My goal was to retire at 62, but I just might pull the trigger now, suddenly and unexpectedly. There are two major factors at work here. First of all, I used to enjoy my job, but this past year has really sucked and I am not having a good time in the least. I'm working 10 -11 hours a day, and still don't feel like I am ever getting ahead. I like the people I work with, but I'm not enjoying my work anymore, and it just feels like an endless purgatory of meetings and relentless e-mails. Secondly, our health plan is changing very much for the worse on 1/1/18 for both active employees and retirees, but those who retire by 12/1/17 can keep the 2017 PPO plan. If I retire now, my pension will be less, but if I work until 62, my pension gains will be more than offset by increased OOP medical expenses. My company has a tradition of letting retirees stay with the plan they have at the time of retirement (although naturally the price tag keeps going up, just like for active employees). There is never a guarantee of this, but that is how it has always worked in the past.
I am 59.5, so I can start taking distributions from my 401k without penalty.
Looking at our current net income and expenses, we can replace all but $600./month with a combination of the following:
- 4% 401k distribution
- DH's part-time job pay
- DH can take early pension from former FT job
- My pension
- A couple of very minor tweaks to our spending
I figure I can get a part-time job closer to home, very possibly at the hospital where DH works. They have lots of positions posted. I want to do something simple and straight-forward that feels productive. I don't want to go to meetings anymore!
Once I hit 62, I will have my CD ladder maturing and that would be more than enough to plug that $600/month gap from age 62 to 65, and once I'm 65 my health care costs should decrease due to medicare eligibility. I'm hoping to wait until 67+ to start SS and collect the full benefit.
I"m not a risk-taker by nature, and I've always had steady employment with this same employer (I've been there for 39 years). My DH is supportive of the move. Any thoughts or input? I kind of feel like I'm not quite ready, but realize I might always feel like I'm not quite ready. And in other regards, I am more than ready!