Did you decide to cut your income in retirement so you could retire early? Why or Why Not? (55, pension)

[recently laid off]

My brother who is still working in his late 50s is just so tired of the corporate rat race. We have had many interesting discussions about the pros and cons of early retirement. (Before age 60) He keeps telling me that while he hates his job if he can just hold out for 5 more years his assets will increase as he is putting about 50% of his income into the stock market and bond funds, plus get a larger pension. His plan was to put up with the corporate madness for five more years and retire at 64 years old.

IF he can hold out five more years, he will be able to live a much better life then with more money allowing him to do more things and move into a nicer home. (Plus go on nicer trips and eat at nicer restaurants, etc.) But I tell him that by then his health may be poor and he will have lost the five years of good health and years of leisure gained from early retirement.

Have you faced this dilemma and what did you do?

[theoldnorthstate]

IMO

At ~50 I would have held on the 5 years. Unless I had a second career/job lined up. At ~60 retiring with full retirement assets would have been worth considering. In either case in a few years, I would have liked to be working/employed. Still lots of life left.

Perhaps the best thing your brother can do right now is take a long vacation.

[MrsLakota]

A much better life after 5 yrs? After all this time, he isn't making much $?
He is in his late 50's as you say

Unless he's planning on ensuring his loved ones are taken care of with that extra money, yes, that is a GREAT reason to continue, otherwise quit.
P/T appears a more fruitful way to go but may not be available.
I cannot imagine him personally needing the money.

He should be very well off by now.
This would also open up a position for someone else who needs to provide for their family.

[jrkliny]

Too many adults are like little kids looking for instant gratification. I want it now. I want it now. It sounds like your brother has a good plan and can anticipate an enjoyable, secure retirement. Maybe along the way he can find ways of dealing with stress and enjoying his remaining years at work.

[MrsLakota]

The science of well being.
Yale University

There are various studies which categorize income into brackets in relation to happiness. Offhand I didn't get that far but a few days ago, someone read those income brackets to me. Amongst some other issues.

Another proven fact, experiences mean more than money. Most everything we buy means nothing shortly afterwards. Also donating money to help someone, in place of buying yourself an item, almost always produces a long lasting feeling of happiness. My assumption is seeing their face while receiving the gift, the gratitude. I'm not referencing donating to a middle man organization (which they all are so you never know for sure your donation went to the cause)

[NewbieHere]

Unless he has poor health now, why assume he will have poor health at 65.

[jrkliny]

Originally Posted by MrsLakota

A much better life after 5 yrs? After all this time, he isn't making much $?
Unless he's planning on ensuring his loved ones are taken care of with that extra money, and that is a GREAT reason to continue...
P/T appears a more fruitful way to go but may not be available.
I cannot imagine him personally needing the money.
This would also open up a position for someone else who needs to provide for their family.

Absolutely a much better life after 5 years. It appears he is making enough to save half of it.

With or without "loved ones" he is still going to retire and need money. Single people don't need money? What kind of logic is that?

Part time is rarely available for someone with a responsible corporate job.

His leaving does not necessarily mean a job for someone else. With virtually no unemployment and companies struggling to find people with the right skills why would it matter?

[MrsLakota]

Originally Posted by jrkliny

Absolutely a much better life after 5 years. It appears he is making enough to save half of it.

With or without "loved ones" he is still going to retire and need money. Single people don't need money? What kind of logic is that?

I didn't say that.

Part time is rarely available for someone with a responsible corporate job.

True

[quote]His leaving does not necessarily mean a job for someone else. With virtually no unemployment and companies struggling to find people with the right skills why would it matter? [/quote]


If he is truly "in the corporate world", and in his late 50's, (so almost 60) he is plenty set to retire.
He'd really need to be irresponsible or employed in a low level position or low rate of of pay for this not to be the case.
Need the money/security? Then sure, keep working.
Or if the extra income is designated to ensuring his children, grandchildren, gg grandchildren can survive, or helping his kin or others, then sure. Otherwise I see no reason to trade another 5 years of the short life he has left with loved ones for more $security$.

He is well into middle age. And by some standards, he is already considered a Senior Citizen

If healthcare costs are a concern, maybe he can take a lower paying p/t job which provides that?
He'll have time to work on his health. Eat properly, eat organic, become a runner or cyclist. Swimmer.
Time to spend with loved ones is so important.

My best friend just got laid off at 55 by BofA. She headed the software dept. She did nothing different than she'd been doing for 20 years. Nothing. They made up some story to get rid of her. No software upgrades, nothing new to learn. She worked from home answering daily daily tech calls by the IT workers.

Her life is unbelievable now. Newly married. She is seeking a p/t job for the healthcare benefits only but in no hurry about it. She's lost 20 lbs, eats better, spends more time with her children with time to spare to make new friends. They grow their own food. Her husband sold his company. They volunteer here and there. A youngster was hired at half her wage and reduced benefits but he now has a position. A job which allows his family to expand. She's became close friends with them. His wife is pregnant. She was in therapy at first over loosing her career but after becoming friends with her replacement, sees the impact it had on that family. She immediately quit therapy after just visiting their home.

They own a vacation home adjacent our home.

[jrkliny]

Originally Posted by MrsLakota

..............
If he is truly "in the corporate world", and in his late 50's, (so almost 60) he is plenty set to retire.
He'd really need to be irresponsible or employed in a low level position or low rate of of pay for this not to be the case.
...............

Where did you come up with this assumption, nonsense? He may have a good income and also expenses to match. I know I did. I lived in a high tax, high COLA. I sent a kid to Johns Hopkins and paid almost full tuition and expenses. Take a look at those costs before you jump to conclusions based on your own life.

[Dire Wolf]

I'd delay retirement over concerns like "will I have enough with rising healthcare costs" or "what will happen to social security" or the like. I would not delay over consumerism dreams of nicer homes and fancier meals out.