Can/Should I Retire Today or in 6 Years?

The one thing which sticks out that I think you should consider, is that if you stayed another 6 years, you'd get more than double the pension per year for the rest of your life. That could be an additional million dollars (pre-tax) for sticking it out a few more years. Do you "need" it? Probably not. Would it be nice to have that extra cushion? Most definitely.

That's the conundrum. An extra 6 years give me double pension and half health care cost plans not to mention another $600K in earnings which I put $300K into retirement funds and $300K into after tax funds
 
My AA depends on how you count the investment property. If I exclude it, is 80/20, but if I include it it gets to about 70/30. I'm comfortable with such an aggressive AA since I have $500K in a MM for the kids college. I didn't put that in my calculations at all.

Pension is COLAed.

17 years is a long time, but I can draw down my 401k as I'll be retiring from the workforce.

KingOfTheCheapos

As Skydiving asked, Is the Health Care Cost included in your $60 expense estimate ?

What is your AA ?

is the Pension COLA ?

17 years is a long time until Social Security.

When kids leave the house, usually the Bank of Mom and Dad is still Open for withdrawals.... just sayin.....

Hope you can get confident to be able to go sooner rather than later King !
All the best
 
Is the 15K medical cost figured into the 60K current expenses?

Ah good point. Currently I spend $7.5K a year on health insurance premiums which is included in the $60K. I figured once the kids move out all the costs of their sports/eating/entertainment will add up to more than $7.5K.
 
OP
You look good to go now or in six years--your choice Time or Money?

Is your budget $60,000 all in? healthcare/travel/fun/kids (beyond education cost.
Does your company health care follow you in retirement at the same cost?
 
OP
You look good to go now or in six years--your choice Time or Money?

Is your budget $60,000 all in? healthcare/travel/fun/kids (beyond education cost.
Does your company health care follow you in retirement at the same cost?

Thank you.

Budget does include all you mention except kids stuff beyond education. What did you mean by that?

Health insurance does follow me. Currently I pay $400 a month and they pay $2000 a month. If I retire now they'll cover 60% of their contribution (so I'll pay $400 + $800 = $1200 * 12 = $15K). Or in 6 years they'll cover 90% so I'll play $400 + $200 = $600 * 12 = $7.5K) as per my original numbers.
 
Budget does include all you mention except kids stuff beyond education. What did you mean by that?
Like Gamboolman, I do wonder if you've completely accounted for the tail-end expenses of raising kids, like cars, travel, moving back in (as our adult daughter has done during the pandemic), and continuing financial support. She has a job (from home right now), savings, and is making plans to move out in the fall.

Non-obvious things we've paid for in the past five years (ages 20-25):
Our trip to visit in Europe while she was on study-abroad.
Two moving vans (out and back in)
Replacement bed
Two long-distance drives (one with hotel) for international airport pickups
Ceiling fan
Garden beds set-up for COVID vegetable garden
New office chair for us because daughter is using our office setup to work from home

Just today: plane ticket to attend family memorial service because she has insufficient vacation time to ride with us retired parents.
 
That's a fair point. My $60K a year spend does not include extraordinary expenses. I think its fair to include $10K a year extra for them.

Regarding giving kids cars, our intention is to give them our cars rather than sell them. I love my children but don't want to spoil them.

Like Gamboolman, I do wonder if you've completely accounted for the tail-end expenses of raising kids, like cars, travel, moving back in (as our adult daughter has done during the pandemic), and continuing financial support. She has a job (from home right now), savings, and is making plans to move out in the fall.

Non-obvious things we've paid for in the past five years (ages 20-25):
Our trip to visit in Europe while she was on study-abroad.
Two moving vans (out and back in)
Replacement bed
Two long-distance drives (one with hotel) for international airport pickups
Ceiling fan
Garden beds set-up for COVID vegetable garden
New office chair for us because daughter is using our office setup to work from home

Just today: plane ticket to attend family memorial service because she has insufficient vacation time to ride with us retired parents.
 
Thank you.

Budget does include all you mention except kids stuff beyond education. What did you mean by that?

Health insurance does follow me. Currently I pay $400 a month and they pay $2000 a month. If I retire now they'll cover 60% of their contribution (so I'll pay $400 + $800 = $1200 * 12 = $15K). Or in 6 years they'll cover 90% so I'll play $400 + $200 = $600 * 12 = $7.5K) as per my original numbers.


Well 6 years down the road for retiree HI is an eternity, who know what if anything will be covered. So don't make your decision based strictly on HI...
 
OP--
not knowing the age of your kids, the extra "kids stuff" could be costs of sports/theater groups, dances/Prom, cars if you choose, etc while in HS.

older-out of college could be helping with furnishing first apt, or other expenses such as cars, moving expenses if they get a job elsewhere, potential for boomerang back home if that is an option, (Sometimes bad things happen to good people). Weddings, especially if you have daughters.
things like that
 
I would estimate a higher spend for healthcare especially down the road in retirement. Medicare does not cover everything, and long term care is expensive.

That said, you do have the three legged stool with pension, SS and healthy savings. The numbers probably work but I might factor in extra cash outlay for health.
 
The one thing which sticks out that I think you should consider, is that if you stayed another 6 years, you'd get more than double the pension per year for the rest of your life. That could be an additional million dollars (pre-tax) for sticking it out a few more years. Do you "need" it? Probably not. Would it be nice to have that extra cushion? Most definitely.

I agree with this. If it is a job that you like, and you are currently in good health, 56 is still young. I would work the extra six years to double the pension.
 
I agree with this. If it is a job that you like, and you are currently in good health, 56 is still young. I would work the extra six years to double the pension.

There was a period during my c*reer when I felt like my life was on "hold" until I could retire. I wasn't so much living as I was existing. No, I wasn't suicidal nor overtly depressed - I just found it difficult to go to w*rk each day and felt as though the golden handcuffs were cinched up good and tight and I would only break those chains once I reached pension/HI vesting.

Nothing about my w*rk inspired me and there was way more stress than I was comfortable with. IOW my life was the process of getting to retirement freedom NOT living life. If you want to call that the "devil's bargain" I guess I'd agree.

Fortunately that changed even before I reached vesting. I began to "live life" again - even though I was empl*yed. It was so liberating to suddenly be doing something I enjoyed, I stayed beyond vesting. Yes, there were financial advantages, BUT the biggie was that I was "living life" while still empl*yed. So I stayed until that suddenly changed 7 years later - I left the next week.

IF OP is in that "mode" of "putting off" living only for a potential "better life" later, I would suggest to GO NOW! Whatever the cost, GO NOW!! If 6 more years of w*rking is not only bearable but a reasonable process of "living now" AND there are sufficient long-term advantages (mentioned better HI and pension) consider staying.

OP is in that enviable position of being able to dictate her/his own future. OP is at that inflection point where it would be difficult to make a true mistake. Leave now and you only leave some money on the table. Stay if you're enjoying the ride - but leave the second "someone" makes it seem like "w*rk" again.

Your choice and what a wonderful place to be - you HAVE a choice. Of course, as always YMMV.
 
Thanks. It's a job I've enjoyed a lot. It involves lots of travel and I set my own agenda and in principle I cannot get fired.

The problem is that certain expectations are required which I'm finding more and more trouble meeting and I would feel bad not meeting them. To be clear no else has to pick up my slack.

I agree with this. If it is a job that you like, and you are currently in good health, 56 is still young. I would work the extra six years to double the pension.

There was a period during my c*reer when I felt like my life was on "hold" until I could retire. I wasn't so much living as I was existing. No, I wasn't suicidal nor overtly depressed - I just found it difficult to go to w*rk each day and felt as though the golden handcuffs were cinched up good and tight and I would only break those chains once I reached pension/HI vesting.

Nothing about my w*rk inspired me and there was way more stress than I was comfortable with. IOW my life was the process of getting to retirement freedom NOT living life. If you want to call that the "devil's bargain" I guess I'd agree.

Fortunately that changed even before I reached vesting. I began to "live life" again - even though I was empl*yed. It was so liberating to suddenly be doing something I enjoyed, I stayed beyond vesting. Yes, there were financial advantages, BUT the biggie was that I was "living life" while still empl*yed. So I stayed until that suddenly changed 7 years later - I left the next week.

IF OP is in that "mode" of "putting off" living only for a potential "better life" later, I would suggest to GO NOW! Whatever the cost, GO NOW!! If 6 more years of w*rking is not only bearable but a reasonable process of "living now" AND there are sufficient long-term advantages (mentioned better HI and pension) consider staying.

OP is in that enviable position of being able to dictate her/his own future. OP is at that inflection point where it would be difficult to make a true mistake. Leave now and you only leave some money on the table. Stay if you're enjoying the ride - but leave the second "someone" makes it seem like "w*rk" again.

Your choice and what a wonderful place to be - you HAVE a choice. Of course, as always YMMV.
 
Thanks. It's a job I've enjoyed a lot. It involves lots of travel and I set my own agenda and in principle I cannot get fired.

The problem is that certain expectations are required which I'm finding more and more trouble meeting and I would feel bad not meeting them. To be clear no else has to pick up my slack.

It's interesting you mention these things. I was strictly a mid-level staff person at a Megacorp, so we're quite different in that regard. BUT I've told the story a dozen times that I was "happy" until they changed my assignment. I left immediately (2 week notice, but including vacation I was gone at end of the next week with right-to-call-me-at-home for 3 weeks.)

For 3 minutes, I considered at least staying through the end of the year to "collect my pay", "fatten my bonus", play on the computer, kiss off all but the stuff that would get me fired, etc. One buddy I confided in actually encouraged such behavior on my "way out." "Forget them!" He said. "Take their money and hang on until they call you on the carpet and complain." I could NOT do it. Call it "w*rk ethic" or just "ethics" but I couldn't do it. Maybe, it was that I wouldn't have dealt well with folks thinking I was a "slacker." I don't know, but instead I retired.

Sounds like you'll either do a great j*b at your level or you'll get out. I applaud that! And it sounds like you are at the point you can safely make such a decision. As always, YMMV.
 
Congratulations on your success this far. I’d suggest a discussion with a CFP and tax accountant before making a firm decision. If your kids are still dependents and you plan to support their college expenses, pay for weddings, etc. you may want to continue to work. Your ability to earn is a huge safety net for the unexpected twists and turns of sending children into the world.
 
You can always stay on a year to year basis. Stay a year, then evaluate how things look/how you feel. If you want to leave then, do so, you've not invested too much extra time and you did get some financial benefit. If it looks like it might be best to stay another year, then do that, and re-evaluate at the end of it.

Actually, you might want to do the evaluations quarterly rather than committing to an extra year. :)

Our CSRS pensions were reduced for taking an early out/RIF opportunity. We've never regretted our decision to leave those 3 years early even if it did make a noticeable difference on our retirement income. Enough money is enough money, but that's a decision that everyone needs to make for themselves.
 
You can always stay on a year to year basis. Stay a year, then evaluate how things look/how you feel. If you want to leave then, do so, you've not invested too much extra time and you did get some financial benefit. If it looks like it might be best to stay another year, then do that, and re-evaluate at the end of it.

Actually, you might want to do the evaluations quarterly rather than committing to an extra year. :)
+1


If this is purely a financial decision, just leave. If not, see above. You have plenty. You have 1.5M in after tax mutual funds and a 24K/year pension. Let's say you were to withdraw 4% per year from the mutual funds and let the 401/403/457 money grow. That's 60K per year which would give you 84K per year to spend or a $24K contingency above your current 60K/year living expenses. You are not going to outlive your assets given your lifestyle.
 
Because there are lots of really smart and experienced people on these forums and their collective advice is very valuable input.

I think your comment says more about your opinion of yourself than others :)

If you are not sure, why would you accept the advice of some folks you do not even know?
 
I think you know when you know. If you’re agonizing, keep working until you know.
 
Quick Answer: You have enough to retire. Quit if you don't like your job :)
 
You use the word my, does this mean you are single? If so this means you don't have the first to die, what happens to the partner after worry to contend with. But then you say we will travel..?


I also noted mention of "we" and "our" but no plan for the partner/ spouse.
 
Thanks. It's a job I've enjoyed a lot. It involves lots of travel and I set my own agenda and in principle I cannot get fired.

The problem is that certain expectations are required which I'm finding more and more trouble meeting and I would feel bad not meeting them. To be clear no else has to pick up my slack.

I may have been in a similar situation back in 2012, when I first joined this forum (almost exactly 9 years ago, wow!) and started a "should I retire now?" thread. My Megacorp had put on the table an early-retirement offer that I was eligible for. I was 54 at the time. Most of the folks here said I could retire from the numbers. That was also in agreement with the Megacorp-provided financial planner. But... beyond the numbers, I still liked my job. Like yours, it required a lot of travel, but I had a good team, good management, skills that, in Megacorp's view, would be difficult to find in a single person, a lot of control, and "ridiculously" good (in my mind) compensation. But, I did not assume any of that would last. in my job, I would evaluate every 6 months my contribution, how I was perceived by others, and my "odds" of getting fired. For retirement, I continued to save and plan in case Megacorp did fire me (as they were doing regular rounds a couple of times a year). I also watched my health to ensure the job was not impacting it.

I retired six years later, in 2018. The job had changed enough so that, while the technical side was still fun, my team was smaller (down to 2 still expected to do the work of many more), the administrative side was getting sillier. There also seemed to be more project calls where there would be a "cast of thousands" to say they participated, but only a few of us actually doing the work. This actually was more boring than stressful to me :). Over that time my pension payment increased by about 38 percent (to where it would cover our basic regular expenses), and our savings and investments almost doubled (positioning us into what many would deem "Fat FIRE"). At that point, it felt right to retire.

Two major-non work impacts were also a factor: in 2012 we still had one more child to go through college (payments ended in 2018), and my mother was still alive (in my culture you sacrifice to take care of your parents if needed - she died in 2014).

For, me and my circumstances, the additional years were worth it. I'm actually healthier now than I was in 2012. But these are my circumstances and not yours. Just sharing them to show you my thought process. Good luck in whatever you decide!
 
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