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Old 04-04-2017, 03:47 PM
 
78 posts, read 78,028 times
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I know it's way early for me to be thinking about this, but I am 29 now and work in government. I was bored and running some numbers according to the money I have already put in and at age 58 I will get 36k, if I were to work until 65 it would be 5,000. These estimates do not factor in raises, etc but just my current salary. I really do not want to work until the age of 65 and hopefully I get a higher paying job where I can retire sooner than that, but I am wondering if a yearly pension of 36,000 which is roughly over 3k a month for someone who lives relatively frugal to retire on. Right now I have been paying all of my debt down. I currently have about 8,000 in student loans but last year I have had over 15,000 in student loans so I am happy that I am slowly but surely getting this paid off My next debt would be my car which is roughly about 6k. This is a pension by the way. Thanks!
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Old 04-04-2017, 04:14 PM
 
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LOL. As a working person who has never earned half as much as 36k in a year, I can assure you that it is possible to retire on 36k.
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Old 04-04-2017, 04:26 PM
 
17,605 posts, read 12,197,156 times
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Quote:
Originally Posted by freemkt View Post
LOL. As a working person who has never earned half as much as 36k in a year, I can assure you that it is possible to retire on 36k.
The question is why would you want to unless you have no other means?
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Old 04-04-2017, 04:41 PM
 
Location: Niceville, FL
7,275 posts, read 15,279,446 times
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It depends- are you retired in a state that has no taxes on pensions? Are you keeping your housing costs low by living in a paid off home?

Would also look into starting to build an IRA to help supplement the pension income.
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Old 04-04-2017, 05:23 PM
 
33,046 posts, read 20,708,082 times
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Quote:
Originally Posted by Lowexpectations View Post
The question is why would you want to unless you have no other means?

For 36k I would retire in a heartbeat.
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Old 04-04-2017, 05:25 PM
 
Location: North State (California)
28,092 posts, read 2,192,400 times
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Yes it is possible, but make sure your car & home are paid off, that will be a big help. Opening & funding an IRA every year is important too.
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Old 04-04-2017, 05:52 PM
 
6,308 posts, read 7,987,919 times
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$36K in the future when you're 58 yrs old would be like $20K/year today (rough estimate). If that $36K/year is adjusted for inflation then you might be able to live off of it okay. If it's not, imagine living off of $20K/year now.
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Old 04-04-2017, 06:02 PM
 
Location: Tampa, FL
27,798 posts, read 24,852,825 times
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You can live off that. Adjusted for inflation, it might be near the poverty line in a couple of decades. Just be a wise consumer, don't have expensive hobbies, cut unnecessary "wants" if you don't need them ----ie huge cell phone bills, big screen TV, expensive monthly cable with premium channels, new car every 3-5 yrs......you'll have to move to a low cost of living area. Some places like here in FL, you'll be facing high insurance rates for home and auto. Some states have low or no state income tax, another factor to consider.

Whatever these idiots in DC decide on our health care plans will have a big influence as well as you might be paying a yuge sum to pay for your healthcare and as you get in your 50s, you'll likely need it.
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Old 04-04-2017, 07:01 PM
509
 
2,543 posts, read 3,744,627 times
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Quote:
Originally Posted by tigergirl87 View Post
I know it's way early for me to be thinking about this, but I am 29 now and work in government. I was bored and running some numbers according to the money I have already put in and at age 58 I will get 36k, if I were to work until 65 it would be 5,000. These estimates do not factor in raises, etc but just my current salary. I really do not want to work until the age of 65 and hopefully I get a higher paying job where I can retire sooner than that, but I am wondering if a yearly pension of 36,000 which is roughly over 3k a month for someone who lives relatively frugal to retire on. Right now I have been paying all of my debt down. I currently have about 8,000 in student loans but last year I have had over 15,000 in student loans so I am happy that I am slowly but surely getting this paid off My next debt would be my car which is roughly about 6k. This is a pension by the way. Thanks!
I went through the same exercise when I was a bit older than you. I now have been retired for ten years.

This is what I learned:

Your pension is ONLY one leg of your retirement. You need four legs.

Your pension forms the base of your retirement. If you go to prison you will still have your pension. IF your a Federal employee the only way to lose it is to commit TREASON. Congress saw to that....I guess quite a few of them end up in prison.

Investments: This is your second leg. I ended up with FIVE times the amount I calculated. It works. Not sure what I would have done if I only had 1/5 my amount. So save more money than you think you need. The trick is to be sure to spend enough money to have fun with life while you are waiting for retirement to roll around. Pay attention to tax consequences of your investments. That is....Roth versus Thrift Savings plan, etc.

Business: Find a small business that doesn't take much time. Real estate is pretty good. The business should be a source of deductions.

Your employer: Nobody will pay you as much as your former employer in retirement. Don't burn bridges. Be sure you are available for part-time employment after you retire.

That's it. Plan for your retirement. It is a blast. Much better than working and I had one of the best jobs on the planet!!! Retirement still beat it!!!

Oh...no your late planning for retirement, not early. I started when I was 25. Did not get serious until I was 30. My daughter I got her going at 15.

Remember it is time or money. Starting young means less money for retirement, and more for life until you hit retirement.
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Old 04-05-2017, 07:44 AM
 
Location: Forests of Maine
29,719 posts, read 47,472,880 times
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Quote:
Originally Posted by tigergirl87 View Post
Is it possible to retire on 36k?

... I am wondering if a yearly pension of 36,000 which is roughly over 3k a month
Yes, it is possible.

I served in the US Navy and I got the 20-year pension. I get $1,480/month [a bit under $18k/year].

During my Active Duty career, we were frugal and we invested hard. I retired with no outstanding debts. We liquidated our portfolio and bought our retirement home with cash.



Quote:
Originally Posted by Lowexpectations View Post
The question is why would you want to unless you have no other means?
Each of us has different motivations.

When I was in my 20s, a girl I was courting and I developed a vision for our future, which included living on a rural homestead in the woods. We got married and we focused on that goal ever since.

I am not motivated to earn a lot more.

I like this lifestyle. I am an organic farmer, my house is on solar power, my backyard is 1/4 mile of river frontage, I live in dense lush forest.

This is an extremely low COL lifestyle, in a low COL town. I do not earn enough to pay into Income Taxation, and as of this year the state decided to make military pensions tax-exempt anyway.



I have been retired for 16 years.
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