Retire May 2020

[Mountain skier]

Hi. Husband & wife both age 59. Wife retired and I want to retire May 2020.

This site has been so beneficial for us.

Our expenses will average $55k/yr including healthcare from ACA, travel and taxes. (Probably lower)

IRA and liquidity: $1M
pension: $27,500/yr
SS: $50k/yr combined; will take SS after medicare age, probably both at 67.

What are your opinions?

Thank you in advance

 

[cooch96]

Looks like your pension covers half of your expenses, so your $1mm nest egg should be more than adequate as it only has to last 8 years until SS stars helping.

Bravo! My opinion is you’ve won the game of life. Enjoy the slopes.

 

[Bamaman]

Go for it.

 

[pacergal]

Your stated finances look good.
Is there a special reason you are waiting until 5/2020? Why not join your wife in retirement now? Live the life you desire!

 

[Bruno]

I retired in July 2019 and company also paid me for my 7 weeks of PTO. I started SS in Sept. working until July really made it hard to keep my income down for 2019. Maybe it will get better in 2020. Looking back i wish i had retired earlier in the year. I have to admit retiring is kind of boring.

 

[Dean56]

Go for it.

+1 Sounds like you're ready!!

 

[PartIrish]

Mountain Skier, when does your pension begin? If it begins in 2020, you will need an additional $192K from your nest egg over the next 7 years before you take Social Security, at which point your income will exceed your expenses. If your pension starts at 65, you will need to draw down about $275K from your nest egg, plus another $55K until SS.

Either way, once you're 67, you're golden. Enjoy retirement!

 

[Mountain skier]

Mountain Skier, when does your pension begin? If it begins in 2020, you will need an additional $192K from your nest egg over the next 7 years before you take Social Security, at which point your income will exceed your expenses. If your pension starts at 65, you will need to draw down about $275K from your nest egg, plus another $55K until SS.

Either way, once you're 67, you're golden. Enjoy retirement!

we will begin pensions in May2020

 

[PartIrish]

Oh, okay, so from May 2020 to 2027 you will need about $27,500 from your nest egg, after which you will need nothing from your nest egg. Also, your medical costs should drop in 2025 when you reach age 65 and move to Medicare. All in all, your plan looks very solid so long as you have closely estimated your expenses.

I retire in one month, and have gone through a very similar process as what you describe above. I think you've got this--best wishes in your retirement.