Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
. there are so many who retire here (in NYC) on just ss . they find a way . they make it work . 60k incomes are very common here . it is just a lifestyle i would choose not to live and i worked hard my entire life to make sure we had a well funded retirement and could live better in retirement than we did working raising a family and saving for retirement . .
This was my goal as well. And the tales I could tell regarding extended family members who feel it is unfair that we have retirement savings after decades of budgeting and scrimping and prioritizing and delaying spending, and that it is somehow our responsibility to pay all their damn bills.
I am now the family a-hole by refusing to pay $10k of non-refundable bail for a B-I-L who is in jail for two counts of drunk driving and one count of criminal contempt of court (for drinking and driving and getting caught one day after the first DUI charge). My refusal and their attitude toward me may be a win-win for me.
But back to the OP:
Yes, from the information you provided it sounds as if you are on-track for a comfortable retirement in 10 years. Ample monthly income, low expenses, and an emergency fund. The one big unknown in your plan that cannot be answered by anyone's crystal ball is your health care costs in retirement.
The huge unknown for most early retirees is health insurance cost.
I thought I had it made the first time I retired at 55 only to discover that by 61 we would be paying a combined $2K per month insurance premium with a $5K each deductible. (pre ACA but I think the ACA rates are near that now)
I returned to work at 61 mainly for the health insurance.
The "real" earliest retirement age is 65. Getting Medicare was one huge relief.
really ? you may want to rethink that ridiculous statement
. there are so many who retire here on just ss . they find a way . they make it work . 60k incomes are very common here . it is just a lifestyle i would choose not to live and i worked hard my entire life to make sure we had a well funded retirement and could live better in retirement than we did working raising a family and saving for retirement . .
let it go mathjack, let it go.
I was born and raised in NY, my parents retired and lived in NYC until the day they died. My one sibling is a retired interior designer and lives in Harlem and it would take Jesus coming back from the dead to make her move.
millions upon millions of folks retire in major hcol cities daily.
This is the case for ANYONE. Should everyone just work until they’re dead? No..
Most people don’t retire early, Rocko - and insurance coverage is a big reason for that. The OP isn’t talking about normal retirement, he is talking about EARLY retirement.
Wow. I have to spend less time here. So much bad karma and judgement here. There was insufficient information for a meaningful answer. (Asimov). Is the pension COLA? He later stated no or very little SS. So how does a fixed amount of $6k/m mean he can do anything he wants? Fly someplace every week?? Retire immediately and live the good life?? Seriously? He stated these are the numbers he EXPECTS to be at @age 60. He is PLANNING, people. If you are retired already and 70+, then $6k/mo NOW is a whole other discussion than what $6k/mo will be for him in 20 years when HE is 70!!!! Inflation can happen again and eat that up, and if he lives until 85 some people on just SS will have a higher income, if it is not COLA. The financial acuity coupled with envy and challenged reading comprehension on this forum leads to some remarkably poor comments.
Most higher pensions are not COLA. A large pension does not by any stretch mean the person is financially saavy. My BIL has a large FL LEO COLA pension, more than the OP. He’s an idiot with money. Retired at 55. His take on life is, as long as the money is coming in, spend it. He drinks at least $1000/m and eats out at least $2k/m worth. No exercise ever. I can’t imagine what his health costs will be later in life if he makes it. (Not yet 60, even). He will also take SS at 62, and has zero plans for how long or how much he can spend. Some people just don’t plan and get by just fine. Until they don’t.
I know MANY people working at past age 65 with WAY more pension, SS income, and savings than that if they stopped working today and still work because they are truly afraid it will not be enough. And they are bright people about many many things.
The best advice to the OP was to visit and read at early-retirement.org. The $6k/mo is a good foundation for a lasting comfortable retirement if handled properly, with no SS. This forum is not THAT kind of retirement forum for planning information.
This thread (and similar threads) have been helpful for folks like me in their mid-30s.
Don't think we don't check these forums often, or if we do, we ask 'humble brag' questions. We are genuinely interested, and partly scared of the unknowns - which some of you here are currently in the middle of, and hence the help seeking questions.
There is no right or wrong answer, this is just gaining knowledge.
Thank you for all the responses. Keep them coming :-)
OP, if you are still following this thread, here's what I suggest you do:
Now until age 57 - start thinking very seriously abut where you'd like to retire. Use you vacation time to check out any out-of-state options (and ideally go there during the worst time of the year for that area, to see if you can truly stomach it). If you're certain you're going to stay put where you are currently, apply for a HELOC now (if you don't already have one), as they're easier to get while you're still working. Then cast a very cold and clinical eye on your current house. Is it truly suitable for aging in place? How are its bones? Going into retirement with a paid-off house is nice, but going into retirement with a paid-off house that has a new roof, siding, HVAC, etc., is much, MUCH nicer. Get that sort of work done in advance!
Starting at age 57 - keep a ledger, and record every dime you spend for the next two years. This will give you an exact record of just how much you're actually spending per year, and on what. Then you can look to see which of those expenses may be going away completely in retirement, which are discretionary and may be reducible, and which will be ongoing and can't be trimmed.
Around the same age, sit down with either a good CPA or the tax preparation software of your choice, and see just how much of that pension check, SS check, and 401k withdrawals you'll be keeping, and how much will be going to the federal and state governments. Check the results for every place you're considering retiring to.
Now you have your two crucial numbers: cash coming in, and cash flowing out. Except for one final item:
Age 59 - start looking at health care options. Have you developed any pre-existing conditions? Can insurers exclude pre-existing conditions from coverage (either for a limited period, or permanently)? Can they drop coverage on a person after he develops a serious health issue? What will the monthly cost be for a decent policy?
If after you've done all this homework the numbers add up and the situation as far as health insurance coverage goes doesn't look too risky, then pull the plug and enjoy your early retirement!
Isn't the shopping part of the $22,000 completely unnecessary? recreational shopping for fun is not necessary for anyone really in retirement.
The last thing many older people really need are more things. There are always nice things to buy - but not necessary.
I hear this a lot but it seems to be defined narrowly. Not everyone is talking about expensive knick knacks or $5,000 purses - right, who "needs" that stuff? Some "things" include hobby supplies like camera lenses, or trips (on which to take those fantastic pictures!), or software to process those digital pics and videos, etc.
Some things are not just pretty things you look at but things you actively use to bring additional joy to your life. I don't think it is quite so cut and dried as some believe.... And while some experiences (much touted to replace those useless things we aren't supposed to be buying any more) are free, some do cost money and must be planned for as well. Are they necessary? That's obviously in the eye of the purchaser.
I hear this a lot but it seems to be defined narrowly. Not everyone is talking about expensive knick knacks or $5,000 purses - right, who "needs" that stuff? Some "things" include hobby supplies like camera lenses, or trips (on which to take those fantastic pictures!), or software to process those digital pics and videos, etc.
Some things are not just pretty things you look at but things you actively use to bring additional joy to your life. I don't think it is quite so cut and dried as some believe.... And while some experiences (much touted to replace those useless things we aren't supposed to be buying any more) are free, some do cost money and must be planned for as well. Are they necessary? That's obviously in the eye of the purchaser.
I don't think he was talking about "shopping" when he compared the 22K trip to the 3K trip.
He probably spends that much on a really nice trip.
The 3K trip would include the "shopping". I'm one of those 3K trippers . Yes, they take you "shopping". I don't buy anything.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
. Yes, they take you "shopping". I don't buy anything.
