Not retired, but experienced a paradigm shift 8 years ago that focused my attention on it. Too late for me to ER. I learned late that I was using unrealistic returns on investment for my projections. My focus at this point is survival. I fear many are in this situation but much less prepared than we are. Old Dutch saying: "We grow too soon old and too late smart."
I was a college drop-out and a painter's helper. After three years of soldiering, I went back to school to study economics and engineering. I was a millwright one summer, but have been a chemical engineer around the world for the past 30 years. It has been fun most of the time, but...
Eight years from now I will have a grand total of less than $400 US per month from defined benefit pensions. (If I said that I had been browned-and-rooted, would you know what I meant?) Our IRAs and a little home equity will save us from starving. Social Security will be welcome but we are not counting on it much (if we ever see as much as 70% of it, I will be surprised). These are my plans:
Plan A: Fall-back position. (Guaranteed do-able. Definitely not for everyone, but OK for us.)
Can retire today if absolutely necessary. Draconian economies would require relocation outside the US. Affordable healthcare and other costs-of-living drive this. Mexico most probable first stop. Some options for extra income, if it amuses me. I have been researching this for 8 years since my also world-traveler little brother suggested the possibility. Discovery of this option raised me out of a severe depression. Not only can we survive, but we could have some fun, too, once we get past the dislocation. I have been living out of a suitcase in flea-bag motels for years now, so it would be an improvement for me, but it will be a stretch for the wife so I am trying to put it off as long as I can. If this happens, the kids would be on their own paying for college. I did it; they can, too.
Plan B: Optimistic case.
Plan A after two more good years of contracting. More options for countries.
Plan C: Not bloody likely.
Find a good, fun job with benefits that lasts another 10 years. Retire wherever the wife would like to. "Bon chance, mon ami," as dem ol' Cajuns say. (I also buy lottery tickets.)
Among my first guides were the Terhorsts (wish I had become galvanized when I first read their story), Dr. Bill Bernstein and John P. Greaney (special thanks, John; you da man!).
Cheers,
Ed The Gypsy