I am amazed

[makingaplan]

I am amazed that my friends at work are amazed when I tell them I am planning to retire next year. The amazing part is they have the same job and income I do and most say they are in not financial position to retire. These are people that are pension and Social Security qualified. How can you be stressed out at your job for at least the last 10 years and have not planned for retirement?

 

[travelover]

.......... How can you be stressed out at your job for at least the last 10 years and have not planned for retirement?

It is the norm, not the exception. Most people here are at the tip the the distribution tail. Without Social Security, many if not most older people would be destitute.

 

[GravitySucks]

Many things that are the norm shock me when I find out that they're not the exception.

 

[racy]

I notice in your public profile that you are a teacher. Thank you for what you do! And, congrats on your retirement!

 

[LOL!]

I am amazed that my friends at work are amazed when I tell them I am planning to retire next year. The amazing part is they have the same job and income I do and most say they are in not financial position to retire. These are people that are pension and Social Security qualified. How can you be stressed out at your job for at least the last 10 years and have not planned for retirement?

They are making small talk and are proud of you. People are self-deprecating and very good at hiding how wealthy they are and how they really love their jobs.

 

[HI Bill]

I've stopped telling people about my impending plans. When I did, they usually give me a blank, uncomprehending stare, then ask..how can you afford to do that? Others become jealous...

Human beings, as a species, suffer chronic myopia. And most of those who are far-sighted don't want to make the sacrifices needed to RE. We are an exceptional lot, for the most part!

 

[Dtail]

Congrats.
It is just the way it is. The jealousy part will come next.

 

[Gumby]

They are making small talk and are proud of you. People are self-deprecating and very good at hiding how wealthy they are and how they really love their jobs.

Or maybe they're all really actors and you're the star of the Truman Show.

 

[Teacher Terry]

When I worked for the state most retired when fully eligible with no penalty. The exception was people that started later so didn’t have a lot of years in. Due to WEP this is important.

 

[makingaplan]

I know very few people in my school these days there is a big gap in the middle people who have been there 30 years and people under 5. Everyone who started less than 15 years ago has never gotten a raise so most leave. I have been subbing on my prep to pad my retirement a bit. (We can not get subs anymore so they pay us extra to fill in.)Couple of my old friends see me in their hallway and ask what I am doing and when I say picking up little extra pay for retirement they seem surprised. They want to retire as well, They also seem to be the same people saving their sick days up so they can get paid $14 bucks a day upon retirement. Comment I got when I took a 60 day FMLA leave couple years ago. That was the best 1K I ever forfeited. I needed to be with my parents. They will not sub for $80 an hour that they are already working anyway.

 

[makingaplan]

In Indiana you have to have saved some yourself no Health Insurance and only about of 25% your highest 5 years pay. I would also add that Indiana ranks 50th in teacher pay this last 15 years.

 

[jazz4cash]

In Indiana you have to have saved some yourself no Health Insurance and only about of 25% your highest 5 years pay. I would also add that Indiana ranks 50th in teacher pay this last 15 years.

Do teachers in IN contribute to social security (or does it vary from district to district)?

 

[Octogirl]

Agree - many people that know I am about to retire, ask..how can you afford to do that? We have always LBYM so have saved $$. FIReCalc = 100%.



Others who have earned similar salaries ......become jealous.

 

[summerblues]

Have decided not to tell people about my retirement. Too many judgments and unasked for opinions that I have no interest in being exposed to.

 

[Letj]

I am amazed that my friends at work are amazed when I tell them I am planning to retire next year. The amazing part is they have the same job and income I do and most say they are in not financial position to retire. These are people that are pension and Social Security qualified. How can you be stressed out at your job for at least the last 10 years and have not planned for retirement?

Some people may simply not know they can retire. They may not know how to do the math. I know people who have millions yet they tell me they can’t retire for whatever reason - children in school, health insurance, etc. I try to explain how they can figure out if they are financially ready and most times it goes over their head or they just gloss over it not seeming interested.

 

[makingaplan]

Yes teachers in Indiana can collect SS.

 

[rothlev]

Yes teachers in Indiana can collect SS.

Don't you also have the state contributing to a 403b type account in addition to the pension plan?

 

[pb4uski]

Agree - many people that know I am about to retire, ask..how can you afford to do that? We have always LBYM so have saved $$. FIReCalc = 100%.



Others who have earned similar salaries ......become jealous.

I was hoping that someone would ask so I could talk about LBYM, saving regulalry, investing in low-cost index funds, et al... but alas, no one has asked.

Perhaps I am such of a skinflint that the answer is apparent.

 

[freedomatlast]

It seems to me that the majority of people I meet just live in the moment, and just live for today rather than think about, and plan for the future.

 

[Castaspey]

I sometimes think that some of my colleagues think that I am admitting failure/"can't hack it any more" by leaving at straight up 60, even though I am getting an ER incentive equal to about 35% of my compensation package.

 

[travelover]

I sometimes think that some of my colleagues think that I am admitting failure/"can't hack it any more" by leaving at straight up 60, even thought I am getting an ER incentive equal to about 35% of my compensation package.

Yea, but who cares? You are doing whatever you want and they are stuck pulling the plow.

 

[makingaplan]

Yes teachers have the option of a 403B that they can contribute to on their own I started mine 31 years ago. 2 of my friends started theirs last year and they are 3 years older than I am.

 

[Mulligan]

In Indiana you have to have saved some yourself no Health Insurance and only about of 25% your highest 5 years pay. I would also add that Indiana ranks 50th in teacher pay this last 15 years.

Teacher pensions are all over the map nationwide. Ours is 75% top 3 years. But its factoring in benefits received too (and pension withholding also taxes the benefit). Anyways after 30 years ones take home monthly pension benefit equals take home work pay. As 14.5% pension deduction is not withheld anymore, no Medicare withheld, and reduced state income tax break. No social security, but a modified cola is in effect.

 

[makingaplan]

Teachers in Indiana end up with less than half their salary which includes SS. The bigger deal might be that the pay is among the lowest in the country to start with. My coworkers that started 15 years ago earn less than 45K with advanced degrees. We do not have a teacher shortage we just have a shortage of professionally trained people willing to work for 37K a year.

 

[jazz4cash]

Some people may simply not know they can retire. They may not know how to do the math. I know people who have millions yet they tell me they can’t retire for whatever reason - children in school, health insurance, etc. I try to explain how they can figure out if they are financially ready and most times it goes over their head or they just gloss over it not seeming interested.

+1

And part of doing the math is they never figured out how to live on 100% of their income so living on any less terrifies them. They don’t even realize that SS and retirement contributions end.