Retiring early w/ pension to save my sanity!

I do not have a good relationship with the boss. It's one of the most toxic relationships I've ever had to endure. I've been physically ill, suffered panic disorder, been through counseling, battled depression (still am!) At this moment, I have a bad sinus infection. I am sitting at home ruminating about all this LOL when I should be in bed resting! One day this past week I had had it after yet another humiliating episode with the boss. I had planned to tell her of my retirement eventually, but the words just came out. It seemed right and felt so good, although I'd planned to wait until my yearly review in February. I had already planned to go in July. I will receive a fat (unused) vacation pay, (6 weeks full pay) three regular paychecks for the month of June and a yearly $1000 bonus at that time. Not a huge severance, but its something. My data entry job starts in a few days and my band is booked most weekends through July already. I won't spend a dime I don't need. I have a tax deferred account I can draw on when I retire of approx 10,000. Not a lot...I have a house full of arts and antiques to sell. I sell my art as well. I'm really spilling everything here! I'm scared to go and terrified to stay! So sorry, because I'm really sounding desperate now..wah wah wah...Lol!
 
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Did I mess something up? Not sure how to select a portion of a quote yet...*sigh*
 
I wonder if considering the history of panic attacks and depression if you might be able to take some FMLA. You are entitled to 12 weeks of unpaid leave without loss of benefits of position. You may have to use the vacation time depending on your employers policy. It would give you a nice break, a chance to "try out" life without your job (and without your income), and also help determine if quitting is really going to solve your problems in the long run. You can always retire after you have exhausted the FMLA. Honestly, if you can't sustain yourself for a couple of months without pay you are not financially ready to retire. You could spend that time selling some stuff and cutting unnecessary expenses.

I've always struggled getting out of bed in the morning. Just three days in to my semi retirement I find nothing has changed in that regard even with the luxury of sleeping in. Yes, I am relieved to be here for my daughter but much of the old feelings are still there. I suppose it takes time.

I would not choose the high deductible plan unless I had a nice nest egg to support it. A high deductible is fine for one year but not later on in life when your expenses will hit that deductible every time.

How much is the penalty for retiring before 60? Is there literally NO other county job you could do? Crossing guard? Anything? To keep from hitting pension til 60 if it's a big hit
 
If you have not set anything officially in motion I would say I was having an anxiety attack and retract the retirement declaration. Wait a bit. Then, contact HR with your need for FMLA, then your doc, see if they would be willing to fill out FMLA paperwork for intermittent FMLA. This will give you the ability to take some time off as needed and help you make it til you have your 20 years. Towards the end you might want to switch to full time FMLA. But you cannot take FMLA if you have given notice so it depends on if you did anything in writing.
 
Also be careful that having a side job without permission is not breaking a rule making you subject to termination.
 
drumgal said:
I do not have a good relationship with the boss. It's one of the most toxic relationships I've ever had to endure.... One day this past week I had had it after yet another humiliating episode with the boss. I had planned to tell her of my retirement eventually, but the words just came out. It seemed right and felt so good, although I'd planned to wait until my yearly review in February....
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I have a feeling you won't be able to back out of this resignation if your boss has anything to do with it. So proceed with your plans and start counting every penny and sticking to a bare bones budget today.

If you had posted that you had been unexpectedly laid off but had this part-time work to supplement your 75% pension, I probably would have said you'll be fine. As it is, I think you could have gotten a few more ducks in a row to make your retirement finances a little healthier, but it's done, so look ahead.
 
My employment entitles us to a week of FMLA which I used when my mother passed away. My penalty for early retirement is .33% for each month under 60. I will be 57 next month, and if I retire in July deduction will be 10.60% If I wait until my 20 yr date in Nov., it will be at 9%.

There is an account set up to support the HD health plan where $2000 is deposited into an account (every January 1st) that can be used towards the $2500 deductible. It can also be used for prescription glasses or dental or other medical expenses. Any unused portion rolls over to the following year. I can change back to HHP at any time and pay $230 a month (which includes dental/optical.) I am waiting to get more info on this one...I would of had to retire in January to take advantage of it this year, however.
 
Drumgal,

I don't recall seeing anything in your posts about doing a formal budget. In your situation, I think it would be either quite helpful or even mandatory to keep your (financial) head above water. For me, the goal would be to put together a plan that shows what is coming in and what is going out every month and a list of possible added expenses that may pop up at any time and a fund to cover those emergency/unexpected expenses and how you are going to keep that emergency stash funded. To be successful, you need to be able to track how you are doing on a monthly basis to see if you are meeting your goals.

I use Quicken, which several other forum members also use. It is not free, but probably is the most detailed budgeting and home financial planning tool. There are also free tools that will help you track your spending and do a simple budget too. If you are interested, just ask about them and someone will likely point you to a thread where they have been discussed. If you already do budgeting and have a plan, good for you!
 
drumgal said:
I will have health insurance when I retire. Still trying to decide between high deductible (no monthly payment, $2500 deductible with a $2000 yearly account set up by the county to help cover- rolls over every year) or to go with my present subsidized plan (about $230 a month which includes dental).

I don't have a lot of cash for repairs. My roof is fairly new. The house is in very good condition at this time. Perhaps I would consider a HELOC if I need repairs? Or maybe just a conventional loan to cover expenses. I will be debt free when I retire, other than my mortgage...

The list of questions are good ones! Thank you for your time to answer my post!
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drumgal said:
.....There is an account set up to support the HD health plan where $2000 is deposited into an account (every January 1st) that can be used towards the $2500 deductible. It can also be used for prescription glasses or dental or other medical expenses. Any unused portion rolls over to the following year. I can change back to HHP at any time and pay $230 a month (which includes dental/optical.) I am waiting to get more info on this one...I would of had to retire in January to take advantage of it this year, however.
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That seems too good to be true... the high deductible would cost you at most $500/year (no monthly premium, $2,500 deductible but $2,000 deposited to a HSA)? And the traditional plan costs $2,760 a year plus whatever the deductible and copays for that account are.

What you might want to do is find out what your annual costs would be if you had no claims/visits and what they would be if you had a $20,000 in network health event to verify your understanding of your choices.
 
I thought 12 weeks FMLA was a federal law? Not the same as bereavement leave.
But maybe it's different with your county. I just left a county job where there are no pensions, no bonuses, 2-3% annual raises and you can only take health insurance with you after 15 years at full cost (over $500/mo for an indiv) nobody there retires early. Ever.

Def check the out of pocket max. That is critical. Been there, hit that.
 
I will go now and look for one of these budgeting tools. Thank you! My current budget is all on paper with a baseline of monthly expenses I calculated myself. It is NOT scientific! I'll try one of the tools...Thank you
 
With PERS she can rescind her retirement date anytime before she goes. Her boss can't prevent that. Her boss can make her life more of a hell. The other poster was correct that FMLA is federal law and is 12 weeks. Bereavement is different.
 
What I would suggest is that you go through and do an analysis of your spending for 2016 as baseline information to figure out your budget. You can start with looking through your bank statements and credit card charges to get a sense for where the money goes.
 
Calico said:
I may be misunderstanding what you're saying here. As far as I'm aware, you can receive either your own SS or your ex's - not both at the same time. Are you thinking that you will get your own and also his "contribution?"
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And either one will be decreased due to WEP/GPO. OP has to do the math, the impact could be significant.
 
From what I have read the GPO often eliminates the benefit entirely for most people. I had totally forgotten about that. It helped my friend because she did not have a pension.
 
Drum Girl; Regardless of the date you retire, I suggest that you save up 3-6 months of expenses aside from your Pretax $10,000 stash. It is not umcommon for pensions to take some time to kick in(although you will receive back payments to your official retirement date). And the same is true for payouts of accrued vacation/sick leave. Your backup resources are so meager that you should seriously plan to build up an additional cash reserve before you stop working.
 
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I also fear for you regarding income taxes. You will be receiving 1099 income from your data entry job and must anticipate what income and payroll taxes you will owe on this income. The same is true for your music gigs. I assume you declare that income. For someone living as close to the edge as you will be, making sure that you are not hit with a big federal and state tax bill that you did not anticipate will be critical.
 
These pensions start promptly depending on the date you retire. YOu will have to ask PERS the date but I think the cut off was the 15th to get your check the next month. So if you retire on or before July 15th you get your August check which is always 4 working days before the end of the month. But check with PERS since it has been 5 years since my DH and I retired from there.
 
Hermit said:
Drumgal,

I use Quicken, which several other forum members also use.
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Thanks to this suggestion to the OP - I have finally succumbed and fired up a quicken account and will be budgeting like crazy soon! It was very easy - smoother than I expected having used Microsoft money way back then. It was not seamless and I got a little obsessed with keeping track of every lil thing.

One thing for sure, just 1/2 a week "at home" and I have barely driven ANYWHERE and have only eaten out once which is a huge change for me.
 
Yes, you are right about WEP and I will be affected. As far as my ex spouse and his 'contribution', from what I understand so far, that will NOT be affected by WEP. I *believe* I am able to collect both (!?) We were married for 10 years, and as long as I don't remarry... Anyway, I have an appt with SS in 4 weeks. It will be a learning experience!
 
I've kept a good handle on the whole tax issue. Have already spoken with my tax prep of 30+ years and I know just what I'll have to pay. (on the pension check) I have payment options for taxes and can actually pay them all at once or quarterly (if I choose not to have taxes taken out monthly. As for the music part, I know just what to expect having done this for many years. Many times I'm paid out of pocket by folks that hire entertainment. I do many private engagements. *sigh* I value your input! I'm amazed at the polarity of comments I am receiving...but taking into account ALL! Yes, it's a bit precarious, but I'm working on some back-up.
 
drumgal said:
I'm amazed at the polarity of comments I am receiving.
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Like almost anything in life, opinions vary. Your task is to take in what people have said, evaluate it in light of your own unique situation, and use it as and to the extent you see fit.

In any event, the members here are thoughtful and intelligent. It has been my experience that, at the very least, they will help you think through all the angles.
 
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