Reflections on Retirement, Freedom, FI, and Related Trade-offs

[rosarugosa]

Recent circumstances and Pakratonia’s thread have me reflecting on retirement, FI, freedom, and the choices and trade-offs to be weighed. A couple of weeks ago, I was pretty agitated over job stress and long hours and impossible demands. I was spending a lot of time with my calculator, and had concluded that we could almost do it (“it” being for me to take early retirement and take a part time job somewhere else instead). I would be locking into a much lower pension, but my employer does pay retiree healthcare. We would have to make changes and would have a lot less leeway financially, but it could very likely be done.
A couple of weeks later, things had calmed down a bit at work, and so had I. There are a lot of things I like about my job, so it isn’t exactly a HSSJ. I work with great people, I am compensated reasonably well, I receive generous benefits, and I enjoy much of the work. We had also bumped into a needed furnace repair, a substantial auto repair, and a biggish dental bill. These made me reflect on how good it was to not be living too close to the edge. I was glad they were annoying bumps in the budget rather than the major crises they might have been if I had a substantially reduced income.
We also had one incredibly great day last weekend, which included the splurge of a nice dinner out (our only one for June) and theater tickets (Into the Woods - it was fantastic!). That had me reflecting on our personal requirements for happiness. This will differ for everyone, but Pakratonia’s scenario does sound a bit too Spartan for my taste and I think I would feel a bit resentful and deprived if I couldn’t have the occasional splurges. I am happy walking in the woods for recreation most of the time, but I like some other options in my life as well.
How do YOU assess these types of tradeoffs?

[awakenedsoul]

I've always lived on a lot less money than most people. The trade off was having a career that I loved. As an artist, I really enjoy practicing, rehearsing, taking classes, and going to auditions. I knew I could never fit into the corporate world. For me, having a financial cushion has made the biggest difference. I listen to Suze Orman and follow her advice. I've just started going to the theater again a couple of times a year. I really enjoy it. My needs are pretty simple. I'd rather have the freedom I have than feel I have to stay in a job situation that is toxic. From reading your post, though, you sound like your job works for you. I think it's wise to be honest with yourself about what you need to be happy. It also helps me to write down all the positives and all the negatives.

[Teacher Terry]

I agree that you need to decide what will make you happy. When I read the Mr MM website which I like I notice that many people just focus on how little they can live on so they can quit working. I think that they need to take a long term view & decide what they will be happy with for many decades. For example we love our cable & like to eat out 1x per week. WE also like to vacation & have the $ to cover our pet's vet bills so as not to have to make a decision based on $. Everyone's choices will be different. Also as you age your medical costs will definitely increase. Personally I worked longer so as to be able to enjoy these things now that I am semi-retired.

[Kestra]

Whenever I think of such things I worry about how long I might live. I don't want to totally deprive myself, retire early, and then die too soon. So I make sure to do fun things now too. I've been working less to work on side projects, and I have things I'll spend lots of money on like food and travel. I think it's important to enjoy life along the way, and luckily I don't have super expensive tastes and dislike most shopping so that helps.

[oldhat]

I agree that you need to decide what will make you happy. When I read the Mr MM website which I like I notice that many people just focus on how little they can live on so they can quit working. I think that they need to take a long term view & decide what they will be happy with for many decades.

Yep. I'm currently wrestling with a similar dilemma. Recently I hired a financial adviser to do a "sanity check," and he confirmed that my retirement calculations were correct: I can retire pretty much any time I like, but my income will be modest. On the one hand, I've lived frugally for years and don't expect my habits to change in any significant way. On the other, I'm still not at all sure what I'd do if I did retire and how much it might cost. Would I want to travel, work part-time, buy a house (or a houseboat)? While I'm not crazy about my job, it's not painful. I recognize the value of the structure that it puts into my days and I like my co-workers. Each month is a few more grand in the bank, and I have good bennies (not including a pension and retirement healthcare, unfortunately). And the company gym is nice.

So I agree it's more complicated than just trying to figure out how little money you can live on. You need to look at the big picture.

[razz]

When I retired 10 years ago, it was having a paid for home, benefits with DH's former employer and being really content with the area that we were living in that made it all work for me to retire. I can take advantage of the senior or preview rates for most theatre or other entertainment. My wants are modest but now I want to include more travel in North America and a modest life style makes that possible.

[Spartana]

As I said on Packratonia's thread, I have found a lot of joy and fulfillment on a pretty low budget retirement (will be 15 years in Sept!!). I am very contented with all the various free or low cost things I can do in my life now that I have the time. And while I do have a stash to access as needed, I find I rarely do (except for budget travel) and most of the things I desire in life are free. So if that stash evaporated overnight and I had to live just on my small govmint pension, couldn't travel, couldn't do more costly things, I'd still rather be retired then working longer. And I believe that I'd be just as happy and fulfilled with my life doing those free, local day to day things I enjoy. However, that life might not be for everyone so you may need to work a bit longer and save a bit more of a cushion to feel better about retiring. That will give you greater options in everything - both fun things and added expenses - and probably allow you a more comfortable lifestyle if you decided you wanted that. Or you could do the semi retired thing and just part time or seasonal as needed to refill the coffers or for more spendy things you want,

[Spartana]

Whenever I think of such things I worry about how long I might live. I don't want to totally deprive myself, retire early, and then die too soon. .

It's funny because I was just the opposite. I also worried about how long I might live but I was worried that I'd stay in a job too long, retire too late, and then get sick or die soon afterwards without ever being able able to enjoy my free time. I felt my job was what was depriving me of living a fuller, better life more so then material things like more money. I had got to that point in my life that there was nothing I wanted except free time. I had "enough" even if it wasn't much, and I just wanted to get out there and live asap. I was literally chomping at the bit and had this (common) overwhelming fear that something would happen to me before I left my job - car wrecks, disabled, death.... That constant fear was really an indicator of how ready I was to quit. I hear of too many people staying in their jobs longer then needed and then dying or becoming too ill (or old) to enjoy their retirement.

[rosarugosa]

I'm enjoying reading everyone's perspectives, so thanks for sharing!
Spartana: I think you're one of the ultimate Simple Livers out there, so I always enjoy your input. I don't think I will every be as much as a minimalist as you are, but I appreciate the value you place on free time, because time is really all we have. (For me, it was a major shift in thought processes to think money = time rather than time = money).
Awakened and Razz: I think my wants are somewhat modest, but they weren't always as modest, so that has an impact on where I'm at now. We're in a pretty good place, but it would be a lot better if we had gotten this simple living thing sooner. Nothing to be done about the past though.
Terry, Oldhat and Kestra: It sounds like you all are weighing similar values and priorities. I agree with the value of structure and co-workers in the workplace mentioned by Oldhat. I also agree with the idea of having fun now and not just trying to see how low you can go as mentioned by Terry and Kestra.
I do get 7 weeks of vacation a year, which is pretty generous. We take a modest vacation every year, go to some shows, and take lots of free and fun walks in the woods. I definitely take more time to deliberate on the purchase of things in terms of whether they will really improve my happiness and whether the time/money trade-off is a favorable one. I'm finding that we're spending a lot more on experiences than things these days.

[pinkytoe]

I am eligible to retire a year from September. My pension will be just a little over half of my current take home pay but I will have fairly decent paid health insurance. For about five years now, I have been banking my most of my paycheck and our expenses have been paid with dh's salary only. I am in the middle on this thought process - half scared, half can't wait to be done with being an employee. On paper, I know we can both retire but things will have to work out just right - move to lower cost of living area, maintain health, etc. and there are no guarantees, are there? The thing I am wrestling with right now is a terrible case of needing change mixed in with wanderlust. I get antsy when I hear of Spartana's freestyle way of living. I get irritated when I look at my house full of stuff that I no longer really care for. I am hoping this is just a stage of reverse adolesence as it is not a pleasant state of mind. Perhaps I just need a real vacation???