Hi, I am 57 thinking of retiring next year.

[Jimonlimon]

I know many think "Retire Early" is probably younger than me, but I still hope to gain valuable info from this forum. Currently planning to retire either age 58 or 59.

Stats:

Married, both age 57, two kids in college, one income.

I'll draw my state government pension as soon as I retire- it also includes 80% of my health insurance premium and continues subsidy for Medicare. We will both have Social Security benefits with mine being more than hers, so probably wait until close to 70 to draw mine and start hers earlier.

We have enough in our 401k's to bridge the gap to starting Social Security but it's a bit scary to plan 10-12 years of withdrawals.

My pension would increase by about 8% for every year I wait from now until age 63 so my spouse thinks I should wait; I feel my youth slipping every day I sit on my butt at work and want to retire sooner.

I'm looking forward to reading these forums for advice, inspiration, and cautionary tales.

 

[TheWizard]

Welcome. You've come to the right place.

Have you given much thought to what you'll be doing with all that free time starting in just a year or two?

 

[38Chevy454]

Welcome to the forum. Retirement has two aspects: logical and emotional. The logical side is do you have sufficient resources and savings to stop working and be able to sustain your desired lifestyle. The emotional side is what will you do when you stop working.

Assuming you have the savings and able to meet your budget needs, the decision is more of the psychological question. Since your spouse does not work, do you have plans for anything together? You have a job to retire from, but you need something to retire to. I haven't seen in your post what your plans will be once retired. Just a lack of desire to keep working, which I understand is a big motivator. Many forum members here had their BS bucket full and with the means and ability to retire took that route.

Lot of smart people here that can help with any questions you might have. Read a lot, educate yourself, and you can determine when retiring is right for you.

 

[mickj]

It sounds like you and your spouse have done a great job planning for retirement and have a solid foundation to build on. It's always a good idea to carefully consider all options before making a decision on when to retire, as the choice can have long-term implications.

In your case, it seems like waiting until age 63 to retire would give you a higher pension and potentially make your retirement savings last longer. On the other hand, retiring at 58 or 59 would allow you to enjoy your retirement sooner and potentially do things that you may not be able to do later in life. Ultimately, the decision will depend on your individual circumstances and priorities.

One thing to consider is the potential impact of inflation on your retirement savings. Inflation can erode the purchasing power of your savings over time, so it's important to factor this into your retirement planning. You may want to consult with a financial advisor to help you evaluate your options and come up with a plan that works best for you and your family.

Good luck with your retirement planning, and welcome to the forum!

 

[REWahoo]

Jim, welcome. If you haven't already seen it, take a look at this thread: https://www.early-retirement.org/fo...-answer-before-asking-can-i-retire-69999.html

 

[GalaxyBoy]

I retired early just after my 57th birthday, so yes, you are retiring early as well. Welcome!

The thread REW linked to above is an excellent starting place. Then run your numbers through FIRECalc. There’s a forum dedicated to it here. It takes some time to understand it, but well worth it.

 

[rodi]

Welcome.

It is perfectly normal to be nervous before retiring. As others have mentioned there's both the financial side and emotional side.

For the financial side - you can create a budget, check the budget against actual spending, model your withdrawals and other income streams... The most important step though is to have a good, solid, idea of how much money you'll actually need - including taxes, health care premiums (which you have 80% covered), and periodic lumpy expenses like car replacements, new heater/roof/etc.

For the emotional side - you and your spouse should be on the same page. There will be a big adjustment, emotionally, for your wife to have you at home full time. So talk about it, have a plan, and work through those adjustements. It's also important to know yourself. For me, I knew I needed some structure to my day when I was transitioning... My plan was to take classes at the local community college in subjects I never had time for before... (Italian language). After a couple years of that I was able to give up that structure - but it helped with the transition from working to retirement... for me.

I found this forum incredibly helpful when I was working on my financial plan. I'd post my plan and the regulars here would say "hey - did you think of X?" or "You know you won't need Y in retirement"... it was great.

 

[Jimonlimon]

Welcome. You've come to the right place.

Have you given much thought to what you'll be doing with all that free time starting in just a year or two?

Absolutely.

First is to spend my weekends not working.
Second is to spend some of my weekdays doing some home renovations.
Third is to travel more than one week at a time. I have "bucket list" items that have been brewing for 40 years. Some of them will do better with some youth left in my bones such as hiking 1000 mile or longer trails.

It's hard for me to take more than a week off at a time because the mountain of things to do when I come back grows too tall.

 

[zaqxsw]

I found that the last thing you have to worry about is money... I guess, lucky me.

 

[Car-Guy]

Welcome to the forum

Everyone has to get comfortable with their numbers... All's I can say is I worked two years longer than "planned" (a.k.a. One More Year(s) Syndrome) and at least five or six years longer than really needed to be comfortable. Easy to say and see now that I've been retired just over a decade.

Gosh, I wish I had those years back for retirement. Read into what you want!

 

[cyber888]

I turned 58 this year and have really been semi-retired this year because I've been to the office around 28 days out of 365 days, and have skipped all meetings because I told them I'm done and retiring next year. Next year, I'll turn 59 and will probably be 14 days at the office and definitely gone by summer. We're also one-income as wife does not work. But unlike you, we have no kids, but you have a pension an we don't. I think you'll be fine.

 

[Alex The Great]

Well, I turn 56 in about a month and have been in office a couple of days only in entire year 2022. Attending Zoom meeting every morning (scrum) but doing a real work a few hours a day only. I assume it is kind of semi-retirement. I plan to retire next year but did not tell anyone about that. No wife, no kids and no pension. But I do have expensive home in SF Bay Area to maintain and pay giant property tax. Still, I believe my decision is right. But only time will tell.

 

[old medic]

Welcome to a great forum, tons of info. It took 505 days from the day I joined on here, till I walked out the door the last time @ 58. And nearly a year later I have no regrets.

 

[folivier]

I retired just before my 56th b'day 12 years ago. Best decision I ever made. Spent the first year completing all of my ongoing projects around the house and getting it ready to sell. Then took off in our motorhome for a few years before we bought another much smaller house. Enjoy!
BTW the one thing that made it possible was company healthcare insurance until 65.

 

[LastOfTheBoomers]

I had a a goal year in mind as we planned early retirement - then a reorg hit and I had to leave about 2 years earlier. A great severance package bridged the gap - but no more contributions to my pension fund. The result will be 5K less per year when I take my pension.
After a few years I realize that an extra 5K would not make a difference in anything I’ve done or plan to do.
I’ve also found when I retired I had more time to cut expenses - change cell phone plan, negotiate cable, and even downsize and only have one car.
Good luck with your decision.

 

[Aerides]

It sounds like your biggest hurdle right now is getting your spouse on board. That extra 8% each year sounds nice, but what does that mean in terms of your budget, overall savings, lifestyle?

If your expenses are solid and your savings/pension today more than cover them, and you've run all the calculators, to where that extra few 8%'s on the pension don't make a difference in the big scheme, show your partner the math and get them on board.

If those 8%'s mean the difference between going on vacation twice a year or once every 2 years...they maybe they have a point. But if it just means more going in your savings account, eh.

Oh, and one more thing: Understand it might not be money that has your spouse saying "not yet" - her lifestyle is going to change dramatically if she's already not working, once you stop. Have you talked much together about your post retirement life? She might be imagining you always underfoot or on the couch, with her doing all the cooking and cleaning, which is fine when you're the only one working, but not when neither of you are!

 

[pacergal]

Welcome to the forum!
So many folks with great advice.
Definitely answer the questions posted by ReWahoo, and run your numbers through Firecalc.
Feel free to come back with any questions.

Also agree with Aerides regarding discussion with your spouse.

This forum is a great place to be, hope to hear more from you along the way.

 

[Jimonlimon]

Thanks everyone for the good ideas and comments. Especially considering discussions with my wife.

 

[Stormy Kromer]

I would encourage you to consider ER sooner than later.

I am also 57. I FIRED at 50 and haven't looked back. Like you, I enjoy doing physical activities. I see many people lose interest in their physical hobbies when they reach our age. Some may be due to age and losing physical strength but I see just as many people that lose interest in things that they used to enjoy.

Once you stop doing something that you enjoy it is much harder to start up again.

Do it now and look back on it in 30 years and tell yourself "I did it".

 

[Teacher Terry]

A discussion with your wife should be a priority to determine why she doesn’t want you to retire. It might put some of her fears to rest. If she doesn’t want to share the home space all day she can get a job.

None of us know how much time we have left and few people want to work until they die. 8 of my friends never lived to 70 despite all living healthy lifestyles. Some people are just unlucky. Plus you want to hike, etc and the younger the better for that.

 

[SJhawkins]

Someone posted this quote or something similar not long ago, would like to give credit where its do but I cant find it, sorry. Anyway it was something along these lines.

"Your trading time for money you cant spend"

I have seen all the graveyard cartoons, uhauls at the cemetery etc. But for whatever reason that quote sticks with me, I envision a cadndle buring at both ends when I think about it. Btw, just a few years younger than you.

 

[Luvtoride]

SJ, I think the full quote is…

“Work is trading time for money. Eventually you are trading time you will never get back for money you will never spend”.

Yes, I read it here on ER too, but can’t recall who or where it was posted.
I quote this often to friends and colleagues and everyone loves it.

 

[SJhawkins]

SJ, I think the full quote is…

“Work is trading time for money. Eventually you are trading time you will never get back for money you will never spend”.

Yes, I read it here on ER too, but can’t recall who or where it was posted.
I quote this often to friends and colleagues and everyone loves it.

That sounds much more like it, if anything I need to tag this thread. If I do run accoss the orginal post I do need to give a proper thanks.

 

[sroby2020]

Absolutely.

First is to spend my weekends not working.
Second is to spend some of my weekdays doing some home renovations.
Third is to travel more than one week at a time. I have "bucket list" items that have been brewing for 40 years. Some of them will do better with some youth left in my bones such as hiking 1000 mile or longer trails.

It's hard for me to take more than a week off at a time because the mountain of things to do when I come back grows too tall.

I retired at 57, and found myself with a similar plan as you describe.

Weekends: You may find that doing fun things during the week works out better.... less crowds and more availability of hotels, campsites, whatever.
Home renovations: I did that for the first year and whipped through our 40 year list of projects in no time.
Travel: Make sure that you are doing what your wife/partner enjoys as well as you do. You've probably heard the phrase "Happy Wife, Happy Life".


Take your retirement slowly. You're not in a race, anymore!

 

[Koolau]

I know many think "Retire Early" is probably younger than me, but I still hope to gain valuable info from this forum. Currently planning to retire either age 58 or 59.

IIRC we had a poll a few years back and the median retirement age of the group was in the 56 to 58 range. So you should fit right in. The "really early" folks (late 30s to early 40s, etc.) are actually fairly rare.

Run your numbers and let that help you decide. IF you really need more money, that's a constraint. Don't let "leaving money on the table" be a constraint if you don't really need it. As always, YMMV.