Thoughts on me retiring at 61/62?

[gunny]

My story:

- 61, single, no kids or debt
- $900K in retirement portfolio
- House paid off
- Military pension will basically pay monthly expenses

I'm sick of corporate America and would love to retire now or when I'm 62 end of this year and can start taking SS. The Fidelity retirement calc says I can and realistically still have millions left over when I croak, even if I live to 90something (I'm skeptical of these online calculators, but as long as I don't run out I don't care how much is left over). I don't feel my retirement expectations are very lavish, but I want to enjoy the good life too...the occasional vacation, eat out here and there, etc. And of course there will be the occasional "not fun" expense of things like a new roof or "new" (I'll buy slightly used) car.

Even if my portfolio remains stagnant, I could at 62 withdraw $30K/yr, and that doesn't include the roughly $2K/mo I'd have from SS which is extra as my pension covers monthly expenses. And Medicare and the military should cover most if not all medical issues.

But I'm still leery that I'm underestimating expenses somehow or not thinking of some big expenses I could have (either things I have to spend on or "fun" things I'm not taking into account). Oh and I hope to move within a few years of retirement which will have its own expenses, but hopefully not a place much more than what my house is worth.

[steadyosmosis]

My story:

- 61, single, no kids or debt
- $900K in retirement portfolio
- House paid off
- Military pension will basically pay monthly expenses

I'm sick of corporate America and would love to retire now or when I'm 62 end of this year and can start taking SS. The Fidelity retirement calc says I can and realistically still have millions left over when I croak, even if I live to 90something (I'm skeptical of these online calculators, but as long as I don't run out I don't care how much is left over). I don't feel my retirement expectations are very lavish, but I want to enjoy the good life too...the occasional vacation, eat out here and there, etc. And of course there will be the occasional "not fun" expense of things like a new roof or "new" (I'll buy slightly used) car.

Even if my portfolio remains stagnant, I could at 62 withdraw $30K/yr, and that doesn't include the roughly $2K/mo I'd have from SS which is extra as my pension covers monthly expenses. And Medicare and the military should cover most if not all medical issues.

But I'm still leery that I'm underestimating expenses somehow or not thinking of some big expenses I could have (either things I have to spend on or "fun" things I'm not taking into account). Oh and I hope to move within a few years of retirement which will have its own expenses, but hopefully not a place much more than what my house is worth.

Welcome.
You and I have some similarities.
I am delaying my start of SS until age 70, which will substantially increase my lifetime monthly deposit.
SS is the best available inflation-adjusted annuity.
I am living off my portfolio until then.
If I change my mind anytime between age 62 and age 70, I will simply start up SS earlier.
For SS options, check out this tool from fellow Boglehead Mike Piper:
https://opensocialsecurity.com/

[AlmostThereCT]

You have choices to make regarding SS, but you’re good to go. Congratulations and good luck

[Parkinglotracer]

Welcome to the forum.

I am a retired military guy who retired from Air Force. then retired from defense industry in 2020 at age 60. I like you got tired of the grind.

Congrats on your service and savings.

I would concentrate on two things
1) what do you plan to do with the rest of your life? Paid work might be part of that or not. As we know There can be a substantial life satisfaction if you find a paid position that isn’t a grind. Part time work or consulting might provide some satisfaction and extra money to cover budget shortfalls. I have a big group of ex military buds that live in my locale (air guard unit) so have great social group to enjoy and play pickleball a few times a week - between that and family we are about as busy as we want to be. Be sure to make specific plans to stay active in retirement. Join groups. Attend meetings. Find others with similar free time. If you can work part time at your current job that might be an aid in the transition socially and financially. It worked for me. I worked at Lockheed and apprehensively asked to go part time. They said yes. It worked like a champ.

2) let’s say you are all set with what you are going to do. I think the main thing you have to make sure is that you forecast your retirement spending accurately.

I would do that by going thru your checking account / savings account for the last few years and figuring out how much you made and then spent. At first don’t concentrate on where it went - just on how much came out.

Say it was 40K military retirement coming in and 60K in current job. Then say you paid 20K in taxes and saved 10K a year. So then you spent 70K after taxes a year. That’s how much you spend for life.

After getting an accurate tops down view of what you spend a year (70K in this case) then develop a bottoms up budget that accounts for that spending. Let’s say you do your budget and come up with 50K a year in spending. Dig deeper into charge card records and ATM withdrawals and try to find the other 20K. If you can’t find the rest you spent then make an extra budget item of entertainment and extras for $X a month that adds to 20K a year.

So now come up with a REALISTIC retirement budget you can live with in retirement. Account for those you can’t define. Yes include those lumpy expenses to get an accurate budget:

Property taxes
Income taxes
Gifts
Weddings
Roofs
Cars
Vacations
Eating out
Dental care
Car maintenance
Car repair
Car insurance
Home rennovations / repairs
Hobbies
Lawn care
Pest control
Charge cards

If your realistic budget fits in your Mil retirement check and 4% withdrawals from your savings that is great. Healthy debate here on the forum on taking social security early at age 62 or not. As you may know the annual SS benefit goes up about 8% a year so there is a Smart Case made for waiting until full retirement age if one needs more income in retirement. Www.opensocialsecurity.com is a great source developed by boglehead Mike Piper to help with that decision.

Luckily my wife and I have retirement checks that cover our expenses plus and we have a good deal of savings so we took SS at age 62 and blow it. It is not what is recommended by many but it works for us. Having the money show up in our checking account each month enables us to spend it. We do.

Good luck and let us know what we can do to help. I would venture you will be fine financially and your social factors will define your happiness in retirement. You will make it happen Gunny!

[gunny]

Appreciate the replies! Clarification: I am retired from the Reserves, not a full active duty retirement (although I did serve active for 8 yrs)...my retirement basically covers my monthly expenses, but no more. So I have no worries about being able to pay the bills and still live my current lifestyle at least, esp after I start taking SS even at 62...I will then have a fair bit extra every month even taking it early (I became a believer in taking it early when I learned that anyone doing so comes out ahead until they're 80. Heck I may not even be here when I'm 80). I'm just concerned (paranoid?) that in retiring earlier, I may in retirement regret it because I can't do what I could have done if I'd held out another year or two.

[sailaway]

How much if your retirement portfolio is tax deferred? Depending on your estate plan, there might be a good argument to delay SS and withdrawal from tax deferred accounts or even perform Roth conversions.

But then, my personal philosophy on SS is not to get as much as possible. It is to have the best longevity insurance

[HomerJ]

But I'm still leery that I'm underestimating expenses somehow or not thinking of some big expenses I could have (either things I have to spend on or "fun" things I'm not taking into account).

It all comes down to estimating your expenses well. Should be very similar to what you are spending now, so track your spending now.

If your pension covers your expenses, and SS is "extra", AND you have $900,000, OF COURSE you can retire TODAY.

$24,000 extra from SS should cover most any expenses you might be missing from your estimates, I would think.

And the $900,000 should be throwing off a decent amount of interest as well. If you have 50% of it in bonds/money-markets/CDs, you'll be getting 4% of $450,000 every year, which is another $18,000 a year without touching your principal.

[Parkinglotracer]

Appreciate the replies! Clarification: I am retired from the Reserves, not a full active duty retirement (although I did serve active for 8 yrs)...my retirement basically covers my monthly expenses, but no more. So I have no worries about being able to pay the bills and still live my current lifestyle at least, esp after I start taking SS even at 62...I will then have a fair bit extra every month even taking it early (I became a believer in taking it early when I learned that anyone doing so comes out ahead until they're 80. Heck I may not even be here when I'm 80). I'm just concerned (paranoid?) that in retiring earlier, I may in retirement regret it because I can't do what I could have done if I'd held out another year or two.

I get it … tough to know what is enough. Working longer, or working part time in retirement, and / or delaying SS might provide the extra margin of $. Ideally an employer would let you take a year leave of absence and you could dry run financial and social end of retirement but most employers aren’t that flexible. If you resign a good job leave the door open to return if you can - I resigned a good job at age 50 and at age 53 went and got my job back as I needed to stay busier and going back to work for 7 years enable me to pad my investments a lot. I finally retired at age 60.

I was an active duty guy assigned to guard for 3 years, air reserve technician for 2, AGR for my last 8 to get 22 year active duty retirement. Thanks for your service.

[gunny]

Thanks for your service (and all applicable others) as well! I did 8 active duty, 7 ANG, and 7 AFRES.

My job sucks. It's my incentive to even consider this. If I loved (or just liked) my job, I'd keep working for awhile longer - why not? But I'm tired of waking up when I have to and going "oh #### I have to do this job today..." But I work from home and can suck it up if push comes to shove. I guess I'm just feeling a little unsure of what I'll really want to have in retirement for whatever...not so much about "oh no can I pay the bills" but "oh no I can't do X that I really want because I retired earlier and that might put me in a precarious situation...."

[hand]

...my retirement basically covers my monthly expenses, but no more. So I have no worries about being able to pay the bills and still live my current lifestyle at least, esp after I start taking SS even at 62...I will then have a fair bit extra every month even taking it early (I became a believer in taking it early when I learned that anyone doing so comes out ahead until they're 80. Heck I may not even be here when I'm 80).

Surprised you're so focused on maxing Social Security in the case where you die before 80 when you seem to be saying that your pension basically covers your current needs. I would have expected longevity insurance and protection against increased end of live care costs (in the form of delaying Social Security) would have been a bigger priority.

[gunny]

It's not. Medicare plus my military supplement should cover most if not all medical concerns. I'd rather have more money now while I can enjoy it vs having more later so I can buy a nicer wheelchair (etc).

But really the focus here is more pros/cons/feasibility of retiring now vs in a year or three, all things being equal.

[hand]

You have a paid off house, $900k, a pension that covers current expenses and Social Security on the horizon - high level you're in a much better spot than most who retire.

Before committing, I'd suggest making sure you know your numbers:
1) Do you really understand your current expenses - you need to plan for not only what you've spent annually for the last couple of years, but for lumpy expenses as well (e.g., if you drive a $50k car that lasts 10 years, your expenses should include $5k / year to fund an eventual replacement and you should include 1-2% of the value of your house for maintenance)

2) Do you understand how expenses will change once you retire? Health insurance is a big step up in costs for many, but also travel, hobbies etc.

3) Do you have a long term care plan and understand the costs? This is more than just a nicer wheelchair, it also potentially includes significant cost for assisted living & end of life medical.

Once you're comfortable with the expense side of retirement, the "do you have enough" is pretty straightforward to answer - especially if you have a significant COLA'd pension.

[retirewithjoy]

I would definitely do it. I am retiring at 60 this summer because of that corporate grind. It takes a lot out of you.

Sounds like you will be fine.

As far as SS, if you find out you don't need it and are in good health delay for a while. It is your call.

Most people work longer then they should have vs people retiring too soon.

Sounds like you did your homework, set a date and once you set a date, you will know if it is the right decision.

I did that, I told my wife I need to decide a date and said Aug 2025. Once I fixed a date it felt right and all the numbers make sense.

In the corporate world it is way to easy to just keep working one more year. Avoid that trap

[gunny]

You have a paid off house, $900k, a pension that covers current expenses and Social Security on the horizon - high level you're in a much better spot than most who retire.

Before committing, I'd suggest making sure you know your numbers:
1) Do you really understand your current expenses - you need to plan for not only what you've spent annually for the last couple of years, but for lumpy expenses as well (e.g., if you drive a $50k car that lasts 10 years, your expenses should include $5k / year to fund an eventual replacement and you should include 1-2% of the value of your house for maintenance)

2) Do you understand how expenses will change once you retire? Health insurance is a big step up in costs for many, but also travel, hobbies etc.

3) Do you have a long term care plan and understand the costs? This is more than just a nicer wheelchair, it also potentially includes significant cost for assisted living & end of life medical.

Once you're comfortable with the expense side of retirement, the "do you have enough" is pretty straightforward to answer - especially if you have a significant COLA'd pension.

Thanks! I think "yes" is the answer to those questions, but again getting too comfortable with that or not taking something into account is my fear (paranoia?).

- Given my monthly expenses will be covered and then some, I think the $900K (which should grow at least somewhat) should be more than enough for the occasional lumpy big money things like a new(er) car, new roof etc. Really with the house, the heat pump and the roof are the two biggies.

- Again Medicare and my military supplement to it should cover that area. When I retire, like many there will probably be a flurry of spending (nice vacation etc) but I don't plan to go too crazy.

- I have allotted for assisting living - not sure what you mean by end of life medical - hospice? Medicare would cover that.

[gunny]

I would definitely do it. I am retiring at 60 this summer because of that corporate grind. It takes a lot out of you.

Sounds like you will be fine.

As far as SS, if you find out you don't need it and are in good health delay for a while. It is your call.

Most people work longer then they should have vs people retiring too soon.

Sounds like you did your homework, set a date and once you set a date, you will know if it is the right decision.

I did that, I told my wife I need to decide a date and said Aug 2025. Once I fixed a date it felt right and all the numbers make sense.

In the corporate world it is way to easy to just keep working one more year. Avoid that trap

Thanks as well - that is my other fear, that I'll keep being miserable in corporate America longer than I need to out of fear of having less money than I want/need in retirement. The retirement calcs say I'm fine, any general rules of thumb (the 4% rule, the have at least 8 times your salary saved, etc) say I'm fine....but this voice in the back of my head is going "careful what you ask for..."

[angelescrest]

You mentioned paranoia, which is understandable when making such a permanent decision. Can you share more details on your expenses vs your pension?

Sometimes the process of putting to paper (so to speak) your expenses and plans can help you feel better about your thinking and eventual plans. I.e., having a well thought out plan will help you sleep better at night.

What are all of your current and potential future expenses? Medical is the big one, which you seem to have covered. What is your estimated SS payments if you delay until 70? How much will you be paying in taxes on your withdrawals?

[tarheel91]

There is no retirement. I should be retiring when I'm dead. Awesome concept.

[HomerJ]

I guess I'm just feeling a little unsure of what I'll really want to have in retirement for whatever...not so much about "oh no can I pay the bills" but "oh no I can't do X that I really want because I retired earlier and that might put me in a precarious situation...."

The math isn't hard.

Of course you can retire today. You know this.

SS and the interest/dividends thrown off the $900k is all extra, and will allow you to do all kinds of fun, interesting things in retirement.

[gunny]

You mentioned paranoia, which is understandable when making such a permanent decision. Can you share more details on your expenses vs your pension?

Sometimes the process of putting to paper (so to speak) your expenses and plans can help you feel better about your thinking and eventual plans. I.e., having a well thought out plan will help you sleep better at night.

What are all of your current and potential future expenses? Medical is the big one, which you seem to have covered. What is your estimated SS payments if you delay until 70? How much will you be paying in taxes on your withdrawals?

Thanks - I've done that, created a simple spreadsheet and itemized out my monthly expenses. My pension should roughly cover my monthly expenses (it is now); if not (or they go up more than I'm expecting), SS will easily cover it plus change even taking at 62 with most of it left over.

At current tax rates (of course they can change) and assuming an about even amount withdrawn every year (obviously this won't always be the case, but mostly I think), I would be in the 12% bracket with just the pension and SS. That plus taking an average of $30K/yr (assuming 30K over 30 yrs, so $900K) puts me in the next bracket, 22%.

[angelescrest]

You mentioned paranoia, which is understandable when making such a permanent decision. Can you share more details on your expenses vs your pension?

Sometimes the process of putting to paper (so to speak) your expenses and plans can help you feel better about your thinking and eventual plans. I.e., having a well thought out plan will help you sleep better at night.

What are all of your current and potential future expenses? Medical is the big one, which you seem to have covered. What is your estimated SS payments if you delay until 70? How much will you be paying in taxes on your withdrawals?

Thanks - I've done that, created a simple spreadsheet and itemized out my monthly expenses. My pension should roughly cover my monthly expenses (it is now); if not (or they go up more than I'm expecting), SS will easily cover it plus change even taking at 62 with most of it left over.

At current tax rates (of course they can change) and assuming an about even amount withdrawn every year (obviously this won't always be the case, but mostly I think), I would be in the 12% bracket with just the pension and SS. That plus taking an average of $30K/yr (assuming 30K over 30 yrs, so $900K) puts me in the next bracket, 22%.

It was mentioned earlier, but given the fact that you don't actually need either SS payments or a draw on your portfolio, I would highly recommend delaying SS. Unless you think you will die earlier than later, that would increase your income in the future in case you live a long time, in case of higher than expected inflation, in case of long-term care needs, etc. I definitely wouldn't withdraw at 62. If I had an unexpected expense come up, I'd just withdraw from my portfolio instead.

[Fishing50]

You mentioned paranoia, which is understandable when making such a permanent decision. Can you share more details on your expenses vs your pension?

Sometimes the process of putting to paper (so to speak) your expenses and plans can help you feel better about your thinking and eventual plans. I.e., having a well thought out plan will help you sleep better at night.

What are all of your current and potential future expenses? Medical is the big one, which you seem to have covered. What is your estimated SS payments if you delay until 70? How much will you be paying in taxes on your withdrawals?

Thanks - I've done that, created a simple spreadsheet and itemized out my monthly expenses. My pension should roughly cover my monthly expenses (it is now); if not (or they go up more than I'm expecting), SS will easily cover it plus change even taking at 62 with most of it left over.

At current tax rates (of course they can change) and assuming an about even amount withdrawn every year (obviously this won't always be the case, but mostly I think), I would be in the 12% bracket with just the pension and SS. That plus taking an average of $30K/yr (assuming 30K over 30 yrs, so $900K) puts me in the next bracket, 22%.

Maximize the 12% tax bracket each year to get retirement account money into taxable.
You don’t have to spend it, just pay the taxes.
You could build a nice taxable account before you take SS.

If you wait until after SS, sounds like you’ll pay 22% on withdrawals.

[sailaway]

Thanks - I've done that, created a simple spreadsheet and itemized out my monthly expenses. My pension should roughly cover my monthly expenses (it is now); if not (or they go up more than I'm expecting), SS will easily cover it plus change even taking at 62 with most of it left over.

At current tax rates (of course they can change) and assuming an about even amount withdrawn every year (obviously this won't always be the case, but mostly I think), I would be in the 12% bracket with just the pension and SS. That plus taking an average of $30K/yr (assuming 30K over 30 yrs, so $900K) puts me in the next bracket, 22%.

Maximize the 12% tax bracket each year to get retirement account money into taxable.
You don’t have to spend it, just pay the taxes.
You could build a nice taxable account before you take SS.

If you wait until after SS, sounds like you’ll pay 22% on withdrawals.

Why are you recommending moving those funds to taxable instead of doing a Roth conversion?

[Tub84]

It's not. I'd rather have more money now while I can enjoy it vs having more later so I can buy a nicer wheelchair (etc).

Possibly consider using portfolio drawdown to delay SS, while enhancing early retirement spending as described in this post: (Delay Social Security to age 70 and Spend more money at 62: How's It Going? ) viewtopic.php?t=391908

[gunny]

It's not. I'd rather have more money now while I can enjoy it vs having more later so I can buy a nicer wheelchair (etc).

Possibly consider using portfolio drawdown to delay SS, while enhancing early retirement spending as described in this post: (Delay Social Security to age 70 and Spend more money at 62: How's It Going? ) viewtopic.php?t=391908

Yeah I get the logic of delaying. It's all a guessing game in the end, of course. If I live longer and esp if I have some care needs that Medicare doesn't cover, I'd want more. But if I take at 62, I have more total net money all the way to 80. Who knows if I'll even be here when I'm 80 and how many other ways could I spend it? No pat answer.

[HomerJ]

Possibly consider using portfolio drawdown to delay SS, while enhancing early retirement spending as described in this post: (Delay Social Security to age 70 and Spend more money at 62: How's It Going? ) viewtopic.php?t=391908

Yeah I get the logic of delaying. It's all a guessing game in the end, of course. If I live longer and esp if I have some care needs that Medicare doesn't cover, I'd want more. But if I take at 62, I have more total net money all the way to 80. Who knows if I'll even be here when I'm 80 and how many other ways could I spend it? No pat answer.

I will be taking it at 62. I'm NOT spending down my OWN money from 62-70 on the promise that I'll get X dollars at 70. Right now, the official position is the US government is going to cut SS by 20% in 2032 or 2033, so I'm getting mine while I can.

[gunny]

Good point, there's that as well. Waiting years to get more might end up not being more (or not nearly as much) after all!

[CloseEnough]

Yeah I get the logic of delaying. It's all a guessing game in the end, of course. If I live longer and esp if I have some care needs that Medicare doesn't cover, I'd want more. But if I take at 62, I have more total net money all the way to 80. Who knows if I'll even be here when I'm 80 and how many other ways could I spend it? No pat answer.

I will be taking it at 62. I'm NOT spending down my OWN money from 62-70 on the promise that I'll get X dollars at 70. Right now, the official position is the US government is going to cut SS by 20% in 2032 or 2033, so I'm getting mine while I can.

Is this really true? Not looking to debate you on it, but I think your statement is stronger than what I have seen. So curious if you have a source, or this is somewhat speculation on your part that this is a "position" of the US government. Or, are you saying that it would happen, based on current projections, if there were no other changes (that is a very different thing). I am asking only because so many read this forum, and it is important that information such as this is accurate. Thanks.

[KlangFool]

It's not. Medicare plus my military supplement should cover most if not all medical concerns. I'd rather have more money now while I can enjoy it vs having more later so I can buy a nicer wheelchair (etc).

But really the focus here is more pros/cons/feasibility of retiring now vs in a year or three, all things being equal.

gunny,

You can spend a lot more money from your portfolio NOW by delaying the social security to 70 years old. Nothing else gives you guaranteed 8% per year of return.

KlangFool

[HomerJ]

I will be taking it at 62. I'm NOT spending down my OWN money from 62-70 on the promise that I'll get X dollars at 70. Right now, the official position is the US government is going to cut SS by 20% in 2032 or 2033, so I'm getting mine while I can.

Is this really true? Not looking to debate you on it, but I think your statement is stronger than what I have seen. So curious if you have a source, or this is somewhat speculation on your part that this is a "position" of the US government. Or, are you saying that it would happen, based on current projections, if there were no other changes (that is a very different thing). I am asking only because so many read this forum, and it is important that information such as this is accurate. Thanks.

Maybe "position" is the wrong word. The current reality, unless something changes, is that SS will be cut when the trust fund is gone. Outflows can only equal the inflows, when the trust fund hits zero.

Many of us think Congress will make a change, but that is speculation on possible future legislation, which we normally do not do here.

So, based on forum rules, discussing SS on this forum should use the current law, which will see SS cuts in 2032 or 2033.

The official government Social Security website states this will happen.

[HomerJ]

It's not. Medicare plus my military supplement should cover most if not all medical concerns. I'd rather have more money now while I can enjoy it vs having more later so I can buy a nicer wheelchair (etc).

But really the focus here is more pros/cons/feasibility of retiring now vs in a year or three, all things being equal.

gunny,

You can spend a lot more money from your portfolio NOW by delaying the social security to 70 years old. Nothing else gives you guaranteed 8% per year of return.

KlangFool

Depending on one's age, and if/which year SS gets cut, one may not get 8% a year. So it isn't guaranteed.

[Claudia Whitten]

- 61, single, no kids or debt
- $900K in retirement portfolio
- House paid off
- Military pension will basically pay monthly expenses

I'm sick of corporate America

From the vantage point of someone older than you: Do it. Early 60s you still have a bit of that youthful energy, but it won't last long, so seize the day. Go abroad. Check back in from time to time and let us know how it's going.

In headaches and in worry
Vaguely life leaks away,
And Time will have his fancy
To-morrow or to-day.

--W.H. Auden

[gunny]

From the vantage point of someone older than you: Do it. Early 60s you still have a bit of that youthful energy, but it won't last long, so seize the day. Go abroad. Check back in from time to time and let us know how it's going.

O ye temptress! Yeah my financial advisor said the same thing. Worst case I would hold off a year or two tops, but doing it now is tempting. The thing is I don't have a significant other...want to travel but not alone. So the thing is, if I retire.....then what? I'm not into sitting at home watching MASH re-runs all day.

[BernardShakey]

Yeah I get the logic of delaying. It's all a guessing game in the end, of course. If I live longer and esp if I have some care needs that Medicare doesn't cover, I'd want more. But if I take at 62, I have more total net money all the way to 80. Who knows if I'll even be here when I'm 80 and how many other ways could I spend it? No pat answer.

I will be taking it at 62. I'm NOT spending down my OWN money from 62-70 on the promise that I'll get X dollars at 70. Right now, the official position is the US government is going to cut SS by 20% in 2032 or 2033, so I'm getting mine while I can.

Does better than average longevity not run in your genes?

[HomerJ]

I will be taking it at 62. I'm NOT spending down my OWN money from 62-70 on the promise that I'll get X dollars at 70. Right now, the official position is the US government is going to cut SS by 20% in 2032 or 2033, so I'm getting mine while I can.

Does better than average longevity not run in your genes?

Doesn't matter. SS benefits can be changed by an act of Congress. They are going to HAVE to introduce legislation about SS at some point, and something will change. I won't venture to speculate on what the changes will be (or maybe they won't, and we will just have to deal with a 20%-25% cut)

I think it's crazy to spend down your own money pile, based on a very poor assumption that SS, as working today, will not change at all. An assumption that the numbers we have today are "guaranteed" to stay the same until one turns 90 or 100.

[Sandi_k]

OP, you say that your "military supplement" and Medicare will cover health care after age 65.

Does that mean your "supplement" will cover you entirely from ages 60-Medicare age? If so, I think you're good to retire. If not, I would map out the costs more specifically, and I'd delay SocSec to age 65 at least.

[BernardShakey]

Does better than average longevity not run in your genes?

Doesn't matter. SS benefits can be changed by an act of Congress. They are going to HAVE to introduce legislation about SS at some point, and something will change. I won't venture to speculate on what the changes will be (or maybe they won't, and we will just have to deal with a 20%-25% cut)

I think it's crazy to spend down your own money pile, based on a very poor assumption that SS, as working today, will not change at all. An assumption that the numbers we have today are "guaranteed" to stay the same until one turns 90 or 100.

Of course it matters.

Yes, changes to the program will come, but for a given recipient, one who waits will get more than one who takes it at 62. Waiting for a higher payout, whatever that may be, is longevity insurance. If you're in poor health or don't have longevity in your family, then by all means take it at 62.

I will spend some of my nest egg between 62 and 70, reducing future RMD's, and then take a larger SS check at 70. How much larger may be a question, but it'll be larger than if I take it today at 62.

[Godot]

Does better than average longevity not run in your genes?

Doesn't matter. SS benefits can be changed by an act of Congress. They are going to HAVE to introduce legislation about SS at some point, and something will change. I won't venture to speculate on what the changes will be (or maybe they won't, and we will just have to deal with a 20%-25% cut)

I think it's crazy to spend down your own money pile, based on a very poor assumption that SS, as working today, will not change at all. An assumption that the numbers we have today are "guaranteed" to stay the same until one turns 90 or 100.

Am I missing something? Why will Congress "HAVE to introduce legislation about SS at some point"? Isn't that statement itself speculation? Where does it say they will HAVE to introduce legislation?

[HomerJ]

Doesn't matter. SS benefits can be changed by an act of Congress. They are going to HAVE to introduce legislation about SS at some point, and something will change. I won't venture to speculate on what the changes will be (or maybe they won't, and we will just have to deal with a 20%-25% cut)

I think it's crazy to spend down your own money pile, based on a very poor assumption that SS, as working today, will not change at all. An assumption that the numbers we have today are "guaranteed" to stay the same until one turns 90 or 100.

Am I missing something? Why will Congress "HAVE to introduce legislation about SS at some point"? Isn't that statement itself speculation? Where does it say they will HAVE to introduce legislation?

You are correct. Assume they will not introduce legislation and that benefits will be cut 20%-25% in 2032-2033 (7-8 years from now)

[livingalmostlarge]

Sounds like you can retire now.

[Wannaretireearly]

I would definitely do it. I am retiring at 60 this summer because of that corporate grind. It takes a lot out of you.

Sounds like you will be fine.

As far as SS, if you find out you don't need it and are in good health delay for a while. It is your call.

Most people work longer then they should have vs people retiring too soon.

Sounds like you did your homework, set a date and once you set a date, you will know if it is the right decision.

I did that, I told my wife I need to decide a date and said Aug 2025. Once I fixed a date it felt right and all the numbers make sense.

In the corporate world it is way to easy to just keep working one more year. Avoid that trap

This. 100%.
Retire and enjoy OP! Read my signature for more inspiration

[AlaskaTeach]

I am in a similar boat, wrt hating my current job. I loved teaching in Alaska, and came back to Texas to retire. Thanks for your service, I served 9 years in the national guard. I am retiring at age 60 with a teacher's pension from Texas and because of the Social Security Fairness Act of 2023, I called SS to find out the other day that I am looking at a monthly benefit of $1114 per month at age 62! Wow! Before the repeal of the WEP, I was looking at getting something in the $450-500 range. I plan to invest all $1114 every month.

Did your military retirement pension begin already? I thought at some point they were moving the age to 62. What are your health insurance premiums from the military retirement? I was thinking they might be $0, but not sure.

If your health insurance premium is $0, you are set, because of your $900k and your paid off home.

You should probably have two sinking funds, one for the next roof on your house and another for the next car. $500 per month for each should be more than enough, depending upon the current condition of each.

Retire soon and welcome to the class of 2025.

[gunny]

OP, you say that your "military supplement" and Medicare will cover health care after age 65.

Does that mean your "supplement" will cover you entirely from ages 60-Medicare age? If so, I think you're good to retire. If not, I would map out the costs more specifically, and I'd delay SocSec to age 65 at least.

Hi Sandi, the military supplement will cover me after 65. But between now and 65, they have another plan which is very inexpensive that will cover me until then.

[gunny]

Yes, changes to the program will come, but for a given recipient, one who waits will get more than one who takes it at 62.

Not until they're in their 80s. Until then, the early takers get more. And whatever changes (reductions) they make to SS in the future could even further enhance the idea of taking it early.

[gunny]

This. 100%.
Retire and enjoy OP! Read my signature for more inspiration

I am in a similar boat, wrt hating my current job. I loved teaching in Alaska, and came back to Texas to retire. Thanks for your service, I served 9 years in the national guard. I am retiring at age 60 with a teacher's pension from Texas and because of the Social Security Fairness Act of 2023, I called SS to find out the other day that I am looking at a monthly benefit of $1114 per month at age 62! Wow! Before the repeal of the WEP, I was looking at getting something in the $450-500 range. I plan to invest all $1114 every month.

Did your military retirement pension begin already? I thought at some point they were moving the age to 62. What are your health insurance premiums from the military retirement? I was thinking they might be $0, but not sure.

If your health insurance premium is $0, you are set, because of your $900k and your paid off home.

You should probably have two sinking funds, one for the next roof on your house and another for the next car. $500 per month for each should be more than enough, depending upon the current condition of each.

Retire soon and welcome to the class of 2025.

Thanks to you both! And thanks for your service as well.

My military retirement started at 60. My health insurance (when I switch from my job to that) would be about $300-400 per year until I'm 65, then the "supplement" to Medicare is free, basically acting as a Medigap.

[Claudia Whitten]

want to travel but not alone

Traveling alone is the best way to travel. You'll find out why.

The other concerns are no concerns. "The thing is," just do it. Thank me later.

[tj]

want to travel but not alone

Traveling alone is the best way to travel. You'll find out why.

The other concerns are no concerns. "The thing is," just do it. Thank me later.

Traveling alone is awful, but it sounds like you haven't found out why.

[clip651]

... Medicare plus my military supplement should cover most if not all medical concerns. I'd rather have more money now while I can enjoy it vs having more later so I can buy a nicer wheelchair (etc).
...

Medical coverage from medicare and your military supplement will cover doctor visits, drugs, hospitalization, diagnostic tests, etc. In most cases, though, it doesn't cover long term care such as in home personal or nursing aides, assisted living, memory care, or long term nursing care. (Unless your military supplement is a lot different than I'm thinking based on you describing it as similar to medigap earlier in the thread - I have no experience there.)

If you have a stroke, get alzheimer's, parkinsons, or other disabling conditions that are common in people as they get older, you may need a lot of help with things like getting dressed, making and eating meals, getting to the bathroom, bathing, and more. This can mean a lot of hourly help at home ($30 or more an hour X a a few hours, or up to 24 hours a day depending on your needs), and/or facility placement (assisted living, memory care, nursing care). Even in a facility (assisted living for example), you may still need to pay for hourly help on top of the monthly rent to get help with some of those needs. This can add up to a lot of money that needs to be spent that is related to one's medical condition (the person can't dress themselves or get out of bed on their own due to a medical problem) but it isn't covered by medicare and other medical insurance for the long run.

These health conditions can result in truly long term needs - people can have serious mobility issues and/or be in memory care for years for example. A person with serious mobility issues needs help every single day just to get basic tasks done. I spent over 5 years with each of my parents helping them extensively due to mobility problems, cognitive problems, and other common medical issues when they were in their in their 80s and 90s. This kept them out of facilities (their wish) and kept cost for hourly aides to a minimum. But it took up my whole life for a decade, since their needs occurred at different times and not concurrently. If you don't have family members willing to help you and put their own lives on hold at that stage of your life, you'll need funds to pay for others to help you. Some people are of course are luckier than others, and stay pretty healthy until they die after a relatively short illness, so long term care needs and costs are less extreme. But no one can really count on that.

You may already have enough to retire, between your savings, social security, and pension. But please don't think that all your medical related costs are covered just because you have medicare and a good supplement, unless your military supplement covers a whole lot more than a regular medicare supplement. Sure, a really nice wheelchair or scooter can make a huge difference in one's life, allowing one to go more places more easily, and insurance normally only covers the most basic model, so you may be grateful for the ability to afford one should you ever need one. But that's just the start.