Grainiac
Recycles dryer sheets
- Joined
- Aug 12, 2010
- Messages
- 102
My very conservative calculations tell me that DW and I will be FI by end of 2014, and with the current plan I will RE by end of 2014 at age of 50. DW who is a year younger than I thinks she will continue working at least for a few more years past that, but with the comfort of awareness that also she could RE any time after 2014.
For the first 10 years of RE our income source will first be initially DW salary which easily covers all our expenses and beyond, and after that our taxable investments. Around the age of 60 we will also start withdrawing from our 401(k) accounts, and at the age of 65 we both have some pensions waiting for us. The pensions combined with our 401(k) savings will provide more than plenty of income even if we ended up with zero SS at that point. The "big secret" to make all this come together is the fact that we have always been relatively well compensated DINKs living LBOM (and I mean ways below).
Now, while I am very comfortable with this plan right now, there is one detail that keeps me wondering how am I really going to feel in 25 or so months when I need to announce the retirement from the megacorp: With retirement age of 50 my pension will be about $28k per year when I start taking it as planned at 65. If I for some insane reason continued to work until FRA of 65, the pension would be about $100k (PV) per year. The pension is not corrected for any index, so the practical difference for working for another 15 years would obviously be much much more than the present value difference. Heavy penalties for pulling the pension money out earlier as a lump sum make that option practically useless.
I am perhaps slightly surprised myself about how little regret I feel at this point for forgoing potential for major pension income. While it's money we clearly don't need, it is still money (irrational greed??). I'm sure though that whatever will happen in the world between now and my RE date may still change how I feel.
I know many of the early retirees here with defined pension plans have made similar decisions prior to RE. Just curious to know what was your thought process back then, and if you ever had any reason to regret?
For the first 10 years of RE our income source will first be initially DW salary which easily covers all our expenses and beyond, and after that our taxable investments. Around the age of 60 we will also start withdrawing from our 401(k) accounts, and at the age of 65 we both have some pensions waiting for us. The pensions combined with our 401(k) savings will provide more than plenty of income even if we ended up with zero SS at that point. The "big secret" to make all this come together is the fact that we have always been relatively well compensated DINKs living LBOM (and I mean ways below).
Now, while I am very comfortable with this plan right now, there is one detail that keeps me wondering how am I really going to feel in 25 or so months when I need to announce the retirement from the megacorp: With retirement age of 50 my pension will be about $28k per year when I start taking it as planned at 65. If I for some insane reason continued to work until FRA of 65, the pension would be about $100k (PV) per year. The pension is not corrected for any index, so the practical difference for working for another 15 years would obviously be much much more than the present value difference. Heavy penalties for pulling the pension money out earlier as a lump sum make that option practically useless.
I am perhaps slightly surprised myself about how little regret I feel at this point for forgoing potential for major pension income. While it's money we clearly don't need, it is still money (irrational greed??). I'm sure though that whatever will happen in the world between now and my RE date may still change how I feel.
I know many of the early retirees here with defined pension plans have made similar decisions prior to RE. Just curious to know what was your thought process back then, and if you ever had any reason to regret?