Retirement Musings and Budget

[resolution]

I have been toying with the idea of retiring for the past few years. Now the manager that I really like has left, and I am having trouble giving the benefit of the doubt to the new manager. I am 53 and my husband is 42. He doesn’t plan to retire until he is in his 50s, but I don’t want him to feel stuck or like he’s the only one carrying the whole load for our family.

Current Monthly Income

               Gross   Net

Me:          4700    2300
Rental      2100    1400
Husband: 7060     5200
Total      13860   8900

Current Expenses

IRA 1000
brokerage 1000
mortgage 1495
electric 150
heat 300
water/sewer 35
internet landline 90
cell phones 35
gas for cars 200
auto insurance 67
umbrella insurance 25
auto expenses 100
groceries 600
cats 100
dining out 350
donations 900
video games 100
misc spending 300
house renovations 2000
total 8847

If I retire now, my pension would be 2800 per month. We would have to cut around $700 a month from the rest of the budget for health insurance and taxes.

We have about 750k in stocks/bonds, which will theoretically grow enough to allow my husband to retire in his early 50s. Our rental is paid off and could be sold for around 400k if we wanted to forgo the rental income. My pension would continue for my husband’s lifetime if I die first. We will both be eligible for social security, a long time from now.

Part of me is thinking I can retire and we can just slow down the house renovations and cut donations a bit, but part of me thinks that disaster may strike once I’m on a fixed income. I can collect the pension while I work somewhere else, so I know the smart thing would be to retire and get another job, but I don’t want to start over again.

So would it be horrible for me to retire? Or should I keep working until my husband is closer to being able to retire too? I have 1k per month coming out of my checks pre tax for a 457 account, so I know its really more than the $700, but when I look at the difference between my net pay and the pension, sometimes it feels like I am working for just a few hundred dollars a month. 

[CCL]

I vote for retiring. You can always find another job at some point, if you choose.

[nidena]

Of that $700 that needs to be cut, how much would occur naturally due to you not working?  Like, will your gas and auto expenses go down because you're driving less?  Would groceries and/or dining out be less because you don't have to factor in at-work lunches?

[resolution]

Apr 3, 2023 20:28:47 GMT -5 nidena said:

Of that $700 that needs to be cut, how much would occur naturally due to you not working?  Like, will your gas and auto expenses go down because you're driving less?  Would groceries and/or dining out be less because you don't have to factor in at-work lunches?

I telecommute full time, so there would be no savings for job related expenses. I would likely see my spending go up since I would have more free time.

[Pink Cashmere]

I probably shouldn’t reply to this post, and you probably shouldn’t listen to me, because I am going through some things that make me biased. Having said that, I feel like anybody that wants to retire and can make the numbers work, should go for it.

I understand not wanting your DH to feel any kind of financial pressure because you’re retired and he’s still working, but even if you retire, you’ll still have some income. The only question is, will that income be enough for the lifestyle you and he want.

I’ve asked Mister several times, what my income needs to be for me to retire. He doesn’t really think I’m serious when I ask him that, but I kind of am serious. Even before I met Mister, I’d realized that I wanted to retire asap, the minute I could make the numbers work for me to at least be comfortable in retirement. That is why I decided to make what I’d intended to be my “starter” home, my “forever” home instead, and why I’ve successfully fought “new car fever” and kept my car so long. I wanted to retire asap more than I wanted to buy another house or a new car before it became a necessity.

Mister is younger than me, and unless something extraordinary happens, good or bad, he’s going to still be working after I retire.

I agree with CCL, if you go ahead and retire, you can always find another job if you decide you need to or just want to.

[resolution]

Apr 3, 2023 20:35:35 GMT -5 Pink Cashmere said:

Even before I met Mister, I’d realized that I wanted to retire asap, the minute I could make the numbers work for me to at least be comfortable in retirement. That is why I decided to make what I’d intended to be my “starter” home, my “forever” home instead, and why I’ve successfully fought “new car fever” and kept my car so long. I wanted to retire asap more than I wanted to buy another house or a new car before it became a necessity.

Part of my hesitation is that we made the opposite decision on the house a couple of years ago. We sold our inexpensive house that had been totally renovated and was almost paid for, and bought a more expensive project house that had some features I wanted and a dream shop for my husband. At the time I decided I could work for a few more years to help cover some of the renovation expenses.

But we have already paid for the largest expenses, and we don't have any more big items planned. We may want to insulate at some point, but its not necessarily a good idea for an old wood house, and we may replace the 50 year old furnace, but its been chugging along almost as long as I have been alive.

[Pink Cashmere]

Apr 3, 2023 20:53:31 GMT -5 resolution said:

Apr 3, 2023 20:35:35 GMT -5 Pink Cashmere said:

Even before I met Mister, I’d realized that I wanted to retire asap, the minute I could make the numbers work for me to at least be comfortable in retirement. That is why I decided to make what I’d intended to be my “starter” home, my “forever” home instead, and why I’ve successfully fought “new car fever” and kept my car so long. I wanted to retire asap more than I wanted to buy another house or a new car before it became a necessity.

Part of my hesitation is that we made the opposite decision on the house a couple of years ago. We sold our inexpensive house that had been totally renovated and was almost paid for, and bought a more expensive project house that had some features I wanted and a dream shop for my husband. At the time I decided I could work for a few more years to help cover some of the renovation expenses.

But we have already paid for the largest expenses, and we don't have any more big items planned. We may want to insulate at some point, but its not necessarily a good idea for an old wood house, and we may replace the 50 year old furnace, but its been chugging along almost as long as I have been alive.

This is why I say you probably shouldn’t listen to me lol…… despite all the things I would like to do to our house, including fully furnishing it if we can ever get to that after all the expensive but necessary repairs that keep popping up….. I would rather retire than try to complete my “wish list” for my house.

If I retired tomorrow, I would rather spend whatever “extra” money we have, traveling to somewhere I’ve never been, than spend it on buying furniture for my empty living room or whatever. So I am very aware of the choices I might have to make if I retire asap, but I value the freedom of being retired over having my house be “perfectly” furnished and decorated like I’d like, even though I’d love for my house to be and look a certain way. As much as I love cars, I’d rather retire asap than spend a lot of money on a car I really want. 

I am just really tired. The years I describe as the worst years of my life, really took a toll on me, that I’ve still not been able to fully recover from. It seems like just keeping my head down and getting through those years sucked up all the tolerance I had for just keeping going through whatever, and spending most of my time doing shit I’d really rather not do. I am really over it, but I can’t figure out what to do instead, to still be an independent, self supporting adult. Mister is not the answer, I need to be able to take care of myself with or without Mister.

So that is the kind of junk I was referring to when I said you probably shouldn’t listen to me.

[CCL]

Hubby retired early in 2013. Occasionally he'll wonder about all the extra money he could have made if he had kept working. I'll tell sure we could have more money, but where are we gonna get 10 more good years? I figure as long as we don't run out, we have plenty.

[CCL]

Apr 3, 2023 21:48:45 GMT -5 Pink Cashmere said:

Apr 3, 2023 20:53:31 GMT -5 resolution said:

Part of my hesitation is that we made the opposite decision on the house a couple of years ago. We sold our inexpensive house that had been totally renovated and was almost paid for, and bought a more expensive project house that had some features I wanted and a dream shop for my husband. At the time I decided I could work for a few more years to help cover some of the renovation expenses.

But we have already paid for the largest expenses, and we don't have any more big items planned. We may want to insulate at some point, but its not necessarily a good idea for an old wood house, and we may replace the 50 year old furnace, but its been chugging along almost as long as I have been alive.

This is why I say you probably shouldn’t listen to me lol…… despite all the things I would like to do to our house, including fully furnishing it if we can ever get to that after all the expensive but necessary repairs that keep popping up….. I would rather retire than try to complete my “wish list” for my house.

If I retired tomorrow, I would rather spend whatever “extra” money we have, traveling to somewhere I’ve never been, than spend it on buying furniture for my empty living room or whatever. So I am very aware of the choices I might have to make if I retire asap, but I value the freedom of being retired over having my house be “perfectly” furnished and decorated like I’d like, even though I’d love for my house to be and look a certain way. As much as I love cars, I’d rather retire asap than spend a lot of money on a car I really want. 

I am just really tired. The years I describe as the worst years of my life, really took a toll on me, that I’ve still not been able to fully recover from. It seems like just keeping my head down and getting through those years sucked up all the tolerance I had for just keeping going through whatever, and spending most of my time doing shit I’d really rather not do. I am really over it, but I can’t figure out what to do instead, to still be an independent, self supporting adult. Mister is not the answer, I need to be able to take care of myself with or without Mister.

So that is the kind of junk I was referring to when I said you probably shouldn’t listen to me.

How long til you can retire with your pension?

[resolution]

Apr 3, 2023 21:48:45 GMT -5 Pink Cashmere said:

I am just really tired. The years I describe as the worst years of my life, really took a toll on me, that I’ve still not been able to fully recover from. It seems like just keeping my head down and getting through those years sucked up all the tolerance I had for just keeping going through whatever, and spending most of my time doing shit I’d really rather not do. I am really over it, but I can’t figure out what to do instead, to still be an independent, self supporting adult. Mister is not the answer, I need to be able to take care of myself with or without Mister.

I had a similar experience and exhaustion about 15 years ago which nearly broke me, but I was able to transfer to a different job within the same pension system that was much lower stress. It took me about a year to find the right position and get the transfer approved, but life was so much better afterward.  I hope that you are able to find a solution that is more tolerable than your current position, or to arrange things so you can retire soon.

I wasn't seriously considering retirement until some recent management changes that have injected a lot of tension and insecurity into my team. One of my coworkers was having an anxiety attack today, and I feel guilty that I am considering just leaving instead of trying to help the team adjust.

[resolution]

Apr 3, 2023 21:51:34 GMT -5 CCL said:

Hubby retired early in 2013. Occasionally he'll wonder about all the extra money he could have made if he had kept working. I'll tell sure we could have more money, but where are we gonna get 10 more good years? I figure as long as we don't run out, we have plenty.

I keep thinking if I retire I will be better about working out and have a healthier lifestyle. Right now I am going to the gym three days a week but I haven't lost any weight and don't really devote any other time to fitness. So in theory I would have more time to exercise and cook healthier foods, but realistically I don't know if I would follow through on that, or if I would devote my extra time to extra snacking.

[Pink Cashmere]

Apr 3, 2023 21:54:43 GMT -5 CCL said:

Apr 3, 2023 21:48:45 GMT -5 Pink Cashmere said:

This is why I say you probably shouldn’t listen to me lol…… despite all the things I would like to do to our house, including fully furnishing it if we can ever get to that after all the expensive but necessary repairs that keep popping up….. I would rather retire than try to complete my “wish list” for my house.

If I retired tomorrow, I would rather spend whatever “extra” money we have, traveling to somewhere I’ve never been, than spend it on buying furniture for my empty living room or whatever. So I am very aware of the choices I might have to make if I retire asap, but I value the freedom of being retired over having my house be “perfectly” furnished and decorated like I’d like, even though I’d love for my house to be and look a certain way. As much as I love cars, I’d rather retire asap than spend a lot of money on a car I really want. 

I am just really tired. The years I describe as the worst years of my life, really took a toll on me, that I’ve still not been able to fully recover from. It seems like just keeping my head down and getting through those years sucked up all the tolerance I had for just keeping going through whatever, and spending most of my time doing shit I’d really rather not do. I am really over it, but I can’t figure out what to do instead, to still be an independent, self supporting adult. Mister is not the answer, I need to be able to take care of myself with or without Mister.

So that is the kind of junk I was referring to when I said you probably shouldn’t listen to me.

How long til you can retire with your pension?

7 years. Unless they offer an “early out”, which I would finally be eligible for as of February of this year. Those offers let you retire earlier, with at least 25 years of service, if you are at least 50yo, without the penalties you would have otherwise. They have offered it a few times during my career, and at least once with cash incentives, but it’s been at least 10 years since the last time it was offered for the worker bees like me. It was offered a couple of years ago for people that worked in upper management, like at our headquarters.

[giramomma]

What's your plan for health insurance after your DH retires?

Do either one of you have any workplace benefit that covers retiree health insurance premiums?

I do at my workplace, but it's only about 4 years worth of premiums. We're looking at about 125K in health insurance premiums from 60-65.  At this point, I'm retiring at 56 and taking my full pension. I'll need to find some part time work to save up money towards that 125K. I don't want to retire and then spend that money down right away in early retirement. And, basically, we have similar assets to you.

I don't always know that it's easy just to go out and get a new job, either. I couldn't even get a second interview for a job that was in my wheelhouse and what I spent most of my time doing 10 years ago. It was clear when I opened my mouth that I was way over qualified for what they were looking for. 

[The Walk of the Penguin Mich]

Apr 3, 2023 23:30:22 GMT -5 giramomma said:

What's your plan for health insurance after your DH retires?

Do either one of you have any workplace benefit that covers retiree health insurance premiums?

I do at my workplace, but it's only about 4 years worth of premiums. We're looking at about 125K in health insurance premiums from 60-65.  At this point, I'm retiring at 56 and taking my full pension. I'll need to find some part time work to save up money towards that 125K. I don't want to retire and then spend that money down right away in early retirement. And, basically, we have similar assets to you.

I don't always know that it's easy just to go out and get a new job, either. I couldn't even get a second interview for a job that was in my wheelhouse and what I spent most of my time doing 10 years ago. It was clear when I opened my mouth that I was way over qualified for what they were looking for. 

This is probably low, unless you are eligible for subsidies.  When we were looking last year, the cost (no subsidies) was about $1300/person/mo.  The insurance was crappier than TD’s employer’s plan.  I’d figure $3000/mo for a couple, so $36k/year.

[giramomma]

Apr 3, 2023 23:53:55 GMT -5 The Walk of the Penguin Mich said:

Apr 3, 2023 23:30:22 GMT -5 giramomma said:

What's your plan for health insurance after your DH retires?

Do either one of you have any workplace benefit that covers retiree health insurance premiums?

I do at my workplace, but it's only about 4 years worth of premiums. We're looking at about 125K in health insurance premiums from 60-65.  At this point, I'm retiring at 56 and taking my full pension. I'll need to find some part time work to save up money towards that 125K. I don't want to retire and then spend that money down right away in early retirement. And, basically, we have similar assets to you.

I don't always know that it's easy just to go out and get a new job, either. I couldn't even get a second interview for a job that was in my wheelhouse and what I spent most of my time doing 10 years ago. It was clear when I opened my mouth that I was way over qualified for what they were looking for. 

This is probably low, unless you are eligible for subsidies.  When we were looking last year, the cost (no subsidies) was about $1300/person/mo.  The insurance was crappier than TD’s employer’s plan.  I’d figure $3000/mo for a couple, so $36k/year.

At my job, retiree health insurance premiums are like 2K a month before you get on Medicare. Then they drop to 1K. This has held steady for a good decade or so now, just like health insurance costs for those that are working. Our retirement system is very transparent, and when they update benefits for enrollment every year, they also update costs for retirees.

[resolution]

Apr 3, 2023 23:30:22 GMT -5 giramomma said:

What's your plan for health insurance after your DH retires?

Do either one of you have any workplace benefit that covers retiree health insurance premiums?

I do at my workplace, but it's only about 4 years worth of premiums. We're looking at about 125K in health insurance premiums from 60-65.  At this point, I'm retiring at 56 and taking my full pension. I'll need to find some part time work to save up money towards that 125K. I don't want to retire and then spend that money down right away in early retirement. And, basically, we have similar assets to you.

I don't always know that it's easy just to go out and get a new job, either. I couldn't even get a second interview for a job that was in my wheelhouse and what I spent most of my time doing 10 years ago. It was clear when I opened my mouth that I was way over qualified for what they were looking for. 

Health insurance is the biggest potential issue. I plan to buy it from the exchange, which right now would run $1000 per month without a subsidy. The pension is $500 per month more than my current net pay, and I would pull the additional $500 a month from the house renovations budget. That would still leave us about $1500 per month for renovations, but over time as health insurance goes up our spending on the house would have to go down.

My pension is not indexed to inflation, but it does have occasional increases based on investment returns. The rental income has been increasing with inflation, but that increase is unlikely to be enough on its own to keep up with insurance premiums.

[resolution]

My retirement plan does offer insurance, but it's a lot more expensive than the exchange, until we hit Medicare age. Once we hit 65 we would get the Medicare advantage plan from my retirement system, which would be covered by a supplement.

[Rukh O'Rorke]

On the one hand, I would say the finances were a little tight to retire - but on the other - your pension is higher than your take home pay! I'm sure that has a lot of benefits being paid for as well, but it make this much more doable to my POV.

That said - what is your AA and where would you pull any extra money needed for budget shortfall? Are you going to have irregular expenses like larger vacations, and where will you pull that money from?

If you do decide to retire - what is your time frame? Two weeks notice yesterday - or getting ducks in a row for another 3-6 months?

How is your pension calculated? Is there another milestone you could make before retiring? That isn't a year away?

[resolution]

Apr 4, 2023 9:09:25 GMT -5 Rukh O'Rorke said:

On the one hand, I would say the finances were a little tight to retire - but on the other - your pension is higher than your take home pay! I'm sure that has a lot of benefits being paid for as well, but it make this much more doable to my POV.

That said - what is your AA and where would you pull any extra money needed for budget shortfall? Are you going to have irregular expenses like larger vacations, and where will you pull that money from?

If you do decide to retire - what is your time frame? Two weeks notice yesterday - or getting ducks in a row for another 3-6 months?

How is your pension calculated? Is there another milestone you could make before retiring? That isn't a year away?

I agree it seems tight to retire, but my pension is more than my take home, which makes me sometimes wonder what the heck I am doing working every day!  Asset allocation is 90/10 stocks/bonds, which I know is very risky, but with the pension and the rental income I figured we could stand some more risk.

What I didn't include in the budget is my husband usually gets a Christmas bonus of around 10k, and my parents usually gift us 5k every Christmas, so we have been using that money for trips and saving up for new cars and such. If he retires in his early 50s, I won't be far from being eligible for social security, which could replace the bonuses as fun money, and once i am Medicare eligible, health insurance will go down.

Also the 2k per month for renovations isn't that set, since our expenses are generally big lump sums, like we paid 50k to scrape and paint, 40k to add ductwork and air conditioning, 20k for storm windows, etc. So I just assigned the extra 2k we have every month to renovations, since that is where our extra money keeps going. We don't really have a schedule for future renovations, it will take another year for my husband to finish the window project and that is all paid for. Other than that, we will want to replace the roof in about 10 years and he wants to make a gothic library, but we have massive piles of lumber in the woodshop already.

As far as pension formulas, it is 2.3 x years of service, and I have 30 years. But there is a pretty substantial reduction because I want it to cover my husband after I die, and he is 11 years younger. So every year I work it goes up, but the reduction also goes up because the difference in our life expectancies increases. The net effect is for every additional year I work, it will go up by around $100 per month. I still may keep working for a few more years before I retire, this is just something that I am considering more seriously than before due to some changes at work.

[Rukh O'Rorke]

Apr 4, 2023 9:32:45 GMT -5 resolution said:

Apr 4, 2023 9:09:25 GMT -5 Rukh O'Rorke said:

On the one hand, I would say the finances were a little tight to retire - but on the other - your pension is higher than your take home pay! I'm sure that has a lot of benefits being paid for as well, but it make this much more doable to my POV.

That said - what is your AA and where would you pull any extra money needed for budget shortfall? Are you going to have irregular expenses like larger vacations, and where will you pull that money from?

If you do decide to retire - what is your time frame? Two weeks notice yesterday - or getting ducks in a row for another 3-6 months?

How is your pension calculated? Is there another milestone you could make before retiring? That isn't a year away?

I agree it seems tight to retire, but my pension is more than my take home, which makes me sometimes wonder what the heck I am doing working every day!  Asset allocation is 90/10 stocks/bonds, which I know is very risky, but with the pension and the rental income I figured we could stand some more risk.

What I didn't include in the budget is my husband usually gets a Christmas bonus of around 10k, and my parents usually gift us 5k every Christmas, so we have been using that money for trips and saving up for new cars and such. If he retires in his early 50s, I won't be far from being eligible for social security, which could replace the bonuses as fun money, and once i am Medicare eligible, health insurance will go down.

Also the 2k per month for renovations isn't that set, since our expenses are generally big lump sums, like we paid 50k to scrape and paint, 40k to add ductwork and air conditioning, 20k for storm windows, etc. So I just assigned the extra 2k we have every month to renovations, since that is where our extra money keeps going. We don't really have a schedule for future renovations, it will take another year for my husband to finish the window project and that is all paid for. Other than that, we will want to replace the roof in about 10 years and he wants to make a gothic library, but we have massive piles of lumber in the woodshop already.

As far as pension formulas, it is 2.3 x years of service, and I have 30 years. But there is a pretty substantial reduction because I want it to cover my husband after I die, and he is 11 years younger. So every year I work it goes up, but the reduction also goes up because the difference in our life expectancies increases. The net effect is for every additional year I work, it will go up by around $100 per month. I still may keep working for a few more years before I retire, this is just something that I am considering more seriously than before due to some changes at work.

oh - i missed that you had 2k/month in the budet for renovations ongoing! Given that, seems you are in better shape than I thought so i would say go for it. Your pension and soci sec combined (whenever you get to 62 or what year you take it) will certainly be enough for your side of things.

[nidena]

Apr 3, 2023 22:14:24 GMT -5 resolution said:

Apr 3, 2023 21:48:45 GMT -5 Pink Cashmere said:

I am just really tired. The years I describe as the worst years of my life, really took a toll on me, that I’ve still not been able to fully recover from. It seems like just keeping my head down and getting through those years sucked up all the tolerance I had for just keeping going through whatever, and spending most of my time doing shit I’d really rather not do. I am really over it, but I can’t figure out what to do instead, to still be an independent, self supporting adult. Mister is not the answer, I need to be able to take care of myself with or without Mister.

I had a similar experience and exhaustion about 15 years ago which nearly broke me, but I was able to transfer to a different job within the same pension system that was much lower stress. It took me about a year to find the right position and get the transfer approved, but life was so much better afterward.  I hope that you are able to find a solution that is more tolerable than your current position, or to arrange things so you can retire soon.

I wasn't seriously considering retirement until some recent management changes that have injected a lot of tension and insecurity into my team. One of my coworkers was having an anxiety attack today, and I feel guilty that I am considering just leaving instead of trying to help the team adjust.

Well, you know what they say about oxygen masks, when you're on a plane...

[giramomma]

Apr 3, 2023 22:14:24 GMT -5 resolution said:

I wasn't seriously considering retirement until some recent management changes that have injected a lot of tension and insecurity into my team. One of my coworkers was having an anxiety attack today, and I feel guilty that I am considering just leaving instead of trying to help the team adjust.

I missed this.

Hands down, if work is that bad, I would absolutely retire.

I've had anxiety attacks over work about a month or so ago.

No one cares. All it did was put an even bigger target on my back. I could have tried to handle it better.  I would have done things differently now that I have a better understanding of how things work.

The best thing is to just leave.

[teen persuasion]

Have you run your numbers thru i-ORP ?

[resolution]

Apr 4, 2023 19:11:51 GMT -5 teen persuasion said:

Have you run your numbers thru i-ORP ?

Thanks for the link. I haven't seen that one before and it's interesting. My numbers work out ok through www.firecalc.com/ but it's nice to look at different calculators.

[The Walk of the Penguin Mich]

Apr 4, 2023 7:19:29 GMT -5 giramomma said:

Apr 3, 2023 23:53:55 GMT -5 The Walk of the Penguin Mich said:

This is probably low, unless you are eligible for subsidies.  When we were looking last year, the cost (no subsidies) was about $1300/person/mo.  The insurance was crappier than TD’s employer’s plan.  I’d figure $3000/mo for a couple, so $36k/year.

At my job, retiree health insurance premiums are like 2K a month before you get on Medicare. Then they drop to 1K. This has held steady for a good decade or so now, just like health insurance costs for those that are working. Our retirement system is very transparent, and when they update benefits for enrollment every year, they also update costs for retirees.

I tried to post this yesterday, but it didn’t go through.

Had I lasted another 5 years at my job, I could have retired early.  At that time, my health insurance would be covered up to Medicare and any spouse could buy in at employee rates (which were very reasonable, and excellent insurance).  At both of us at Medicare age, both our Medigap coverage would be covered.  This was the main reason that we were continuing on the LDR as it would have solved our health insurance issues and TD could have retired fully.  Historically, while the employer has changed the rules, if you are employed at the time the rules change you are grandfathered into the old rules.


 Damn hips!

[NastyWoman]

Apr 3, 2023 23:53:55 GMT -5 The Walk of the Penguin Mich said:

Apr 3, 2023 23:30:22 GMT -5 giramomma said:

What's your plan for health insurance after your DH retires?

Do either one of you have any workplace benefit that covers retiree health insurance premiums?

I do at my workplace, but it's only about 4 years worth of premiums. We're looking at about 125K in health insurance premiums from 60-65.  At this point, I'm retiring at 56 and taking my full pension. I'll need to find some part time work to save up money towards that 125K. I don't want to retire and then spend that money down right away in early retirement. And, basically, we have similar assets to you.

I don't always know that it's easy just to go out and get a new job, either. I couldn't even get a second interview for a job that was in my wheelhouse and what I spent most of my time doing 10 years ago. It was clear when I opened my mouth that I was way over qualified for what they were looking for. 

This is probably low, unless you are eligible for subsidies.  When we were looking last year, the cost (no subsidies) was about $1300/person/mo.  The insurance was crappier than TD’s employer’s plan.  I’d figure $3000/mo for a couple, so $36k/year.

Just out of curiosity but were your quoted costs that high due to pre existing health problems or are the insurance companies no longer allowed to factor those in?

[The Walk of the Penguin Mich]

Apr 5, 2023 13:24:18 GMT -5 NastyWoman said:

Apr 3, 2023 23:53:55 GMT -5 The Walk of the Penguin Mich said:

This is probably low, unless you are eligible for subsidies.  When we were looking last year, the cost (no subsidies) was about $1300/person/mo.  The insurance was crappier than TD’s employer’s plan.  I’d figure $3000/mo for a couple, so $36k/year.

Just out of curiosity but were your quoted costs that high due to pre existing health problems or are the insurance companies no longer allowed to factor those in?

This was the ACA, not subsidized.  Pre existing conditions aren’t allowed to be factored in, but age is.  The years 60-65 are ugly, as these were TD at 63, me 62.

[NastyWoman]

That IS ugly The Walk of the Penguin Mich. Makes me grateful I worked past Medicare age - which I considered my "can't touch me age".  

[The Walk of the Penguin Mich]

Apr 6, 2023 0:27:22 GMT -5 NastyWoman said:

That IS ugly The Walk of the Penguin Mich . Makes me grateful I worked past Medicare age - which I considered my "can't touch me age".  

We had a plan, but Covid interfered.  TD’s game plan was to work to 63.5, then he could COBRA the 2 of us under the incredible insurance he had until he hit 65.  He got released a year early, so had to pick up a new employer’s plan, which was really shitty.  He got the bare minimum until we left the US, and got us covered under another policy while overseas.  He turns 65 next month.  I had to pick up the only Medigap plan available for having Medicare if disabled in WA…..which is also expensive and shitty.

If only I had made it those last 5 years and could have retired from my job.

[NastyWoman]

Covid sure did mess up a lot of plans.