Retirement Question

[jtygoku]

Knowing that there are a bunch of TBN'ers that are retired, I'm looking for some thoughts. I reached full pension eligibility a couple months ago. At 56, I'm not done working but looking at other options that take me away from my current job ( 30+ years with the same employer) which has lost a number of the attributes which made it a great job just a few years ago. I'm certainly not miserable but just not having as much fun as I once did.
My question: before you decided to retire from your "career" job, what percentage of your "fully employed" income was necessary as a retirement income?

 

[almaryholm]

$$$- not a problem if everything paid off...but health insurance / dental/ prescriptions/ vision coverage until 65 is a BIG problem !!

 

[NY_Yankees_Fan]

I just retired Aug 2015 at 58 after 36 years with the same employer. The best thing you can do it contact a financial advisor, one that you pay for, they have your best interest in mind. Check out this web site for a certified financial planner.

CFP Board

We interviewed 3 different companies and found one we liked, usually the 1st hour is free. They will run the numbers for you and let you know when you can retire. We have been working with an advisor for 18 years. We went to her and she ran the numbers and said why are you working? If you have medical plan, house paid off and owe little why not.

 

[Fidler4]

If you get a chance check out the forum on Early Retirement & Financial Independence Community. There is some great financial advice given by people on this forum. I read that forum and Tractor by Net almost everyday. The ER forum has plenty of people who are in your same situation and can give some great practical advise.

 

[Fidler4]

Double post sorry

 

[ch1ch2]

I just retired Aug 2015 at 58 after 36 years with the same employer. The best thing you can do it contact a financial advisor, one that you pay for, they have your best interest in mind. Check out this web site for a certified financial planner.

CFP Board

We interviewed 3 different companies and found one we liked, usually the 1st hour is free. They will run the numbers for you and let you know when you can retire. We have been working with an advisor for 18 years. We went to her and she ran the numbers and said why are you working? If you have medical plan, house paid off and owe little why not.

Good advice!

I retired at 55. I planned it 32 years.
The money you need varies greatly. General ideas are... with no pension 13 times your annual income. w/pension 70 / 80% of your annual income. Does your pension keep up with inflation?
The biggest concern for me was the money disappearing from the economy.

 

[txdon]

The big question is how much your insurances (especially health) will cost you. To answer your question 100%.

 

[troutsqueezer]

Agree that insurance is the big concern. Things are better nowadays in that regard with ObamaCare (yikes! I hate saying that!) as it did reduce my health insurance costs by fifty percent for the year that I had it. It might not last, depending on who rises to power.

 

[Deere Dude]

I would hesitate to retire with Obummercare up in the air as much as it is. I would consider what you spend now, how much you plan on spending over the years, how much if any in debt you are, and how much each week you are sticking in the bank each week and go from there. A financial planner is a valuable resource.

I retired at 52 and lived on maybe 1/3 of my original income. I snowbirded for many years in FL from Wisconsin while fuel prices were nuts and lot rent was high. I paid high enough property taxes in WI even while snowbirding. I wanted to retire and the early retirement trade off was to eat at cheaper restaurants, don't blow money on alcohol, drugs or cigarettes. I hardly ever need to hire anybody for anything because I am fairly handy. I would call myself cheap, but I would rather live cheap and not work as to work for things I don't really want or need.

Retiring fairly early is great and do it if you can. I know to many people who scrimp and save and work a long life just to drop over just before they retire or shortly after. The trick is to retire longer than you worked.

 

[newbury]

An important thing to consider is how much will the income difference REALLY be when you compare working to not working.
Do you spend $$ and time on:
Clothing
Transportation
Food
Taxes
etc.
That you wouldn't be spending if you were retired?

How much per work period (hour, day, week,..) is the difference between what you get paid for working and what you would get paid for being retired??

When I calculated my stuff I figured I was working for a few $$ an hour at the most. Many of my senior coworkers were effectively PAYING for the privilege of working, especially if they had a "normal" commute.

Of course that is if you have a good GUARANTEED retirement plan w/ medical etc.

And another thing is what will your retirement income buy you where you will be retiring?

To calculate that accurately can be quite complex but there are several "general" wabsites such as Cost of living: How far will my salary go in another city? - CNNMoney which can give you a good idea. For example a $100K salary in my Alexandria, Virginia area translates to $58,670 in Tupelo, Mississippi, which is the nearest to where our retirement destination is.