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I think what is confusing everyone is the highlighted statement. To my untrained eye it seems as you are taking a buy out of the pension. Pensions usually are for life and come in monthly income to the pensioner.
I can see the confusion. Early retirement is just the ability to receive your pension earlier starting at 55 at a reduced amount according to actuarial tables. One does have the option to delay collecting it similar to the SS at 62 vs 65 vs 67 situation. Wait longer, you will get more. However, there is an opportunity cost associated with it (thus the actuarial tables) that rolls the "how long will I go?" dice. A new wrinkle for many is the fact that many retirees are actual in preretirement where they may retire from one job but continue to work in another area of interest, usually with reduced hours, on their terms. Many people stay in the preretirement phase well into their 60s, 70s, or 80s as health allows. Since I'm planning on ramping up something I already do part-time and enjoy, as well as it better fits a more healthy lifestyle for me, this is a plan I am giving some serious thought and have already begun planning on making other moves accordingly such as down sizing, reducing need for car use, cutting property taxes, etc. It is both exciting and scary at the same time and I have found this forum very informative and interesting.
I think the initial question was, "Why is someone who's not interested in retirement reading a retirement forum and, specifically, a post about retiring early?" I, however, realize that things can catch your eye as your browsing topics, quite innocently, so it doesn't necessarily indicate that he was deliberately researching the topic of retirement with envy OR distain.
PS: not everyone who disagrees with you on a public forum is a "troll."
If you have a plan for a different job after retiring at 55, well I think that's great. As one of the early retirees who did what you are planning to (without the 55+ job), I think you will do just fine. As long as you continue to run the numbers and do the research regarding costs at your new location and you have the health care situation covered, I would say go for it. Your health is more important.
It is important to understand how much monthly income is "enough" for you and your spouse. As I mentioned earlier, I left a lot on the table, but I knew we would always have "enough" because our expectations, which are higher than some folks, are also LOWER than many other folks. We don't buy new cars every 5 years, we don't take multiple overseas vacations per year. We LIKE camping trips, or local area trips, and we live in a place that is like a vacation, so we really don't need to travel that much. We don't pay housekeepers and lawn men. We do that ourselves and consider it another form of exercise and a productive use of our time. We have time to volunteer, and enjoy time relaxing or playing sports with our new friends here.
Not everyone needs to work for a paycheck or even volunteer to make their life worthwhile. There are many lifestyles and to suggest that not working until you are 65 or older makes your life "meaningless" is so insulting. We certainly don't "roam around at early bird specials" and become techno-phobes just because we decided that time is more important than money. Let's just quit disparaging other peoples' choices. Just because it's not for you (or you're not able to), there is NOTHING wrong with early retirement.
Not everyone needs to work for a paycheck or even volunteer to make their life worthwhile. There are many lifestyles and to suggest that not working until you are 65 or older makes your life "meaningless" is so insulting. We certainly don't "roam around at early bird specials" and become techno-phobes just because we decided that time is more important than money. Let's just quit disparaging other peoples' choices. Just because it's not for you (or you're not able to), there is NOTHING wrong with early retirement.
Good point with the bolded. I would like to piggy-back on that to include "Let's quit disparaging other people's statements that they like their job." It's O.K. to like one's job.
Just to clarify, I am not being offered a buyout. This is a simple retirement decision based upon eligibility options and weighing the pros and cons of taking a reduced amount at an earlier age vs delaying collecting. If I delay in addition to giving up 5 years worth of lost income which will be eligible for COLA I will be relying on my part-time job and wife's income entirely. We live debt free and plan to move down to a smaller and less expensive community which will also reduce her commuting time so that is not a huge issue. I've run the numbers and if I invest the early pension for 5 yrs conservatively it pushes the delayed advantage out to 17 yrs or age 77. I will certainly be reevaluating the situation as I get closer to 55 and also plan on continuing my research and planning.
My primary purpose for this thread was to see if anyone had direct experience with taking the early pension option and making a leap into a different field of interest and what their experience has been like? I do not hate my job, but it has become a very limiting career and more stressful one largely due to legislative changes and politics. One of the characteristics that is the nature of the job and outside of my control is an inflexible schedule which literally dictates every minute of my work day. This was not as much of an issue when I was younger, but it does make it increasingly more difficult and stressful as I get older due to needing more regular access to restrooms. I had four bouts of kidney stones this past year along with a couple of diverticulitis flares. Waiting several hours and strategically planning to use the restroom during those times was "challenging."
If you have your wife's income to fall back on AND your current job is actually adversely affecting your health, it's a no-brainer: go for it!
I can see the confusion. Early retirement is just the ability to receive your pension earlier starting at 55 at a reduced amount according to actuarial tables. One does have the option to delay collecting it similar to the SS at 62 vs 65 vs 67 situation. Wait longer, you will get more. However, there is an opportunity cost associated with it (thus the actuarial tables) that rolls the "how long will I go?" dice. A new wrinkle for many is the fact that many retirees are actual in preretirement where they may retire from one job but continue to work in another area of interest, usually with reduced hours, on their terms. Many people stay in the preretirement phase well into their 60s, 70s, or 80s as health allows. Since I'm planning on ramping up something I already do part-time and enjoy, as well as it better fits a more healthy lifestyle for me, this is a plan I am giving some serious thought and have already begun planning on making other moves accordingly such as down sizing, reducing need for car use, cutting property taxes, etc. It is both exciting and scary at the same time and I have found this forum very informative and interesting.
I agree. This is an amazing forum. Lots of very smart people and varied opinions. Some will only work for those who offered it. Other options are there for everyone to evaluate. Look at all the options and evaluate the one that fits you and DH and you will be happiest. Do not hurry into decisions that can be looked at longer but also do not hessitate when a situation seems suited.
I am happy you are so fulfilled working your job....so HAVE to wonder WHAT THE HELL you are doing browsing a retirement forum????!?!?!?!
SOMETHING brought you here.....
Keep on keeping on if you are fulfilled and not intending to leave the work force, and more power to you!
Quote:
Originally Posted by otterhere
I think the initial question was, "Why is someone who's not interested in retirement reading a retirement forum and, specifically, a post about retiring early?" I, however, realize that things can catch your eye as your browsing topics, quite innocently, so it doesn't necessarily indicate that he was deliberately researching the topic of retirement with envy OR distain.
PS: not everyone who disagrees with you on a public forum is a "troll."
Paka, there are lots of people who both read and post in the Retirement Forum who are not yet retired, and there are lots of reasons why that is so. Some may be looking toward their eventual retirement (after all, everybody except those who die with their boots on will be retired sooner or later) and they are interested in the topic. Others may be looking at issues which affect their parents or even grandparents. In any case, I don't think anyone has to justify why he or she is here, or be subjected to comments suggesting he or she is not welcome. I know you did not state directly that the poster is not welcome, but that is more or less the implication of "WHAT THE HELL are you doing...". City-Data is a public internet discussion forum. All are welcome unless they are violating the rules, in which case the report button is easy to use.
"We have a beautiful home, buy a new car as needed (usually every 5 yrs.) and take a nice vacation every year. We take 2 trips a year back to NY to see family. We live very comfortably."
Why is a new car "needed" every five years? Just curious!
I had a great job. How great? I could hike, snowmobile, backpack, etc. etc. and get paid for it. I also had saved enough money to make retirement everything I wanted it to be.
So the great crash happened less than a year after retirement and we lost 20% of our retirement in the Gulf of Mexico. But we had enough money saved to get by those problems.
You really need more money than you think in retirement. Otherwise you will end up sitting around trying to avoid spending money!!!
My advice is IF your job is your social life and you do NOT have outside interests or hobbies keep working. Another job in retirement is still a job. The economics of trading one job for another are fairly simple and will vary by individual. Do the analysis!!
Make your plans for retirement and write them out for the next 20 years. There are things I could do at 56 than are more difficult at 66. Let some of those slip and I am not sure I can get them back.
Then see if you can finance those retirement dreams with your current level of investments.
I would still retire at 56. The only thing I would do different would be to make that list. We only had a business mortgage and I should have paid that off and totally fixed the house before retirement. Some of our retirement money has gone into that rather than dreams.
The other thing is I would insist my wife had worked more while I was working. It is really her lack of retirement pension that has had the greatest impact. She did promise to work after I retired and that lasted about two years!!!
Everybody is different in retirement dreams. Sit down and write it down. Your dreams, your estimated retirement income and how you would handle it all.
Writing it down changes everything. When it is on paper it is harder to ignore.
... Since I'm planning on ramping up something I already do part-time and enjoy, as well as it better fits a more healthy lifestyle for me, this is a plan I am giving some serious thought and have already begun planning on making other moves accordingly such as down sizing, reducing need for car use, cutting property taxes, etc. It is both exciting and scary at the same time and I have found this forum very informative and interesting.
Having owned a home in Ct, I would imagine moving away from Ct will do a lot for lowering your property taxes. It certainly helped us to lower our taxes.
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