What is the age cutoff for "RE"?

[Mr._johngalt]

Another answer:

If you retire at a younger age than your father did.

That's an interesting point of view. My Dad retired at 67 (he's 89 now).
Man, if I thought I had to work another 5 years before I could leave
I'd be hooking a hose to my exhaust pipe and duct taping the cracks in the garage door.

JG

 

[Dawg52]

My Dad retired at 58, although it was health related. So I guess I will qualify as an early retiree. 8)

 

[retire@40]

I retired at 59 because the timing of an event aligned with my idea to consider it. I was not FI and still am not (according to FIRECALC) but have been focused on the portfolio and the budget since then (4 years) and so far our portfolio is up 10% after expenses. Expenses are down 25% from working level. With each passing year we are getting closer to FI.

I love it.

Even when it's not supposed to work, you figure out a way to make it work (no pun intended).

Where there's a will there's a way.

 

[tryan]

Where I left ER does not exists. I heard:

" Com'on what are you really gonna do"
" Ok, you're taking a break ... you'll be back at work when the severence ends"
" Yeah right ... Call me so I can get the refferal fee"

So I guess anytime before YOU retired is ER.

 

[JustCurious]

It would appear to me that RE like FI are individual decisions and thus somewhat defy an exact definition.

I would have to disagree because from what I have read on this forum, it appears that there is indeed an exact definition of "FI", and it is defined as "having enough savings and investments to throw off a SWR to support your lifestyle without working." The magic number to accomplish this goal will be different for different people, but at least there seems to be a consensus on the defintion, whereas there is no consensus on the definition of "RE".

 

[bosco]

Another answer:

If you retire at a younger age than your father did.

not a helpful definition for some of us. My father retired from the planet at age 46. I consider myself lucky that I'm older than that and still walking around....

 

[kcowan]

I love it.

Even when it's not supposed to work, you figure out a way to make it work (no pun intended).

Where there's a will there's a way.

DW and I also agreed that we would move to Mexico if we could no longer make it work financially. By living there from Oct-Mar, and travelling north Apr-Sep, we can further reduce our living expenses by 30%. Satellite TV, hi-speed internet and VOIP have made it even more attractive since we first devised that as a fallback plan in 2003...

Plus we could do home swaps during the summer to further reduce our nut as needed. Or rent out our place to school teachers and families. Finally, we have scoped out Uruguay as an even cheaper destination where owning beach property is still a deal and living cost are 50% cheaper again.

 

[kaudrey]

"Actually, last time I looked the average age of retirement in the Federal Gvmt was around 63 and rising. 55 with 30 years service is the age at which regular workers under the old civil service retirement system could retire without a reduction in their annuity."

-----

True. I'm under the newer FERS system, and I'd have to wait until 56 years 10 months to retire with full immediate pension and full health bennies. By retiring 5 years earlier (at age 52, with 31 years in), I'll still get my full pension, deferred to 56 years 10 months, but I lose my health insurance bennies.

So, for me, anything before 57 is early. That is, coincidentally, the age my father retired, so I'll match two of the ideas floating around here!

Karen

 

[Khan]

"Actually, last time I looked the average age of retirement in the Federal Gvmt was around 63 and rising. 55 with 30 years service is the age at which regular workers under the old civil service retirement system could retire without a reduction in their annuity."

-----

True. I'm under the newer FERS system, and I'd have to wait until 56 years 10 months to retire with full immediate pension and full health bennies. By retiring 5 years earlier (at age 52, with 31 years in), I'll still get my full pension, deferred to 56 years 10 months, but I lose my health insurance bennies.

So, for me, anything before 57 is early. That is, coincidentally, the age my father retired, so I'll match two of the ideas floating around here!

Karen

Keep your eyes open for early retirement offers (20 years, age 50).

I took one at age 54 with 26.5 years with reduced pension (which increased at MRA (age 55.5 )) and I kept health insurance.

 

[trixs]

I belong in the young dreamers forum... My goal is to retire on my 40th birthday which happens to be ohhh.... 15 years away! Go military retirement!

I suppose I consider 50ish normal and 40s early.

 

[JonnyM]

I don't believe it's an Age number, but a realization that you've opted out, or are planning to opt out well in advance of your peer group, primarily in the work force, but also your social circle as well. In our case our decision was met with disbelief, and at first numerous comments of jelously and disdain, followed later by requests for "How can I join you?" and "Is this really possible for me?" conversations which continue to this day. Factoid, all of our peers (some 4 thousand) work(ed) under the same retirement system with the same rules and regs, they just for the most part never bothered to study them, or look into the possibility of anything short of a putting in at least 30 years baring health issues. The reality we discovered is the system we worked under was based on a sliding acutuarial table. The older you are, the sooner you'll die, the more we'll pay you to retire, mutiplied times your years of service to the organization, multiplied times the level of pay you are able to acheive near the end of your tenure. As a society, we are for the most part conditioned NOT to think of ER and FIRE as realizable goals, and certainly not as desireable outcomes, yet the opportunity is/was there for my peer working group. That's what is unique and so way-cool about the membership of this board. We are the tiny subset of folk that "get it" and thought outside the box enough to ER or are planning for it, but it is very obvious to me that we are the minority. 8)

 

[yakers]

I like what JohnnyM wrote, I like it a lot. But, as also well stated earlier in this thread, I agree that there are two major threads in FIRE the FI & the RE. You have to get to FI to get to RE but I regard the FI as the more significant event. I kind of liked my job all along but it has positively blossomed since I hit FI and don't give a rats a%% about what the boss thinks. I have my target date set but will happily stay on as long as I want. I own my work more now that I chose to be there.

 

[Delawaredave]

So, for me, anything before 57 is early. That is, coincidentally, the age my father retired, so I'll match two of the ideas floating around here!

As the US population lives longer and has less wealth, "retirement age" will keep pushing out, so I guess the definition of "early retirement" will keep pushing out.

I consider anything before 57 or 58 early.

10 years from now, people may consider retiring in your 60's "early" - never in my book.....

 

[rs0460a]

As a society, we are for the most part conditioned NOT to think of ER and FIRE as realizable goals, and certainly not as desireable outcomes, yet the opportunity is/was there for my peer working group.

So true. However, I still question "myself" if I can retire (even though the "evidence" will support my ER next spring) when those around me for the last 30+ years can't. I can't beleive I'm that "smart"... :

- Ron

 

[unclemick]

Circa late 1980's early 1990's - my graph paper/no 2 pencil showed 'early retirement' at 63 versus say regular at 66.

I was layed off at 49 - I was er ah unemployed until I discovered this forum and became a high class ER in hindsight.

heh heh heh heh heh - along with a few other labels.

 

[audreyh1]

As the US population lives longer and has less wealth, "retirement age" will keep pushing out, so I guess the definition of "early retirement" will keep pushing out.

10 years from now, people may consider retiring in your 60's "early" - never in my book.....

I believe that too. I believe that in 20 years retiring at 65 will be considered early. And people will think how amazing it was that 65 was ever considered a "standard" retirement age.

I hope they don't also increase the age limits for senior privileges like golden age passport, etc., ..... I want my half-price camping!!!

Audrey

 

[Mr._johngalt]

I believe that too. I believe that in 20 years retiring at 65 will be considered early. And people will think how amazing it was that 65 was ever considered a "standard" retirement age.

I hope they don't also increase the age limits for senior privileges like golden age passport, etc., ..... I want my half-price camping!!!

Audrey

This got me thinking. Here are my ten closest freinds (in my age bracket) with ages, marital status and ER status/or employment.

Farmer, 62, married works full time.
Dentist, 68, married, retired at 62 but now works more than half time.
Realtor, 69, married, works full time.
Small biz owner, 69, married, works part time.
Small biz owner, 62, married, works part time.
RN, 60, widow, works full time.
Teacher 59, married, works full time.
Lawyer/businessman, 69, divorced, works full time.
Small co. President, 62, works full time.
Sales exec, 60, married, works full time.

Based on this group my situation is still pretty unusual. I might add
that most of my "acquantances" who would fall into this list also
have gone back to work after they retired, at least for a while.
I did go back for 2 years but it still appears that I am the anomaly.

JG

 

[Mr._johngalt]

Okay, I thought this over and can't think of even one person
(relative, friend, acquantance, neighbor, etc) who retired and then
never worked again (Oh wait, I got one........My Dad, but he waited until 67
which seems pretty extreme in my view). Anyway, obviously
in my world; from
retirement to loafing without backsliding is quite unusual. I recall
Paul Terhorst sitting down with a bunch of retirees and being the only
person there who was 100% fully retired. All the rest were consulting
or said they were working at something. I think this confirms the general
stigma attached to retirement, especailly early retirement. It's like there
should be something shameful about it. Maybe that is another reason I
post here so much. It's the lifestyle we embrace, even if the masses
don't get it.

JG

 

[poyet]

I'm 46 and I've been ER for a year. In April one of the companies to which a rent a large warehouse went bankrupt. It generated considerable hassles to get rid of everything (the company, the litigators, the stocks, etc.) and refurbish the building to put it in a correct shape to rent it again (still empty).

John, what I'm ashamed of, is to have had to work whereas I could have gone funboarding, diving, skating, etc.

I feel definitely no stigma attached to doing something else than going to an office boring myself with someone else problems.

PP

 

[Delawaredave]

I think this confirms the general
stigma attached to retirement, especailly early retirement. It's like there
should be something shameful about it.

A lot of people don't develop hobbies/outside interests while working - when they stop working, they don't know what to do.

I know 6 folks that retired last year from a major company - financially all could stay fully retired (traditional pension, conservative, no divorces, etc).

5 of them did not seem to have outside interests besides work - they are "consulting" or working elsewhere

1 guy had a lot of hobbies/interests while working - he hasn't worked a day since retiring.

Moral of the story: don't let work consume your life while you are working.....

 

[kcowan]

I think this raises the questin of definition. ER is when there is no significant gainful employment. I retired and took a pension in 1992 but continued to work for another 10 years, sometimes fulltime, always consulting (i.e. billed revenues to my sole proprietership). So for me ER was 2002.

DW also retired in 2002 by closing her business. But she continued to make money until Aug 2005 so she was really semi-retired, working out of our house.