retire at 55

[scubamonkey]

Our plans are to retire at 55. Here is my situation:

Both Age 45 - combined income over $180K.
Pension kicks in at 55 with about $65K per year. $300K in retirement accts. My wife and I are maxing out our 401K plans. Mortgage will be paid off in 5 years (we are tripling our payments). We have three kids - two have graduated college and are getting married this year and one is in college (just started). No other debt.

What else do I need to do to retire at 55 and have $100,000 per year to spend?

[REWahoo]

Welcome to the forum scubamonkey. Are you a diver, an exotic animal lover or both?

The short answer to your question, lacking any more details than you provided, is that you need to have $875,000 or so (in today's $) in your retirement account ten years from now. Using the conventional wisdom of a 4% withdrawal rate, that would generate the additional $35k each year to add to your $65k pension and provide you with $100k.

Questions:

- Is that $65k pension from a govt. job or from the private sector? The conventional wisdom here is that the former is preferable to the latter when it comes to long-term viability.

- Are you sure the $100k is really what you need/want, and have you looked at your current and projected spending to be sure? Many of us on the forum could live quite comfortably on your projected pension alone.

- What about health insurance? That is one of the biggest issues for those of us retiring prior to age 65.

I'd say you are in excellent shape financially, so congratulations are in order.

[scubamonkey]

I am a diver as oftern as possible!

The pension is from a GSE - although it has the possiblilty to fail. I will have an option of a lump sum of approx. $600K or the pension.

My spending habits are much less than the $100K now, but I do have travel and recreational plans in the future.

Part of my pension is that I will be able to continue my health insurance with my employer at the group rate.

Thanks