One year to ER

[El Sargento]

I'm one year out from retirement. I don't have a lot saved but I have a low col and a generous pension. Here are my numbers and my plan.

Currently, I’m 45 and single. My son is grown and independent.
Expenses: $32,000 a year
Debt: car note (to be satisfied b4 retirement)

457: $240k
Roth: $55k
After tax: $43k
Cash: $90K (emergency fund)

Pension @ 46: $66k net (conservative estimate)
SS @ 62: $20K


In retirement I will continue to invest in the after tax acct. ≥1500 a month. As inflation erodes the pension I will reduce the amount I invest accordingly. I plan on letting the retirement accounts sit for at least 20 years. My employer will provide health insurance for life. The annual premium will cost me $1,200.

How do the numbers look? Am I missing anything? I think I’ll be set, however I’m not opposed to taking a part-time job in the future.

 

[camfused]

Did you run through FireCalc?

 

[flintnational]

I entered the following in Firecalc:

$66K non cola pension @ 46
$430K investable assets
$12K (est of current value of SS)
$32K annual budget
45 year time horizon

I got a 100% success rate. In fact, it showed a 100% success at a spending level of $47K. IMO, you are in good shape. Couple of thoughts. Double check your budget and make sure you are comfortable with it. And, you may be retired 40 or 50 years. IMO, that always adds extra risk. Finally, I assume the pension is secure long term? That would be the only other risk I see.

Edit to add: Congrats. I got caught up in running the numbers.

 

[Dtail]

It looks great overall. Does your pension have a COLA?

 

[El Sargento]

The pension does have a cola. I don't think its a lot. I think it kicks in every 10 years. The pension fund is more than 100% funded.

 

[flintnational]

The pension does have a cola. I don't think its a lot. I think it kicks in every 10 years. The pension fund is more than 100% funded.

I did not include a cola in the Firecalc run. Cola's can be very valuable. You might want to dig into the details as part of your planning.

 

[HawkeyeNFO]

$66k pension
- $32k expenses
--------
$34k extra money

Looks like Sarge will need something to spend extra money on.

 

[REWahoo]

$66k pension
- $32k expenses
--------
$34k extra money

Looks like Sarge will need something to spend extra money on.

Maybe he could help out Robbie with the payments on that new Impala.

 

[Offgrid Organic Farmer]

Congratulations.

I was forced out onto pension at 42. My pension is small, so we re-located to a low COL region.

So long as you bring in more than what your Standard-of-Living spends you will be fine.

I am not sure that firecalc is really needed to tell you that.