Soon to be 56. Am I in the right place?

[beachbum061]

Retiring in the next month or 2. It's been my game plan from the moment I starting my current job almost 30 years ago. I've been lucky enough...I think, to accumulate enough assets to retire in a comfortable, but not overly luxurious, lifestyle.

I feel that 56 is retiring early. I'm retiring younger than most of my peers. I always had "that 65 number" as normal retirement age in my head. While I understand that the term early retirement means different things to different people, I was just wondering in general...is 56 early?

 

[REWahoo]

Early enough! Welcome to the forum.

 

[Packman]

Anything before 65 is generally thought of as "early".

 

[boaski]

I retired at 55 and 10 months best thing I ever did I am 58 10 months now.

 

[travelover]

56 is early, but it really doesn't matter to us.

 

[DrRoy]

I would sure call it earlier than average. I'll RE in a couple months at 57. Some of the reaction has definitely been "You're so young!".

 

[W2R]

Retiring in the next month or 2. It's been my game plan from the moment I starting my current job almost 30 years ago. I've been lucky enough...I think, to accumulate enough assets to retire in a comfortable, but not overly luxurious, lifestyle.

I feel that 56 is retiring early. I'm retiring younger than most of my peers. I always had "that 65 number" as normal retirement age in my head. While I understand that the term early retirement means different things to different people, I was just wondering in general...is 56 early?

Welcome to the Early Retirement Forum!

Yes, absolutely, at least in my opinion retiring at age 56 is retiring early. I retired at 61 myself. We don't have a specific age requirement. If you feel like it is early, then it is early.

 

[Walt34]

In general, yes 56 is early. However a lot of people make it out earlier than that. I retired at 52 but it was a law enforcement job that I started at age 23 and that age is normal for that position. And of course it has a pension.

A lot depends on how you plan to finance your retirement and what your expenses are. Do you have a pension, and is it COLA'd? Will it cover all of your expenses or will you need other sources of income?

Here are some questions that you'll want to have solid answers for before pulling the plug:

http://www.early-retirement.org/for...re-asking-can-i-retire-69999.html#post1399715

 

[beachbum061]

Thank you all for the lightning fast responses.

Just to elaborate...I've been a blue-collar guy all these years. Never realized until about 3 years ago how well I was doing with the whole 401k and pension buy-out thing.

I personally think that for what I've been doing for the last 30 years..."working for The Man"...I'm very fortunate to be getting out at what I would consider to be an early age.

 

[beachbum061]

In general, yes 56 is early. However a lot of people make it out earlier than that. I retired at 52 but it was a law enforcement job that I started at age 23 and that age is normal for that position. And of course it has a pension.

A lot depends on how you plan to finance your retirement and what your expenses are. Do you have a pension, and is it COLA'd? Will it cover all of your expenses or will you need other sources of income?

Here are some questions that you'll want to have solid answers for before pulling the plug:

http://www.early-retirement.org/for...re-asking-can-i-retire-69999.html#post1399715

I understand your situation exactly. My next door neighbor is a retired lieutenant from the NYPD.

As for whether or not to pull the plug...that decision has already been made. I'll probably be out just before the end of the year. I am lucky enough to have a pension. Not a great one compared to some folks I know, but a pension nevertheless. And it does have a buyout option, which I intend to take.

Getting out before the GATT and PBGC rates go up in January. That would take a bite out of my buyout.

 

[Big_Hitter]

we did a pole on how early is early; 56 is early iirc

I'm almost 53 and I'm feeling the retirement decrement

 

[REWahoo]

we did a pole...

I'll czech to see if I can find it...

 

[2017ish]

We are out next year at 57/56 and our peers/family definitely consider it early. (We consider it "early enough, but not 'early, early'"!)

 

[TGL405]

Go as soon as you are able and don't look back.

 

[braumeister]

Hey, I retired at 55 and they've been putting up with me for years now. So obviously a very tolerant crowd!

 

[Senator]

I retired at 56 too. It is not too early...

 

[gauss]

I always planned to retire at age 55 once I had 30 years.

As it turned out megacorp stopped pension accruals and capped contributions to retiree Medical

As such, I ended up resigning at age 47, instead, and have not regretted it one bit.

I have kept busy with several volunteer positions on the outside.

56 is not too early.

-gauss

P.S. I would be real cautious about the pension buyout idea.

 

[nuke_diver]

I got out at 55 going on 2 years ago

It's been my game plan from the moment I starting my current job almost 30 years ago. I've been lucky enough...I think, to accumulate enough assets to retire in a comfortable, but not overly luxurious, lifestyle.

This was my thing as well. I think that's why I was able to retire early. It was always my main goal. I tell people that when they ask how could I manage it so early. No kids, LBYM and save like you plan to retire sooner than later. Truth be told I missed my planned retirement age by 15 years

 

[HadEnuff]

I'd say "early" has nothing to do with age. In my book, "early" is before you are ready, emotionally and/or financially. I retired at 62 1/2, and it was right on time for me.

I retired last March, and I'm adjusting to it, but it's a joyful adjustment. I am still not used to not having to think about what night of the week it will be if someone asks me to do something. Reflexively I think about it and then I realize "it doesn't matter. I'm RETIRED!!"...I love those little moments.

 

[beachbum061]

I always planned to retire at age 55 once I had 30 years.

As it turned out megacorp stopped pension accruals and capped contributions to retiree Medical

As such, I ended up resigning at age 47, instead, and have not regretted it one bit.

I have kept busy with several volunteer positions on the outside.

56 is not too early.

-gauss

P.S. I would be real cautious about the pension buyout idea.

Well, here's the thing...pension is about 32K @ year. Buyout is around 670K. For arguments sake...I put that 670K into AT&T and just take the dividends out when they come in and I'll get more than my pension and still own the stock. Seems like a win-win.

What are your concerns with taking the buyout?

 

[beachbum061]

I'd say "early" has nothing to do with age. In my book, "early" is before you are ready, emotionally and/or financially. I retired at 62 1/2, and it was right on time for me.

I retired last March, and I'm adjusting to it, but it's a joyful adjustment. I am still not used to not having to think about what night of the week it will be if someone asks me to do something. Reflexively I think about it and then I realize "it doesn't matter. I'm RETIRED!!"...I love those little moments.

I was ready emotionally 3+ years ago. But I still had some college bills to pay off and didn't want to get penalized financially for retiring too early. It turned out to be a decent decision and I definitely don't regret it now because my net worth has improved by approx. 30% in just those 3 years.

I am truly looking forward to not having to wake up before the alarm goes off at 6:10 AM and going to work for a company that is so mismanaged, it's embarrassing. Thankfully, I had a strong union behind me to garner a fairly decent set of benefits.

BTW...I'm jealous. But not for long.

 

[beachbum061]

Go as soon as you are able and don't look back.

That's something I like to get silk-screened on a t-shirt.

 

[beachbum061]

And just so everyone posting understands...when I said "am I in the right place"...I meant this website.

Retirement-wise...I know where I'm at, and it's definitely the right place.

 

[Hermit]

Well, here's the thing...pension is about 32K @ year. Buyout is around 670K. For arguments sake...I put that 670K into AT&T and just take the dividends out when they come in and I'll get more than my pension and still own the stock. Seems like a win-win.

What are your concerns with taking the buyout?

All in one stock? And a telecom to boot?

Check out the results of MCI, US West, and some of the other major former telecom mega corps before you go that route.

 

[rodi]

Well, here's the thing...pension is about 32K @ year. Buyout is around 670K. For arguments sake...I put that 670K into AT&T and just take the dividends out when they come in and I'll get more than my pension and still own the stock. Seems like a win-win.

What are your concerns with taking the buyout?

Welcome to the forum.

Does your pension have a cost of living benefit? If so - better hang onto it.

If you do take the buyout - consider a bit more diversification. The market goes up, the market goes down... I'd want some bond component, and I'd definitely want more than just 1 stock... or 1 sector...

I'll admit - I'm a big fan of the 3 legged stool approach to retirement when possible... 1 leg is Soc. Security. 2nd leg is pension, 3rd leg is savings... If you have all 3 you have a very stable income base.

Also - when I was offered a pension buyout I looked at what the buyout amount would purchase in terms of a pension equivalent (single premium income annuity). I found, in my case, the pension was a much better deal than the cash they were offering. You can use an online calculator like https://www.immediateannuities.com/ to get an idea.