I hope to retire in two years. My wife will work two years after that, because of the way her retirement plan is set up (I could also work two more years, but all I'd get is older).
After we're both retired our total pensions will be about $70k per year -- quite a bit less than we make now, but we currently live on about $40k and save the rest -- so for certain we can afford to live on those pensions. We shouldn't have to touch our savings at all until inflation catches up with the pensions.
Our savings are currently just over $700k, and should be around $900k by retirement. I figure we'll be able to live on pensions alone (not touching savings) for at least 10 years, and probably more. By then the savings will have grown significantly.
We have an old house with two garage apartments. The rent on them is enough to cover all of our housing expenses (taxes, insurance, utilities). We have zero debt.
To me, it seems like we're set, but the closer we get to our target date, the more my wife gets cold feet. She's the financial genius of the family, so I respect her opinions, but she's also the one who is afraid of taking risks, so maybe I'm right, and she just worries too much.
So what's your take? Are we in good enough shape for ER, or am I deluding myself?
After we're both retired our total pensions will be about $70k per year -- quite a bit less than we make now, but we currently live on about $40k and save the rest -- so for certain we can afford to live on those pensions. We shouldn't have to touch our savings at all until inflation catches up with the pensions.
Our savings are currently just over $700k, and should be around $900k by retirement. I figure we'll be able to live on pensions alone (not touching savings) for at least 10 years, and probably more. By then the savings will have grown significantly.
We have an old house with two garage apartments. The rent on them is enough to cover all of our housing expenses (taxes, insurance, utilities). We have zero debt.
To me, it seems like we're set, but the closer we get to our target date, the more my wife gets cold feet. She's the financial genius of the family, so I respect her opinions, but she's also the one who is afraid of taking risks, so maybe I'm right, and she just worries too much.
So what's your take? Are we in good enough shape for ER, or am I deluding myself?