S/O-when did you retire? How much $ do you need to retire?

[LisaR]

We are in the thick of this. DH was offered a buyout. He started out saying no way but the more he looks at it, the more he is convinced that he'll take it. If he does, he'll be a month shy of 60. DS starts college next month but that's all saved for. DD has graduated and is completely financially independent. DH would likely consult. He's already had two offers. The biggest reason for this is to get away from the overseas travel. He just isn't enjoying it. It's too far for too long and too often anymore. Personally, I think we'll be just fine and the THREE financial planners he has consulted agree. lol He's nervous. He's a big saver and the idea that we are entering a point in our life where we won't be saving so much is unsettling for him. He has two weeks to decide. Before he went to bed tonight he said it was a sure thing. We'll see what he says in the morning!

 

[QueenIsabella]

DH and I have a combination of retirement incomes coming our way. 401K's, investments, pensions, ss all which currently come close to about 80% of our current income. I'm working 3 more years and DH plans to work 5-7 more. I'm 57 and DH is 60. We will have about 2 million in investments plus our pensions at that time (his is from 9 years working for one co, plus his US Navy retirement and mine will be for 26 years as a Federal employee) plus ss. Most of the rest is from our 401K's. But, we live in a high cost of living area. We do plan to downsize our home in a year or two but we'll still have a mortgage. Our two DS are grown (31 and 33) so we're well past college. We're in very good shape for retirement. DH is a retired Navy reservist and besides his retirement pay, we have access to Tricare which takes care of our health insurance needs. If you had told me 30 years ago that we would be in this situation, I wouldn't have believed it. We were month to month, living in a townhouse with a mortgage we could barely afford with two small children. DH was a drilling navy reserve officer and that income helped tremendously. He stuck it out for 30 years and retired as an O-6.

What amazes me is I, personally, have more saved in my 401K than the average american and I went back to work after 14 years at home with our boys and I work part time (32 hours/week). Not everyone plans for retirement. We do have some debt, but DH was just offered a job that pays 18% more than his current one (he's a Federal gov contractor) and we'll pay off all debt besides our mortgage in 1 year or less.

Our two DS (31 and 33) both have more saved in 401K's than the average american. They also work with our financial planner. He is more than worth what he is paid (percentage of our accounts) and makes more the more we make. A good certified financial planner can make a huge difference and help you figure out what you can and can't do and when.

The power of compound interest is amazing, isn't it? I graduated college and started work at 21. I invested 6% of my salary (matched 50% by my company) for 10 years, then left to become a SAHM. Now, 22 years later, I have over $250k in my IRA (rolled it over)--just by not touching it! I'd love to tell you that I was a savvy investor at 21, but in truth, I was dumbfounded at how a 401k worked--really? No taxes? Free money from the company? Where do I sign?

 

[Pacolovestacos]

We have been planning for a while. Right now I am on goal for retiring at 50. We already purchased our retirement home in Medellin, Colombia which is where we have family. We have 2 rental properties here for income and we do not owe anything on them. Mortgage is paid off on home. No debt other than daughters school and student loan which will be paid off in 5 years. By 50 we should have 1.8 million which should carry us very far in Colombia. Healthcare is great there and much cheaper than here in the US. Schools are great. We started a long time ago. Parents always pushed to save as much as possible. Dad was a financial planner and mom a cpa so they knew the best way to retire early.

I love Medellin. You will live like royalty there on 1.8 mi.

 

[adelaster]

I pay into the state pension. It is a formula of years of service and age and once you hit the magic numbers, you can get a certain amount for life. DH wants to retire at 65, but since I took a lot of time off to raise kids, I think I will be there until close to 70.

I am in a similar system (shared details on the other board.)

Do you ever worry it won't be enough when retirement age arrives? No one commented on my post so that scared me as in it wouldn't be enough. Obviously I am trying to set up other savings/investments, but retirement is far away for me, and frankly I am afraid it will never arrive with the way things are headed.

 

[Nancyg56]

I think it depends on your circumstances. DH is planning to retire in August, we will see. He will collect SS in January, when he turns 65. Out pension plan is worked out so they even with a reduced benefit to ensure I am covered in the event he passes before me we are going to have plenty for our needs. We have lived simply and will continue to do so ..

 

[tvguy]

I pay into the state pension. It is a formula of years of service and age and once you hit the magic numbers, you can get a certain amount for life. DH wants to retire at 65, but since I took a lot of time off to raise kids, I think I will be there until close to 70.

It is amazing to me how much difference there is from state to state and in some cases, department to department, what state retirement formulas are. I had a lady in my last jury duty pool that was 48 and had just retired from the state. She started at 18 and put in 30 years. 30 years WORK was the magic number in her department. She said her pension isn't as much as her pay was, but it enough for her to live on the rest of her life since life time health coverage is part of the retirement package. With normal life expectancy, she will clearly get more in retirement benefits that she got working.

 

[jsmla]

We are small business owners (57/61) and are beginning to consider retirement. Currently we have around $400K in investments and around $3 million in property which currently generates 5K/month in rental income. Our home and business are also located on these properties, renting these should bring in another $4K/month. Our children are grown and doing well. I also expect to inherit a substantial amount (over $500K) from my father who was an extremely savvy investor. I wish my parents would have enjoyed their retirement more but they were Depression babies and overly cautious, IMHO.

We could retire now if we sold out the property our home and two of the rentals are on but it's sooo hard to pull that trigger. We buy our own health insurance now (self-employed-no group plan) so that's not an issue. It's just taking that leap of faith into the unknown.

DH would have to get a job, even if just working at Home Depot. He'd go crazy without his job and none of the many, many projects that keep him busy on the property. We do 90% of the maintenance ourselves.

 

[okeydokey]

Between DHs pension, our individual retirement accounts and social security we will be good to go once we pay off the house. (we will be 60 and 62 then). Kids will be well out of college as well by then. However, due to health insurance costs, we will most likely work until 65 and eligible for medicare and a supplement.

 

[FairestOfThemAll37]

Thanks everybody for sharing their perspective. It's so interesting and there aren't so many factors.

I've been reading blogs on retiring early and I am so shocked by the numbers of people who have retired in their 30s/40s with around $500k (almost all less than $1 million). That seems so scary to me.

 

[Cirlonde]

This has been a hot topic for my husband and I in the last year. We are both 33 with no kids and no debt except for our mortgage which will be paid off in 2 years, 3 months and 2 weeks (but who's counting, right?). We both came from lower-income families who never gave any real thought to retirement, so we're left trying to teach ourselves about 401ks and IRAs, etc.

Our current goal is to aim for 1.6 million in various investment accounts by the time we're 50. Whenever we hit that number, my husband plans to either leave his job for something less stressful but lower paying or retire altogether depending on what I decide to do with my job.

I have a state pension that is based on years of service plus age. So it will pay about 50% more if I work until I'm 58/59 or I could go part time and work until 65 to hit the same benefit amount. But I also have access to a 457b account which doesn't have any age limitations on when you can start to draw... So I could retire at 50-52 and just receive a lower pension payment but supplement with the 457b, or I could keep going to get a higher pension pay out.

We've calculated that the 1.6 million number is where we need to be to give ourselves the freedom to say "take this job and shove it!" if we wanted to. But we could also chose to continue working in order to have a more comfortable lifestyle. We live pretty far below our "means" because it's what we're used to, so a "comfortable" life for us might be considered subsistence living to some, haha! We've done really well with getting our student loan debt, cars and house paid off, but I struggle with the more abstract goal of retirement planning because there are so many "unknowns" involved with it; it makes it hard to celebrate small successes in the same way we've done with the debt-dumping.

 

[Forevermarypoppins]

I'm 56 and take SAVINGS very seriously. I put 20% in my 403b 10% pre-tax and 10% after-tax. Considering I didn't start making decent $ and working FT until I was 40 it doesn't seem like I've saved that much. I want to retire at 62, but 66 is realistic. I'm in the age group for age 66 full benefit and expect that to change by the time I end up doing so.
But anything supplemental to Soc Sec is positive. God help us all, if our gov't screws up SS !

 

[tvguy]

If you want to blow your mind, get your annual Social Security Benefits statement out. It lists how much you earned every year. Add it up.
I MADE HOW MUCH OVER THE LAST 41 YEARS?!?!?

 

[longboard55]

I could retire now, but then you say, maybe a couple more years to build the pie bigger. This stock market run has been amazing.

 

[Pacolovestacos]

I could retire now, but then you say, maybe a couple more years to build the pie bigger. This stock market run has been amazing.

It ain't going up forever. There will be a day of reckoning coming.