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I retired last year at age 60 with a total of 42 years of military and federal service. I had originally planned on remaining on the job until I was at least 62 but management began playing games with my shift. I had no desire to return to working nights so I retired two years earlier than planned without regrets. During the year I've been retired I've traveled, engaged in many creative pursuits, worked around my house, read good books, enjoyed the company of friends, reduced the stress in my life dramatically and remained fit with long hikes with my dog and yoga. I can never recall a day that I've been bored or missed going to work. I wouldn't say that money is tight but I also don't have the disposable income that I had when I was working. To date I've been able to subsist primarily off of my military and government pensions without dipping too much into my savings and I haven't touched my TSP .
I was recently recruited for a position with a government agency with an excellent salary. While I don't ever miss getting up and going to work accepting this position and working for a few more years is tempting. If I accept the position I'd be working strictly days and it's a fifteen minute commute from my home. Returning to work would give me an opportunity to build my TSP, possibly get my house paid off and defer collecting social security until I'm 65 or later. I don't have a wife or kids and my only debt is my modest mortgage.
I'm meeting with my financial advisor this week to see if returning to work for 3-4 years is a good financial option for me. If I decide to accept their offer and return to work I always have the option of resigning and re-retiring if it's not to my liking. My primary reluctance in returning to work is losing the freedom that I've learned to appreciate now that I'm not tied down to a job. I'd like to be able to continue to travel while I'm still young and healthy enough enjoy being on the trail and out in the woods. To those of you that have re-entered the workforce after retiring did you have any regrets? Any insight or positive feedback would be appreciated. Thanks!
What's more important in your life right now $X/hour OR that hour?
That is what I am trying to determine. I think that I have enough money to remain comfortable the rest of my life. However I don't want to sell myself short and discover in twenty-five years that I've outlived my money.
That is what I am trying to determine. I think that I have enough money to remain comfortable the rest of my life. However I don't want to sell myself short and discover in twenty-five years that I've outlived my money.
Then it looks like a financial analysis of income versus expenses with all sorts of assumptions: how long you'll live, what unexpected costs there might be, how the laws may change, your health, etc.
That is what I am trying to determine. I think that I have enough money to remain comfortable the rest of my life. However I don't want to sell myself short and discover in twenty-five years that I've outlived my money.
Most people spend about 20% of their retirement savings in retirement. In 25 years you will be 85, will you really need extra money that your pension/SS provides to travel, buy cars etc? Probably not. Any money you earn today will most likely never be spent, you be basically working for free. Remember your 60's will be your best retirement years, when you not so decrepit you can't do anything. YMMV though!
Since the new job would also be federal, see if you can get the same amount of vacation time you had before you retired -- rather than starting with 2 weeks off like a newbie. That would give you some extra time to play, even if working. Just another item to consider when making your decision.
As to determining when/if you have "enough" to retire comfortably, many people seem to feel uneasy about making the money last longer than they do. It's a common feeling/fear, even for people who are quite well off.
Most people spend about 20% of their retirement savings in retirement. In 25 years you will be 85, will you really need extra money that your pension/SS provides to travel, buy cars etc? Probably not. Any money you earn today will most likely never be spent, you be basically working for free. Remember your 60's will be your best retirement years, when you not so decrepit you can't do anything. YMMV though!
You make some excellent points. I've made sacrifices to save and put as much as I could in TSP. After I turned 50 I did catch up with TSP to maximize how much that I could invest. I have good health insurance and thankfully I remain in excellent health. I have excellent health insurance as a military and federal retiree so that isn't a reason to return to the workforce. Both of my parents are still healthy in their eighties so I believe I have longevity in my genetics but who knows for sure about that?
Another point to consider is how much inherent satisfaction this new job would bring. That and what "aggravation factors" the job would involve - an undesirable commute, fixed hours, an inept boss, etc.
I think you have proven to yourself that you can retire on less money than you now have. So you don't *need* more money. You may *want* more money and that's fine. If you have a problem down the line that money can help solve, you may be glad you have the extra dosh.
I retired at 58 with a pension, got bored and went back to work at 59. Worked an additional 2 years (6 months work, 6 months off, then 18 months work). Retired for good when my SS started at 62. By then I had enough money and saw no reason to continue working. That extra two years let me pay off my house and downsize to a ranch on a larger lot about 50 miles away. Bought the newer house for cash with no mortgage, for about an even money swap after upgrades to the new place. It also let me make the most money I ever made considering I got my salary plus my pension. I have to say I worked much harder in those two years than I had worked in years, but I was happy to do so. The two things that surprised me was I faced no age bias, and that the job was a real challenge to perform and get up to speed quickly at a really fast pace, a challenge I was up to. For the first 6 months of those two years I worked from 6:40 PM to 7:20AM on an alternating 3day/4day week schedule, plus an hour commute by car in each direction (about a 15 hour work day including the commute). After a 6 month break, I worked the next 18 months from home 9 hrs/day, 5 days a week from 9AM to 6PM. It was all work on both jobs, no socializing or lunch breaks, just eating at my desk and going to the bathroom and coffee pot. No regrets at all, I enjoyed it, learned a lot about the job and my own capabilities, and got a financial leg up. It's 11 years later and have been living with no problem on my pension and SS. Most important thing is to have really good health insurance and really good supplemental health insurance when you go on Medicare. You can be billed $10K a day for a hospital bed where they just watch you for a few weeks to figure out what's wrong.
Quote:
Originally Posted by irishcopper
I retired last year at age 60 with a total of 42 years of military and federal service. I had originally planned on remaining on the job until I was at least 62 but management began playing games with my shift. I had no desire to return to working nights so I retired two years earlier than planned without regrets. During the year I've been retired I've traveled, engaged in many creative pursuits, worked around my house, read good books, enjoyed the company of friends, reduced the stress in my life dramatically and remained fit with long hikes with my dog and yoga. I can never recall a day that I've been bored or missed going to work. I wouldn't say that money is tight but I also don't have the disposable income that I had when I was working. To date I've been able to subsist primarily off of my military and government pensions without dipping too much into my savings and I haven't touched my TSP .
I was recently recruited for a position with a government agency with an excellent salary. While I don't ever miss getting up and going to work accepting this position and working for a few more years is tempting. If I accept the position I'd be working strictly days and it's a fifteen minute commute from my home. Returning to work would give me an opportunity to build my TSP, possibly get my house paid off and defer collecting social security until I'm 65 or later. I don't have a wife or kids and my only debt is my modest mortgage.
I'm meeting with my financial advisor this week to see if returning to work for 3-4 years is a good financial option for me. If I decide to accept their offer and return to work I always have the option of resigning and re-retiring if it's not to my liking. My primary reluctance in returning to work is losing the freedom that I've learned to appreciate now that I'm not tied down to a job. I'd like to be able to continue to travel while I'm still young and healthy enough enjoy being on the trail and out in the woods. To those of you that have re-entered the workforce after retiring did you have any regrets? Any insight or positive feedback would be appreciated. Thanks!
After being retired for one year, I was asked to come back and train a new person (person who replaced me walked out without notice). I was supposed to go back for 3 months but it quickly became apparent that I was being recruited to be sucked back in permanently. Couldn't take it, did two months and said sayonara.
As a single person, there is no second income back up that us folks with partners have. Maybe you can go back with the attitude that its only for 12 months and reevaluate after that.
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