This is the potential dilemma I’m facing. I recently learned that my office will be closing down later this year and I will be out of a job. My job experience and skills are quite specialized and the job market for me right now is not good. I’m having a hard time even finding jobs to apply for even though I’m somewhat flexible about location. I’ve seen a couple of low-level jobs that don’t pay well, but I’m not at all sure they would be willing to hire someone overqualified. If I’m being realistic, extended unemployment is a very possible scenario.
There’s not an alternative career that I’m really interested in. And, at the age of 52, I’m not sure that it would be a good investment of time and money to obtain education or training for a different career.
So, in light of my current situation, I’m wondering if age 52 is the time to retire.
I have a lot of concerns, though. Neither of my parents lived to enjoy retirement, so I’ve vaguely hoped that I would be able to retire early. But I was thinking of more like age 58 and only if I had financial security and access to health insurance. And I thought that I’d have more plans in place by that time.
In order to be able to retire, I’d probably have to live somewhere relatively affordable. I’m single and don’t have kids, so I have flexibility with regard to moving. I’d like to live somewhere on the West Coast. I’ve lived most of my adult life in major California cities, but California is probably too expensive, so maybe Oregon or Washington? However, I’m a fairly introverted person and worry that I would be very isolated moving somewhere new. I’ve moved before to cities where I knew nobody, but I usually had school or work to help me ease in socially. So, figuring out where to move and how to adapt is a bit daunting.
I’m also trying to figure out if retiring now is a viable option financially.
I have a good understanding of my current expenses. But, figuring out my expenses in retirement is more difficult. I will have COBRA when my job ends, but then I will have to find health insurance. I never have gone without health insurance even when I was not working or when my employer did not provide insurance. I don’t think that I could live with the stress if I didn’t have insurance. Without knowing what is going to happen with health insurance in the U.S., it’s hard to predict expenses. I’m also having a hard time figuring out what my taxes and housing costs will be, especially since I don’t know where I’ll live.
But, in the meantime, I want to figure out what I can afford to spend annually if I were to retire later this year.
I do not own a home. These are the assets I do have:
Taxable accounts:
Cash- $126k
Stock funds: $425k
Roth IRA:
$163k stock funds
Tax-deferred Retirement Funds:
$492k stock funds
$172k bond funds
I hope to save an additional $25k by the time my job ends – about half in cash and half in retirement accounts. So, depending on the market, I’ll have around $1,400,000.
Pension:
At age 62 I get a $15k per year pension. I think the COLA starts then. It’s a deferred FERS pension. I’m not sure how to factor that into my calculations.
And then Social Security. The good folks at the SSA project that I will receive $31,860 per year at my full retirement age of 67. That obviously won’t happen if I retire soon. So, I’m not sure what I should do with this information. I’m thinking of assuming that it will be about $20k?
I’m overwhelmed and trying to sort through my options realistically. I'm hoping to learn a lot from this forum.
Any input or suggestions would be welcome.
Thanks!
There’s not an alternative career that I’m really interested in. And, at the age of 52, I’m not sure that it would be a good investment of time and money to obtain education or training for a different career.
So, in light of my current situation, I’m wondering if age 52 is the time to retire.
I have a lot of concerns, though. Neither of my parents lived to enjoy retirement, so I’ve vaguely hoped that I would be able to retire early. But I was thinking of more like age 58 and only if I had financial security and access to health insurance. And I thought that I’d have more plans in place by that time.
In order to be able to retire, I’d probably have to live somewhere relatively affordable. I’m single and don’t have kids, so I have flexibility with regard to moving. I’d like to live somewhere on the West Coast. I’ve lived most of my adult life in major California cities, but California is probably too expensive, so maybe Oregon or Washington? However, I’m a fairly introverted person and worry that I would be very isolated moving somewhere new. I’ve moved before to cities where I knew nobody, but I usually had school or work to help me ease in socially. So, figuring out where to move and how to adapt is a bit daunting.
I’m also trying to figure out if retiring now is a viable option financially.
I have a good understanding of my current expenses. But, figuring out my expenses in retirement is more difficult. I will have COBRA when my job ends, but then I will have to find health insurance. I never have gone without health insurance even when I was not working or when my employer did not provide insurance. I don’t think that I could live with the stress if I didn’t have insurance. Without knowing what is going to happen with health insurance in the U.S., it’s hard to predict expenses. I’m also having a hard time figuring out what my taxes and housing costs will be, especially since I don’t know where I’ll live.
But, in the meantime, I want to figure out what I can afford to spend annually if I were to retire later this year.
I do not own a home. These are the assets I do have:
Taxable accounts:
Cash- $126k
Stock funds: $425k
Roth IRA:
$163k stock funds
Tax-deferred Retirement Funds:
$492k stock funds
$172k bond funds
I hope to save an additional $25k by the time my job ends – about half in cash and half in retirement accounts. So, depending on the market, I’ll have around $1,400,000.
Pension:
At age 62 I get a $15k per year pension. I think the COLA starts then. It’s a deferred FERS pension. I’m not sure how to factor that into my calculations.
And then Social Security. The good folks at the SSA project that I will receive $31,860 per year at my full retirement age of 67. That obviously won’t happen if I retire soon. So, I’m not sure what I should do with this information. I’m thinking of assuming that it will be about $20k?
I’m overwhelmed and trying to sort through my options realistically. I'm hoping to learn a lot from this forum.
Any input or suggestions would be welcome.
Thanks!