This is a random post, but I've been thinking (and reading and researching) about this a lot in recent months. Husband turned 60 last year. He got a statement from Social Security saying when he could retire, what his full retirement age is, and how much he'd get monthly depending on when he retires. This is all different from retirement in England. In the US, his full retirement age is 67. He can start receiving his social security (pension) anywhere from 62 to 70. When he retires depends on the amount he will get monthly. It's quite confusing. Let's not even bring medical insurance into that lol.
Anyway, that's only part of the equation. I made the mistake I decided to look up the amount of money you 'need' to retire and - WOW - what a can of worms! The amount of money advised to have is, well, really out of our league. Millions. So, I'm wondering, how much money do we actually NEED to retire?
A lot of what I read about is assuming that you expect to live exactly how you do when you are working. It assumes that you've had a really high standard of living and high expenses. It assumes that you have a mortgage and lots of bills and payments.
I'd like a little input, no numbers and such. I'm not that nosy. But a few generalisations. I'm going to use my Mum as an example. She was pretty frugal. She did buy things when she needed them, and some 'treats' for herself. She didn't have a retirement account. When she retired, she sold the house we grew up in and bought her flat. The difference in what she sold for and bought for was her 'extras'. Her state pension paid her bills and everyday expenses. She had no other payments except household expenses. She used her 'extra' to pay for holidays and her flat upkeep. To me, that's how I see our retirement. We aren't big spenders and we've never had a lot of extra money. Am I wrong in thinking this isn't the norm?
Husband would like to retire sooner rather than later. And I would like him too as well (well, sometimes lol). I'm thinking somewhere in the middle - he can retire at 62 but his full retirement age is at 67, so maybe 65. Our house will be paid off next year and the extra we plan to put away in our savings account. Realistically, and health permitting, we'd like to at least be active (with our Sunday Adventures and camping) for another 10 years after retirement.
Do you take into account lifestyle and monetary value or just taking time (after 45+ years of working including 10 years in the military) to enjoy the last few years of life?
A lot of rambling in this one. It's a big leap to take when there is no 'income'. We both do some things on the side to make extra money, so that will continue, but can't be relied upon.
Thanks for any input.
Hopefully tomorrow's post will be a bit more cheerful!!
Things That Make Me Smile 123/366
Taking time to enjoy the sunrise
124/366
After the Rain
We are fortunate in having pensions and have not had to make any changes in what passes for our 'lifestyle'. We don't live extravagantly, no holidays - we live in a pleasant area, so every time we go out for a walk, it's like a holiday. No meals out - we buy good ingredients and cook our own. Many would think it a dull life, but it suits us, and life is full.
ReplyDeleteI think it sounds really nice. Thanks for the input!
DeleteThis is a very good topic, Sharon. The best time to think about retirement is before you retire!
ReplyDeleteIt has been 5 years since I retired, it'll be 6 in October. What I did was, before I retired, I figured out how much my retirement income would be and what my expenses were. I added all the occasional expenses such as property taxes, which were paid twice a year, and divided it by 12 to get a monthly amount. I wanted to see if I could live within my retirement income, before I retired. I had already paid off my mortgage and I was debt-free, at the time, so I didn't have to take those expenses into account. I am a rather frugal person and I found that I was already living within my retirement income and I didn't hesitate to submit my retirement papers. I think the important thing is to have a realistic budget and make sure you keep to that budget.
Thank you! That's what I was thinking of doing. It seems silly to rely on what the 'experts' say you should have.
DeleteI did a post a while back that had some figures quoted for a comfortable retirement and some were crazy.........unless you suddenly want to have round the world cruises every year!
ReplyDeleteI think that's the problem with looking at what the 'experts' say. They seem to think everybody 'needs' lots of things and spend lots of money!
DeleteI found the retirement chart in last Novembers post R for Retirement - and it had a comfortable retirement needing £1,500 on clothes and shoes every year!!
ReplyDeleteI re-read the post! I don't think I've ever spent that much on clothes in a year lol.
DeleteI'm feeling a bit better about the decisions regarding retirement. I need to stop reading what all the articles say and just make sure we're comfortable with what we have. There have been quite a few sudden deaths around us and husband especially is beginning to think that he would like to enjoy a few years retirement hopefully .
Our plans, well my plans drastically changed when my husband died. I'm going to be the proponent of retiring when you feel you can comfortably cover your living expenses, health costs, and have a little for your hobbies, travelling, or whatever brings you joy. I need to be 59 1/2 to not be penalized on retirement withdrawal, and need 10 years with my current employer to qualify for retirement severance and insurance plan( though must pay the premiums). With that, and knowing I can get my husband's SS as a widow at age 69, I'm aiming for next July when I'll have checked those age/ time conditions, and have enough in cash and HSA to offset 6 months of living before I can get SS. Now I'm just counting down. Likely I'll have very minimal work in retirement for interest and to help offset travel, but everyone says they have no regrets retiring earlier than the full retirement age. Sorry for the long comment.
ReplyDeleteThank you so much for the comment and input. There are been several family things that have got us thinking about retiring earlier than we thought, including my BIL being diagnosed with a life-threatening cancer in his mid 60s and my son-in-law's father passing away in his 50s. I don't have to tell you how quickly things can change and plans suddenly go awry. It's got us thinking about how we want to spend our time and what's important to us.
DeleteI mistyped - I can get his SS at age 60, not 69. So in less than two years.
DeleteThe only advice that I can give you is this…..
ReplyDeleteAs soon as you can afford to still have a decent standard of living without working, walk away from the workplace…..in fact don't walk…..run!
My father always said he would retire at 63, replace their touring caravan with a brand new model, get a new, powerful car to tow it, and he and my mother would be away touring the U.K. and Europe for at least eight months per year.
Dad then died at the age of 61, so didn't get to fulfil any of his dreams.
I decided then that as soon as I could afford to, I was getting out of the working life.
So, as soon as you can possibly manage financially, get out of the workforce, spend some time together, and enjoy your lives!!!
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That's the way we're leaning too. Thanks for your comment!
DeleteIt's very tricky. One thing my grandparents did was invest in all new appliances before they retired, so they wouldn't have the burden later on.
ReplyDeleteAs ever, I really enjoyed the pics!
Good idea!
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