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Nate, after following your initial question and the responses from posters and your reaction to I am thinking I might be able to hazard a guess about your situation.
You have a pension and there in lies the problem. My guess is that at age 62 you are fully pension eligible and will have 30 or 35 years in and have been conditioned to think that means you can retire. It means you are eligible to retire but not that you are financially ABLE to retire. Being able is a number crunching exercise and it appears those numbers may be falling short for you. It may mean that you will work until you are 65/66 and some of the issues you would face at 61 fade away and your income streams will have increased more and bring balance to your income and expenses. Just a guess on my part and if it is way off base it is way off base.
Nate, after following your initial question and the responses from posters and your reaction to I am thinking I might be able to hazard a guess about your situation.
You have a pension and there in lies the problem. My guess is that at age 62 you are fully pension eligible and will have 30 or 35 years in and have been conditioned to think that means you can retire. It means you are eligible to retire but not that you are financially ABLE to retire. Being able is a number crunching exercise and it appears those numbers may be falling short for you. It may mean that you will work until you are 65/66 and some of the issues you would face at 61 fade away and your income streams will have increased more and bring balance to your income and expenses. Just a guess on my part and if it is way off base it is way off base.
Yep. I can collect at 62, but that's the earliest. If I wait until 65, or 67 when SS and pension hit full payout, then I'd be in much better shape. I'm doing this test budget to see if I could live on the income I'd get at age 62. If the numbers don't work out, then I will wait until they do. My main goal is to have a fun and low stress retirement. If I'm worried about money I won't enjoy myself.
Based on the feedback I've gotten so far, I'm thinking I need to boost my 401k contribution, and start spending like I'm already retired to see how it goes.
Based on the feedback I've gotten so far, I'm thinking I need to boost my 401k contribution, and start spending like I'm already retired to see how it goes.
I too started planning very early for retirement, mid-20's. I went from one extreme to the other, saving nothing, to saving everything. You have to find a happy balance.
Plan for tomorrow, but don't forget to live for today.
Yep. I can collect at 62, but that's the earliest. If I wait until 65, or 67 when SS and pension hit full payout, then I'd be in much better shape. I'm doing this test budget to see if I could live on the income I'd get at age 62. If the numbers don't work out, then I will wait until they do. My main goal is to have a fun and low stress retirement. If I'm worried about money I won't enjoy myself.
Based on the feedback I've gotten so far, I'm thinking I need to boost my 401k contribution, and start spending like I'm already retired to see how it goes.
Yeah, I have seen many a person fall into the pension thinking trap. Not fully factoring that their years of service relate to pension eligibility and not when their financial retirement plan is in place. As others have said pay attention to the health insurance issue and good luck and save/invest away. My personal advice is wait until you can do it right and really enjoy without having to worry more about making the budget work.
Yep. I can collect at 62, but that's the earliest. If I wait until 65, or 67 when SS and pension hit full payout, then I'd be in much better shape. I'm doing this test budget to see if I could live on the income I'd get at age 62. If the numbers don't work out, then I will wait until they do. My main goal is to have a fun and low stress retirement. If I'm worried about money I won't enjoy myself.
Based on the feedback I've gotten so far, I'm thinking I need to boost my 401k contribution, and start spending like I'm already retired to see how it goes.
Nate, really look at your pay stub and you may realize you have a lot of current deductions that won't be there in retirement. Most notably pension contributions and SS and perhaps disability insurance etc. Also you won't be making 401 contributions which brings me to another thought. If you feel you could retire at 62 but want to play it safe, start living on your retirement budget and put all of the other money into your retirement investments etc. You can really pile up money then and you can make up for previous years if you max out.
You might well find out when you hit 62 and could afford to retire, it brings a great relief of pressure. Knowing you could walk on out when you want often gives one a new outlook and they end up enjoying working more then they ever did, especially if able to walk to a different beat.
Plan on 62 and be ready but maybe....just maybe.....
Nate, really look at your pay stub and you may realize you have a lot of current deductions that won't be there in retirement. Most notably pension contributions and SS and perhaps disability insurance etc. Also you won't be making 401 contributions which brings me to another thought. If you feel you could retire at 62 but want to play it safe, start living on your retirement budget and put all of the other money into your retirement investments etc. You can really pile up money then and you can make up for previous years if you max out.
Bah..you beat me to that very same comment TuborgP
Banking that extra money just might tide you over from 62 to 66 and enable you to retire early.
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