52 and planning partial retirement next year

[Kim451]

So, I could use some other people's opinions! I am 52, single with no kids, make 6 figures now, but I am totally burned out on this job and planning to 'retire' next year and just go out and see what other work I can find. I'm in IT and I am already aware, from experience since I quit once before and came back, that nobody wants to hire older women in this job field. The downsides are that I'll get a reduced pension, can't pull from SS or 401k until 62, and I only have $540k in 401k and IRAs, but the plus side is that I can finally stop moving, live in the U.S. in my house, have longer term friends, get a pet, date someone knowing we'll both be around next year, and finally settle down after a lifetime of non-stop moving (I live in Mexico now). I have no idea what my average costs will be for living in my house in St Petersburg, FL since I've never lived there and have only lived in the U.S. for short periods of time over the last 20 years, which makes retirement planning difficult since everything begins with 'what do you spend?'. I have 9 years left on the mortgage, plan to work at whatever I can find, and retire at 62. I take after my dad's side of the family and none of them made it past their mid-70s and I've been told I'm showing signs of heart disease already (although I've also heard that MOST Americans show signs at this age), so I'm not really planning on longevity and want to enjoy the years I have left. I am willing to work overseas again, but only for a 1 or 2 year contract and otherwise realize I may have to work at some low-paying jobs to make ends meet until SS kicks in, but it's time to leave this job. Ideas/suggestions?

[green night]

How large is your reduced pension going to be and when will you start to see it?

Will you buying health insurance?

And how big your cash on hand to cover you until you tap into your 401k / IRAs?

[Ready]

Hi Kim,

Welcome to the forum. You have a lot going on in your thread. It's hard to know where to begin.

Without knowing what your expenses would be, it's hard to give any financial advice on whether you are ready to retire. My recommendation would be to first try to identify what your life goals are. Do you want to move back to the US and live here full time? Or do you prefer another part of the world?

If you are making a six figure salary in IT while living in Mexico, it's hard to imagine why you wouldn't find a good job in the US, even if it may be for less money. Can you start looking for a job now while still doing your existing job?

If your desire is to retire, do you know what you want to do with the rest of your life? Or is retirement on your mind simply because you are burnt out on the job, living in Mexico, or both?

Try to imagine what the ideal living scenario would be, and then it may be easier to create a vision of how to get from where you are now to where you want to end up.

[Kim451]

Thanks for the replies. I know I'm still all over the place on this. I would like to move back to the U.S. full-time but I'll still need a job, as my mortgage is $1088 a month, so if I receive an overseas offer, I can't afford not to be flexible. My most sell able features for future employers are a willingness to travel and a security clearance. The salary I have now is for longevity and performance as a manager; not especially for technical skills any more.

Pension should be around $3300 a month and I continue my health care, just have to pay the premiums myself, although I'm not sure how much that will be exactly. With about $45k in savings on hand but I have to buy furniture and was hoping to redo the kitchen. It needs new appliances, if nothing else, and I'm saving $$ for a renovation.