Need your advice on when to retire!

[Slade]

Hello, new here and would like your advice. I’m 60 (61 in December) and have worked at my company 37 years (38 in January) and I was planning on retiring January 2022. My new boss started April 2020, is a micro-manager and is making my life miserable. My anxiety is the highest it’s ever been at work. Here are my choices:
1. Stick it out until January 2022 and my pension will be about $53,000 annually.

2. Set my self free, retire with about 60 days notice and my pension will be about $51,000 annually. Basically, losing $40 a week the rest of my life.

3. Announce my retirement for January as soon as possible and hope manager backs off for the last 9 months.

Any thoughts or experiences are appreciated.

Thank you!

 

[aaronc879]

What are you expenses? Is the pension Cola'd? Will you get SS? How much do you have saved? If your pension plus 4% annual withdrawal from you savings is more than your spending then I would give 2 weeks notice and retire. Seems more likely than not that giving a longer notice is bad for the person retiring so why do it. Good luck.

 

[braumeister]

1. Stick it out until January 2022 and my pension will be about $53,000 annually.

The first thing I thought of was that $2,000 annually for a 30 year retirement would mean $60,000. Divided by the remaining nine months in this year would mean you get an extra $6,666 for every month you stick it out this year. So just how miserable are you at work? You're the only one who can answer that.

 

[pacergal]

As aaronc said, It depends on your expenses and what else you have.
I would not count on your new boss being less of a pain just because you announce your retirement, in fact, it could get worse if he/she really adds on the pressure in an attempt to get you to leave earlier.

So, how miserable are you and what expenses will the pension cover?
Retirement is wonderful if planned well.
Look in the FAQs on this forum, there is a list of questions to ask yourself if you are ready to retire.
Best of luck in your decision, and keep us updated!

 

[Lazyfish]

Sounds like you’ve already run the numbers but you need to satisfy those needing financial info to objectively provide an opinion. the Real question is: is your short term pain worth $2000 less per year for the next 25 to 30 years. I wouldn’t think so. Wait till the end of the third quarter, take care of any outstanding or potential health issues that are better managed under current conditions, get your near term plan together financially, and then pull the trigger/announce. Know that your year end normal financial benefits might be muted. There is no hurry to tell anyone at work. Plan your work then work your plan.

 

[RetireeRobert]

Sounds like you’ve already run the numbers but you need to satisfy those needing financial info to objectively provide an opinion. the Real question is: is your short term pain worth $2000 less per year for the next 25 to 30 years. I wouldn’t think so. Wait till the end of the third quarter, take care of any outstanding or potential health issues that are better managed under current conditions, get your near term plan together financially, and then pull the trigger/announce. Know that your year end normal financial benefits might be muted. There is no hurry to tell anyone at work. Plan your work then work your plan.

+1 Anyone can stick out a lousy measly nine months no matter how micromanaged you may feel. Suck it up, stick out the nine months, and then take great joy in knowing you nailed down an extra $2000 a year for the rest of your life!

 

[FLSUnFIRE]

Thoughts to consider....


How big of a difference is $2K/year to your quality of life/solvency? That's an increase of about 3.9% to your pension income (assuming no other sources, so it's likely much lower assuming you have more than just the pension -SS, Retirement accounts, savings. etc!). Assuming you live another 30 years you are giving up about 2.3% (.7/30) of your your remaining life (adjust for good years and you are likely giving up a far larger %). Is suffering for 2.3% of your time left worth the increase in your retired lifestyle the $2K provides.


Another option is to re-frame your situation in your mind, you are FI now so just view it as putting in the time but no emotional connection to the work or management. Shut up and color and just don't care! As I count down, I am more apathetic than I even want to be and the annoying things sort of make me happy and confirm my decision to leave. Not that it's easy but I do find myself not caring much and laughing on the inside at many of the things that otherwise (if not FI) would make my blood pressure spike (the COVID mask helps cover my smug grin).


FLSunFIRE

 

[donheff]

If you eliminate a number 1 no matter what choice then number 2 and number 3 are not mutually exclusive. You can tell the boss you are retiring at the end of the year and if he doesn't back off you can move the date up. If you are hard to replace and think it will make a difference you can let your frustration show a bit and let him know why you are retiring.

 

[mystang52]

I feel, emphatically, that option # 3 SHOULD BE ELIMINATED. That leaves 1 or 2. I see no upside to #3.
Food for thought in coming to a decision on the other 2: More often than not, the longer you w*rk the higher the pension. So, any time one retires they are theoretically leaving money on the table. If you can do everything you want, financially, by retiring now the "extra" money shouldn't be a major factor.
On the other hand, if you feel financially more comfortable with Option 1, steel yourself for the next 9 months that your boss can't harm you, and just plug away somewhat going through the motions. Who knows, maybe you'll get offered a termination package that finances a retirement before 12/31.
If your life is miserable, and you are suffering from anxiety, waiting until 12/31 may not be the best course. Only you can decide if it's at the level that waiting until 12/31 is viable.
Once again, I strongly urge you not to consider option 3.

 

[JRon]

#3 is your best bet. If the boss forces you out earlier, which is highly unlikely, then he chose #2 for you. On the other hand he may see you as a short-timer not worth he time and focus his energies elsewhere.

 

[Aerides]

Kill off #3, it will otherwise be a very miserable 9 months. No upside, you can search for a bazillion "when to retire" threads.

Is there an option 2A with a shorter notice period? If there is, that would be my pick. If not, then 2, and you will realize that even 60 days can feel like a long time.

 

[Athermos4u]

Your manager is new, you have been there decades. Inform him he needs to focus his energy on finding and training a replacement. Also inform him in a nice way, the you are not changing your work habits for him. Worse case/ best case, they offer you a package to leave early. Or maybe your manager goes away, and you can transition in peace.

 

[pb4uski]

Hello, new here and would like your advice. I’m 60 (61 in December) and have worked at my company 37 years (38 in January) and I was planning on retiring January 2022. My new boss started April 2020, is a micro-manager and is making my life miserable. My anxiety is the highest it’s ever been at work. Here are my choices:
1. Stick it out until January 2022 and my pension will be about $53,000 annually.

2. Set my self free, retire with about 60 days notice and my pension will be about $51,000 annually. Basically, losing $40 a week the rest of my life.

3. Announce my retirement for January as soon as possible and hope manager backs off for the last 9 months.

Any thoughts or experiences are appreciated.

Thank you!

If you select #2 but don't start your pension until January 2022 would your pension be $51,000, $53,000 or something in between.

FWIW, it would cost ~$39k for a 60-yo male to buy an immediate annuity that pays $167/month or $2k a year for life... so if those numbers are true then that is the value of what you would be giving up for an additional 7 months of retirement.

I would not announce your retirement now... even if your manager knows you are retiring it is unlikely that s/he would back off. But I might go into a mode of passive aggressiveness and see if s/he backs off some. You can always elect #2 at any time of your choosing.

 

[CindyBlue]

"Another option is to re-frame your situation in your mind, you are FI now so just view it as putting in the time but no emotional connection to the work or management. Shut up and color and just don't care! As I count down, I am more apathetic than I even want to be and the annoying things sort of make me happy and confirm my decision to leave. Not that it's easy but I do find myself not caring much and laughing on the inside at many of the things that otherwise (if not FI) would make my blood pressure spike (the COVID mask helps cover my smug grin)."

I agree with FLSunFIRE - and this is what I did for the last six months before I retired. I figured I had nothing to lose because I could leave at any time I wanted by that point, so I just did my job, trying to make it the best work of my life, and brushed off - and laughed off - anything that was bad (and some of it was real bad (sigh...)) I spoke up at meetings to express the problems that other people couldn't because they were afraid they'd be disciplined or fired. I found ways to make other people feel good - notes, compliments (sincere) and positive comments to higher ups about my coworkers. I gave away all my stuff as the six months passed. It was great - I hadn't felt so good at work in years (smile!) I ended on a high note and it felt great.
Just knowing that I COULD leave if I wanted to made it so much easier to ride out those last six months!

 

[Andre1969]

Personally, I would opt for #2...take the $51K and run. Although, if you have to give 60 days notice, that puts you to mid/late May. At that point, you only have about 7 months to go, to get to 61. So it might not be THAT bad. So, you have to ask yourself, is that extra $40 per week worth it?

Personally, I would not announce my retirement until I'm getting close to actually doing so. They might decide to go ahead and just let you go right then and there. Or, they might decide to make your final months there even more miserable than they already are.

However, how about this for an option #4? Plan to stick it out until January, but don't announce your retirement now. However, instead of suffering in silence, let them know, if they piss you off too much, you're gone. Now, you might have to make good on that promise, if they call your bluff. But, sometimes, if your employer realizes you don't need them as much as they want you to, they can be a bit more accommodating.

 

[Car-Guy]

Since you were already planning to retire in Jan 22, I'll assume you have run the numbers and are comfortable with the results.

To me, working under the conditions you describe for another 9 months, isn't worth an extra $40 a week in retirement. If you need the extra $40 a week, you probably aren't ready to retire financially in the base case.

So with the three options you have presented, I'd go with option two "except" why would you give them 60 days notice, unless that's required to get your ~51k pension? How much notice would they give you if they decide to terminate your employment?

 

[38Chevy454]

The first thing I thought of was that $2,000 annually for a 30 year retirement would mean $60,000. Divided by the remaining nine months in this year would mean you get an extra $6,666 for every month you stick it out this year. So just how miserable are you at work? You're the only one who can answer that.

But this also doesn't account for the 9 months of pension paid out now of approx $38,000 (3/4 of $51,000). Now the difference is only $22,000; not including any calculation in regard to time value of money. So instead of $6,666 each month, it is only $2444 for sticking it out each month. Not as much incentive. Kind of like the when to take SS decision, there is a crossover point where one option does become better, if you live longer past the crossover age.


Assuming you have the other savings and income sources like SS, to help meet your budget needs, I would take the retirement now. Enjoy a slightly earlier start to retirement than you had planned. You can add time to the beginning of your retirement, but you can't add time to the end of it.

 

[AZ2020]

This sounds like a variation on One More Year. Whatever your end date you will be leaving some money on the table. Doesn't matter, unless you are short on money.

Once you make up your mind to leave, things will change. You can let the stupid stuff slide as you will know it will only last a few more months.

Don't tell anyone you are leaving until you absolutely have to! There is so much potential downside to an early announcement.

For me, being retired is sooooo much better than working. Like many here, I wish I had left earlier.

 

[skyking1]

OP, you now have a super power. You know you're leaving and when, and hold that card as long as possible. Many have suggested this is best and I think they speak from experiences.
Use that power to add slope to your shoulders and just let the crap roll right off. Laugh things off as needed. Plan your departure and work your plan. Give minimum notice and revel in knowing the clock only you see is ticking down to that day.

 

[RetiredAt55.5]

But this also doesn't account for the 9 months of pension paid out now of approx $38,000 (3/4 of $51,000). Now the difference is only $22,000; not including any calculation in regard to time value of money. So instead of $6,666 each month, it is only $2444 for sticking it out each month. Not as much incentive. Kind of like the when to take SS decision, there is a crossover point where one option does become better, if you live longer past the crossover age.


Assuming you have the other savings and income sources like SS, to help meet your budget needs, I would take the retirement now. Enjoy a slightly earlier start to retirement than you had planned. You can add time to the beginning of your retirement, but you can't add time to the end of it.

In fairness, I didn't see anyone counting in the 9 months of salary if the OP sticks it out. Unless I missed it.

 

[Midpack]

#3 is a big mistake, odds are it will backfire. There are lots of people here with very bad first hand experiences with giving too much notice. I have 3 months, and it was an avoidable grind.

I’d choose #1. You’re going to live about 960 months, you can certainly suck it up for 9 months. Don’t give more than 2-4 weeks notice. Everyone is replaceable no matter who you are, we all like to think otherwise - but CEOs, doctors, lawyers, politicians come and go everyday and the world still turns.

You didn’t say if you liked your job/career irrespective of the new boss. That would be a big consideration to me. Bad bosses come and go to...it would be a shame to quit a job over a boss who won’t be there forever. The worst boss I ever had was for three years in my mid-30’s and I thought about quitting a lot. But I enjoyed the work and my career outlook, so I’m glad I waited him out - although I realize waiting in your 30’s is different than 60ish. I flourished after that, the asshat boss lost his job and his marriage/family by cheating on his wife.

 

[RetireeRobert]

But this also doesn't account for the 9 months of pension paid out now of approx $38,000 (3/4 of $51,000). Now the difference is only $22,000; not including any calculation in regard to time value of money. So instead of $6,666 each month, it is only $2444 for sticking it out each month. Not as much incentive. Kind of like the when to take SS decision, there is a crossover point where one option does become better, if you live longer past the crossover age.
A

BUT, that 9 months of pension you cite, of about $38000 is only a ONE TIME amount. Its is not for the rest of his life! So the rest of your calculations are faulty. And as someone else mentioned, OP would be also getting salary during that period, likely a higher amount for salary than the pension he will get.

I still advise sucking it up for 9 lousy months and retire at his planned target date. OP does not mention if he is married, but if so his DW will greatly appreciate the extra $2000 in retirement income for the fun things they are likely thinking about!

 

[skyking1]

@Midpack +1
DW's HR requires 4 weeks, and they will get that and no more. She also outlasted a couple of bad bosses along the way. It is sweet when you enjoy your job and they " go spend time with their family" LOL. That was her corporate speak for being walked out.

 

[Irishgirlyc58]

I had to make this same decision just a few months ago.
I would get ~$200/month more in my pension if I retired in September instead of March.
I calculated the time vs money- and it came out to exactly the same percentage! Ack!
I ultimately decided not March. Now it’s either June or September. Leaning heavily to September unless they really piss me off.

In my position it is standard to give 3-4 months notice. I work for local county government so don’t have to worry about them pushing me out after submitting my retirement notice unless they really want a lawsuit. That’s not going to happen.

What might happen- I might get a significant raise in July which would increase my pension if I worked one more year.
First time in my life I really hope they don’t give me that raise!

My advice is to look at your budget and see how much of your budget is essential expenses for your family and what percentage is non essential. If you feel comfortable about the need to adjust your budget with the non essential expenses then I say retire now. If it makes you feel queasy or anxious work the additional 9 months.

Good luck and let us know what you decide.

 

[cyber888]

Do you have any savings aside from pension ? (like $1 - $2 mil ) ?