I would really like to retire soon, not sure if I can hang on 3.5 more years to be eligible for healthcare benefits in retirement - particularly now that the ACA makes healthcare available to early retirees.
Here are my details:
53, female, divorced.
$525K in taxable accounts (a mix of cash, bonds, CDs and stock index funds)
$675K in tax deferred or non taxable accounts. (Federal TSP, Roth IRA)
Total: $1.2M
I rent and do not own any real estate. Sold my home in the divorce and rolled the proceeds into taxable investments.
I have two pensions - one I am eligible for at age 55 in the amount of $600/month. This pension is not COLA'd.
I have a federal government pension that I can begin taking at age 62. Accrued value now is around $750/mo, obviously as each month goes by, this number grows - at the current rate, it is growing at about $130/month for each additional year of service. In 3.5 more years, I can exit with an immediate annuity and subsidized healthcare. Federal pensions are COLA'd.
According to Social Security, at age 62, I will be eligible for payments of about $1,900 - *if I continue working until then at my rate*. I was married for longer than 10 years - although given what I know about my ex-husband's salary compared to mine, I find it hard to believe that 50% of his will be greater than 100% of my own.
I estimate my retirement expenses to be $40K/year on the higher side, which gives me about a 4% SWR - although at some point, I will purchase a permanent home.
Thoughts on retiring now or 3.5 years from now - is the healthcare that valuable compared to what I can get through ACA? I checked and it appears I would be paying the same premiums as an employee - in retirement.
I realize I can make the decision without input, but appreciate it because I am concerned about any glaring omissions or that I am too close to the situation to be objective. Thanks
Here are my details:
53, female, divorced.
$525K in taxable accounts (a mix of cash, bonds, CDs and stock index funds)
$675K in tax deferred or non taxable accounts. (Federal TSP, Roth IRA)
Total: $1.2M
I rent and do not own any real estate. Sold my home in the divorce and rolled the proceeds into taxable investments.
I have two pensions - one I am eligible for at age 55 in the amount of $600/month. This pension is not COLA'd.
I have a federal government pension that I can begin taking at age 62. Accrued value now is around $750/mo, obviously as each month goes by, this number grows - at the current rate, it is growing at about $130/month for each additional year of service. In 3.5 more years, I can exit with an immediate annuity and subsidized healthcare. Federal pensions are COLA'd.
According to Social Security, at age 62, I will be eligible for payments of about $1,900 - *if I continue working until then at my rate*. I was married for longer than 10 years - although given what I know about my ex-husband's salary compared to mine, I find it hard to believe that 50% of his will be greater than 100% of my own.
I estimate my retirement expenses to be $40K/year on the higher side, which gives me about a 4% SWR - although at some point, I will purchase a permanent home.
Thoughts on retiring now or 3.5 years from now - is the healthcare that valuable compared to what I can get through ACA? I checked and it appears I would be paying the same premiums as an employee - in retirement.
I realize I can make the decision without input, but appreciate it because I am concerned about any glaring omissions or that I am too close to the situation to be objective. Thanks