So- How do you know when it is time to retire? (pension plan, divorce)

[yellowsnow]

I started to think about retirement when I was in my 20's. I wanted to be able to buy my freedom. Not necessarily lay about and do nothing, but have enough money to make my own decisions. Anyway I planned on retiring in 2006. I didn't make it till 2008 but I was pretty close. I wanted to retire before I had health issues and problems. I made it!

That's all good but the mistake I made was always working too hard to get to where I am today. I missed out on a lot of life along the way. I was too future goal oriented.

But I am having a good time. I work part time and pretty much do as I please. But it cost a lot too.

[marmac]

So-How do you know when it is a good time to retire ?

As a long time sport fan, I have watched athletes who should have retired at the top of their game rather than hang on for a few years more.

In their mind, they thought they still were as good as ever.
Evident to everyone else their performance was fading.

I wonder how many posters( past retirement elegibility ) here believe they still are " at the top " and continue believing that when it is apparent to everyone else ( co-workers, boss) that they are fading ?

I post this after Helen Thomas retired in disgrace.
She believed she was still at the top of her game and made a fool of herself and tarnished a long career. She, also, was blind to reality and didn't know when to hang it up.

[LauraC]

When you get really excited about the next adventure in life.

I saw a friend on vacation this year who reminded me that I had originally said I would not retire until I was 60, and then it was 58 and then it was 57 and then it was 55. When I was in my 30s, I thought I'd work forever. When I started to thoroughly research retirement life and relocation I got really psyched about the things I could do and see and learn and try, if I retired and relocated. I just had to worry about me so it was easier than it is for other people who have to consider a spouse or children or elderly parents still dependent on them. I had no house to sell. I timed the retirement month to when my lease was up and the new complex was finished in my relocation destination.

I didn't hate my job but it was no longer challenging. If I was younger, I probably would have changed jobs within my agency or moved to an office in a different state so I could try something new. I had done that throughout my 34 year career. Instead, I decided to do new things in retirement. There were just other things I wanted to do and I couldn't wait to start them. Again, it was a new adventure.

I was surprised that my pension amount turned out not to be a factor in deciding whether I went out at 55 or 60 and even more surprised that even with much less (work vs retirement) gross income, I have more discretionary money in retirement than I had when I was working. (Who knew?) So, while income was a factor, it was not the primary factor in deciding when to go.

[Tesaje]

Originally Posted by LauraC

When you get really excited about the next adventure in life.

I didn't hate my job but it was no longer challenging. If I was younger, I probably would have changed jobs within my agency or moved to an office in a different state so I could try something new. I had done that throughout my 34 year career. Instead, I decided to do new things in retirement. There were just other things I wanted to do and I couldn't wait to start them. Again, it was a new adventure.

I was surprised that my pension amount turned out not to be a factor in deciding whether I went out at 55 or 60 and even more surprised that even with much less (work vs retirement) gross income, I have more discretionary money in retirement than I had when I was working. (Who knew?) So, while income was a factor, it was not the primary factor in deciding when to go.

This pretty much how I knew. My job presented no challenge anymore & I was tired of it. There are many things I wish to explore that don't really afford a living & retirement will allow me to pursue other interests. Once I calculated that I could afford to retire, the decision was made. I just had to arrive at the time.

[janetvj]

Originally Posted by Tek_Freek

You sound like a retired Fed. Mrs. Tek is debating her high 3 now. She would have to stay until January 2012 to get it but I really want her to leave sooner. Her decision, though. She joined Management and has been miserable ever since. Some of the stories I hear.... not about her employees - about other managers! It seems to be rampant Peter Principle.

It sounds like you are handling the contract work the way it should be handled. Kudos!

Not fed - I was a state employee. And yes, since in most cases I could have expected to receive yearly COLA's and step increases, even without any additional promotions the longer I stayed then the higher my salary would go and therefore the higher the pension. That's in normal times. But due to the current economic situation all bets are off. I may have had to hang in there for years in order to see any type of increase because step increases have been temporarily eliminated and there have been no COLA's for the past few years. To make matters worse, there have been mandatory furloughs of state employees (although I believe that they did not affect the pension calculation - the calculation is based on the original salary prior to deducting for the furlough days). At any rate, if I needed any incentive to leave when I did then this was it.

And I can definitely relate to your wife's situation. I was also miserable in management and for the same reasons. So frustrating to try to deal with - it's like living in a Dilbert comic strip.

[Tek_Freek]

Originally Posted by janetvj

Not fed - I was a state employee. And yes, since in most cases I could have expected to receive yearly COLA's and step increases, even without any additional promotions the longer I stayed then the higher my salary would go and therefore the higher the pension. That's in normal times. But due to the current economic situation all bets are off. I may have had to hang in there for years in order to see any type of increase because step increases have been temporarily eliminated and there have been no COLA's for the past few years. To make matters worse, there have been mandatory furloughs of state employees (although I believe that they did not affect the pension calculation - the calculation is based on the original salary prior to deducting for the furlough days). At any rate, if I needed any incentive to leave when I did then this was it.

And I can definitely relate to your wife's situation. I was also miserable in management and for the same reasons. So frustrating to try to deal with - it's like living in a Dilbert comic strip.

Same deal with her and COLAs. None in the foreseeable future so it's not entering into her calculations for a retirement date. It is looking more and more like the end of 2010 at the latest. It seems every time she thinks she can go longer (end of 2011 to get her high 3) something crappy happens.

Edit: I just noticed that in another post I said she had to stay until 2012 to get her high 3. It's 2011, not 2012.

Me, I just got tired of it all. I've been doing the same thing for a long time and loved it for most of that time. The health problems I'm having, while not life threatening, are certainly messing with me, and that's not helping. Time to move on.

I just realized that I have (officially) less than 3 weeks left. I think I will be "consulting" on a part time basis with whoever takes over my client list until everything is sorted out. Time to start getting the house in order so we can sell it. That might take a couple of years. Not that it's in terrible condition, but I don't work as hard, or as fast, or as long at one stint as I used to. And if I try to Mrs. Tek will stop me.

[flyfishnevada]

Originally Posted by marmac

So-How do you know when it is a good time to retire ?

As a long time sport fan, I have watched athletes who should have retired at the top of their game rather than hang on for a few years more.

In their mind, they thought they still were as good as ever.
Evident to everyone else their performance was fading.

I wonder how many posters( past retirement elegibility ) here believe they still are " at the top " and continue believing that when it is apparent to everyone else ( co-workers, boss) that they are fading ?

I post this after Helen Thomas retired in disgrace.
She believed she was still at the top of her game and made a fool of herself and tarnished a long career. She, also, was blind to reality and didn't know when to hang it up.

I know I passed that point about 4 years ago. Things changed drastically at my job and all the fun was taken out of it. Now it's 100% grind. Personally, I can still be effective, but not doing this. My job has passed me by and I am ready to do something else. I am not blind to that reality. If I had an option to leave earlier, I would have.

[janetvj]

Originally Posted by Tek_Freek

Same deal with her and COLAs. None in the foreseeable future so it's not entering into her calculations for a retirement date. It is looking more and more like the end of 2010 at the latest. It seems every time she thinks she can go longer (end of 2011 to get her high 3) something crappy happens.

Edit: I just noticed that in another post I said she had to stay until 2012 to get her high 3. It's 2011, not 2012.

Me, I just got tired of it all. I've been doing the same thing for a long time and loved it for most of that time. The health problems I'm having, while not life threatening, are certainly messing with me, and that's not helping. Time to move on.

I just realized that I have (officially) less than 3 weeks left. I think I will be "consulting" on a part time basis with whoever takes over my client list until everything is sorted out. Time to start getting the house in order so we can sell it. That might take a couple of years. Not that it's in terrible condition, but I don't work as hard, or as fast, or as long at one stint as I used to. And if I try to Mrs. Tek will stop me.

Good luck to you both! From my perspective letting go of the stress from a job that is no longer rewarding or enjoyable can make a real difference in every aspect of your life. People tell me I look better, I know I feel better, and I'm treating the people who are important to me much better than I used to.

[Curmudgeon]

Something I think a lot of people overlook when planning for retirement is just how much it can cost to work -- costs they won't have in retirement. These are things I factored in when I was deciding whether or not to retire.

I was a senior manager for my state and spent a lot of time in our capitol. This required me to dress in business attire which required suits, shoes, laundered shirts, good ties, lots of dry cleaning bills, etc. While I often took my own lunch to work there were many days that I had to eat out. There were also social obligations (dinners, cocktails, etc.) that had to be met.

As a manager I was expected to "donate" to every "cause" espoused by my department. It was also prudent if I contributed to birthday celebrations, wedding and baby showers, retirement events, etc. It all adds up. For morale purposes I often brought snacks to staff meetings, treated my staff to occasional breakfasts or lunches, etc.

Then there are the deductions from the paycheck that go along with working. I paid into my retirement program as well as a 401(k). I also paid premiums for medical, dental and vision care insurance. Then there were Social Security and Medicare deductions. For many staff there are union dues automatically deducted from their checks. Most of those end at retirement.

Let's not forget the cost of getting to and from work whether by car, bus, train, possible parking fees, not to mention wear-and-tear on your vehicle.

In my case, all of that dropped off when I retired, including benefits premiums. The state pays them now. Sure, my pension is less than my salary was but I've also added Social Security income and doing away with all the above is like a $1,000 a month "raise."

Retirement may be more within reach than you realize. Cost it out!

[marmac]

Originally Posted by flyfishnevada

I know I passed that point about 4 years ago. Things changed drastically at my job and all the fun was taken out of it. Now it's 100% grind. Personally, I can still be effective, but not doing this. My job has passed me by and I am ready to do something else. I am not blind to that reality. If I had an option to leave earlier, I would have.

I gave you rep points for your honesty.

When I decided I would retire at 62 at the " top of my game" ,I had already witnessed three people who hung on too long and were disgracing themselves.

A shame to see three people who were great employees continue to work into their late 70's and turn into bitter people when their work was scrutinized and documented by their employer.

All three are now in their 80's and want to re-tell their story over and over-------" after all those years I worked there, that is how they let me go "

In all three cases it wasn't cuz they needed the money.
They were greedy and wanted that SS check plus a full paycheck.

At the end, their job performance was so bad the company was losing money keeping them and two of them were a safety hazzard to the company.

Yup, the day the three companies told them it was time to go, they actually were so dellusional they believed they were the most valuable employee the company had.

When posters post here that they are soooooo valuable to their employer as they work into their 70's, I take it with a grain of salt.

A person with body odor or bad breath is the last to realize it.
People around them notice it however.

Same can be said when older employees keep working way past retirement eligibility and believe they are soooo valuable to the employer.