Wrestling with thoughts about retirement

[jmlrn]

Has anyone regretted retirement because they can't spend the way that they want to? Maybe can't physically work anymore but was hoping for an active retirement to go places and do things you've always wanted to do. I'm making plans to retire in the next year or so but I'm so afraid I'm making a mistake. I have young interests and friends decades younger than me. Calculators like New Retirement are telling me I can't spend much more than what will pay my four walls bills. I've worked 42 years in my profession and I am drained. A devastating illness with my spouse took hundred of thousands of our savings five years ago. I just want to sit back and enjoy doing things I've always wanted to do, mainly travel. Thoughts? Your experience?

[Pink Cashmere]

I have no advice or experience because I am still trying to figure my own stuff out and hoping to retire sooner, rather than later. But I am very interested in whatever replies are posted here, so I appreciate you starting the thread.

Wishing you the best!

[Rukh O'Rorke]

when and how much social security?

[Tennesseer]

One thing to think about, jmlrn, is maybe going part time and get a lot of your travel wishes and destinations  out of the way.  You can travel and still have some income coming into your home.

For thirty years, I worked for a cargo airline. My employer in 2003 offered an employee buyout to most exempt employees.  If exempt employees had a certain amount of years with the company and were at least fifty years of age, they could officially retire and begin collecting their company pension instead of waiting until they were 60 to retire and collect.    I took the retirement as I was in my 30th year with them and I was 52 yo.  

Never looked back.  I decided I did not want to work any more.  I should have but I am single and it I ran/run out of money, only I am affected.  My income now is my pension, social security and some funds left in my RSP.

Because I worked for an airline, I/we often got deep airline discounts.  So I did all my travelling in the '70s, '80s and '90s.  Plus work often sent me travelling - mostly domestic.  Now at 73-yo, I really have no desire to travel.   I got it out of the way.

I live modestly and live within my means.  Health is okay as I have good Medicare coverage.  

I am content.

[jmlrn]

Jun 11, 2024 19:38:17 GMT -5 Rukh O'Rorke said:

when and how much social security?

Just wondering what other people's thoughts are.

[jmlrn]

Jun 11, 2024 19:48:24 GMT -5 Tennesseer said:

One thing to think about, jmlrn , is maybe going part time and get a lot of your travel wishes and destinations  out of the way.  You can travel and still have some income coming into your home.

I could possibly work 2 -3 days a month to come under the amount you can earn before SS starts taking money back. I'm sure I could only last a year doing this the job is just getting impossible.

[jerseygirl]

If you’re retiring cause job is ‘impossible’, and you worry if you have enough saved, then get a different job

[Rukh O'Rorke]

Jun 12, 2024 8:13:38 GMT -5 jerseygirl said:

If you’re retiring cause job is ‘impossible’, and you worry if you have enough saved, then get a different job

and could be part time - even very part time. Just one day a week or something could make a real difference.

[bean29]

What will you do for health insurance?  When will you qualify for Medicare?  This is what keeps me showing up to work every day. That, and my DH does not know how long his job will continue.  If it was a sure thing until he reaches 65, it would be a different picture, but even so, he is a 1099 employee, so we have to fund our own health insurance if I am not obtaining it via employment.

[haapai]

Jun 11, 2024 21:12:09 GMT -5 jmlrn said:

Jun 11, 2024 19:48:24 GMT -5 Tennesseer said:

One thing to think about, jmlrn , is maybe going part time and get a lot of your travel wishes and destinations  out of the way.  You can travel and still have some income coming into your home.

I could possibly work 2 -3 days a month to come under the amount you can earn before SS starts taking money back. I'm sure I could only last a year doing this the job is just getting impossible.

Are you absolutely sure of that?  The earnings test is complicated.  It is also indexed. 

I don't know if amounts taken out of your paycheck for health insurance count toward the limit.  Maybe someone here does. 

Are you widowed?  I hear the "we" but sometimes that is just habit. 

[greenthumb59]

How healthy is your spouse now?  Can your spouse go and do the things that you want to go and do?

My DH has "let the old man in".  We waited to travel, and probably waited too long.  As an example, we have a cruise scheduled for later on this year.  He only wants to do "easy" things that won't strain him.  He is 65, I am currently 64.  My health is worse than his, but he won't consider any shore excursions unless they are "easy."  So far I've only booked a cooking class.

I probably quit a year too soon, but I just couldn't stand my job anymore.  I felt trapped.  My retiring at 63 has cost us money for sure, paying for my health care.  But I looked at this as the price paid for my freedom.  My DH has VA benefits, so his healthcare costs us very very little.  I am thankful for that.

[plugginaway22]

My DH and I elected to retire a bit earlier than planned due to the experience of both having well paid, awful management positions during Covid. I was 61 and DH was 62. We were a bit worried that we were just burnt out and would miss the income. It has now been almost 3 years of 'early' retirement and I can say that there has not been a second of regrets! We have done a lot of traveling. The key for us has been the preparation of getting absolutely everything paid off, which has kept expenses low! Since we don't need a lot of income we can qualify for ACA subsidies. And our ACA plans are better than what we had while working.
If the models say you can do it, go for it. Time waits for no one.

[jmlrn]

Jun 12, 2024 8:13:38 GMT -5 jerseygirl said:

If you’re retiring cause job is ‘impossible’, and you worry if you have enough saved, then get a different job

it's not the "job" it's the entire profession.

[jmlrn]

Jun 12, 2024 10:53:54 GMT -5 bean29 said:

What will you do for health insurance?  When will you qualify for Medicare?  This is what keeps me showing up to work every day. That, and my DH does not know how long his job will continue.  If it was a sure thing until he reaches 65, it would be a different picture, but even so, he is a 1099 employee, so we have to fund our own health insurance if I am not obtaining it via employment.

I would not retire unless I had Medicare which will be in less than a year, hence why I'm trying to plan now.

[jmlrn]

Jun 12, 2024 14:01:38 GMT -5 greenthumb59 said:

How healthy is your spouse now?  Can your spouse go and do the things that you want to go and do?

My DH has "let the old man in".  We waited to travel, and probably waited too long.  As an example, we have a cruise scheduled for later on this year.  He only wants to do "easy" things that won't strain him.  He is 65, I am currently 64.  My health is worse than his, but he won't consider any shore excursions unless they are "easy."  So far I've only booked a cooking class.

I probably quit a year too soon, but I just couldn't stand my job anymore.  I felt trapped.  My retiring at 63 has cost us money for sure, paying for my health care.  But I looked at this as the price paid for my freedom.  My DH has VA benefits, so his healthcare costs us very very little.  I am thankful for that.

I've been widowed for four years. Unfortunately this is not the retirement plan we had talked about a decade ago. I'm afraid if I wait too late I will miss the "go-go years". I saw first hand with my husband how quickly you can be diagnosed with a terminal illness. We had always loved to travel but there are many places still on my bucket list in the U.S.

[Pink Cashmere]

I am very sorry about your husband. Everything you wrote in your last post makes sense, and I understand where you are coming from.

Unfortunately, I still don’t have any good advice, just moral support.

[Rukh O'Rorke]

Jun 12, 2024 19:54:13 GMT -5 jmlrn said:

Jun 12, 2024 14:01:38 GMT -5 greenthumb59 said:

How healthy is your spouse now?  Can your spouse go and do the things that you want to go and do?

My DH has "let the old man in".  We waited to travel, and probably waited too long.  As an example, we have a cruise scheduled for later on this year.  He only wants to do "easy" things that won't strain him.  He is 65, I am currently 64.  My health is worse than his, but he won't consider any shore excursions unless they are "easy."  So far I've only booked a cooking class.

I probably quit a year too soon, but I just couldn't stand my job anymore.  I felt trapped.  My retiring at 63 has cost us money for sure, paying for my health care.  But I looked at this as the price paid for my freedom.  My DH has VA benefits, so his healthcare costs us very very little.  I am thankful for that.

I've been widowed for four years. Unfortunately this is not the retirement plan we had talked about a decade ago. I'm afraid if I wait too late I will miss the "go-go years". I saw first hand with my husband how quickly you can be diagnosed with a terminal illness. We had always loved to travel but there are many places still on my bucket list in the U.S.

condolences. 

[Rukh O'Rorke]

do you have any debt payments currently? Like house or car?

When you do the modeling do you include those payments going away at some point? When I was looking at the feasibility of retirement, just putting in my spending and savings didn't look very promising. But when I model several payments going away at particular years, it looked good. I'm currently working on fixing my house up and some other things before considering things seriously.

[Rukh O'Rorke]

Jun 12, 2024 15:05:23 GMT -5 plugginaway22 said:

My DH and I elected to retire a bit earlier than planned due to the experience of both having well paid, awful management positions during Covid. I was 61 and DH was 62. We were a bit worried that we were just burnt out and would miss the income. It has now been almost 3 years of 'early' retirement and I can say that there has not been a second of regrets! We have done a lot of traveling. The key for us has been the preparation of getting absolutely everything paid off, which has kept expenses low! Since we don't need a lot of income we can qualify for ACA subsidies. And our ACA plans are better than what we had while working.
If the models say you can do it, go for it. Time waits for no one.

I've done the opposite, and need to consider that as a risk factor. Once I get to the end of the larger ticket house items - which will likely add to the debt - I'll have to take a deep dive into all my numbers.

[greenthumb59]

Jun 12, 2024 19:54:13 GMT -5 jmlrn said:

Jun 12, 2024 14:01:38 GMT -5 greenthumb59 said:

How healthy is your spouse now?  Can your spouse go and do the things that you want to go and do?

My DH has "let the old man in".  We waited to travel, and probably waited too long.  As an example, we have a cruise scheduled for later on this year.  He only wants to do "easy" things that won't strain him.  He is 65, I am currently 64.  My health is worse than his, but he won't consider any shore excursions unless they are "easy."  So far I've only booked a cooking class.

I probably quit a year too soon, but I just couldn't stand my job anymore.  I felt trapped.  My retiring at 63 has cost us money for sure, paying for my health care.  But I looked at this as the price paid for my freedom.  My DH has VA benefits, so his healthcare costs us very very little.  I am thankful for that.

I've been widowed for four years. Unfortunately this is not the retirement plan we had talked about a decade ago. I'm afraid if I wait too late I will miss the "go-go years". I saw first hand with my husband how quickly you can be diagnosed with a terminal illness. We had always loved to travel but there are many places still on my bucket list in the U.S.

I am very sorry about your husband.

[jmlrn]

Jun 12, 2024 22:16:00 GMT -5 Rukh O'Rorke said:

do you have any debt payments currently? Like house or car?

When you do the modeling do you include those payments going away at some point? When I was looking at the feasibility of retirement, just putting in my spending and savings didn't look very promising. But when I model several payments going away at particular years, it looked good. I'm currently working on fixing my house up and some other things before considering things seriously.

Totally debt free. No mortgage or car payments. I anticipate $500 a month reduction in expenses during retirement since I won't have to pay union dues or insurance costs out of pocket. Otherwise expenses stay the same. Food cost is out of control and property taxes have gone up considerably. Hoping inflation will slow down a bit.

[WannabeWealthy]

I'm also in a similar situation.  I'm trying to figure out if I can go full retirement in 5yrs or at least part-time (which my job has no problem granting me).  I will have a house payment and that will be it.  But I'll have a very expensive hobby since I'm buying my own plane next year and gas/insurance/hangar space/maintenance, etc.. will likely be new utility bills for me.  I figure if I go full retirement at 59.5yrs, I can live off of my investments+401k and wait until 65 to draw SS.  I don't have medical to worry about as I'm a veteran and receive some disability each month on top of free medications, doctor's visits and procedures.  The SS will take care of the mortgage and taxes on the house easily with quite a bit left over.

[resolution]

I retired about six months ago, and I don't have any regrets so far. I do feel a bit sorry for my favorite coworker, because apparently half of the unit has quit in the past six months, so she is in a bit of a bind, but I don't feel sorry enough to go back to my old job.

My husband is still working and my pension is roughly the same as my net paychecks, so our cash flow situation hasn't really changed. I had been withholding a lot into retirement savings and am sensitive to the fact that we are not saving nearly as much anymore. Even though our cash flow hasn't changed, I am a lot more hesitant to spend. For example, our vacation this year is a New England cruise instead of something international because I was hesitant to spend a bunch of money.

Hopefully I will get over myself by next year; so far the good stock market returns since I retired have made me feel a bit more comfortable.

[happyhoix]

Jun 14, 2024 16:14:49 GMT -5 jmlrn said:

Jun 12, 2024 22:16:00 GMT -5 Rukh O'Rorke said:

do you have any debt payments currently? Like house or car?

When you do the modeling do you include those payments going away at some point? When I was looking at the feasibility of retirement, just putting in my spending and savings didn't look very promising. But when I model several payments going away at particular years, it looked good. I'm currently working on fixing my house up and some other things before considering things seriously.

Totally debt free. No mortgage or car payments. I anticipate $500 a month reduction in expenses during retirement since I won't have to pay union dues or insurance costs out of pocket. Otherwise expenses stay the same. Food cost is out of control and property taxes have gone up considerably. Hoping inflation will slow down a bit.

FYI those retirement calculators usually assume you will be still paying off a mortgage so you have that in your favor.

[haapai]

There are some truly awful retirement calculators out there. 

The one associated with my workplace retirement plan seems to assume that I'll need 80% of my gross income in retirement despite the fact that I've been socking away twenty percent for years.  I also suspect that it is estimating my social security based on either the most current information that they have or whatever information they have.  (This has the potential to hurt me badly.  I lived on air for about fifteen years and two thirds of those years, adjusted for inflation, are still in my 35 best.)  They won't tell me how much of my projected retirement income will be coming from social security or what kind of draw they expect me to take from my 401(k) and HSA.  They won't tell me what kind of return on investment or inflation is baked into their pie chart either. 

Please tell me that you are working with something a tad more sophisticated, and that you have considered that you will need to eventually replace your paid-off car.  There's much better out there. 

[minnesotapaintlady]

Jun 15, 2024 12:54:56 GMT -5 haapai said:

The one associated with my workplace retirement plan seems to assume that I'll need 80% of my gross income in retirement despite the fact that I've been socking away twenty percent for years.   

Well, doesn't that math out?  What you aren't saving, you're spending. Unless you're expecting expenses to drop significantly in retirement.  I won't have a mortgage, but I assume medical expenses/extra travel will just fill in that void.

[haapai]

Jun 15, 2024 15:26:13 GMT -5 minnesotapaintlady said:

Jun 15, 2024 12:54:56 GMT -5 haapai said:

The one associated with my workplace retirement plan seems to assume that I'll need 80% of my gross income in retirement despite the fact that I've been socking away twenty percent for years.   

Well, doesn't that math out?  What you aren't saving, you're spending. Unless you're expecting expenses to drop significantly in retirement.  I won't have a mortgage, but I assume medical expenses/extra travel will just fill in that void.

I think that it is garbage because the same whiz-bang also allows me to alter the percentage of my income that I am saving for retirement and the amount that I will need in retirement never changes. 

[WannabeWealthy]

Jun 14, 2024 19:20:30 GMT -5 resolution said:

I retired about six months ago, and I don't have any regrets so far. I do feel a bit sorry for my favorite coworker, because apparently half of the unit has quit in the past six months, so she is in a bit of a bind, but I don't feel sorry enough to go back to my old job.

My husband is still working and my pension is roughly the same as my net paychecks, so our cash flow situation hasn't really changed. I had been withholding a lot into retirement savings and am sensitive to the fact that we are not saving nearly as much anymore. Even though our cash flow hasn't changed, I am a lot more hesitant to spend. For example, our vacation this year is a New England cruise instead of something international because I was hesitant to spend a bunch of money.

Hopefully I will get over myself by next year; so far the good stock market returns since I retired have made me feel a bit more comfortable.

Agree on the stock markets.  2022 was an ugly year for me as my portfolio in 401k/Investments took a 50% dive.  That had me worried that I would be working well into 65.  I'm glad that it's over at least temporarily.

[The Walk of the Penguin Mich]

Jun 12, 2024 14:01:38 GMT -5 greenthumb59 said:

How healthy is your spouse now?  Can your spouse go and do the things that you want to go and do?

My DH has "let the old man in".  We waited to travel, and probably waited too long.  As an example, we have a cruise scheduled for later on this year.  He only wants to do "easy" things that won't strain him.  He is 65, I am currently 64.  My health is worse than his, but he won't consider any shore excursions unless they are "easy."  So far I've only booked a cooking class.

I probably quit a year too soon, but I just couldn't stand my job anymore.  I felt trapped.  My retiring at 63 has cost us money for sure, paying for my health care.  But I looked at this as the price paid for my freedom.  My DH has VA benefits, so his healthcare costs us very very little.  I am thankful for that.

So do what you want!  I have mobility issues and am very aware of my issues.  For me, it’s not a matter of letting old age creep in, but the result of a medical issue.  
When we choose excursions on cruises, I do tend to go for the easy ones if the moderate or difficult ones don’t interest me.  For instance, in Hong Kong a few months ago, TD did a ‘difficult’ walking tour where even he got walked out.  I chose an easy excursion that was Hong Kong at Night by Trolley and a visit to an open air market.  If something is interesting and difficult, I drug up with NSAIDs and grab trekking poles.  If there is a chance to rest to avoid something strenuous (for instance, I climbed about 80 stairs, no rail to one temple), I might pass on the next large stair climb and roam the gardens instead.  If I go all out on a difficult excursion, the next day will either be an easy excursion or a sea day where I can recover. 
What I find best are those cruises where we might have 3 ports back to back, then a few sea days.  Doing the Mediterranean is difficult, as every day is a port day and I need to see everything.  I have been known to pass on a port if there have been too many ports and I’m feeling it too much.  

[The Walk of the Penguin Mich]

Jun 15, 2024 12:54:56 GMT -5 haapai said:

There are some truly awful retirement calculators out there. 

The one associated with my workplace retirement plan seems to assume that I'll need 80% of my gross income in retirement despite the fact that I've been socking away twenty percent for years.  I also suspect that it is estimating my social security based on either the most current information that they have or whatever information they have.  (This has the potential to hurt me badly.  I lived on air for about fifteen years and two thirds of those years, adjusted for inflation, are still in my 35 best.)  They won't tell me how much of my projected retirement income will be coming from social security or what kind of draw they expect me to take from my 401(k) and HSA.  They won't tell me what kind of return on investment or inflation is baked into their pie chart either. 

Please tell me that you are working with something a tad more sophisticated, and that you have considered that you will need to eventually replace your paid-off car.  There's much better out there. 

Then look at other calculators.  Most people do look at more than one site. I know that my TIAA/Cref calculator is waaaay off in that it assumes that all my funds are in one place….with TIAA/Cref.  I keep getting these ‘warnings’ that I am underfunded for my age, but they don’t know that only about 1/4 of my funds are there.