"Hello fellow ERS!Plan on retiring end of July this year at age 55 after 36 years as a Power Plant Operator.Total expenses including Health ins,utilities,food,car ins,House taxes and ins,etc is 1200 a month.Monthly income will be 3,400$ a month with pension and a couple of land contracts im collecting on for the next 8 and 10 years.350K in a 401k with SWR of 4% is also in play.Will reevaluate my position at age 62 whether to collect SS then or wait.How am I doing fellow ERS! Can I safely retire!
I have had enough of the crap! lol"
Not enough info for me to offer a good opinion, but: (lol)
1. Is your pension COLA'd, or will it worth a lot less in 20 years?
2. Will SSI be enough to replace the loss of income from the land contracts in 8/10 years? (I'm assuming the $3400 is post tax and doesn't include SS)
3. You might outlive your 401k balance at 4%. - I'm also assuming that 4% is not included in the$3400
4. Have you a family history of health problems which may eat into or wipe out your 401k?
Offhand, I'd say 'yes' if my assumptions are correct, and you can live frugally. DW and I have a post tax income of about $3800 a month which we can survive on (that's also after health insurance). We have a few more bills at the moment, most will disappear this summer (two car payments). Also have a $650 truck payment (3 years left) because of our RV and penchant for travel. We could do quite well on just those (COLAd) pensions. We are not eligible for SS. Survival, for us, is not living. We also WD about $20k a year for fun stuff. That still permits our investments to grow, albeit at a reduced rate. I mention our situation because it is similar to yours. In a travel month, we tend to spend about $5200 a month. In a frugal (for us) month, we live close to our pension amount.
So I doubt your total expenses will only be $1200, when all's said and done, but you can assuredly live on $3400 (net income). Even hold off withdrawing from investments, depending on your lifestyle. But what about long term health care, cable, phone, internet, gasoline (which went up for us after retirement), entertainment, travel, etc? Are you prepared for cost of living increase? How about a three year recession? Are you going to do all those fun things you planned on, which cost $$$ lol.
Maybe consider a lower WD rate, making it flexible and only withdrawing when needed.
Just my thoughts. Try running your [conservative] numbers through firecalc.