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possible retirement
Old 04-19-2009, 08:11 AM   #1
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possible retirement

Hi,
I will be 55 may 20 2009 I have a chance to retire as of rune 1 2009, I will get 95 % of my pension after that it will go down to 90%(i would be losing $160/month) .Then it will go down to 88% Jan 2010 then gradually go back up to 100% when you reach 60 years of age. I am a construction electrician and the work has been very spotty maybe if I am lucky I would work 5 months out of the year. Where I work at web had an actuary come in and our pension fund is not doing so good because of the market .
I would be eligible for $ 2500 per month by the time I take fed with holding taxes out and health insurance it would be about 2200/month.
If I stay the next 5 years our multiplier is $50/year of service and I would only get about 70% of that which would be $35 dollars which would be another $175 /month I am just wondering if it is worth while hanging around .
I feel to young to retire but I would like to make an educated financial decision .
Thanks in advance ,

Ralph
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Old 04-19-2009, 08:18 AM   #2
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Ralph, welcome to the forum.

Looks to me as if you are missing half of the information you must have to make that "educated financial decision" - how much income do you need in order to meet your expenses in retirement? Until you have that information I don't think any of us (or you) can know whether or not the additional money is worth hanging around.
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Old 04-19-2009, 09:18 AM   #3
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i have an appointment to see a cfp this Tuesday so i am hoping I can get an idea from their.
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Old 04-25-2009, 07:37 AM   #4
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Well I had an appointment with a cfp he ran the numbers on his computer and the result was to work 5more years (work till I was 60)I would have to be retired 50 years for the extra 5 year to pay off. It almost seems like a no brainier but still having a hard time deciding to go. If you go by the numbers it would tell you to leave I don not know why I am having a hard time with it there are about 60 of us where I work at and the people I talk to about 5 are in are having hard time deciding what to do. It is coming down to crunch time about 2 more weeks that you will have to decide what to do.
Thanks in advance ,
Ralph
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Old 04-25-2009, 07:52 AM   #5
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As REWahoo said, it all comes down to what your financial needs are. I would retire without second thought for half your pension(if COLA'd). Others here wouldn't consider it at the amount you'd be getting. You need to figure out what you need to live on and make the decision from there. Good luck!
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Old 04-25-2009, 08:01 AM   #6
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financially i would be al right it is making the Transition
from working to not working
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Old 04-25-2009, 08:05 AM   #7
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financially i would be al right it is making the Transition
from working to not working
You might want to read through some of these threads: (FAQ archive) But... what will I do all day?
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Old 04-25-2009, 08:24 AM   #8
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Ralph, just because you retire, you don't have to stop working. Could you work elsewhere? Around here at least we have lots of handyman type companies that employ retirees.

You might want to take a look at Work Less, Live More: The Way to Semi-Retirement, a great book by one of our members. You'll see a link to it at the top of the page.

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Old 04-25-2009, 11:55 AM   #9
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Ralph, just because you retire, you don't have to stop working. Could you work elsewhere? Around here at least we have lots of handyman type companies that employ retirees.

You might want to take a look at Work Less, Live More: The Way to Semi-Retirement, a great book by one of our members. You'll see a link to it at the top of the page.

Coach
Exactly what I was thinking. If you can pick up a few odd jobs to help with the transition, I would do it in a heart beat. Good luck with your decision.
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Old 04-25-2009, 03:13 PM   #10
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The idea is to establish a target lifestyle. What do you want to (yearn to) do with your life? If you have no goal in mind you might in up in a gaol.
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Old 05-03-2009, 08:25 AM   #11
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I am real having a tough time deciding whether to retire or not
it is not the money aspect it is the emotional issue , if you go by the numbers the CFP. Gave me then I should retire I just do not feel like I am ready to go ,but if I stay then I loose a lot of money. The CFP told me it would take me 50 years to make up what I will loose. I talked to a friend that I worked with but he is 60 and he will go out @ 62 and does not to loose financially. He was telling me that I should go with my emotions ,and I know going by my emotions is the wrong
thing to do. my friend will get 100% of his pension.
The rules changed because our pension is only 65% funded wright now and by the federal guide lines it has to be 80% to be funded properly. We have an actuary look at it every year the anniversary date would be march 2010 and if it still does not look good it seems like they still change some things around. So going by that I should leave and be thankful but I I am having a hard time getting over the psychological level.
I am an electrician and it is my life my identity and I am really having a hard time with that. I will probably retire and move on with life but is sort of difficult. I talked to a close friend that I worked with and he told me he felt the same way
he said he was going with the money. Thanks for letting me ramble on about this for some people it is easy but not so easy for me.
Thanks in advance
Ralph
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Old 05-03-2009, 09:15 AM   #12
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I am an electrician and it is my life my identity and I am really having a hard time with that.

Would you consider getting a license to do home wiring as a business? It would be lighter work, as you get older, than electrical construction. Customers can be a pain, but people are also grateful when an electrician finds what's wrong in their home and fixes it. People tend to be scared of electricity.

If your pension is not COLA'd,be prepared for inflation to bite over time. But that is not a reason to stay 5 more years, I don't think.
Best of luck.
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Old 05-03-2009, 09:25 AM   #13
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Quote:
Originally Posted by rdema View Post
I am real having a tough time deciding whether to retire or not
it is not the money aspect it is the emotional issue , if you go by the numbers the CFP. Gave me then I should retire I just do not feel like I am ready to go ,but if I stay then I loose a lot of money. The CFP told me it would take me 50 years to make up what I will loose. I talked to a friend that I worked with but he is 60 and he will go out @ 62 and does not to loose financially. He was telling me that I should go with my emotions ,and I know going by my emotions is the wrong
thing to do. my friend will get 100% of his pension.
The rules changed because our pension is only 65% funded wright now and by the federal guide lines it has to be 80% to be funded properly. We have an actuary look at it every year the anniversary date would be march 2010 and if it still does not look good it seems like they still change some things around. So going by that I should leave and be thankful but I I am having a hard time getting over the psychological level.
I am an electrician and it is my life my identity and I am really having a hard time with that. I will probably retire and move on with life but is sort of difficult. I talked to a close friend that I worked with and he told me he felt the same way
he said he was going with the money. Thanks for letting me ramble on about this for some people it is easy but not so easy for me.
Thanks in advance
Ralph
It's not just you, this is a tough decision for all of us.

Reading Work Less, Live More (Clyatt) is excellent advice IMO. I would also recommend you read How to Retire Happy, Wild, and Free (Zelinski). I have read dozens of retirement books, I have only bought three including these two. Both offer great insight into the (more often overlooked) non-monetary aspects of retirement. A "successful" retirement depends on having something (activities) to retire to, not something to retire from. "I am an electrician and it is my life my identity and I am really having a hard time with that" is much more important than the $ aspect - it appears you may have already cleared the $ hurdle anyway (congrats BTW)!!!

On the $ front though, I am also unclear about your health insurance. If you have health insurance with your present job, that's a huge factor.

Best of luck, you are definitely on the right track asking yourself these questions. This is a great resource for early retirement, but remember - ultimately you alone have to live with your choices.
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Old 05-03-2009, 10:06 AM   #14
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I am glad that I do not have an identity crisis or cling to my work. I enjoy what I do, however. As long as my financial goals are achieved, I can pursue other interests.
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Old 05-03-2009, 11:11 AM   #15
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yes i have health insurance with my job
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Old 05-03-2009, 11:35 AM   #16
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Ralph,
I too am an electrician. I hope to retire at the end of this year. I do think it will take some adjusting. But you know as well as I, you can always pick up side work. Probably more than a retiree will want to do. So don't worry to much about the identity crisis. Actually and honestly these are the things I keep telling myself to make me feel better about it all. Worry about your health care and income if you need something to think about.
That's where my thoughts are mostly, and I have a non cost of living adjusted pension. Got to establish good health care in retirement also.
Good luck and you've come to the right forum,
Steve
PS. I just turned 55 in march, so we have a lot in common.
Now if I can get settled on how to make my investments produce enough income for these extras? Still waiting on you bunch of genius's to work that out for me <smile> !!!
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Old 05-25-2009, 10:31 AM   #17
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i have a pension and no cost of living increase so i just have to sign off on the paper work and this Friday will be my last day of work (May 29, 2009) i will see what happens from their this will be uncharted territory for me. i just turned 55 may 20
Thanks Ralph
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Old 05-25-2009, 10:33 AM   #18
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i have a pension and no cost of living increase so i just have to sign off on the paper work and this Friday will be my last day of work (May 29, 2009) i will see what happens from their this will be uncharted territory for me. i just turned 55 may 20
Thanks Ralph
Best of luck. The good news is that as a tradesman, you'll probably have a pretty good chance to augment your retirement income with a few odd jobs here and there -- and on your terms, when you feel like doing it.
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Old 05-25-2009, 06:54 PM   #19
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Ditto what Ziggy said.

Jim
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Old 05-25-2009, 08:06 PM   #20
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rdema,
as mentioned here, being a tradesman, you and stevewc will very likely be able to keep your identities when you retire. You'll take your skill sets with you wherever you go. People in corporate life like me will have a much harder time trying to substitute something for that identity.I was chatting with my wife this morning about what to do after retiring, maybe using my network of business acquantainces to build a part time business, etc, and she dumped this bucket of cold water reasoning on me: "once you retire, none of your "business friends" will give a damn about you anymore" And I relized that I had seen that happen many times over, I being on that side of the fence as well...
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