Average Age of Retirement Rising

[NW-Bound]

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Originally Posted by ejman Maybe so for the population at large. I doubt that most ER's that regularly post here did so because of health reasons. Well maybe to escape the stress from work...

My wife's work was stressful, but mine was not that bad. It was because as a consultant or contractor, I could walk anytime and that gave me a different mentality, and got me a different treatment too.

When I stopped working, it was not for health reasons, but shortly after full retirement I was glad that I could pursue treatments for a sudden life-threatening illness without having a job hanging on my neck (I am OK now).

[Alan]

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Average age of retiring

This is one average that I am happy to be well below

[footenote]

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Originally Posted by Andre1969 I've heard that the actual retirement age has hovered around 62 for awhile now, and no matter how long people think they're going to work, something still happens, such as a layoff, caring for a loved one, failing health, etc.

Agree - it's sad that most people who are not saving and planning will "cliff retire" due to situations you cite. Then they have to cobble together whatever combination of unemployment, savings-raiding (if they have any), working at WalMart, or disability to "keep body and soul together" until they can (stupidly) collect SS at the earliest possible age.

Also, agree with the observation that whether we're talking actually stock in a brokerage account vs a mutual fund can cloud the statistics. (I, too, own very few individual holdings.)

[W2R]

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Originally Posted by Alan This is one average that I am happy to be well below

Wish I could have been! I retired in 2009 at age 61.5. Looks like the average that year was 60. Oh well, I tried.

Also, if you had asked me in my early 50's when I would retire, I would have said "90 if I'm lucky! I'll never get there!" It didn't occur to me on a visceral level that I really would have a paid off house some day, pension, taxes as low as they presently are for me, SS in the wings, and so on.

[scrabbler1]

As far as keeping that average low, I did my share (ERing at 45)!

I don't own any individual stocks but I have about half a million dollars in stock mutual funds split between my IRA and taxable accounts.

Does anyone here think the ACA will put downward pressure on the average age of retirement because people don't have to work until medicare age (or at least 63.5 like my dad did, using COBRA to bridge him to 65 and medicare)? I know this has been discussed in this forum before.

[Big_Hitter]

ACA will absolutely put downward pressure on the average age of early retirements

[W2R]

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Originally Posted by scrabbler1 Does anyone here think the ACA will put downward pressure on the average age of retirement because people don't have to work until medicare age (or at least 63.5 like my dad did, using COBRA to bridge him to 65 and medicare)? I know this has been discussed in this forum before.

Sure! Also, that used to be quite a problem even for those of us with retiree medical insurance as part of our benefits package, to be used during the years before Medicare kicks in.

I know that personally I was FI and could have retired at 59 instead of 61, if I could have had reasonably priced medical insurance at that time. Instead I had to wait until I could officially retire and become eligible for retiree medical insurance. I would have retired two years earlier if I hadn't been caught in that trap.

[hakuna matata]

That would be about right based on most of the people I know in my age range, at least that is when they are saying they will retire. A couple of them have said 65, and then a few have said they can't afford to retire.

My wife and I are working to bring that number down, as we both will retire this fall at age 55.

[photoguy]

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Originally Posted by scrabbler1 Does anyone here think the ACA will put downward pressure on the average age of retirement because people don't have to work until medicare age (or at least 63.5 like my dad did, using COBRA to bridge him to 65 and medicare)? I know this has been discussed in this forum before.

We fired this year and I don't think we would have been able to without ACA's guaranteed issue. I probably would have been able to get a high deductible plan (never get sick) but I think my wife has too many pre-existing conditions.

Alternatively I guess we could have moved to Canada or had her work a part time job only for insurance (I think it would have been easier for her to find part time work).

[2B]

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Originally Posted by Big_Hitter ACA will absolutely put downward pressure on the average age of early retirements

The cost of my COBRA is not much different that what I'd pay for a Bronze ACA policy unless I specifically reduce IRA rollovers to my Roth to get the subsidy. My COBRA has a lower deductible but a higher max OOP if something serious happens. Texas had a High Risk Pool before the ACA that was very similar to a Bronze ACA plan. Anyone could sign up for this to maintain their insurance but you couldn't let your insurance lapse. From my standpoint the ACA has made no difference.

I realize some states restricted access to their high risk pools so then the ACA would be a biggie.

[Big_Hitter]

Managing MAGI is the key. Also, it depends on the cost of COBRA and pre-existing conditions.

I believe we have tens if not hundreds of thousands in "job lock" (for health care coverage) that will be soon leaving the workforce.

Oh, how is H-town these days? I used to live in the 77018 until 2011.

[Free To Canoe]

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Originally Posted by martyb I retired last Friday at 56 so that should help lower the average a little......

Congrats!

[diehard1997]

I retired last year at the age of 38. For the record, my wife doesn't work.

So far, it's been the best decision I my life.


Sent from my iPhone using Early Retirement Forum

[Accidental Retiree]

misfire

[WannabeRetired]

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Originally Posted by diehard1997 I retired last year at the age of 38. For the record, my wife doesn't work. So far, it's been the best decision I my life. Sent from my iPhone using Early Retirement Forum

Would you mind divulging how you did it at such an early age?

[diehard1997]

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Originally Posted by WannabeRetired Would you mind divulging how you did it at such an early age?

Absolutely. I started a software consulting company in the mid-nineties and worked ridiculous hours for many years. As I knew the pace was not sustainable I saved an average of 60% of my income (on good years much more). I was close to FI in 2010 but then found a buyer for my business in 2011. This created a huge FI safety net given my spending never jumped with the income (expenses around 65-75K per year). I worked for the acquiring company for almost two years then retired. I have a wife and 9 year old daughter plus a commercial building I own/manage so I stay pretty busy. I'm just glad I'm still not working those crazy hours!


Sent from my iPhone using Early Retirement Forum

[2B]

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Originally Posted by Big_Hitter Managing MAGI is the key. Also, it depends on the cost of COBRA and pre-existing conditions. I believe we have tens if not hundreds of thousands in "job lock" (for health care coverage) that will be soon leaving the workforce. Oh, how is H-town these days? I used to live in the 77018 until 2011.

Houston is booming. The Harris County Appraisal District is just giddy over jacking up everyone's property values. The freeways continue to be expanded and are still jammed. Toll road construction is connecting sections of business and residential neighborhoods that weren't even imagined a decade ago.

[REWahoo]

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Originally Posted by 2B Houston is booming.

+1

In the spring our grandsons were playing in a baseball tournament in Houston. We wanted to take our RV over for the weekend but couldn't find a vacancy at any RV park in the area. I checked every park within a 20 mile radius of the tournament and they were all booked - not just for the weekend, but for the remainder of 2014...

[MichaelB]

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Originally Posted by REWahoo +1 In the spring our grandsons were playing in a baseball tournament in Houston. We wanted to take our RV over for the weekend but couldn't find a vacancy at any RV park in the area. I checked every park within a 20 mile radius of the tournament and they were all booked - not just for the weekend, but for the remainder of 2014...

Not just Houston, either. I've noticed a steady increase in RVs on the highways over the past few years. Not sure it is back to '07 levels yet but it sure has recovered from '09 - '10.

[REWahoo]

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Originally Posted by MichaelB I've noticed a steady increase in RVs on the highways over the past few years. Not sure it is back to '07 levels yet but it sure has recovered from '09 - '10.

Boomers blowing their kid's inheritances out the tailpipe.