Retiring @ 47 in Feb 2026

[Nick47]

Hi, I am Nick and I will turn 47 in February 2026 and it looks like I'll be pulling the trigger on retirement for my birthday.
How? Well... someone can tell me if I am missing something, but here is my lineup:
Current annual income: $110,000
Current annual expenses: $40,000 (tracked meticulously)

Retirement Assets:
$82,500 annual pension (life, non-COLA)
$430,000 t457b (governmental deferred comp.)
$183,000 rIRA
$78,000 HSA (invested)
$250,000 Taxable Brokerage

Major Factors:
Debt free
Health Care: I have the ability to remain on the employer health, dental and vision for life at current employee rates.
Family Status: I am single (divorced), no children/dependents/heirs of concern.
Housing: I own my modest 1,300 sq.ft. home (new windows 2016 w/full renovation, new roof 2017, new HVAC 2018)
Transportation: I own a 2018 truck with avg. miles, should last a while.
Social Security: I currently only have 36 quarters, in order to get anything from SS I will need to return to work. I will qualify for 50% spousal eventually (married 10y, 2m).

Currently, and for the last several years, I have made maximum contributions to my 457b and IRA accounts.
There are major changes coming up at my current job that I want nothing to do with, making this a good time to exit.
I will likely pick up a job to get my last 4 quarters of social security at a minimum, I might as well. I am not interested in any job that is high stress.
There will be excess income from my pension that I plan to add to the brokerage, along with any additional earnings I make from a "keep me busy" job. This should bolster my assets along with growth to easily sustain my (hopefully) long timeline, even with a spat of high inflation.

Pension figures are still fluid, but I know it will be gross no less than $80k as of today. I have already gone over scenarios with the retirement office.
I have laid it all out there. I haven't really shared this much with anyone because I don't really have anyone that I can talk to about this. I am open to criticism, advice, comments or questions.

 

[lem1955]

Does the pension begin immediately? Will the part time work be adequate to meet your needs without accessing 457 account?

 

[mykes2025]

Congrats

Current annual expenses: $40,000 "(tracked meticulously)". This is a key thing a lot of folks miss. I guess I dont understand how will the $40K expenses be paid, once the $110K income goes away? Maybe I am missing something.

 

[Nick47]

Does the pension begin immediately? Will the part time work be adequate to meet your needs without accessing 457 account?

Yes. Work ends February, first pension check is April1st.

Congrats

Current annual expenses: $40,000 "(tracked meticulously)". This is a key thing a lot of folks miss. I guess I dont understand how will the $40K expenses be paid, once the $110K income goes away? Maybe I am missing something.

I have monthly data back to 2012. My highest year was 2023 @ $44.5k, but average is less than $40k
Pension will start immediately.

 

[mykes2025]

Yes. Work ends February, first pension check is April1st.

I have monthly data back to 2012. My highest year was 2023 @ $44.5k, but average is less than $40k
Pension will start immediately, $80k > $40k.

Very nice. Congrats again. Seems you lived well below your means, which is another key thing. Enjoy life!

 

[Errollyn]

A little light on savings, but that pension is worth about $2,000,000 in savings so you're great as long as that doesn't go away.

 

[RetiredHappy]

Looks good. How does the government deferred compensation work? Does it disburse over a 10-year period after you leave?

 

[Nick47]

Looks good. How does the government deferred compensation work? Does it disburse over a 10-year period after you leave?

Basics:
The 457b account works like an unmatched 401k.
Direct answer:
The account is available penalty free at any age after severance from the employer. There is no requirement that it be drawn down other than RMD (which is a long way away).

I would like to avoid touching it for now, but I will need to do some evaluation for tax optimization with consideration that the plan doesn't have peak optimal investments/fees. I could roll it to a tIRA where I could have more control, but then I would lose the ability to draw now penalty free.

 

[GrayHare]

Put in those additional 4 quarters to qualify for SS soon because time flies and the benefits are nice to have, especially when you are so close to qualifying.

 

[RetiredHappy]

Put in those additional 4 quarters to qualify for SS soon because time flies and the benefits are nice to have, especially when you are so close to qualifying.

Will your benefits be more than half (ex-) spousal SS? But of course you may marry again, so it is better to qualify on your own accord.

 

[Nick47]

Will your benefits be more than half (ex-) spousal SS? But of course you may marry again, so it is better to qualify on your own accord.

My benefits being more than 1/2 ex-spouse is unlikely. My credits thus far were from jobs in high school and college, therefore quite a small amount. I doubt I would even take a job paying more than my ex earns due to stress involved vs. need, plus I have no intention of earning another 20 years worth of credits to fill all of the available buckets. I suppose you never know, but that is what I am seeing now.

As far as marrying again - I really doubt that would happen either. I do not see a benefit at all for me, only potential liabilities.

 

[tulak]

Congrats!

With 40k/year in expenses and an 80k/year pension, you’re golden, especially with the savings you’ll accumulated.

I think it’s smart to figure out how to get the work credits for social security.

Also, does your pension have any COLA?

That’s one potential risk, especially at 47. If there is no COLA, I would make sure you have plan in 10-20+ years on how to deal with the reduced income. Making sure you can get social security will help.

 

[Diogenes]

Put in those additional 4 quarters to qualify for SS soon because time flies and the benefits are nice to have, especially when you are so close to qualifying.

The additional increment in benefits isn't enormous, and so, the real "benefit" of fully filling the forty quarters is psychological. Have I done "enough", to fully merit a comfortable retirement? Or must I somehow improvise, cut-back, make-do, or otherwise compensate for the sense of iniquity? If so, then this is a case where the much-maligned OMY makes sense.

 

[gauss]

Could you get a low-stress self-employed gig (ie uber driver etc.) to get to 40 SS credits? You wouldn't need to actually be an employee in this case.

I think you only need $1,810 of net income on Schedule C income to earn one SS quarter of credit. You could do this over several years.

Remember, for low lifetime SS earners the payback rate is much higher than mid to high career earners.

Also know that the recent federal "Fairness Act" eliminated the WEP & GPO provisions of SS which limited noncovered government workers ability to collect their full SS benefit.

Note I also retired at age 47 - it worked out very well for me.

-gauss

 

[RetiredHappy]

Could you get a low-stress self-employed gig (ie uber driver etc.) to get to 40 SS credits? You wouldn't need to actually be an employee in this case.

I think you only need $1,810 of net income on Schedule C income to earn one SS quarter of credit. You could do this over several years.

Remember, for low lifetime SS earners the payback rate is much higher than mid to high career earners.

Also know that the recent federal "Fairness Act" eliminated the WEP & GPO provisions of SS which limited noncovered government workers ability to collect their full SS benefit.

Note I also retired at age 47 - it worked out very well for me.

-gauss

You need to earn the minimum of $1,810 within the same year to earn 1 quarter of credit.

 

[Surewhitey]

Well done. The pension is golden even without the COLA. Agree with the SS 40 qtrs.

Curious about your health insurance. Is it included in the $40k? Seems unlikely. That's the big one for everyone it seems. What if your employer goes away?

I wonder what your future budget will be with all the extra time? We travel more with any extra time and can get expensive...

 

[Cassius King]

Congrats! That pension is amazing. I'd be gone as well if I had that!

Time to enjoy whatever you choose to do in life at such a young age.

 

[Nick47]

Well done. The pension is golden even without the COLA. Agree with the SS 40 qtrs.

Curious about your health insurance. Is it included in the $40k? Seems unlikely. That's the big one for everyone it seems. What if your employer goes away?

I wonder what your future budget will be with all the extra time? We travel more with any extra time and can get expensive...

Health insurance is included, current rate is $855/yr. for my HDHP. I am eligible to stay on the employer health plan at the same rate as current employees. This benefit is huge - almost as valuable as the pension in my opinion. The employer is a city government, they are not going away - if they do there is way more dire things happening in the world.

To absorb time I plan to look for part-time "jobs" to keep me busy.
I am figuring that this will get me to/over the 40 quarters for SS and provide a little lagniappe cash and structure to my life. Maybe go piddle at a Bass Pro Shop or a sporting goods store?

My hobbies that will absorb quite a bit of my time:
*I am trying to convince myself to get back to running marathons. Running is fairly cheap - a couple pairs of shoes a year and modern fabric fitness clothes last (I have plenty).
*I am also an avid cyclist, which can be very expensive - my current bike has about $6K invested, but it should last.
*My winter season hobby is deer hunting, which can be expensive or cheap depending on how you want to do it, but I already own all of the gear and have a membership in a budget friendly lease nearby.

 

[Mulligan]

Health insurance is included, current rate is $855/yr. for my HDHP. I am eligible to stay on the employer health plan at the same rate as current employees. This benefit is huge - almost as valuable as the pension in my opinion. The employer is a city government, they are not going away - if they do there is way more dire things happening in the world.

To absorb time I plan to look for part-time "jobs" to keep me busy.
I am figuring that this will get me to/over the 40 quarters for SS and provide a little lagniappe cash and structure to my life. Maybe go piddle at a Bass Pro Shop or a sporting goods store?

My hobbies that will absorb quite a bit of my time:
*I am trying to convince myself to get back to running marathons. Running is fairly cheap - a couple pairs of shoes a year and modern fabric fitness clothes last (I have plenty).
*I am also an avid cyclist, which can be very expensive - my current bike has about $6K invested, but it should last.
*My winter season hobby is deer hunting, which can be expensive or cheap depending on how you want to do it, but I already own all of the gear and have a membership in a budget friendly lease nearby.

Here is an example if it helps….me… I retired about 15 years ago with a then pension (its Cola’d) of a bit over $70k. And at that time I had considerably less assets than you…Plus I didnt meticulously track expenses (but I knew they were comfortably under the pension), also had to pay full rack retail health insurance from private markets, and had a mortgage….Fast forward to now and stash is over 7 figures now and growing and still do not need it.
Looking back I could have retired with a negative net worth and been fine. I do what I want to do and haven't changed my lifestyle since retirement. So financially its worked out fine for me. I never had a chance to win the richest man in the graveyard competiton, so I retired early and gave up, lol.
As others said pick up the SS and get the extra “bonus” money. That new SS law that got rid of WEP/GPO is an unexpected bonus for me. Whenever I decide to tap it, it will just go into the pot with the rest of the money.

 

[Koolau]

Just to be more certain:

Have you run FIRECalc?

FIRECalc: A different kind of retirement calculator

www.firecalc.com

Welcome to the Forum.

Let us know when you pull the plug so we can celebrate with you.

 

[Dtail]

Congrats.
It appears that you have thought this through. I would just finish up the SS credits and then enjoy the next portion of your life.

 

[Nick47]

Just to be more certain:

Have you run FIRECalc?

FIRECalc: A different kind of retirement calculator

www.firecalc.com

Welcome to the Forum.

Let us know when you pull the plug so we can celebrate with you.

I need to restate income - the $82.5k is gross. It should reflect as net of taxes and insurances (health/vision/dental will be deducted from pension and paid net). Of course payroll taxes go away, but my pension will be state income tax free, so only federal income tax will apply. The anticipated net income from the pension (net of fed income tax and insurances) should be around $73.5K.

I have run FIRECalc with pessimistic variables, including out to a projected 50 year dependence, I cannot make it fail. The only issue I see is something like major inflation hitting early or not keeping my expenses in line. This actually terrifies me - there is no way I am set up that well, I must have missed something.

 

[TickTock]

This actually terrifies me - there is no way I am set up that well, I must have missed something.

The big thing you have going for you that most folks don't is a pension of ~2x your annual expenses. Even non-COLA'd, that is a HUGE plus.

Assuming 3% inflation and 30-year lifespan, present value of the pension is $1.7 million. 35 years, $1.8MM. 40 years, $2.0MM.

Assuming 4% inflation those PVs drop to $1.5, $1.6, and $1.7MM.

So your pension is more valuable (depending on how long you live and how fast your spending increases) than the rest of the financial assets you listed in the OP!

 

[Dtail]

I need to restate income - the $82.5k is gross. It should reflect as net of taxes and insurances (health/vision/dental will be deducted from pension and paid net). Of course payroll taxes go away, but my pension will be state income tax free, so only federal income tax will apply. The anticipated net income from the pension (net of fed income tax and insurances) should be around $73.5K.

I have run FIRECalc with pessimistic variables, including out to a projected 50 year dependence, I cannot make it fail. The only issue I see is something like major inflation hitting early or not keeping my expenses in line. This actually terrifies me - there is no way I am set up that well, I must have missed something.

Based on your numbers, it makes total sense that you are at 100% success rate in Firecalc.
You are not missing anything.

 

[aaronc879]

Seems like you are very easily covered for life with that huge pension. Work just enough in 2026 to get 4 quarters which would require $7560($1890 per quarter). Not that you even need the SS but it would require very little work to add another couple hundred thousand dollars of lifetime income.