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It couldn't come sooner. I'd like to retire by my early 60s, but assuming I remain living in the US, ever-rising healthcare costs may not allow that to happen.
My husband doesn't ever want to retire, but he would like to switch industries and enjoy employment on his terms.
I can't imagine continuing in my job beyond 5 or 8 years, or when my kids are out of school. I'll be in my mid-40's. Knowing myself I would be content to work a few hours in retail, as a barista or something of the sort... just something to give me a little spending money and human interaction.
Alternatively I might venture to try grad school as I have a passion for human behavioral ecology and evolutionary psychology.
It really depends how our assets are at that point.
I'm shooting for 45 (I'm 40 now) to become financially independent but most certainly by 50 should be doable. That's with my wife still working since she is almost 10 years younger than me and loves running her own business. It really just depends on how well investments do and how little or how much we are willing to adjust from our current lifestyle. I may still choose to do some side gigs to make some income by doing things that I enjoy, like flipping real estate. I'll definitely travel more, while staying somewhat budget conscious.
I'm at least 5 years away from retiring, and probably won't actually pull the trigger until I'm 65 (which means another 5 years). As long as my elderly parents are alive, I want to preserve my earning potential in case they need help (which they might, as my mother is developing dementia). And retiring before I'm close to Medicare age flat-out scares me.
For age bracket 55-59, 90th percentile household net worth including home equity is about $2 million. If you don't have a pension, you can fund a modest retirement with that kind of net worth if you downsize your housing cost. The people who post here either have union/public sector pensions or are very high net worth.
My OH will be 62,then, and can draw early SS.
I work part time but also collect SSDI ( allowed but only very part time and minimum wage), I will probably need to fall back totally on my SSDI by then, as,working is not easy for this old bag of painful bones.
My FIL should have passed by then(frail 90), and we will head south for winters until my healthy 83 yo father passes. Then stay in warm climate permanently.
The only snag will be health care for my OH until 65 Medicare kicks in. If it is going to be a major expense, my OH will continue to work if only to pay for the health insurance.
We won't have a lavish luxury retire ment, but should be comfortable. When all is said and done both father's gone, we will have 3 north properties and one southern duplex to liquidate into rentals in our desired retirement area to privide additional income OR to invest the proceeds prudently.
Good Lord willing and the creeks don't rise, that is.
I retired last year at 61. Because I put so much money into deferred compensation and Roth IRA, my retirement income is greater than my working income. I did not consider retiring until that was the case.
Remember the lost decade, 2000-2009, when the stock market had no gains? While others were selling low, I was buying low in an index fund that was 100% stocks. I had absolute faith in the long-term growth of the stock market. It eventually paid off.
My day to day expenses are much lower, less gas since there is no commuting to work, no new clothes to speak of, no lunches out at work, no contribute to this or that at work.
Overall costs, I do not pay for the: 15% of my salary for the IRA -like retirement savings plan,
10% since now I do not pay state taxes
about 12% my share of social security, Medicare, pension, and union dues that I do
not pay now
So about 37% of my salary was previously 'taken' before I ever saw it and now I do not have those expenses. THAT is a major thing to consider when planning for your retirement and doing budgets.
However, over all my expenses are quite high as I have traveled a lot. A western Caribbean cruise, a beach vacation, 3 trips back to CA (realty related and ill relative), trip to Hawaii for 2 weeks, cruise to Alaska with land vacation too coming up. Most was planned and budgeted for (not the ill relative).
I do plan on traveling when I can, while I can, and budgeted for that!
This is spot on! While you save income taxes, work related expenses it is the extra 40 hours of free time that can get expensive!
I knew a guy that made 10 million from the sale of a family business and moved to Florida to retire (mid 40's). 2 yrs later he moved back up north and went back to work part time. WHY? He said Florida has perfect weather year round so he was golfing, fishing, basically on vacation for 365 days a year! He was spending way more than his investments were earning him!
For age bracket 55-59, 90th percentile household net worth including home equity is about $2 million. If you don't have a pension, you can fund a modest retirement with that kind of net worth if you downsize your housing cost. The people who post here either have union/public sector pensions or are very high net worth.
People make do with whatever they have. It also depends on what your idea of modest is.
My grandparents were fervent savers, but I can't imagine they have much net worth. He would be 86 now - she's 82. He worked at the local chemical company and she only has about a 7th grade education and worked as a cook in the county school system. They've had a modest retirement, but I wouldn't call it hand to mouth. The keys -
1) The house has been paid off for probably at least twenty, if not thirty, years, is relatively small (1,200 sq. ft), and has very low property taxes. Property taxes are about $700 annually. The house's size and property taxes keeps the monthly nut on housing and utilities low.
2) I never remember him financing a car. Ever. He always bought new, modest cars, and paid cash for them. She financed a car after he passed away.
3) They never traveled or had expensive hobbies. That wouldn't necessarily be my decision if I could afford to travel, but he was always a "piddle in the garden" type and had no desire to leave the general area. They'd take a week's vacation to South Carolina every year before his health worsened.
4) They had pensions. She's been retired from the county schools since 1995 and is still drawing a check. He took a lump sum from his corporate pension in 1993.
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