Anyone retire a few years before taking SS and pension

[Looburst]

56 now and almost retired last year, after a big check showed up. That said, after much contemplation, mulling over the ins and outs of retirement, I decided it was still a bit early because in my field, I'm still very much in demand.
So I'm giving it another four years maybe and then we'll see what happens.

[Guitars+gems]

Originally Posted by ahorsewithnonam

Beautiful Denise. Yes, I am ready. Very fortunate and thankful to have no debt and two homes. Working with my Fidelity team, they told me I can quit anytime. I'm just wanting to build up more money to give to our kids and grandkids. Working 2 additional years probably wouldn't change things that much for them. Man, I'm feeling better already!

Thanks for the responses and some of your stories, love hearing them.

Your kids and grandkids would rather have more time with you than more of your money. This past summer I spent a month in Florida learning to rock climb in a climbing gym with my son and granddaughter. This month they were here for 2 weeks and we climbed in Joshua Tree. Actual big rocks! Me! I'm 65! I couldn't have done that if I'd worked until I was 65, because I'd have been too tired and worn out!

[6L6]

Fully retired at 58 and I'm now 71.

It was the best thing I've ever done. I had to wait for two years for my USAF pension and medical to kick in and then took SS at 62. I was far enough ahead with my investments that I had no worries.

Frankly, it IS hard to give up the good checks. But if you can stay comfortable and make ends meet, get out while you're still alive.

[BrunoBlack]

I understand completely Horse. I retired at 63 primarily because I no longer enjoyed going in and doing a job I once loved. I suppose I burned out, but it was more complicated than that. It's been 1-1/2 years now and it was a terrific decision for me. It took me a full year to deprogram myself from the work "habit" and finally realize it was ok to not think about productivity goals and personal achievements. It's funny what ~50 years of work will do to a mindset.

I think Rich nailed it from my perspective when he said: "I had to learn a few things about how to relax, how to let more ease into my life, and how to identify things that felt like worthwhile applications of my time and energy. It took me nearly 3 years to learn some of what I needed to learn to fully enjoy my freedom."

I'm still not quite there, but I'm (not) working on it. My wife is retired, we have 7 grandkids, many hobbies & interests, and all the time we could ever want to do the things we want to do. I would like to contribute more of my time and energy to some worthy service, but haven't found that match yet. Sounds like you are ready to say goodbye to the piles of sales data hanging over your head. Good luck. There's a whole world waiting for you.

[Kerbie]

Great topic and very relevant for me. I'm almost ready to retire early... probably in the next 6 months. My pension is laughable after being slashed to almost nothing following 9/11, but I'm glad I was wise enough to max my 401(k) for years. I'm tentatively planning to take SS at 65. My thanks to all who have shared their stories!

I hope there is a lot of golfing and guitar playing in my future retired life.

[ahorsewithnonam]

I love this thread there are many of us that are in about the same age group we're learning from those that chose early and the emotions involved with it I might print out this whole thing and keep it with me

[RP]

As others have said in similar threads, post retirement finances have two aspects. One is income and the other is spending. Even if you haven't done a great job preparing for retirement, that doesn't rule out enjoying your "golden years." Not being a homeowner, I opted to move after retiring and lower my overhead by a couple of hundred dollars a month while upping my lifestyle a bit. I realize that we're a culture that routinely jokes about the conscious (and unconscious) acquisition of instruments that can be pretty pricey. But there are still a lot of spending practices that can be altered to not only make it but even flourish in retirement.

1) Be proud to ask for Senior discounts at movies and restaurants - you earned them

2) Forgo going out to movies and wait til it comes out on video

3) Plan to keep your car longer if you're someone who has leased or frequently traded in.

4) See if you're eligible for any cell phone discounts or if you can get by with less expensive features.

5) Give up your land line if you really don't need it.

6) Decrease the amount you eat out.

7) Check to see if you can get less expensive car insurance.

8) Check your options for TV and internet and see if there's a less expensive alternative.

9) Look for inexpensive entertainment and/or reduced/free college classes. Borrow library books rather than purchasing.

10) Go to Open Mics and order water or soda. For that matter, use this as an opportunity to give up expensive, unhealthy substances...

[harpspitfire]

my advice is im a dumb squat, you should talk to your financial advisor- but SS at 62 works out to around 11 years (maybe more) before you start to lose some if you took at at 65- but every month you waits adds to SS early retirement- like 62 and 6 months means a higher income and adds time to the '65' catch up time, take the pension- if its anything decent it should increase a bit yearly anyway, your actually further ahead with early SS and pension if you find a part-time job- even if you might over the max amount and reach a reduced SS, no big deal, in some instances your SS can even be re-figured at 65- food for thought, if you wait till 70 like some people do for the max, it works if have an active lifestyle until around age 90, anyway, my wife and i both took ours and a bit after 62 and have regrets

[SMan]

I turn 62 on the 29th. I start SS next month. Having been on the receiving end of a "medical device" retiring early at 57 (and getting away for as much stress as possible) was the best decision I ever made. Absolutely no regrets. YMMV

[Rip VanWinkle]

Horse....I think you've got a name now...."retired horse with no name" You know what to do. I did it when I was 62. I like to tell people I have a new career in "Personal Wealth Management" I've got a very select client base...me and my wife LOL. I'm going to wait four more years until I'm 68 for SS because my wife is six years younger than me and I think it may really benefit her. Unless the market goes to merde for several years we should be fine. I've already taken some chips off the table and payed for this year plus some home improvements. if things do go bad, I can always file for SS.

[Captain Jim]

We retired 10 1/2 years ago, two weeks before my 53rd birthday. We were business owners, had done well, put away money for "retirement"... but you can't take money out of retirement accounts before age 59 1/2 without a substantial penalty.

We sold a commercial property and a large home, and used that money to live on for most of those years. You sold the "nest egg"?? Yep. We went boat cruising for several years, spent more time RVing. We have a small home, but mostly we traveled... being able to do things physically that we weren't sure we could do in our "golden years."

You will have a baseline of expenses that will be there no matter what you do (insurance, real estate taxes, etc), so you have to decide if you can live within your means without a regular check coming in. We ran the numbers. Then, made it work.

No regrets. Approaching mid-60s, I am having some back and hip issues that would have made it less possible to do the things we have done the past decade.

For full disclosure, a few years into retirement, after being offered jobs regularly, we were offered boat jobs that my wife did not want to pass on (I have a master license). We have done seasonal "fun jobs" for 8 years, that have added nicely to the cruising kitty while allowing us to be in some pretty spectacular places at the best season.

The rest of the year, we spend a couple months around our "vacation home," then travel. We spend a couple months where our daughter lives, enjoying the area, occasionally volunteering in her classroom (she and her husband are both teachers). We have boat cruised and RV traveled all around the US and Canada.

We are not wealthy. We know what our annual expenses are and live within those. Healthcare (insurance) is our single biggest expense.

The hardest part of all this is: committing to do it. Walking away from a good income. We had no debts (this is key). A spirit of adventure. The knowledge that you can make more money, but you can't make more time.

Good luck with the decisions.

[Mandobart]

This is something I think about a lot. I'm in a good spot financially - our home has been paid off for many years. We have no car payment. We spend a lot less than we make and carry no credit debt. I work in public power and will receive a defined benefit pension from the state, plus 401k that I contribute the maximum allowed to and maybe social security if it stays solvent. I live in Washington state which had a pre-paid college tuition program that we used to finance our two kids' college education. My son finishes up this spring and my daughter still has three years to go. They will graduate debt-free.

So, financially the ducks are aligned. In two years I will be eligible for retirement at age 55. If I take it, my monthly pension will be reduced by over 60% for the rest of my life (that reduction is less each additional year I work and zeroes out if I retire at 65). Also, I can withdraw from my 401k penalty free at 55 if I quit working. My current plan is to keep working until my daughter completes college (I'll be 57). Then probably draw the 401k until I'm 65 and can retire with no pension penalty. If SS is still there I'll probably hold off to maximize the income from it (I've been working and paying into it for nearly 40 years). I have a couple questions:

1. Health care is the wild card. Now I share the cost with my employer. When I quit working its all on me. What have all you early retirees found for affordable health coverage?

2. I've known a couple people who retired early and found they couldn't make it. Is there anyone reading this who regretted retiring early?

Thanks and peace to all.

[RP]

Originally Posted by Mandobart

I have a couple questions:

1. Health care is the wild card. Now I share the cost with my employer. When I quit working its all on me. What have all you early retirees found for affordable health coverage?

2. I've known a couple people who retired early and found they couldn't make it. Is there anyone reading this who regretted retiring early?

Thanks and peace to all.

It sounds like you've done an outstanding job planning for retirement. It might be worth having a pre-retirement conversation with your employer's HR person to see what is possible regarding healthcare once you do retire. I retired as a Virginia state employee at 60 and was able to retain my same healthcare coverage after retiring, on my dime, of course. Once I hit 66 and Medicare kicked in, my health care costs went down considerably and keeping my state coverage as my gap coverage was seamless. I think you'll do just fine...

I think a good follow-up question is: Was there ever anyone on their deathbed who regretted not spending more time at work???

[Gitarre]

I retired 8 years ago at 51 from a traditionally stressful career. It was one of the best choices I've made. I can only echo much of the advice others have given you on considerations and preparations. On the side of relieving the stress that works on you, I can say it's a new lease on life. It takes a while, and I mean years for some things, to learn to completely relax. But my health has definitely improved and I have always been fit. The sleeping is the best when you can finally let go of a career of pressure and stress. Everything improves. If you can do it and still secure your financial future, do it. Enjoy your life.

[lfoo6952]

Horse:

I am about the same age, so I can relate. If you are unsure if you should retire, have you considered working at the same company but on a part-time basis, if they allow it? My company has allowed me to reduce my work hours (with a pay cut of course) from 40 hrs/week to 32 hours/week, and it has reduced my stress level. I am happy I made that decision. Your mental health is more important than the money.

Luke