened my employer's doors. I then stumbled upon early retirement forums, made a plan, and executed on it.

I was just telling someone today the idea of working, of getting up every day and pursuing someone else's agenda, is just alien to me. How did I get through so many years of not having enough time to live my own life? How did I ever put up with that? Now, three and a half years into retirement my work life seems long ago and far away, almost as if it happened to someone else. Retirement for me was like being born all over again, life feels like it's only begun, and the best is yet to come.

clockman323
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Re: How did you decide when to retire?

Post by clockman323 » Sun Sep 23, 2018 11:18 pm

I plan to retire Jan 2 2019. For me, the decision was made as soon as we had enough money saved when combined with other income streams. Jan 2 locks in the annual bonus at megacorp while still limiting 2019 earnings to hopefully stay under the ACA limits.

Work stopped being fun a few years ago.

Smoke
Posts: 61
Joined: Thu Aug 30, 2018 12:45 pm

Re: How did you decide when to retire?

Post by Smoke » Mon Sep 24, 2018 3:33 am

Company offered early retirement 27 yrs instead of 30. I said take this job and shove it. retired the next day.

BarbBrooklyn
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Location: NYC

Re: How did you decide when to retire?

Post by BarbBrooklyn » Mon Sep 24, 2018 3:58 am

OP here; I REALLY appreciate all the sage advice compiled here!

One poster mentioned identifying a noxious thing at work that I wouldn't want to do again; for me, that "thing" happens early every January and it got me thinking....

And last week, extreme weather struck as I was driving home across a bridge; cars hydroplaning all around me; it got me thinking about doing all this traveling and schlepping in the snow this winter....

I'm retiring December 1. I'll let you know how it goes. So far, it feels like a two ton elephant has been lifted from my shoulders.

Thanks!
BarbBrooklyn | "The enemy of a good plan is the dream of a perfect plan."

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