Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Key Ages for Early Retirement
Old 10-02-2009, 08:41 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 21,148
Key Ages for Early Retirement

I was planning on asking the group here to help me build a table of retirement milestones, and then while reading the new Bogleheads Retirement book, there was a basic table on pg 204 (plus my unique adds and updates in red)! But are there any other significant milestones you can add to help me complete the table? If nothing else, I can put the milestones in Outlook (at work) for laughs...

Yr turning Age 50Catch-up provisions allow additional funding of IRAs and 401k plans
Age 55May be able to withdraw 401k funds if still with employer until age 55
Age 56Eligible for 75% of (very small) MegaCorp pension
Age 59½Can withdraw earnings from IRA without penalty
Age 61Eligible for 100% of (very small) MegaCorp pension
Age 62Eligible for early Social Security benefits
Age 65Medicare becomes available
Age 65Able to withdraw from HSA for non-medical purposes without penalty (taxes only)
Age 66Full SS retirement benefits for those born before 1955
Age 67Full SS benefits for those born in 1960 or later
Age 70Should start taking SS benefits (124-132% of full), as they stop increasing beyond age 70
Age 70½Required minimum distributions (RMDs) begin for traditional IRA and 401k accounts
Age 108"End of Plan"
NeverMandatory distributions from Roth IRA or Roth 401k accounts
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-02-2009, 08:49 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
You can add (for those people for whom it's relevant):

Age 65: Able to withdraw from HSA for non-medical purposes without penalty (taxes only)
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 10-02-2009, 09:17 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 10,252
The first one labeled age 50, is really age 49 for many folks. As long as you are age 50 on 12/31/2xxx you can use those catch-up provisions.

My spouse has a birthday late in the year. If she had not been aware that she was able to use the catch-up while still only age 49, then she would not have been able to get that extra $5,000 out of her paychecks by year-end. Since she was aware, she set her contribution rate starting in the beginning of the year.
LOL! is offline   Reply With Quote
Old 10-02-2009, 09:19 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 10,252
Also I think non-spousal inherited Roth IRAs do have mandatory RMDs. This seems to fly under the radar as well.
LOL! is offline   Reply With Quote
Old 10-02-2009, 09:41 AM   #5
Thinks s/he gets paid by the post
kyounge1956's Avatar
 
Join Date: Sep 2008
Posts: 2,171
Maybe another relevant age to add to this list is one's life expectancy, based on one of those "how long will you live" quizzes, or just an educated guess based on how long your parents and other relatives lived.
kyounge1956 is offline   Reply With Quote
Old 10-02-2009, 09:46 AM   #6
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,468
Quote:
Originally Posted by kyounge1956 View Post
Maybe another relevant age to add to this list is one's life expectancy, based on one of those "how long will you live" quizzes, or just an educated guess based on how long your parents and other relatives lived.
Since Midpack plans to put these milestone dates into his Outlook calendar, an entry of "DEATH" might be a little discouraging....
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is offline   Reply With Quote
Old 10-02-2009, 09:49 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 10,252
Quote:
Originally Posted by kyounge1956 View Post
Maybe another relevant age to add to this list is one's life expectancy, ...
Age 84 You die.
LOL! is offline   Reply With Quote
Old 10-02-2009, 09:53 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
Quote:
Originally Posted by LOL! View Post
Age 84 You die.
84.6 for me. Let's not rush things.



heh heh heh -
unclemick is offline   Reply With Quote
Old 10-02-2009, 10:08 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 21,148
LOL. I actually thought about "death" as a joke, but thought it might offend some of our more sensitive audience members.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 10-02-2009, 10:29 AM   #10
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
Quote:
Originally Posted by LOL! View Post
Age 84 You die.

Quote:
Originally Posted by Midpack View Post
LOL. I actually thought about "death" as a joke, but thought it might offend some of our more sensitive audience members.
dibs on age 84, take my life, please. Woody Allen made a career out of death humor.
CuppaJoe is offline   Reply With Quote
Old 10-02-2009, 10:57 AM   #11
Recycles dryer sheets
 
Join Date: Feb 2007
Posts: 120
I retired from the Boeing Company. A few years ago, they published a chart that showed how many people retired from Boeing at various ages. The 4 most popular ages for retirement were/are 55, 60, 62, and 65. I will limit myself to just these 4 because I can account for why people retired at these ages. I have no idea why people retired at other ages other than it was time to get out of Dodge.

The 55 and 60 ages are probably related to the way Boeing's former defined benefit retirement plan worked (at least as I understand it). Supposedly, you could retire at any age provided that you had vested in the retirement plan (which took 5 years if I remember correctly). HOWEVER, if you retired before 55, you only received a small fraction of what you were otherwise entitled to. At age 60, you got 90% of what you were entitled to (which was a dramatic increase compared to the percentage for younger people). This percentage increased year by year until it reached 100% at year 60.

62 is of course the first year for SS. For Boeing, this is far and away the most popular age for retirement.

65 is the traditional retirement age.

The order in popularity for the top 4 is 62, 55, 60, 65.
Dudester is offline   Reply With Quote
Old 10-02-2009, 11:00 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 21,148
Quote:
Originally Posted by Dudester View Post
62 is of course the first year for SS. For Boeing, this is far and away the most popular age for retirement.

The order in popularity for the top 4 is 62, 55, 60, 65.
Interesting. I'd never stopped to think about it, but matches with what I've seen first hand too. My last two retirees were indeed 62...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 10-02-2009, 11:21 AM   #13
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,468
Quote:
Originally Posted by Midpack View Post
Interesting. I'd never stopped to think about it, but matches with what I've seen first hand too. My last two retirees were indeed 62...
Personally, I think the ideal retirement age is 61 years, 5 months, and 1 day...
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is offline   Reply With Quote
Old 10-02-2009, 02:46 PM   #14
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
Quote:
Originally Posted by Want2retire View Post
Personally, I think the ideal retirement age is 61 years, 5 months, and 1 day...
Short timer -- Good luck.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Old 10-02-2009, 03:54 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
Here's a new row...

Pre-55: Do a Johnny Paycheck move if FI
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 10-02-2009, 04:14 PM   #16
Thinks s/he gets paid by the post
kyounge1956's Avatar
 
Join Date: Sep 2008
Posts: 2,171
Quote:
Originally Posted by Want2retire View Post
Since Midpack plans to put these milestone dates into his Outlook calendar, an entry of "DEATH" might be a little discouraging....
Yeah, I can see where sensitive individuals might be disconcerted by "DEATH" popping up on the day's "to do" list!

However, mightn't it be a good idea to put an entry in the calendar, say, a year or so before the date you planned your portfolio to last until, for "Portfolio Review & Revamping"? If at that point you are still healthy, and it looks like you could outlive your money, perhaps it would be advisable to switch some assets over to (dare I say it?) some sort of annuity.
kyounge1956 is offline   Reply With Quote
Old 10-02-2009, 04:31 PM   #17
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,468
Quote:
Originally Posted by kyounge1956 View Post
Yeah, I can see where sensitive individuals might be disconcerted by "DEATH" popping up on the day's "to do" list!

However, mightn't it be a good idea to put an entry in the calendar, say, a year or so before the date you planned your portfolio to last until, for "Portfolio Review & Revamping"? If at that point you are still healthy, and it looks like you could outlive your money, perhaps it would be advisable to switch some assets over to (dare I say it?) some sort of annuity.
That's a good idea.

I am planning to review and revamp my portfolio at age 85, because sometimes people in my family live to be over 100. If I should happen to live to 85, extreme longevity would be more probable than it is presently. Presently my financial plan assumes death at 95.

I'm not going to put it in my Outlook calendar, though! "DIE TODAY!"
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is offline   Reply With Quote
Old 10-02-2009, 08:41 PM   #18
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,855
Quote:
Originally Posted by Want2retire View Post
Since Midpack plans to put these milestone dates into his Outlook calendar, an entry of "DEATH" might be a little discouraging....
Quote:
Originally Posted by Midpack View Post
LOL. I actually thought about "death" as a joke, but thought it might offend some of our more sensitive audience members.
Quote:
Originally Posted by kyounge1956 View Post
Yeah, I can see where sensitive individuals might be disconcerted by "DEATH" popping up on the day's "to do" list!
Quote:
Originally Posted by Want2retire View Post
I'm not going to put it in my Outlook calendar, though! "DIE TODAY!"
It'll keep everyone else from adding meeting requests to your Outlook calendar for that day...
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Old 10-03-2009, 12:27 AM   #19
Thinks s/he gets paid by the post
kyounge1956's Avatar
 
Join Date: Sep 2008
Posts: 2,171
Quote:
Originally Posted by Want2retire View Post
That's a good idea.

I am planning to review and revamp my portfolio at age 85, because sometimes people in my family live to be over 100. If I should happen to live to 85, extreme longevity would be more probable than it is presently. Presently my financial plan assumes death at 95.

I'm not going to put it in my Outlook calendar, though! "DIE TODAY!"
My mom said she was told something along those lines when she had to start taking her RMD's at age 70-1/2. Once you're past 65 or so, the older you get, the tougher you get. I guess the idea is if you were going to die from heart disease or stroke or cancer, you'd have done it already. If you aren't going to die from one of those, we'll have to wait until you just plumb wear out, and if you change your oil & filters regular, that could take another 20 years or so.

Don't I remember hearing somewhere that over 85's are the fastest growing age group in the population?
kyounge1956 is offline   Reply With Quote
Old 10-03-2009, 11:14 AM   #20
Thinks s/he gets paid by the post
kyounge1956's Avatar
 
Join Date: Sep 2008
Posts: 2,171
Quote:
Originally Posted by Want2retire View Post
That's a good idea.

I am planning to review and revamp my portfolio at age 85, because sometimes people in my family live to be over 100. If I should happen to live to 85, extreme longevity would be more probable than it is presently. Presently my financial plan assumes death at 95.

I'm not going to put it in my Outlook calendar, though! "DIE TODAY!"
So Midpack, just out of curiosity, if your financial plan assumes death at 95, what is "end of plan" at age 108? Are you expecting it to take 13 years to get your estate through probate, or what?
kyounge1956 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What do you do about Minimum Retirement ages Required by Pensions?? militaryman Hi, I am... 13 12-31-2018 09:58 AM
AARP Medical Advantage Insurance Plan, ages 50-64 mark500 Health and Early Retirement 13 07-15-2008 06:15 PM
Retirement Accounts and Early Retirement heebygeeby Young Dreamers 9 03-14-2007 03:56 PM
Question for the Men of all ages. My Dream Other topics 46 10-24-2006 10:21 PM
Early Retirement in the early 21th century? Danny FIRE and Money 12 12-12-2005 10:00 PM

» Quick Links

 
All times are GMT -6. The time now is 12:59 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.