Early Retirement - New Normal

[Shanky]

With many of the post, the are many folks who have retirement income or benefits that are no longer "normal" for most folks. This would include pensions, health care benefits in retirement, and inheritance.

How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM. (And Children.....)

 

[REWahoo]

How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM. (And Children.....)

<Hand goes up...>

 

[MichaelB]

How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM.

That's me.

 

[pb4uski]

How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM. (And Children.....)

That's me for the most part. Just saved consistently since my late 20s and invested wisely.

I do have a small pension from one of my prior jobs but won't start drawing on it for another couple years and if I didn't have it it wouldn't have made a huge difference in my decision. Nice gravy though.

 

[ejman]

With many of the post, the are many folks who have retirement income or benefits that are no longer "normal" for most folks. This would include pensions, health care benefits in retirement, and inheritance.

How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM. (And Children.....)

That would be me.

 

[Animorph]

Close, except for DW's small years ago frozen pension. But we both did well with stock options, which probably takes us out of just job and LBYM.

 

[audreyh1]

Does having stock options from being with a small company startup disqualify one? [Some might consider that akin to owning a business]

Same as Animorph - but no pensions at all.

 

[Khufu]

With many of the post, the are many folks who have retirement income or benefits that are no longer "normal" for most folks. This would include pensions, health care benefits in retirement, and inheritance.

How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM. (And Children.....)

Of course, the likeliest result of losing access to the previously "normal" retirement benefits is not early retirement but working longer, with the exception of the unrepresentative population on this early retirement forum.

This is apparently what the "new normal" looks like for American men:

From this article: Catherine Rampell - Economix Blog - NYTimes.com

 

[FIREd]

How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM. (And Children.....)

DW and I never owned a business, we won't have a pension, and no health care benefits either. Stock options helped a little but by and large we got where we are by living well below our means (saving over 60% of our lifetime take-home earnings).

I did receive a gift from my parents, but that was after I had already FIREd.

 

[Rambler]

<Hand goes up...>

+1

However, I was a pretty well paid sr exec, but lived a relatively simple life in my working years, compared to my peers (i.e., L-way-BYM). Saved a load in the last 10-12 years.

R

 

[foxfirev5]

I find these responses very encouraging. It's nice to see that people can make it with a bare bones, decent salary, LBYM approach. I also feel that there should be full disclosure when giving advice on this forum. I've read of some promoting rather aggressive investment strategies of 100% equities or all cash, only to realize later that they have a big pension and bennies. There's nothing at all wrong with that, except that it can be misleading.
Personally I'm looking at Er at 58. A very small pension, frozen years ago, and retiree health insurance - for now. 95% of my retirement planning centers around what I have saved and invested over the last 30+ years.

 

[traineeinvestor]

No pension, no health care, no social security, never owned a business either (unless you count being a partner in a law firm). LBYM was important. Having two incomes for some years helped. Having DW 100% on the same page as me was absolutely essential.

 

[obgyn65]

Small pension, no healthcare, small social security as I have only worked 10 years in the US, never owned a business. Never married, so one income all my life.

 

[MichaelB]

Small pension, no healthcare, small social security as I have only worked 10 years in the US, never owned a business. Never married, so one income all my life.

Oby, aren't you eligible for non-US healthcare or a state pension?

 

[obgyn65]

I will have the UK State pension plus another small pension from another EU country (my country of birth).

Regarding healthcare, I will have healthcare coverage if I move back to the EU. If I stay in the US, I guess I will have to buy my own private insurance.

Oby, aren't you eligible for non-US healthcare or a state pension?

 

[MichaelB]

I will have the UK State pension plus another small pension from another EU country (my country of birth).

Regarding healthcare, I will have healthcare coverage if I move back to the EU. If I stay in the US, I guess I will have to buy my own private insurance.

Thanks. That's what I recalled from previous threads.

 

[obgyn65]

You are welcome. My posts tend to be short and concise for lack of time but they are always truthful about my personal situation.

Thanks. That's what I recalled from previous threads.

 

[Midpack]

I have no pension or subsidized health care (SIRE) and no business/real estate income sources, but we'll have Soc Sec, Medicare and evidently a small inheritance.

A variation on the FIRE vs SIRE question, not always acknowledged here when members dispense advice (the perspectives are significantly different).

Haven't found the actual FIRE vs SIRE thread unless this is it http://www.early-retirement.org/forums/f28/poll-primary-retirement-income-source-53502.html

Edit: Probably found it http://www.early-retirement.org/forums/f28/which-are-you-will-you-be-sire-or-fire-46680.html though almost no one is entirely one or the other!

 

[Amethyst]

Do you count people who had very high paying jobs, or big profits from their companies? Wasn't the ER forum started, in part, by folks who made out big in the late-90's dot-com boom? If you got a $5Million-plus bump (I don't like to call it a "windfall," since it's not as if these folks didn't work for their money), then you were pretty much set (although you still needed to LBYM).

Just a thought.

Amethyst

How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM. (And Children.....)

 

[HFWR]

Not FIREd yet, but getting closer...

Pension: first pension frozen about fifteen years ago at $23k; cashed out during the first layoff to make a larger downpayment on my house. Second pension will be small, but "free money". Might be enough to cover my house payment, depending on how much longer I last there before the grant money dries up.

Health insurance: heavily subsidized from former megaconglomocorp. Currently about $168/mo. for medical and dental.

Stock options: received a few hundred back in the heady dot-bomb days, but they all expired so far under water that Jacques Cousteau couldn't find them...

Otherwise, relatively good pay, consistent savings, and a 401k match, plus avoiding affluenza, for the most part anyway, is where the bulk of my mini-pile came from.

FIRE: a few months to years from now, about half drawdown from retirement accounts, plus a SS check, and the aforementioned HI. Might get a meager inheritance one day, though I told my dad to spend it on himself, as it won't materially affect my future.

Some good luck, some bad, but managed to wend my way through the maze with a few bucks left over...

 

[pb4uski]

+1

However, I was a pretty well paid sr exec, but lived a relatively simple life in my working years, compared to my peers (i.e., L-way-BYM). Saved a load in the last 10-12 years.

R

+1

 

[MichaelB]

You are welcome. My posts tend to be short and concise for lack of time but they are always truthful about my personal situation.

I wasn't suggesting otherwise.

 

[sanfanciscotreat]

No pension, paying the full private healthcare premium through my former employers BCBS plan, no inheritance, no SS. Was fortunate to have the opportunity to work for a small basically family owned business that grew rapidly by ten fold in 30 years, went public and gave many employees stock options, ESOPS, 401K matches retention bonuses and performance bonuses .

 

[Bikerdude]

I find these responses very encouraging. It's nice to see that people can make it with a bare bones, decent salary, LBYM approach. I also feel that there should be full disclosure when giving advice on this forum. I've read of some promoting rather aggressive investment strategies of 100% equities or all cash, only to realize later that they have a big pension and bennies. There's nothing at all wrong with that, except that it can be misleading.
Personally I'm looking at Er at 58. A very small pension, frozen years ago, and retiree health insurance - for now. 95% of my retirement planning centers around what I have saved and invested over the last 30+ years.

+1. I've always thought that responses to threads should indicate your current status and situation. As you point out there are big differences between people still working, those with pensions/healthcare and those who are retired and living off of assets alone.

 

[truenorth418]

This is basically the case with me. I do have a small pension awaiting me at the age of 65, but did not include that in my plan for ER. I consider my small pension and Social Security as "reinforcements".