Would you Retire if you weren't sure you could afford to?

[ESRwannabe]

Here's the deal; It's hard to plan for retirement without knowing when you're going to die. I'm 67 and still working a high stress job. If I die at 85, I can retire right now. If I live longer, I'll be living on SSI (unless I latch on to a lady with some wherewithal) Sorry, sounds horrible. My brother is an advocate of deciding when you expire. According to him I should retire and just plan to expire when I'm 85 and forget about it. Start Living. Crazy post, isn't it? Should I still work another year or two?

Dude, go ahead and retire now. Lots of senior living places will let you stay if you sign over your social security and assets to them even if that amount doesn't add up to the normal fee. One of my grandparents was in that situation.

For my parents and grandparents once they got into their 80s their minds were not all there any more and physically they couldn't do anything much more than eat, and sleep.

You need to enjoy the remaining years of good health you still have. If you keep working a high stress job you'll probably be dead in a few years.

 

[Aerides]

What will another year get you? What have you gained each year since your joined the forum 8 years ago? My last year or two of working funded at least 5 years in my retirement plan.

If you are socking away $X per year, your income should have already been reduced, and those savings should be pushing out your "run out of money" date.

At 67, you should have a plan that allows you to retire because the odds you are still employed a year from now are far lower than average, due to age alone.

As others have said, a serious look at your spending will probably help a lot. Most of us do not retire unless we have a 95%+ chance of funding a retirement to 95+ years.

But at 67, I'd find a way to work it out. That might mean dramatically downsizing, drop two cars to one. Forgo vacations, move to a smaller home, LCOL area (which might just mean a town or two away), etc.

 

[tmm99]

There's a bunch of smart people here who have time and are willing to analyze the financial situations of different people and can give sound advice, so if you're comfortable, share some detailed information like the breakdown of your expenses and your asset/liability (IRA, 401K, savings, mortgage debt, loans etc) as well as your pensions/estimated SS.

Without that type of information, this will just be a philosophical discussion IMO...

 

[Dtail]

Back in 2014 you said this:


So how has your plan been working out and what does it say about your retirement prospects?

I went through some other posts from the OP. Some of the posts would qualify as responses to himself here.
So OP, what are your thoughts to the responses so far?

 

[daylatedollarshort]

Retire now and let your assets dictate your lifestyle.

We did something similar. Reaching our "number" had more to do with DH's heart rate from a high stress job than our savings amount. In our case we had a lot of fat and wasteful spending in our budget so that now we have a better lifestyle on less expenses than we did pre-retirement.

What we don't know with the OP is the live to 85 budget already very tight or does he have some maneuvering room to stretch that out if needed? Has he researched options if he does run short on cash? In our location, there are many city and state programs for seniors and low income households like almost free transportation, free lunches and activities, library services, utility discounts, food programs, , and Golden Girls type roommate matching services that even low income seniors could still have pretty nice lifestyles here.

 

[marko]

So, here's the thing:
Many here, myself included, had no choice of when to retire. In my case, I was "part of the senior redundant team" when the company was sold.
At age 52, despite a stellar resume I found that ageism is very, very real. Never was able to go back to work; 2008 was the final punch. (disclaimer: I received a double-platinum parachute)

Sometimes you just have to figure out how to go forward, get rid of the dead-wood in your life and then get up and go. Most times one finds that one's worst fears are never realized and that things do tend to work out once you're open to a new way of living.

Good luck.

 

[Car-Guy]

From my POV, most folks retire depending on their "investments", entitlements and/or pensions, along with their savings to fund their retirements. Some are truly wealthy and don't care or need any of that (expect maybe their savings) . Even those of us (like me) "who claim", so to speak, that they have "won the game" and don't need to invest in the market and/or need entitlements to cover their retirements are still at risk of running out of money. Seems to be even more true/possible today than it was even just a year ago. In the US, with today's extraordinarily low returns on fixed income (e.g. CD's) and rapidly rising inflation rates, even having millions in fixed income isn't is a slam dunk anymore...

Add in age, health, etc, it's always going to be a risk for most of us.....

 

[GravitySucks]

Being old and rich is a winning combo, checko...

Young and Rich would have been better.
But better late than never.

 

[EastWest Gal]

That high stress job will keep you from making it to 85, much less enjoy your life. How about finding something lower stress, with lower pay if you need to supplement your investment income and SS? Maybe work half the year in a garden store, for example. Or part time anywhere in a low stress job.

You haven’t given us enough information to help you. In the past, you said you haven’t been paying enough attention to investments. Working in a high stress job, you probably still aren’t able to turn your attention to your investments. If you have almost enough, retiring from the high stress job may give you the time to pay attention to those investments. Plus, passive investing does not take much time.

 

[Dtail]

So, here's the thing:
Many here, myself included, had no choice of when to retire. In my case, I was "part of the senior redundant team" when the company was sold.
At age 52, despite a stellar resume I found that ageism is very, very real. Never was able to go back to work; 2008 was the final punch. (disclaimer: I received a double-platinum parachute)

Sometimes you just have to figure out how to go forward, get rid of the dead-wood in your life and then get up and go. Most times one finds that one's worst fears are never realized and that things do tend to work out once you're open to a new way of living.

Good luck.

Well stated. Similar story to you, but volunteered for a package, but would have been just a matter of time before a forced layoff.
Over the last 3 years pre-retirement, cut expenses by 60% and retired to Florida with a very happy albeit lower spending lifestyle.

 

[marko]

Well stated. Similar story to you, but volunteered for a package, but would have been just a matter of time before a forced layoff.
Over the last 3 years pre-retirement, cut expenses by 60% and retired to Florida with a very happy albeit lower spending lifestyle.

Right. You can plan and plan for retirement but many times its out of your control. Many times here I've opined that rather than plan a retirement at 60 or 65, one should prepare for an unexpected retirement at age 50.

 

[bada bing]

I would retire in the OP's situation unless it is worse than I suspect. I did retire without 100% assurance of "success". I may end up with nothing left but a SS check and a modest pension. That will be okay.

People tend to fixate on their bank account and forget to look at the calendar. 67 and high stress ? I'd be out of there yesterday.

 

[HawkeyeNFO]

...one should prepare for an unexpected retirement at age 50.

Good advice for everyone.

Many possible changes to any plan, regardless of if you are 25, 45, or 65.

 

[Koolau]

Here's the deal; It's hard to plan for retirement without knowing when you're going to die. I'm 67 and still working a high stress job. If I die at 85, I can retire right now. If I live longer, I'll be living on SSI (unless I latch on to a lady with some wherewithal) Sorry, sounds horrible. My brother is an advocate of deciding when you expire. According to him I should retire and just plan to expire when I'm 85 and forget about it. Start Living. Crazy post, isn't it? Should I still work another year or two?

Have you run FIRECalc? Any other retirement calculators? My guess is you're better off than you think, but of course, I don't know that for a fact so YMMV.

 

[Hibernian]

So, OP, since you know that you can finance your retirement at a level that seems to be acceptable until you are 85, that suggests you have a target annual spend you want to reach. What does this look like if you reduce your spend by 10% a year. Does it get you 2-3 years more or is that a reduction too great for you to tolerate? I would imagine, unless your current spending target is the bare minimum, you could squeeze a bit more out of the pot by reducing costs annually. Also note, you are imagining you will just take a fixed amount and spend it constantly but life is rarely that predictable. While you might have an unexpected large cost, you might find that some years you don’t want or need to spend as much as you imagined at 67. All to say, the road ahead is not fully determined by any sum you have now, you can adjust. Appreciating this can provide some peace of mind when trying to decide.

Firecalc can be great here, but I also remind people that just because you see a more than a few trend lines go below the zero line as the years progress, it’s not as if you could not track this over time and adjust if your stash was dropping. Of course, you don’t want that to happen but the point is, a target number and spend rate are just pointers…you can and will make some adjustments as you go. If you have no room in your plan to adjust down while living happily, then maybe you need to work longer. If you can be comfortable knowing some years you might not spend your full ‘allocation’, then you should be close to the big day.

 

[Path2FIRE]

Why not an inflation adjusted annuity (SPIA) to mitigate longevity risk?

 

[aaronc879]

There is no one answer that fits for everyone. I don't expect to live to 85 so if I had enough money to live to 85 I would retire. I actually plan to retire when i'm confident I can make it to 75 before living on just SS. If I live past that I expect significant chronic pain and limited mobility so I will either be in a medicaid assisted living or I will end things on my terms. Only you can decide what is best for your situation.

 

[gauss]

Can you retire now and then wait until age 70 to start Social Security? That might be the best thing that you could do to hedge your longevity risk.

-gauss

Oops, I see that this has already been suggested by others.

 

[pacergal]

If dying at 85 and living on a bare bones budget is what you are calculating, then NO , I don't believe you can retire yet.
To me, a successful retirement has a flexible spending pattern--adjust up or down depending on how your income/investments are doing.
For me, I personally needed the insurance of 100% in firecalc to age 100. Most of my relatives lived to mid eighties, one lived to 100.
OP--what does firecalc say for you?
You would probably get better answers if you came back to post and gave more details.

 

[cooch96]

Vanishingly few folks know when they are going to expire. If I were 67, I would definitely quit that high-stress job and take a breather. And if I reckoned there was over a 20% chance I'd outlast my savings, then I'd also keep my ears open for any enjoyable gigs that would pad the old nest egg.

 

[Koolau]

You would probably get better answers if you came back to post and gave more details.

For instance: Do you own your home and cars free and clear?

Have you calculated your potential spend rate in retirement?

How many times your spend rate do you have saved? Hopefully in the 25X range but smaller is probably okay as you are already 67.

What is your Asset Allocation (someplace between 30% stock 70% bonds to 70% stock 30% bonds) Other??

What back up plans do you have? (Move to a low cost of living area? Do a reverse mortgage? Move in with kid(s)? Take in a house mate? etc.?)

What financial calculators have you run and what do they tell you about your chances of meeting your goals?

Do you have a "side hustle" that could tide you over (Part time Walmart Greeter? Hobby that could pay? Mow "old" people's lawns? Handy man? etc.?)

 

[ncbill]

There is no one answer that fits for everyone. I don't expect to live to 85 so if I had enough money to live to 85 I would retire. I actually plan to retire when i'm confident I can make it to 75 before living on just SS. If I live past that I expect significant chronic pain and limited mobility so I will either be in a medicaid assisted living or I will end things on my terms. Only you can decide what is best for your situation.

No kidding.

One of my favorite retirement calculators (https://engaging-data.com/will-money-last-retire-early/) is an excellent sanity check for those worried about running out of money.

It notes that as a male in my 50s I have a 1/3 chance (by age 75) & a 2/3 chance (by age 85)...of being DEAD.

 

[CardsFan]

Since OP has been MIA for 3 days, and has provided no further input, I am done with this thread until he/she shows up.

 

[Dtail]

Since OP has been MIA for 3 days, and has provided no further input, I am done with this thread until he/she shows up.

Not the only one unfortunately.

 

[meleana]

Here's the deal; It's hard to plan for retirement without knowing when you're going to die. I'm 67 and still working a high stress job. If I die at 85, I can retire right now. If I live longer, I'll be living on SSI (unless I latch on to a lady with some wherewithal) Sorry, sounds horrible. My brother is an advocate of deciding when you expire. According to him I should retire and just plan to expire when I'm 85 and forget about it. Start Living. Crazy post, isn't it? Should I still work another year or two?

At 62 and 65 my husband and I thought we couldn’t retire. But we hired a fee only financial planner (who Does Not have our money under his management) and he said we could and explained how!

He doesn’t know when we are going to die either. So there’s that.