What is the age cutoff for "RE"?

[JustCurious]

I am a long time lurker on this board, and I appreciate all the valuable information and interesting discussions that take place here.

I am curious if there is any consensus on what constitutes "early retirement"? Is it retirement before the social security full retirement age? (In my case that is 67 since I was born after 1960). Is it earlier than the earliest date that you can qualify for social security retirement benefits? (I think that is 62 for most people, if not everyone) Is it earlier than 60? Is it even younger?

 

[REWahoo]

JustCurious, welcome to the forum.

I am curious if there is any consensus on what constitutes "early retirement"?

No, I've never seen a definitive cutoff age for defining ER, although I think you would have a tough time arguing 67 or older qualifies. I think it's much like defining at what age you are a "sr. citizen"...you are if you think you are.

 

[Bimmerbill]

I was going to say "death" but I guess 67 and social security make much more sense.

 

[rs0460a]

If it's earlier than my "cubicle mate" or my neighbor's retirement, then it's ER for me (I beat them )

- Ron

 

[retire@40]

I would define early retirement as being "before a normal age."

So for a non-government worker, normal would mean no earlier than age 62.

For a government worker, it could mean no earlier than age 55.

In my self-employed world, it means as soon as possible.

 

[HFWR]

Yeah, ASAP...

In my case, not too early...

 

[Martha]

I would define early retirement as being "before a normal age."

In my lawfirm, normal age is in your 70s. Or 80s. Or for the founder's son, in his 90s. If someone left at 65 that would be early.

 

[donheff]

I would define early retirement as being "before a normal age."

So for a non-government worker, normal would mean no earlier than age 62.

For a government worker, it could mean no earlier than age 55.

In my self-employed world, it means as soon as possible.

Actually, last time I looked the average age of retirement in the Federal Gvmt was around 63 and rising. 55 with 30 years service is the age at which regular workers under the old civil service retirement system could retire without a reduction in their annuity.

 

[dory36]

I figure "early" is anytime before you become eligible for whatever government or company benefits could be had by waiting a few more years. So that's early 60s for Social Security. In the company I retired from, had I waited several more years, I'd have gotten cheap health insurance until age 65.


I'd define "very early" retirement to be while you are still supporting kids who are not yet out of college.

 

[Cool Dood]

Third Friday after President's Day of your sixtieth year, if falling on a solstice -- in non-leap years.

 

[azanon]

I would define ER as having made, at some point, the conscious choice to take the steps necessary to retire sooner than your peer group, perhaps due to your involvement on these boards.

If you were on a path to retire at 65, but because of your enlightenment from this board you took the steps necessary to pull it off at 60, i'd say you retired early.

Its never too late to retire early.

Azanon

 

[Telly]

Purely my own metrics:

ER = 55 or so. Coming from the corporate world where there are usually plans that you can (or could, in years past) "Early Retire" at 55 with full benefits by meeting certain criteria.

EER (Early Early Retire) - Before age 50.

IHY (I Hate You) - Before age 40

GMAFBYDHACATWIGTHTY - Before age 30
(Give Me A Frigging Break, You Don't Have A Clue As To What Is Going To Happen To You!)

 

[BOBOT]

That's an easy one. ER happens precisely at age 58yrs, 6mo, 3days!
Three months, two weeks, three days to go!

 

[REWahoo]

... ER happens precisely at age 58yrs, 6mo, 3days!
Three months, two weeks, three days to go!

I beat you by 7 days (age 58yrs, 5mo, 27days).

Now all you have to do is outlive me by a week or more and you win!

 

[Dawg52]

I beat you by 7 days (age 58yrs, 5mo, 27days).

Now all you have to do is outlive me by a week or more and you win!

I'm, gonna beat you both. I will be 52yrs, 8mo, and 1 day. But, I have 5 months 20 days to go. It's gonna be a longggggggggg 5 months too.

 

[JustCurious]

Based upon the initial replies, there does not appear to be a consensus on this issue. I find that interesting because this board is set up to discuss "FIRE", and there seems to be a consensus on how to define "FI" but not "RE", and yet people use the term as if it is a commonly understood term.

For "FI", the consensus seems to be that you reach financial independence when you have saved enough money so that you can maintain your lifestyle without working, in other words, by drawing a SWR to support your lifestyle. Obviously, that magic number is different for everyone, but at least there seems to be consensus on how to define when you have reached "FI", whereas the definition of "RE" appears to vary from person to person.

My two cents are that if you retire before age 60, you have retired early. Otherwise, you have not.

 

[kcowan]

I believe that anyone retiring before age 65 is retiring early. Many programs are aimed at that age such as seniors discounts. Another way I look at it is when your expected retirement years number 30 or more.

When I fire'd, my years in retirement were estimated at 38 based upon my life expectancy at the time. I consider the estimate of life expectancy to be equally important as the Firecalc estimate.

My planning also consumes the principal during those 38 years, although so far the principal has grown by 10%/yr after expenses (4 yrs) so I guess I can live forever.

 

[BOBOT]

I beat you by 7 days (age 58yrs, 5mo, 27days).

Now all you have to do is outlive me by a week or more and you win!

Aw, let's not quibble, RE. On 2/1/07 I'll raise a glass to your health.
Live long & prosper!

I'm, gonna beat you both. I will be 52yrs, 8mo, and 1 day. But, I have 5 months 20 days to go. It's gonna be a longggggggggg 5 months too.

Play with some numbers, DOG. Somewhere else I posted about the perception of one's time left; at some point x years yields to yyweeks yields to zzz days. When you get that short, subtract any use-or-lose time coming to you, weekends & holidays, & you're counting down actual workdays left. Tick,tick,tick.....ticky-boo!

 

[youbet]

whereas the definition of "RE" appears to vary from person to person.

As well it should! RE is a very personal thing and the specific age varies with circumstances. But the principles of LBYM and investing apply whether you're a 20-something with a high paying job and no plans for a family who wants to retire by 40 or a 50-something scrambling to top off the nest egg in order to retire by 62.

Wouldn't it be easier to define what it means to not RE? Then we can assume everyone else did RE.

Or you can use some general age bands. Pre-55 = RE. Post-65 = not RE. 55 - 65 = depending on your circumstances.

The group I'm most interested in are those that never really retire into at least a minimum acceptable lifestyle due to whatever circumstances. They're either working or retired and living at a standard they are very dissatisfied with. Don't want to go there. Want to understand how to avoid that. As long as I stay out of there, I've met most of my objectives!

I considered myself to be FI in my early 50's and finally pulled the plug and Retired in my late 50's. For me, that seemed to be RE.

 

[FinanceDude]

I'd go with 60 or younger to be ER.................

 

[Nords]

Based upon the initial replies, there does not appear to be a consensus on this issue.

That's about all you can expect on a board where we can't even produce a common definition of net worth or annual expenses, a balanced perspective on annuities, any unemotional recommendations on rent vs buy or mortgage vs debt free, and kids vs none.

But you can expect plenty of it!

 

[2B]

In my lawfirm, normal age is in your 70s. Or 80s. Or for the founder's son, in his 90s. If someone left at 65 that would be early.

It sounds like your law firm is like the engineering firm I'm with. I'm below the median age for process engineers and I'm chomping at the bit to bail.

 

[Rustic23]

It would appear to me that RE like FI are individual decisions and thus somewhat defy an exact definition. If you are FI and you still work have you missed RE? I assume Bill Gate’s kids are born FI, so if they ever go to work have they missed out on RE? If they work to 50 and then retire have they really RE’ed when they could have at 21? RE is in the eye of the beholder. I suspect that the younger you are the earlier you would set the age to qualify for RE.

I retired at 62. For me it was earlier than I had planned on. I started reading things on this board, did the math, determined I was FI, my wife wanted to enjoy the new lake house, so I quit, she quit, and we never looked back. I feel like we retired early because there are so many of my and her friends that are still working. I feel like we retired early because we could still be working if we wanted, which we don’t. I feel like we retired early because it makes me feel good to know I did!

 

[kcowan]

...I retired at 62. For me it was earlier than I had planned on...

I retired at 59 because the timing of an event aligned with my idea to consider it. I was not FI and still am not (according to FIRECALC) but have been focused on the portfolio and the budget since then (4 years) and so far our portfolio is up 10% after expenses. Expenses are down 25% from working level. With each passing year we are getting closer to FI.

 

[yakers]

Another answer:

If you retire at a younger age than your father did.

My Dad retired at 62 mostly for medical reasons. I expect 56 or 57 will be enough for me. And I hope to stay in good enough physical shape that I enjoy some retirement years.