View Full Version : Thinking of Retirement
San Onofre Guy
12-9-18, 10:31pm
I’m only 56 but am fortunate to be able to retire now at 70% of current salary. I know that this doesn’t sound like a problem to most, but the thought of a step down in income terrifies me. I have adequate resources in IRAs and taxable accounts to bridge me to over100%, but for someone who has been a thrifty saver for over 50 years, it is an anathema for me to consider pulling money from savings.
I recognize that this is a first world problem or actually a 3% of the first world problem, but this causes me to lose sleep. My high level position is stressful and I have a few challenging employees, i just feel that stopping now is failing.
words of encouragement please
Teacher Terry
12-9-18, 10:49pm
The purpose of retirement savings is to spend it in retirement. Do you have a plan on how you will spend your time?
Simplemind
12-10-18, 2:01am
I felt much the same. I retired with a pension at 55. It felt uncomfortable (only a feeling) for a couple of years but I finally came around. I saved and scrimped for so long and it was hard to let go of that mindset and trust that I had enough to relax and enjoy it. I had to learn to trust in my plan. Six years out and I feel very good about it now. I was also finally able to let the supervisory mindset go and feel much better for it.
It sounds like an opportunity if you actually wanted to retire, but from what you are writing it sounds like you are not ready to retire? Is this one of those things where you are being pushed to retire? What happens if you do not take this opportunity?
56 sounds pretty young to me unless you have a very large savings in place.
Are you a)ready to not work anymore or b) is it the problem employees driving you out?
I have days where it's b). But a) doesn't feel right yet.
I can jump anytime and be just fine and I'm 57. I understand the quandry.
That said, if you truly feel ready to jump, that is NOT failing. It's putting yourself first. This is a GOOD thing!
When I have a 4 day weekend and I don’t travel somewhere, I find myself bored in the 4th day. This is always eye opening for me, in regards to “what would I do with my time if i retired now?”
I have 7 more years to full pension. I will need a plan before I retire.
However, I look forward to it. I’m one of 3 managers, who jointly manage about 450 employees. Every day is a challenge as we are quite understaffed in management.
SteveinMN
12-10-18, 11:16am
I’m only 56 but am fortunate to be able to retire now at 70% of current salary. I know that this doesn’t sound like a problem to most, but the thought of a step down in income terrifies me. I have adequate resources in IRAs and taxable accounts to bridge me to over100%, but for someone who has been a thrifty saver for over 50 years, it is an anathema for me to consider pulling money from savings.
I'm told that one of the biggest paradigm shifts in retirement is moving from an income-generating point of view to a spending point of view, from "I can expect a raise/promotion this year [or next]" and thinking you could always get a second job/side hustle/some more gigs to a life in which "raises" come as COLAs or bumps in your withdrawal rates from your savings vehicles and Mother Nature starts limiting your ability to put in more than 100% (or even that). It is an adjustment, but, if you've been a frugal saver for more than 50 years, well, this is what you were saving for.
My high level position is stressful and I have a few challenging employees, i just feel that stopping now is failing.
words of encouragement please
Is stopping now "failing" because you think there still can be a change or resolution at work? Are the major parameters of changing the situation within your control? Are there positions like yours elsewhere which you would qualify for and would want to pursue? Is there some career or lifetime goal which is in reasonable reach which would leave you unsatisfied if it were not accomplished? Do you have enough interests to carry you through 30 years of retirement?
Sometimes...it's better for a man just to walk away. But if you can't walk away? I guess that's when it's tough." ― Arthur Miller, Death of a Salesman
If you have no big goals left and have the resources to retire, then the decision is entirely yours. People where I used to work who had their "numbers" and knew they were no longer in line for raises, promotions, and other career opportunities often announced that their retirement was "TBD": "three bad days" and they'd click the button on the screen that initiated retirement. Maybe that's where you are now, pending the issues that are raised to you in this thread.
iris lilies
12-10-18, 11:23am
Dont you have activites you are looking forward to in retirement? What are you going to do in retirement?
I now wish I had retired a few years earlier, around your age. OTOH I do not now worry about money, although we are probably spending in excess of what we “should” be spending. I waited for a city pension to be available.
pinkytoe
12-10-18, 11:29am
I retired at 61; it isn't really the money part I think about so much but more an ever-present thought that I am supposed to be doing some more constructive or "beneficial" with all this free time. Even though I love to putter in the garden or hike, it seems like I am supposed to be doing something else more valuable. Must be my Catholic upbringing...but as time goes by, I'll get over it. Just a bizarre feeling some days to finally be free of working for pay.
ApatheticNoMore
12-10-18, 12:10pm
When I have a 4 day weekend and I don’t travel somewhere, I find myself bored in the 4th day. This is always eye opening for me, in regards to “what would I do with my time if i retired now?”
I don't think that mindset necessarily generalizes though, with a 4 day weekend there is an underlying panic "oh no I seldom get this much time off I have to optimize it". I'm not sure I was even that bored unemployed, other things yes and tired of job search but ... And then back at work there is also the coming to of how mind-numbingly boring work sometimes is, eh I do need and want the money now.
JaneV2.0
12-10-18, 12:23pm
By the time I left employment, I had something like two months' vacation yearly, and I routinely took every day of it. I'm rarely bored--I don't really understand boredom--and I don't feel particularly called to service, either. I'm good with plenty of "white space" in my life. I love being retired; I felt like employment was a huge waste of life energy.
Simplemind
12-10-18, 12:44pm
I don't understand the concept of boredom either. Granted, I knew that I would not be happy to just read and putter. I like to have a challenge and my volunteer work gives me that. I don't need the money and what I love is the freedom to choose my schedule as opposed to having one set for me. I can work as much as I want and when a travel opportunity or something else comes up I can pull myself out of the schedule with a moments notice. That was one of the reasons I retired. We had new management and they were changing the nature of how time off was approved. I had been able to take off whenever I wanted now (due to problem employees here and there that they couldn't manage individually) they wanted only larger blocks of time taken with advance notice. I was earning almost one day off a week and I liked coming in every day and making sure everything got done and shaving some time off at the end of the day. Freedom and flexibility were the most important job perk for me because it balanced out all the negatives. Once that was gone I couldn't think of any compelling reasons to stay. I have too many ideas in my head and opportunities to explore them to ever be bored.
I've found that on the rare occasions I find myself ''bored" there's something else going on. There's always something to do, if I'm so inclined.
I'm with you re someone else setting schedules for me.
With me, it is never boredom but deciding what of many options shall I spend time doing.
Teacher Terry
12-10-18, 2:05pm
I guess I am in the minority and do get bored. That’s why I continue to work part time from home but I have full control over my schedule.
iris lilies
12-10-18, 2:22pm
I guess I am in the minority and do get bored. That’s why I continue to work part time from home but I have full control over my schedule.
I dont get bored. I “ work” but not for pay. I dont punch a time clock and tend to eschew the volunteer work that comes with a schedule, but that doesnt mean I dont have deadlines and places I have to be at times.
Gardenarian
12-10-18, 4:52pm
I retired at 55, fully vested in my pension and with plenty of savings.
I think what made me feel comfortable about retiring was moving to a less expensive area. I also found out pretty quickly that working actually costs quite a lot - $$ for gas commuting, clothing, lunches - and when you're retired you don't feel the need for spendy activities on weekends (YMMV.)
Still, I almost immediately got a part-time job in my field (I'm a librarian; lots of part-time work out there.) It wasn't about the money so much as about missing being part of the library world and interacting with other professionals.
That wore off after a couple years, and now I'm only working as a substitute.
It took me some time to adjust to retirement. I've not been bored; I'm more likely to put too much my plate :)
I love being retired and have discovered many new interests that cost little or nothing to pursue. And I hardly drive at all - hallelujah!
dado potato
12-10-18, 6:06pm
San Onofre Guy,
I would emphasize the need for planning/budgeting for health insurance between an "early retirement" date and age 65, when Medicare presumably will be available.
In my experience, the increases in premiums were double-digit annually.
Now, there may be a post-retirement health insurance benefit with your employer. It would be a good idea to ascertain how generous (or not!) your employer is. I believe there are school districts, for example, that continue to pay the entire premium for a principal or superintendent, but "freeze" the level of subsidy for a lower-level job retiree at the same dollar amount they contributed in the year the employee retired... so the lower-level retiree will pay premiums that will be greater every year until they enroll in Medicare.
I retired at 55, fully vested in my pension and with plenty of savings.
I think what made me feel comfortable about retiring was moving to a less expensive area. I also found out pretty quickly that working actually costs quite a lot - $$ for gas commuting, clothing, lunches
I am reading comments with interest as my target date is age 60-May 2021. I have nominal work expenses. My commute is a mere 6.5m each way. I buy a tank of guess about every 6 weeks. I work in surgery so no clothing expenses except shoes 1x/yr. And I've packed my own meals for my entire 37years with little exception.
San Onofre Guy,
I would emphasize the need for planning/budgeting for health insurance between an "early retirement" date and age 62, when Medicare presumably will be available.
I thought it doesn't start until 65.
Teacher Terry
12-10-18, 8:21pm
Yes Medicare starts at 65. I didn’t have a long commute and packed lunches. We didn’t get all dressed up because our clients were poor and it makes them uncomfortable and harder to establish a relationship. When we worked we were too tired to do stuff on the weekends. Now we spend more doing things because we have the time and energy.
dado potato
12-10-18, 8:26pm
Correct about the age Medicare starts. I will make an edit to my post.
My question for the OP is "do you really need 70% of your current salary?" I ask that because when I look at my personal situation the answer is probably not. Currently my out of pocket expenses are about 40% of my salary, my taxes are about 33% of my salary and the rest goes to savings. Yes, my health insurance cost would go up potentially a lot if I had to buy an ACA plan (haven't looked into how to tweak that via deffered earnings and such so that I'm eligible for subsidies but will when I get to that point) but everything else will stay the same or go down. (we plan to move somewhere cheaper at retirement so housing costs will hopefully go down by at least half, which is currently over 50% of my current spending.)
Before having a freakout I'd suggest look at your current expenses and your theoretical retirement expenses and then try to come up with a retirement spending plan that allows your same lifestyle given the changes to your day to day reality. (ie, more health insurance cost, less commuting and whatever else cost, and the same costs on eating out and etc costs)
San Onofre Guy
12-11-18, 12:28am
Thank you all for thoughtful advice. I know that I will be fine financially including health insurance. This is changed which is tough for me. I do feel this will happen in the next six months, I’m getting my head around having an open mind to see what new gig, full or part time has in store for me. The pluse is that my wife is emotionally supportive
I retired at 56 and have absolutely no regrets. Although some of the details of the YMOYL book are beginning to fade, I was and am a strong deliver in their philosophy around the real meaning of money it's relationship to the value of time. Among the folks I know who have considered leaving work early or just retiring is less what they might loose by leaving traditional work and more a fear of the unknown. If I could offer just one suggestion, it would be to write down or mentally decide how you are going to spend your new free time. If you have a plan, the unknown becomes more known. For me there was catch up on home projects and travel to places on my bucket list. For the longer term, there has to be some core activities that make you look forward to and wake up with a little excitement everyday, even on the most ordinary of days. But when you manage you own time, there are a lot of possibilities.
I retired at 56 and have absolutely no regrets. Although some of the details of the YMOYL book are beginning to fade, I was and am a strong deliver in their philosophy around the real meaning of money it's relationship to the value of time. Among the folks I know who have considered leaving work early or just retiring is less what they might loose by leaving traditional work and more a fear of the unknown. If I could offer just one suggestion, it would be to write down or mentally decide how you are going to spend your new free time. If you have a plan, the unknown becomes more known. For me there was catch up on home projects and travel to places on my bucket list. For the longer term, there has to be some core activities that make you look forward to and wake up with a little excitement everyday, even on the most ordinary of days. But when you manage you own time, there are a lot of possibilities.
And this is where I'm at. I don't plan to retire for another decade or so but I've already begun to think about what i'd like to do day to day on an ongoing basis once I no longer work. Yeah, the first month or so I'd probably like to just be lazy, read a lot of books, relish the reality of not needing to do anything. But after that I need to find something I want to do. I've got some ideas and over the next several years I'll keep pondering so hopefully I don't end up like my dad. He had no plans for retirement so he started offering advice to my mother, a decades long homemaker, on how to do her work better. It all worked out for my parents but I don't want to be "that guy".
I have vague recollections of the time management concepts Scott and Helen Nearing used. They had the day roughly divided into thirds. One third was sustenance for home improvements and food provisions, a third for self improvement, and a third for leisure. At least that is how I remember it, which may only be close. I can't say that I've followed something like that exactly, but it's a good concept. If a person can just include a few basics like learning about new things and new skills, exercising and more attention to healthy eating, giving back a little more to help friends and family or volunteer, and hopefully spending time with casual recreation and entertainment. The time has filled up for me just on a loose schedule of a few basic categories like that.
Gardenarian
12-15-18, 4:23am
He had no plans for retirement so he started offering advice to my mother, a decades long homemaker, on how to do her work better. It all worked out for my parents but I don't want to be "that guy".
I'm REALLY glad that DH is working. I enjoy my alone time and it has given me the space to figure out exactly what I want out of my life.
Retirement sure does change the relationship dynamics. For me, it's been for the better.
I could have written almost the same post, San Onofre Guy. I'm financially fine to retire in a few months, but the concept of spending rather than saving is very weird to me. And although I have gotten to the point of almost hating my job, I absolutely love that paycheck.
What has worked for me (though I recognize that it is less than optimal, mathematically speaking) is having a HUGE cash stash. Some of it will get invested immediately, but I will always keep 2-3 years of expenses in cash or near equivalents so that my Inner Bag Lady never has to deal with the prospect of selling off investments during extreme market downturns.
I also don't track finances as closely as I used to, which has also eased some of the anxiety I used to feel.
Hey Ihamo, nice to "see" you! I do exactly the same.
I also don't track finances as closely as I used to, which has also eased some of the anxiety I used to feel.
I'm not retired yet, but I've noticed I don't track as closely since my financial advisor told me I can jump any day I fee like it.
Teacher Terry
12-18-18, 2:51am
That’s great news!
San Onofre Guy
5-8-19, 12:58pm
I am currently on holiday in France and completely unplugged from work. I ran my numbers again last month and they are better than I thought they were and are well above monthly expenses which allow us to live very well, note we are in Paris on vacation. I think I will give notice next week to retire July 3. That will allow me to complete two annual projects and get people prepared
Teacher Terry
5-8-19, 1:00pm
That’s great news!
I am currently on holiday in France and completely unplugged from work. I ran my numbers again last month and they are better than I thought they were and are well above monthly expenses which allow us to live very well, note we are in Paris on vacation. I think I will give notice next week to retire July 3. That will allow me to complete two annual projects and get people prepared
Could you give us an on-site update on the Notre Dame while you are visiting Paris please? It does help to get away to get a better perspective on things at home or work.
Oh, wow! Two people today with retirement on the short horizon!! Congratulations, and good job! Early retirement on a comfortable stash. Awesome.
We just had our quarterly check-in with our financial advisor. We'll be 58 this month. I plan to retire in 2y and hubby wants to work to 65. Tyler told us we need to start spending money. That was quite a kick for us.:cool: We deny ourselves nothing. As most of you understand, we don't want much. So it's interesting to think about spending more.......
San Onofre Guy
5-10-19, 5:18pm
Norte Dame will be fine with a new roof and spire. I suspect that even though we would not like to have seen what happened, occur, in all likelihood all of these improvements were likely needed.
Paris is crowded and it isn’t busy yet.
i will have my date be July 5 in order to get holiday pay for the Fourth
What has worked for me (though I recognize that it is less than optimal, mathematically speaking) is having a HUGE cash stash. Some of it will get invested immediately, but I will always keep 2-3 years of expenses in cash or near equivalents so that my Inner Bag Lady never has to deal with the prospect of selling off investments during extreme market downturns.
To the bolded: I love this. It's up there with "Johnny Depp'in it"
frugal-one
5-17-19, 4:12pm
To the bolded: I love this. It's up there with "Johnny Depp'in it"
This went over my head.... what does this mean? Johnny Depp in it?
Retired about two months ago, so I ‘m still probably in the honeymoon phase. I may start working at a dramatically downshifted job at some point, but so far I really enjoy it.
Teacher Terry
5-27-19, 11:30am
I think it takes about 6 months to decompress. I really miss my teaching job but not enough to work for between 1-2k/semester instead of 8. I am doing some consulting but wish it was more.
rosarugosa
5-27-19, 2:47pm
Retired about two months ago, so I ‘m still probably in the honeymoon phase. I may start working at a dramatically downshifted job at some point, but so far I really enjoy it.
Congratulations, LDAHL! I somehow missed this.
iris lilies
5-27-19, 3:10pm
Congratulations, LDAHL! I somehow missed this.
He did not make a big splash, that is not his way:~)
I figured he left the workforce when he spoke once about downsizing his domicile, and then all of a sudden he is not around here very much because – retirement.
Wow! I missed it, too! Congratulations, LDAHL! Plenty of time reread William Buckley Jr books! And biographies of Reagan!
Wow! I missed it, too! Congratulations, LDAHL! Plenty of time reread William Buckley Jr books! And biographies of Reagan!
And the Mueller Report! :devil:
May you have a relaxed and fulfilling retirement!
frugal-one
5-27-19, 7:25pm
Congrats to the Best time of your life!
He did not make a big splash, that is not his way:~)
I figured he left the workforce when he spoke once about downsizing his domicile, and then all of a sudden he is not around here very much because – retirement.
It's true, I seem to be pretty busy for someone not productively employed. I certainly don't miss the alarm clock.
Teacher Terry
5-27-19, 10:27pm
It’s nice to catch up on all the projects you never had time for. Congrats!
iris lilies
5-28-19, 8:46am
It's true, I seem to be pretty busy for someone not productively employed. I certainly don't miss the alarm clock.
You will be constantly busy with things that you enjoy. Retirement is great! We are four years into it.
It’s nice to catch up on all the projects you never had time for. Congrats!
My wife had quite an extensive list. We are finishing up a fairly big renovation of an older house we bought in the new town. Hopefully within a month or two I will be able to devote more time to day drinking and philosophical inquiry.
iris lilies
5-29-19, 4:03pm
My wife had quite an extensive list. We are finishing up a fairly big renovation of an older house we bought in the new town. Hopefully within a month or two I will be able to devote more time to day drinking and philosophical inquiry.
The drinking hour has gone from 5 o’clock to easily 4 o’clock and once in a while 3 o’clock here in retirement. But I don’t have children for whom I have to set an example. :)
Every once in awhile, I chuck a jigger of brandy into my morning coffee-with-cream. Such decadence...
It is worth it! I did it on a pension of 60% but prepared to do so for a couple year prior. We paid off debts, eliminated balances on our credit cards and got rid of all but one major card (for emergencies ONLY). We set aside cash savings from no longer needed credit payments and purchased good quality tools to last us at least 20 yrs, preferably with care for longer. We then set a strict budget of what our retirement income would be and practiced living on less than that, setting surpluses aside in savings. If you have always been frugal, retiring is no biggie, it just lets you do more things frugal and hobbies more often (hunting, trapping, fishing & gardening are cheap for me, plus I freeze & can for the pantry). You also have time to seek out those senior citizen perks as you age into them....in my state over 65 gets FREE TUITION at state colleges (I was thrilled). If you have a hobby, get tools set up NOW so you don't have to pinch your budget later.
I was also a little apprehensive about retiring on reduced income pension. But I am glad I did so, and encourage you to do so as well. You can return to the person you were (and still are inside) before work responsibilities changed your life.
Teacher Terry
6-1-19, 11:32am
Kappy, I partially agree but some of us want to travel and have experiences that cost money.
We did too - it took real effort to downsizle from three cars, 6 credit cards, and the immediate grafitication lifestyle we had - 3 years worth of effort - but we found new ways to have fun on the cheap.
We found that if we saved for things instead of buying them when we first wanted them we weeded out a lot of impulse buys that we later would have regretted; and focused our actual purchases on fewer, better thought out items, of better quality. Learning to discern the differences between "wants" and "needs" is critical...and NOT easy. Sometimes you don't like the differences much, either, but you adapt.
As far as travel, there are ways to do so on the cheap. Senior citizens often are privy to discounts that rival the student discounts that many traveled on in their earlier years. I'd rather spend the money in a new place down in the market rubbing elbows with real folks and staying in a hostel with students, instead of in a fancy hotel where all you meet are obsequious staffers (with their hands out, no less). First class travel is nice, but other seats still get you there. Potluck gatherings are so much more interesting than catered dinners. Classic clothes from the resale shop cover you as well as 600 dollar suits & dresses. A KIA gets you down the road the same as a Lexus. Time to re-focus.
Part of the downsizing is learning ways to enjoy life on less, and lowering your standards to an affordable level. Yes, it took us 3 years, but we were glad we did it. Life is a journey, enjoy the challenges!
Teacher Terry
6-1-19, 2:28pm
We have always saved for what we wanted. We love cruises and Europe so I shop for deals and go off season. We book inside cabins on cruises. Potlucks are fun but we also love to eat out and no hostels for us. We have lots of festivals during the summer that we enjoy. We also have figured out where all the happy hour food is here.
We have always saved for what we wanted. We love cruises and Europe so I shop for deals and go off season. We book inside cabins on cruises. Potlucks are fun but we also love to eat out and no hostels for us. We have lots of festivals during the summer that we enjoy. We also have figured out where all the happy hour food is here.
It sounds like you are on the way to downsizing...the biggest part is the mind set and willingness to search for the best deals. Keep going and you will love retirement. Just jump in!
Teacher Terry
6-1-19, 4:06pm
We have been semi retired for 7 years and fully for a few months. I loved my job teaching a online college class but it ended. We have taken a lot of great trips. We are finished downsizing.
We did too - it took real effort to downsizle from three cars, 6 credit cards, and the immediate grafitication lifestyle we had - 3 years worth of effort - but we found new ways to have fun on the cheap.
We found that if we saved for things instead of buying them when we first wanted them we weeded out a lot of impulse buys that we later would have regretted; and focused our actual purchases on fewer, better thought out items, of better quality. Learning to discern the differences between "wants" and "needs" is critical...and NOT easy. Sometimes you don't like the differences much, either, but you adapt.
As far as travel, there are ways to do so on the cheap. Senior citizens often are privy to discounts that rival the student discounts that many traveled on in their earlier years. I'd rather spend the money in a new place down in the market rubbing elbows with real folks and staying in a hostel with students, instead of in a fancy hotel where all you meet are obsequious staffers (with their hands out, no less). First class travel is nice, but other seats still get you there. Potluck gatherings are so much more interesting than catered dinners. Classic clothes from the resale shop cover you as well as 600 dollar suits & dresses. A KIA gets you down the road the same as a Lexus. Time to re-focus.
Part of the downsizing is learning ways to enjoy life on less, and lowering your standards to an affordable level. Yes, it took us 3 years, but we were glad we did it. Life is a journey, enjoy the challenges!
Given the above description of your prior life, I totally understand why you can live on 60% of that. Our lifestyle has been "right sized" since we turned 49 and paid off mortgages.
I was a little nervous about retiring. I gave notice just before I turned 50, May 2007. I have no pension, just a 401k and after tax savings/investments. The next few years were definatly a bit of a concern due to the recession, but by then I had no desire to go back to work.
The last 12 years have been great, I could have continued working for a few more years and added quit a bit to my investments, but I’m still glad I did. I’m definatly not bored.
Powered by vBulletin® Version 4.2.5 Copyright © 2025 vBulletin Solutions Inc. All rights reserved.