7 months to ER...Excited and nervous!

[Dan5099]

Hi everyone,

Like most of the new posters, I have been checking this site out for a few months and taking in all sorts of advice and tonight decided to emerge from "lurkerdom".

I'm Dan, 47, and have worked for the Commonwealth of Pennsylvania for 24.5 years. My agency's retirement plan allows for a member to retire with 20 years of service at 50% of our highest year's salary or at 25 years with 75% of our highest year's salary. In either case, we keep our full health care benefit package for life (which is an excellent plan - $15 copay for office visits and $5 prescriptions..everything else covered 100%). I volunteered for every overtime assignment available this past year so that my annual pension will be close to 90% of my base pay which is approximately $90K. After using some of my lump sum payment to pay off the few bills that I have, I will actually be keeping more of my money each month than I do now.

My DW is a high school teacher and I have a son who is a Jr. in college and a daughter in 9th grade. I am taking the pension option that reduces my monthly payments slightly, but will continue to be paid to my DW should I roll a 7 before she does. She has her own excellent health care plan which would cover her and the kids should that happen. I have a deferred comp. plan that was pretty robust until the stock market collapsed (it basically follows the S&P500 index) and some modest savings. My main concern with my pension is that it does not include COLAs. A COLA can be approved by our state legislature, but that rarely happens. If I live long enough, my pension may dip below median income (or, more accurately the median income may rise above my pension), but the alternative would be to die young. After about 6 months of retirement, I plan to look for a low stress pt job to keep myself active.

As the big day gets closer, my anxiety level rises but I suppose that is normal. Well, that's about it. I look forward to more of the great ideas I have come across on this forum and to sharing my experiences as I approach, enter, and enjoy ER.

Best wishes,

Dan

 

[W2R]

Hi Dan,

I don't know if you have played with FIRECalc (a free retirement calculator, link at the bottom of each page here). But, it may give you some idea of how the non-COLA'd pension will contribute to your retirement.

Having your health care benefits in retirement is a great advantage.

Although I haven't felt especially anxious about retirement (as you have), it has been an emotional rollercoaster in many ways. I do think that we need to cut ourselves some slack, because it is a big transition.

Anyway, welcome to the Early Retirement Forum!

 

[heyduke]

i am still dreaming that I will get to dream about retirement...

 

[Coach]

Dan, congratuations!

It sounds like you've planned well, worked hard, and now will get to enjoy some more fruits of your labors. Best wishes for a happy retirement.

Coach

 

[Purron]

Nice to meet you Dan! I have found this site to be an excellent source of information. More importantly, I found people who really understand the ER experience. Look forward to hearing more from you as you approach the big day

 

[kumquat]

After about 6 months of retirement, I plan to look for a low stress pt job to keep myself active.


Dan

You'll find lots of other ways to keep active. Enjoy!

 

[Walt34]

After about 6 months of retirement, I plan to look for a low stress pt job to keep myself active.

That was my plan too, only it took more like five years to find something that fit and paid enough to make starting the car worthwhile. DW is still looking after finishing her BA degree, but in a leisurely fashion.

I've been back to work for a year now and it seems to be working out all right. For the moment it is full time but only because two of the guys are taking a tour of Iraq, courtesy of the U.S. Air National Guard. When they come back in October it should cut back to three or four days a week.

 

[royboy65]

Dan - Sounds like you got the financial aspect down, but what about the cranial stuff? Do you think a part-time job will work for you? Somewhere I read that if you accept a job after retirement that is "below" your "capacity", it won't be satisfying and you'll end up job hopping until you end up going back to work at the capacity that you're accustomed to. Either that or you'll start drinking... I have two years to go, so I'm a little bit behind you. However, I'm still thinking of the upcoming "challenge" and always intetersted in what folks are planning... Roy

 

[FIYes]

Happy! Excited! Nervous! I am one month from retirement and I can relate. I have looked forward to this---planned for it--but I admit the emotional roller coaster is giving me a bit of a ride. I have run the numbers and feel fairly confident that I will be okay, but it is still a big step.

Actually, typing this for the world to see is good for me because I am realizing as I type that of all the mixed emotions that I feel---happy is by far the predominant emotion. I look forward to the challenges and opportunities of developing a new life for myself. I have hobbies and interests that I want to explore and the chance to do this without a full-time job is wonderful.

 

[JDARNELL]

Dan - Sounds like you got the financial aspect down, but what about the cranial stuff? Do you think a part-time job will work for you? Somewhere I read that if you accept a job after retirement that is "below" your "capacity", it won't be satisfying and you'll end up job hopping until you end up going back to work at the capacity that you're accustomed to. Either that or you'll start drinking... I have two years to go, so I'm a little bit behind you. However, I'm still thinking of the upcoming "challenge" and always intetersted in what folks are planning... Roy

Royboy,

Today when you asked me about my PT gig and how I liked it I think your statement above fits me as how satisfied I am. Just like with the night teaching compared to what you and I are familar with and the good students I find the other a let down.

I have a list of ideas on my desk that over time I have explored or discounted. They are slowly getting marked off. Nords has heard me complain about it over time and helped me talk thru my options. I guess I thought a PT gig might help me transition, but the more I think about it I realize that I am not interested in any of these ideas and cold turkey may be the way for me to go. While I was initially concerned about grey matter going soft that is quickly changing as I realize I have so many things on my to do list.

I see you going thru the process I have been experiencing. Hey I signed up for TAP today for Dec. Would you believe my prereq is that I bring a current resume for them to review and help me tweak. I asked the guy what about if I am not interested in a 2nd career. He said we will have to work on that one.

Tomcat98

 

[heyduke]

Tomcat98 is that Colorado Springs in the background of you avatar?

 

[chinaco]

Welcome Dan.

It looks like your pension and retirement benefits are fairly generous. Even though it does not have a COLA... (which most private pensions do not)... 90% if relatively high for for 25 years and under 55. This is almost unheard of in private business. Of course, you may not qualify for SS.

Since you DW is a teacher, she is probably in line for a decent pension. She should also include the joint survivor option in her pension. She probably does not qualify for SS.

Do you qualify for SS? If so, there may be some strategies that can help (in terms of delaying taking payment to increase that COLA adjusted stream of money).

If you do not have SS, then you will really need to have other assets to invest to offset inflation over the years.

If you are not comfortable crunching the numbers and doing what if projections, I would suggest that you see a fee based financial planner. Consider using a best case, worst case plan.

I would recommend that you do this before you retire. If you find you need to continue to work a bit longer, you are probably at your peak earning years at your current j*b... IMO you should factor that into the equation.

 

[Walt34]

I would recommend that you do this before you retire. If you find you need to continue to work a bit longer, you are probably at your peak earning years at your current j*b... IMO you should factor that into the equation.

I agree. In the '80's I heard of guys who retired from NYPD and did the same thing you did, worked all the overtime they could to rack up the final year's income but they had no COLA. Ten years later they were living in near-poverty and working as night security guards at grocery stores.

Inflation - which I think is a near certainty given the current govt. spending - is a very real risk for you.

 

[JDARNELL]

Tomcat98 is that Colorado Springs in the background of you avatar?

Yes it is at the Zoo

 

[Dan5099]

Welcome Dan.

It looks like your pension and retirement benefits are fairly generous. Even though it does not have a COLA... (which most private pensions do not)... 90% if relatively high for for 25 years and under 55. This is almost unheard of in private business. Of course, you may not qualify for SS.

Since you DW is a teacher, she is probably in line for a decent pension. She should also include the joint survivor option in her pension. She probably does not qualify for SS.

Do you qualify for SS? If so, there may be some strategies that can help (in terms of delaying taking payment to increase that COLA adjusted stream of money).

If you do not have SS, then you will really need to have other assets to invest to offset inflation over the years.

If you are not comfortable crunching the numbers and doing what if projections, I would suggest that you see a fee based financial planner. Consider using a best case, worst case plan.

I would recommend that you do this before you retire. If you find you need to continue to work a bit longer, you are probably at your peak earning years at your current j*b... IMO you should factor that into the equation.

Thanks for the well wishes and advice all. Chinaco, since I worked since I was 14, and also had a 2nd pt job for several years while working full time, I will be able to get in my remaining quarters to be eligible for SSN with a couple of years of pt work. The cost of living in my area is relatively low. I'm pretty confident that all will be well, but I'm in good health and it wouldn't be the end of the world if I took a pt job after retirement.