retirement in this economy

[hurricanegirl]

Since I just turned 60, and was "involuntarily retired" when my place of employment closed two years ago..........
I am real interested in hearing how others are doing.
I personally have a small pension,,,moderate investments and savings, and anticipate approx 1500 mo SS at age 62. DH nets 1250 SS after medicare and 25% tax deductions (voluntary) I have 0 debt and live in a HCOL area (northeast)
Are there any retirees in a similar situation?
What suprised/caught you unaware?
What advise can you offer?
Thanks to all who respond

[Bluerobin]

Hurricanegirl, I retired several years ago, still not SS eligible. I also got a small pension, which covers health care costs. I switched my investments from growth to income. Go to Start Investing and look for Disinfranchised Investor's list on the Income Investing thread. I have a bunch of those stocks. It is a place to start, but do your own due dilligence.
When the bride and I (she had retired 2 years before as a test - we always planned to go early) were both retired, many expenses were eliminated. The Gasoline bill was cut by almost 2/3. The clothes budget was also cut.
You can do it. Try not to spend down the savings, just spend the income. If you have to spend nest egg, the cash should go first - investments still are growing.
What caught me unawares, was the inflation that the govt denies. I just switch investments to cope with that.

[mtshastawriter]

The biggest issue I see in retiring early is that health insurance can eat you alive with costs. Even if you get a high deductible plan and are healthy, one major illness and it can really eat at your investments...

I am only 41 but I can't work outside the home because of my ill spouse. I am hoping for single-payer health care before I retire. I hate the idea of having to get a "real job" because that's the only practical way to get health insurance. I like freelancing and would like to see a day where health care and your employer have nothing to do with each other.

[mudflap81]

Friends of my parents planned on downsizing their house and trading in both cars for one paid in cash when the husband was planning on retiring in a few years. He was unexpectedly "retired" this year by the now non-existent company. I wasn't told what they're doing about it, I would guess the car plan could happen now (winter is great to buy a car), but winter in the northeast isn't the best time to sell and buy a house.

[WannabeWealthy]

I also fear this when I retire. Thankfully, I have the VA for my healthcare premiums. We will have to figure out what to do with my wife at that time. My daughter will be grown and have her own insurance at that time.

[cronewitch]

I want to work to 65 to keep medical but if I can't I could retire at 63.5 then coast out on COBRA.
I reached my retirement savings goal a month or so ago and if investments do well it could be more than I could spend. My investments were up 73K so far this year but that was a really good year. I need about 20K from investments so should get that from 500K. I get money from a roommate but never really count on that to cover my cost, it is spending money.

[Wisconsin Beth]

My dad retired at 62 I think. Mom at 65. I'm not completely in the loop on their finances but health insurance and meds are probably their biggest expense - I think Mom's pension check is completely going for health insurance. And while my Dad had a fairly serious stroke last Dec, they're in pretty good health and their medicine co-pays every month aren't God-awful.

I think the hardest part about planning for health insurance during retirement is the fact that it's all unknown. Will you have an expensive, major health issue? Will you need lots of preventative medicines? How much will health insurance cost? Sadly, no one has a working crystal ball... Although my Magic 8 ball suggests that I "try again later"

[Deleted]

What advise can you offer?


hurricanegirl to put it simply, I'd look for a LCOL area to move to. I know you like your area but sooner or later your going to get tired of the high cost of everything (& living). We live in a LCOL area & a dollar goes pretty far. Also if you own your house you can sell it & pay cash for something just as good & pocket the difference.

[cronewitch]

Tex moving to a low cost of living area where you don't know anyone would be really hard for most of us. I know I could move to the middle of Kansas or Nebraska and get a really nice house for half what mine cost but it would mean giving up my life to exist there.

Mom is 84 so if I leave she would have one less person to take care of her and I wouldn't get home more than once or twice a year. Leaving where I have family would be the worst part because I like being around them. I can't imagine being more than 300 miles away when I am mom's age and can't drive anymore and all alone. Even here in a nursing home I would see someone sometime that was family but if I was several states away nobody would even know if I died.

[NastyWoman]

I second Crone's sentiment even if I don't have an elderly mother to care for ---unfortunately :-(