What if you retire early (55), because you want to make the most of life, but 20 years later you realize your money is running out? How will you know (economically) when the best time to retire is?
When you're old enough to be unable to do your job.
You can't know. There will always be unforeseen events that will effect when you have enough. I think people who retire after working for a bare minimum amount of time are irresponsible.
Start by seeing a financial planner and run through a few scenarios.
My career field would allow for retirement at 44, but I don't plan on doing that
44? Are you in a danger? Military? Fireman?
Air Force. I'm not fully in just yet, but once I am, I'll be retirement eligible 20 years later.
My friend’s son is in too. He is a CCT guy. Got a Purple Heart in Afghanistan. You guys do amazing things.
You can safely retire early when you have all you need, have a stable regenerating income that will sustain the lifestyle and hobby interests you choose.
One area of retirement that can get missed is the financial planning for the time you can no longer repair or maintain things yourself and have to pay someone else to do it for you.
I missed this one, but was able to cover it sufficiently.
I could retire at 57 in my current job. Don’t know that I’d want to.
I retired at 55...I’m now 64
Honestly the best 9 years of my life...except for childhood
You need a good financial plan and planner
You also need to be fiscally responsible
As I plod towards retirement I’m tryin to lower my expenses as much as I can while I hoard as much cash as I can. For working class people....I don’t know how we can ever be sure to have enough. I won’t have a significant pension. SS can’t be counted on for gen x....and medical costs are spiraling out of control. Both my maternal grandparents lived well into their 90s. I’m just going as long as I can before calling it quits.
You need to do some financial planning and be willing to stick to the plan
I did a thorough spreadsheet with inflows, out flows, growth, etc. It has been right on.
I don't imagine I will get the chance.
See Zod’s reply below. Basically, create a retirement budget. The only problem is that you have to make assumptions, like how long you’ll live, rate of return on your investments, expenses, etc. just be conservative with all those assumptions.
No telling. The IRA accounts and some others I had were closed years ago. They were losing alot of money and I had been laid off. Had to use funds to stay afloat. I’m self employed now and have no money set aside. There’s nothing leftover each month to set aside right now and have no idea when there will be.
I don’t really know. I took early retirement to care for my mother 24x7. Do I worry about finances? Sure, but caring for Mom was more important.
I enjoyed working but retired at 66 as we were moving. Being bored I took another job after relocating but health issues forced me to retire again even tho’ I would have liked to continue working. I was fortunate to have had a wonderful career.
I retired a few months before I turned 52, about four years before reaching mandatory retirement age in my field. It felt like it was time. But I'd been planning for it my whole career, so there was never a question of whether I'd be able to "afford" to retire. I know what our expenses are, have a very good idea of how much they might increase over time, I know what my income in retirement is today, and can estimate how much it will be in the future. My pay in retirement is a lot less than it was when I was working, but my expenses (and especially the deductions from my pay) are a lot less too. The way to start planning is to look at what income you can realistically rely on, and be very realistic about projecting your expenses. The first should be bigger than the second.
Same thing could happen just as easily if you retire at 65. I guess you just have to go back to work, or be supported by family members. Not a pleasant situation to be in, I'd imagine.
You just don’t know.
I am planning on retiring at 65. I could possibly afford a couple years earlier, but, looking at my relatives, we have many who have made it into their late ‘90s, so I have to be mindful of that.
They live long on my side, my husband - they all had/have cancer.
You won’t know. Retire when it feels right. We did and are ‘living the life’ until money or health runs out.
I hope neither runs out!
You retire when your job is no longer fun. I am 67 and fine financially but still enjoy my job. Will stop when the health starts failing. (like Ruth Bader Ginsberg)
You are blessed!
I’m 56 and retired. So far, so good. With any luck, I’ll be dead in 20 years. And, I’m not kidding. 😕
Don’t say that. 56 is the new 36. Some women’s life’s start anew at that age.
Kay, I’m 76 and I still have a lot of life left in me. I hope to keep going for a long time.
You go Alice! 🏃🏻♀️🤸🏼♂️
Unfortunately, the last couple of weeks, I’ve been so, so depressed. I just don’t care about anything. I’m honestly struggling just to get through each day right now. 😞 I’m starting different meds tomorrow. I hope they help. Any and all prayers are appreciated.
I’m so sorry, Kat! Please take care of yourself.
Are you taking to somebody about your depression? Meds alone may not be the complete solution.
Yes, I’m doing a faith based group therapy. But even that’s not helping much lately. I have a meeting tonight. Hopefully, it will help. Right now, I need to get discovery done for my divorce. And I think that’s the crux of my deep level of depression and grief.
I'm retiring in two years at 55. I'll have a good pension and we also have some other funds. I'm not worried.
Teacher’s pension. Very lucky. Most jobs don’t have pensions.
True, but we don't get social security and I've paid a ton a money into the system over 30 years. So, it's not like free money or like I get my pension plus social security.
But, I'm grateful for what I do get.
I didn’t know that about SS but yes teachers work very hard - at home too.
Yes, but still more fortunate than many since I can retire at 55.
Absolutely. It’s wonderful. And how does it work with health benefits?
As incentive to retire, my school will pay for my health insurance for 10 years until I turn 65 and qualify for Medicare. We'll have to buy my husband's.
When can you retire? I think you are younger than me though.
I work part time so I’ll stay with my dentist until he goes. After that, who knows.