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Old 03-01-2017, 05:33 AM
Location: Coastal Georgia
37,097 posts, read 45,613,761 times
Reputation: 61713


All you need is just a little bit more than you're ever going to have.

Save as much as you can, and pare down your expenses in preparation before you retire. You can live on whatever you have. DH and I are much "poorer" than we used to be, but we hardly notice it. Hubby works PT for the eye and dental coverage, and a bit of extra money. So far, we've not had to use any IRA money, except we take some interest to pay for a car.
The only thing that you don't have any control over is insurance. It keeps going up and you need it. House, flood, car, medical. If it weren't for that, we'd be rich.
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Old 03-01-2017, 05:37 AM
Location: Nebraska
1,886 posts, read 2,298,735 times
Reputation: 5326
The most important aspect of retiring is your confidence in your ability to retire.

If your asking how much you need to retire says to me that you are not ready yet.

Most people when they retire they know it's time and nothing can change their mind. When I retired it took 10 mins to decide, even though I was 47 at the time, their was no question that I would make retirement work.

Retirement is a long term commitment that requires the right mental attitude. Without the correct mental attitude most that retire will end up going back to work because they spend to much or feel uncomfortable being free for the first time in their life.

Mental discipline is the key to whether you can retire, money is a secondary concern.
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Old 03-01-2017, 06:15 AM
Location: Central IL
15,215 posts, read 8,518,332 times
Reputation: 35606
Originally Posted by ihatetodust View Post
I just can't see friends assets changing much in 2 years so don't see the point. His SS will increase but his pension won't because he is past max number of countable years of service so I was pretty surprised financial planner person told him no.

In my case, those rules of thumb like "replace x% of income" don't mean much because I live on less than x% now in most cases. . . And again most of them seem to assume you will work to 65 or more so would need to be adjusted somehow.

I think I am prepared to just wing it when the time comes but . . .
But he'll have two more years to SAVE and two fewer years where his savings will have to support him - so if he saves $30k and doesn't spend out of his retirement account $50k then he is UP $80k - that's quite a difference for only two years!
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Old 03-01-2017, 06:52 AM
71,515 posts, read 71,694,121 times
Reputation: 49088
plus the money he would have spent down can compound for 2 more years as well as his ss check grows by about 6% a year up to fra plus colas .

all in all someone with an underfunded retirement who delays retirement can see the equal of up to having 800k more in savings between all of the above .

a 69% bigger check at 70 vs 62

no spending of assets for 8 years

additional compounding on those assets not spent .

additional contributions to savings

8 years less of life to support
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Old 03-01-2017, 07:20 AM
4,649 posts, read 6,480,471 times
Reputation: 5394
A person can retire at any age. Just understand how much guaranteed income you will have for the rest of your life and go from there.
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Old 03-01-2017, 07:51 AM
Location: WA
5,394 posts, read 21,390,738 times
Reputation: 5889
It is very difficult to make general predictions as the world changes and each individual has different resources and requirements.

I retired at 56 with what I thought was a good plan, health, and far more than I needed financially. But things change... our health insurance went from a $310 per month group plan to catastrophic coverage that cost $600 a month with a $10K per individual deductible. In the financial squeeze of '08 I had a property sale fall though three times, and a portfolio drop of almost 40%. Living costs are higher than we anticipated.

Being quick to adjust is important with a longer retirement plan without fixed income, and I was not as quick as I should have been. We are happily retired (now on medicare) but with less flexibility through a tighter budget than anticipated.
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Old 03-01-2017, 09:40 AM
Location: annandale, va & slidell, la
7,335 posts, read 3,037,204 times
Reputation: 6150
Originally Posted by ihatetodust View Post
Assume no mortgage or other debts and no spouse.
25x salary? 40x? How much does a (small) pension reduce that number? I have seen lots of things about safe w/d rates but they seem to assume you are starting at an older age.

The thing that is mostly prompting this question is an older friend (64) wants to retire and was advised he "can't". He has a pension of sorts, which I think is fairly generous. No idea what he has for debt or other assets. But heck if 64 is too young what about the rest of us?
I have a friend that retired at 45 (sod farm/land flips). My step brother, also about the same age (real estate broker).
I wasn't as smart and retired at 63.
There---I gave you as much info as your post! No mortgage, and have a spouse.
Once you get your portfolio/net worth to about $800K, you can start to make some calculations about retiring. Until then, count on continuing to work.
We figured about $1.3; ended up at $1.9. Hope it lasts!

Last edited by finalmove; 03-01-2017 at 10:03 AM..
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Old 03-01-2017, 09:47 AM
Location: annandale, va & slidell, la
7,335 posts, read 3,037,204 times
Reputation: 6150
Originally Posted by StealthRabbit View Post
If OP has no clue / solution for HC... then OP should seriously consider leaving USA until age 65. There are only 3-5 countries that cater affordable HC to USA elder exiles. ($300 - $1200 / month for private policies)

Medivacations / Medical tourism can work (as they do for 15M people / yr) if you are well enough to get out of USA to access care.

It's also a good idea to stay off motorcycles and scooters! (while uninsured) Whoops, BTDT
My Harley went away 2-years ago! We (she) decided it wasn't worth risking my final years in a wheelchair.
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Old 03-01-2017, 09:50 AM
655 posts, read 309,648 times
Reputation: 1225
OP here, I have health care covered by employer until 65. No, I am not "ready" yet but I have not reached 55 either so still in progress.

Re the friend - no way on earth I can imagine him saving 30K or even 10K. But granted he is more of an aquaintance so I don't have the full picture.

I will consider "twice" what I need to live as input and see what that tells me. Having been less than wealthy my whole life I don't think I will suddenly starting taking exotic vacations. . .

Interesting some of you retired so young!
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Old 03-01-2017, 02:15 PM
Location: Texas
1,971 posts, read 1,373,867 times
Reputation: 6740
The corporation informed us, if you are 50 by the 1st of a specific month and have X number of years working for them one may retire. I was 49, with 23 years longevity, my 50th birthday would be on the 22 of the month and I met qualification by 8 days.

It was a good package, the best part and the deciding factor for my early retirement, was that they would pay insurance for life.

I have now been retired for more years than I worked, and they still pay for my insurance, even with medicare.
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