Badger
Thinks s/he gets paid by the post
- Joined
- Nov 2, 2008
- Messages
- 3,487
Laid off at 55, delaying pension to age 56 in 2024 ($2272/month). (Plan to live on vacation payout until then. No severance.)
But I can't live on that unfortunately and I don't want to spend 401k yet as I am afraid I will run out of money. Not to say I have any clear idea when I'd start . . .
I am not so fond of w*rking my real job I can be excited to go make less working somewhere else . . . But I sort of maybe have to.
I do have cash savings earning very little I could use to supplement the pension or maybe even delay it further but I can't quite work out how to think of this. It doesn't feel right to spend it on something that is not urgent especially when I don't have a clear idea how much I could safely spend.
Edited *27K pension in 2024, not infl. 401k 1M.
The first question I would be asking myself is why do I need to spend this money. The next question is what are my necessary expenses and what are not and understand the difference between need and want. I was laid off at about the same age and the first thing I did was to go on a serious austerity program. Thermostat was changed so wore more clothes indoors in winter, used fan instead of air conditioning in summer, planned car driving with multiple stops, Eating out was not an option and grocery shopping was considerably more frugal (more beans, pasta, rice, less beef and more chicken/pork, etc.), entertainment was enjoying the outdoors with hiking and riding an old bike with occasional movie at reduced "first show matinee price", etc. I think you get the point.
If I was taking care of my necessary expenses and had money left over then I would be investing it for retirement. You can count on needing more backup for medical expenses once retired.
Cheers!