G'day everyone. I've been on MMM for a couple of months and have recently discovered this forum after seeing many references to it in Nords' excellent military FIRE guide that I have just read. While I've always done things financially that would set me up nicely for retirement, I didn't realise until late last year that I was so close to FI already and hence ER has recently become a very real possibility.
I'm am extremely fortunate to have started my line of work at a time when a generous ER-friendly pension scheme was in place and that I've been able to stay with. At 45, I'm now in a position where if I ERed, I would immediately start receiving a COLAed pension that is, after tax, is right around my current annual spending rate of $50K. On top of that, I own my house outright, I will have over $650K of savings, golden handshake money and "normal" retirement (65+) savings if I do pull the pin.
Sounds like a no brainer to ER, right?, but FUD is currently consuming me:
I'm am extremely fortunate to have started my line of work at a time when a generous ER-friendly pension scheme was in place and that I've been able to stay with. At 45, I'm now in a position where if I ERed, I would immediately start receiving a COLAed pension that is, after tax, is right around my current annual spending rate of $50K. On top of that, I own my house outright, I will have over $650K of savings, golden handshake money and "normal" retirement (65+) savings if I do pull the pin.
Sounds like a no brainer to ER, right?, but FUD is currently consuming me:
- Fear. I've been in my line of work for 30 years, straight out from school, and the work environment, as annoying as it can be sometimes, is as comfortable as a favourite old shoe. Will I cope with the significant lifestyle change that ER will bring?
- Uncertainty. The COLA pension has historically lagged wage growth by about 1% a year and many existing pensioners complain that COLA adjustments don't cover real inflation. To counter this over a long retirement (55 years if I live to 100) and keep income parity I'd need to increasingly draw from my savings pool. Will my expenses go up when I ER? Will I have enough to compensate for this pension erosion?
- Doubt. I'm good at my job (not great, but a large part of that is me pacing myself so that I don't get caught up in the high flyer, no work life balance mindset) and enjoy some of the challenges that it gives me. Will ER provide similar challenges to stimulate me?
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