Counting Down to Retirement
We have goofy work weeks, Wednesday to Tuesday. As each Tuesday ends, I count down either to March 4, 2025 or July 8, 2025. Today that count will be 48 or 66 weeks to retirement. I have to the end of the calendar year to decide if it will be March. I won't go beyond July 8th though, no matter what, which brings me to the 66 countdown.
March 3 is my 10th anniversary, a nice clean calculation period to determine my pension payments. I wouldn't start drawing though until seven years later, official retirement age for my work, so as not to lose a percentage for retiring early. Waiting until July gets me a few more paid holidays, three to be exact, and brings me to the next CD maturation date. It gives me four more months staying on health insurance avoiding much higher premium costs and of course, my salary, my HSA and 401K deposits would continue.
There's too many things to go into about my decision factors. It's work and stress load, it's my health and mental wellness, it's worry about boredom so needing to plan ahead. It's wanting a safety net for my kids since none have partners currently to lean on and build with. It's the nagging twinge that giving up a good salary with great benefits too early is shooting my future self in the foot. But it's the nagging worry that I'll miss out on important time enjoying life on my terms, even if the budget's a bit tight for a few additional months.
I've not heard many people regretting retirement, but I also see multiple people that have come back to work post retirement. As I said, I have time to decide and a whole lot of things I'm not even thinking about could happen the rest of the year.
For sure not easy to make the decision to jump. I jumped at 58-it will be 5y in July. I've not a single moment of regret. I miss people but not the stress, the crap sleep, the many unpaid hours worked (salary but 55-60h/week). I've lived a frugal life for decades and that continues. I have the time and desire to cook so eating out is a treat not a lifestyle. Exercise, eating healthier, not gardening at 8pm, making/canning salsa till midnight is done during daylight hours. Etc.... The people I know who went back to work? They wrecklessly went on spending sprees of travel, car, home upgrade. I travel, attend concerts and stay within the budget needed to have my investments outlive old old age.
ReplyDeleteAs you drive toward your decision, start consideration of all the work expenses that will vanish instantly: gas, car wear/tear, clothing/shoes, food purchased enroute to/from etc Although there is significant complaint out there about inflation, expenses are level for me from 5y ago for me.
Best of luck making your decision.
Excellent points, though other than 1 day a week, I work from home, so I have minimal work expenses. I will want to travel, but planned and paid and not the Ritz.
DeleteI retired 5 years ago at 63.5 and did Cobra for 18 months until Medicare and too SS at full retirement age. I am single, never married and best decision I ever made. I do make some concessions about what a 2 person can do ( basically 1/2 their income) but I know have control over my life and so much less stress. I am content in what I have and can do…..not always wanting more or comparing myself with others who are not satisfied and trying to impress others. If you get bored, you can take a small PT job on your terms…..I really have very few days when bored…..always something to do, go to, etc. I was making myself sick worrying about if I could retire and like I said….best decision ever. Not a single regret.
ReplyDeleteThat's good to know. Once my surgery is done and I'm recovered, I think I'll think clearer. I'm not a keep up with others kind of person, but I like nice and comfortable for myself. I also want to travel and know that's a priority.
DeleteLots to consider, but I'm sure you will make the right decision for you!
ReplyDeleteThings don't go the way we wish sometimes. My husband will be 57 soon, and he was laid off last Sept. It is harder to find a job when you are in your 50s, esp in the tech industry, but we are doing ok. He is starting a side business in woodworking and laser cutting and he is enjoying it. So I need to tighten the budget a bit more, but it will be worth it.
Health insurance is so expensive and there's my worry, but I can substitute teach to offset that expense a bit until I'm 65, then won't have as high a premium and my daughter will be past 26. Good luck on your plans
DeleteCan you calculate the full value of the additional time (reduced insurance costs, additional vacation & 401k contributions) & then divide that by the number of extra days, to see how you feel about the money both in total sum, as well as on a day to day level? Maybe that will help. I'm super excited for you, because regardless of which date you choose, it's close! (Hawaii Planner)
ReplyDeleteIt's a significant amount of money between living costs and health insurance and no income for four months. But over 25-35 years, minimal I guess.
DeleteI retired at the end of the year I turned 65 (2021), so that I could pick up immediately with Medicare. I loved my job (and I was lucky in that I loved almost every job I ever held) and my colleagues. I have never regretted it for a moment. My husband is retiring this summer (well, from one of his jobs; the most demanding one) and while we are not counting the days (yet), we are both looking forward to how our life will change for the better.
ReplyDeleteThings would be different if my husband was alive. I worry about to much and not enough time. Work is just so stressful right now and I don't see it easing.
DeleteAs someone who is planning to retire early (50, although my husband will continue to work until he is 60 for I have been the super saver since my 20s, and we can live off of his salary), my only advice (although I am not suggesting you need it) is to think if there any future expenses you can reduce now while you are earning a paycheck. Although no one asked me, here are a few things I have done or am doing:
ReplyDelete1. Paid off the mortgage early
2. Made my home more energy efficient (as possible)
3. Had solar panels installed
4. My electric and natural gas company is publicly traded and currently offers a 5.50% yearly dividend. So, I am little-by-little acquiring more and more shares so that future distributions will help pay my future utility bills. (I live in the South, and I refuse to live without air conditioning.)
5. After I had enough of my 14-year-old car, I bought a hybrid to reduce fuel costs.
Just things to think about if applicable.
No mortgage so that's a positive. Yes, good suggestions to start figuring out lower day to day expenses.
DeleteRetirement decisions are definitely not easy decisions to make. My MIL went back to work after retirement because she couldn't stand not having something to do each day. She even went back to get her master's degree. I wish you peace with your decisions, and it sounds like to me you have really taken some important steps in your decision,
ReplyDeleteBeing active is a concern, though I feel like I have or could have enough hobbies and people to fill my days. I appreciate your kind words.
DeleteThe decision of when will come to you. I just knew last year that this semester would be my last teaching. I turned 65 last month, and I retire June 1. I'm really looking forward to it! It seems as though you have a good grasp on your finances and know what you're doing. Good luck with the decision.
ReplyDeleteI dwell on it a lot. Yes, I should know when it's right. Good luck to you.
DeleteThe thing is, you can go back to work - albeit somewhere else - if you feel the need, but as long as you have interests and hobbies you'll find your days filled. The financial thing, well only you can decide that. It's amazing how quickly things can change though and, at the end of the day, I don't think a lot of people would say they wish they'd spent more time at work.
ReplyDeleteI do not want to regret not having lived fully- you are completely right that I can make a new change too if I decide full retirement isn't right for me.
DeleteWe are counting down work days (48) until TheHub retires. I do not think he will ever not work, but any future work will be at his discretion and time limits. Meanwhile I see a lot of golf and travel in the future.
ReplyDeleteThat's wonderful, Anne. Yes, the discretion to do things, including work, at your time will be wonderful.
DeleteIf you do decide to sub, you can always sub for office workers in the school. If you can sub in a small town instead of inner city schools, you will save your sanity.
ReplyDeleteTutoring is another way you can work at your discretion. I tutored women in nursing school, and solutions were the hardest math problems they had. Of course, I could easily do that.
Even colleges need professionals for jobs that are not forty-hour weeks. If you work at a university/college, any classes your children want to take will be at least half price. If you decide you need to work in order to make it, changing to a job like uni work will be a good fit for you, I think. But, only you can decide that.
There are options. Thank you.
DeleteI agree with the others in that if you're bored or feel the need to earn a little money, then you could almost certainly pick up work. I also agree with Celie that one day "you will just know". That's what happened to me, as you know. Going so early cost me a LOT of money and someone actually commented that my pension "wasn't very much", but then these were people used to huge salaries and huge pensions. I live perfectly well on my pension because I'm not stupid with my money. You obviously have a very good handle on your finances and my wish for you is that you make your decision and then just go for it (whatever that decision may be). It'll be scary of course, and then you'll probably wonder what all the fuss was about!
ReplyDeleteYou all are right if course. It's that nagging period in until I turn 60 that has me second guessing with how expensive health care coverage will be. I want to make sure I am not stuck at home because I can't afford to go out or travel once I get my new knee!
DeleteI am in the same boat. I turned 65 last month and want to retire. If I were still married (divorced after 41 years) the decision would be a no brainer as there would be someone to spend my spare time with. Multiple financial people have told me that I am good to go; I am not a big spender and have followed a budget for many years. However I worry that I will be bored. At the moment I am planning on going half time in June and will work that schedule until at least my 66th birthday. If I am careful I think I can live on what I make and let me social security and my investments grow a little longer. I have already sold the big house and downsized into a condo so that is a load off of my mind.
ReplyDeleteI am sure that no matter what you choose to do you will be fine. As already mentioned, I don't recall hearing anyone say that they regretted retiring early!
Best wishes.
I'm sorry your life changed after so many years. Part time if an option might be a solution, but I m not sure it would work with my current job. I'd likely stil have all the stress and creeping excess hours. Still, might be worth looking at part time options. I know there's other things I can do part time as well, on my schedule. I'm eligible for social security as a widow at age 60, but both these retirement dates are many months from that. I could work and earnup to a certain amount before the SS is reduced.
DeleteOkay... we have seen both. Hubby is included in that as he went to work for the state for a year after leaving the plant. Then opened his own business and the after the accident closed it down.
ReplyDeleteYou need purpose when you retire that is NOT just your kids (been there, still there LOL) Mine is gardening and putting food on the table for a year to 18 months and would if I was a widow (again) . Hubby is now volunteering with HAM radio (again) and helping Amish. We have the "one Million dollars as several say to have invested for retirement. I would say it was not enough because we were renting. We have a mortgage (if you have one have it paid off before retiring or close to it) BUT we made this home wheelchair accessible (more than handicap) so shouldn't have to go to assisted living for any thing. You need to look at how you can be taken care of if the worse happens. Also talk to a financial advisor NOW. Maybe even health insurance agent. Blessed be
No mortgage but taxes and insurance are not inexpensive, and with utilities have housing costs. I do have a financial advisor. My houses biggest downfall is no main level bed or bathroom or opportunity to add without building on. I do have a financial planner, but also think it wouldn't hurt to get a meeting with a separate advisor. I know I can substitute teach, volunteer, bake, help with aging siblings and my MIL. Her living children are 30 miles away so day to day needs( though she's still very independent) would be eased by me being so close.
DeletePrivate health insurance is the one big cost- I am 63 and my monthly bill is $1259. It's good insurance but still a high deductible. My insurance has been going up (by $200 to $250 dollars a month every year)for the past five years. I can't wait until I am eligible for Medicare. My husband is 13 years older than me so we are now paying for things we didn't use to like landscaping. Our eating out has increased as well due to me being over cooking breakfast, lunch and dinner but if I were a widow I think that would go way down as I only really want one big meal a day. Of course, car and house insurance have gone way up this year for me as well. I spend most of my vacation money visiting the kids out of state. I wish you luck with your future retirement- I am never bored.
ReplyDeleteI can get retirement benefits insurance at a reasonable out of pocket cost- then it becomes wrap around to Medicare after 65. But adding my daughter until she's 26 would add $1600 a month. She can get MNSure or fingers crossed she has a better job by then with benefits. So I'm planning multiple scenarios, best to least favorable. I'll keep my yard simple but needs a lot of work to get to simple! I suspect I'll hire lawn mowing at some point. For now, it's an easy job
DeleteI retired at 53, completely burnt out - at that point my contract was for 18 hours a week - I routinely worked 60
ReplyDeleteThe UK and US system are very different - at 53 I could not claim my pension , nor any state support but I could take my employer to court given that I was “ recognised “ as having a disability for which reasonable adjustments should have been made . My employer settled out of court - and I negotiated enough to last me salary wise till
I was 55 , and then take my pension early ( with penalties- less but hopefully longer )
We were always going to retire on Tonys pension , as he earned much more than me . He retired only a few months after me , following the death of his dearest friend from cancer at 59.
He loved his work ( he was a Rocket Scientist) and I had assumed he would work till 65 . Thank goodness we had those years
This is a long winded way of saying I do not think you will regret retiring early . I found lots of things are cheaper here Monday to Friday - like going to see a film - and you will never have the time back again . I have no regrets
Siobhan
My pension matures if I wait until 66. Same with social security but I can get my husband's at 60. The rest is my Deferred Comp/ self funded retirement. It's hard knowing how long it lasts. Some calculations say I'm good for 40 years. Others say 33. But, the cumulation of different funds look fine on paper. I have a home, I have family, I have options which I know so many others do not.
DeleteI should add that in the UK there are no insurance costs for health care ( unless you decide to purchase ), and from what I know of the US health care system this is often a very high amount each month -
ReplyDeleteso I appreciate that our two countries are very different in that respect
Siobhan x