Jump to content

Waiting to 65 to retire - death risk versus finances


Recommended Posts

Howdy!

My lovely wife and I both retired early. As a LEO I was able to retire at 55 and get to my retirement and saving without penalties, my wife was 51 and actually retired before me. We have no regrets retiring early and starting our fulltime life. I had a very close friend that retired one year before me and less than a year after he retired died of a heart attack. 

“Happy Trails”

Chiefneon

Link to post
Share on other sites
  • Replies 257
  • Created
  • Last Reply

Top Posters In This Topic

5 hours ago, Zulu said:

Good for you, but from what I've seen most RV retirees didn't have this option.

If you wait until you are near the time that you want to retire before you begin to prepare there are few who can do so comfortably. Both Barb & I made the decisions to work where there was a strong early retirement package as a part of the benefits. I'd bet also that just like me, she could have made a higher salary in other positions, but without the retirement benefits. If you begin to plan for retirement when you are 30 or before it isn't that difficult to do by way of job selection and savings. Every year that you wait to begin the plans to provide for an early retirement, the more difficult it will be to achieve that goal, whether the action is in job selection or in savings and financial planning. The best route is to do both. 

Link to post
Share on other sites

I didn't worry about retirement during what I now refer to as my Massively Misspent Youth.  Finally wised up at age 40 and got a job with New York State.  Got out at 65 with 25 years service, nice pension and fully paid up health insurance.  Would I have liked to retire sooner?  Sure.  But my biggest fear was that someday I'd be one of those poor, elderly bastards having to greet people at the door to Walmart to make ends meet.  Thank God that's something that will never happen now.  As for how much time I have on the road, well, I'll take whatever I get.

Link to post
Share on other sites

Zulu, where did you get your hypothetical income level from?   We would make sure to structure retirement income so that we would qualify for subsidies since we would know ahead of time what we would need for those three years until Medicare kicks in.

Again it comes back to planning.  We planned for years on early retirement, worked numbers every year, made decisions on purchases with eye towards how things would work with retirement in the future.   Since I had a whole year before my SS started, we had that amount in a saving account 3 years before we retired.    We knew in ‘93 when I had ovarian cancer surgery/chemo this is what we were going to do at 65, and when Dave had his stroke moved our time table up nand adjusted our plans.  All about planning.

Link to post
Share on other sites
3 hours ago, Kirk Wood said:

If you wait until you are near the time that you want to retire before you begin to prepare there are few who can do so comfortably. Both Barb & I made the decisions to work where there was a strong early retirement package as a part of the benefits. I'd bet also that just like me, she could have made a higher salary in other positions, but without the retirement benefits. If you begin to plan for retirement when you are 30 or before it isn't that difficult to do by way of job selection and savings. Every year that you wait to begin the plans to provide for an early retirement, the more difficult it will be to achieve that goal, whether the action is in job selection or in savings and financial planning. The best route is to do both. 

Agreed.  We had my folks as an example, so we started our retirement plan when I was 35. 😉 They retired early and though Dad’s health wasn’t great, it was good and he lived 17 yrs.  My FIL kept working, high stress job and dropped dead never getting to enjoy a retirement.

Link to post
Share on other sites

IMHO It is a personal choice and one must plan for that choice.   My bride and I had a plan and were able to retire “early” her 2 yrs ago at 49 and me just this year at 50. If you want to retire early plan for it, if you want to retire when your 62-67 plan for that as well.  

Edited by jorddarb
Link to post
Share on other sites

My dad retired at 62 but lived till 90 (cancer.) My mom died much younger at 55 (cancer.) My FIL also died young, during a minor operation. He worked hard all his life supporting his family, wanting to go to Hawaii but never made it. So who knows how long we will live?

I plan on retiring the first of the year if I can make it. I turn 62 in July and my DW does in December. We will be without health insurance during the gap years, as we have no other choice. We will be living off SS. My DW has some retirement money available at 65, but I spent all my savings (and went in debt) trying to keep my former DW alive - so everyone's situation is different. We plan to make some day trips to Mexico if we need any meds or dental work during the gap years, till medicare kicks in. We'll have no choice but to roll the dice and take our chances. At least we won't be saddled with the ACA penalty during this time - paying for someone else's healthcare while we must go without it ourselves. 

I look at early retirement this way: Suppose you are on your deathbed (whenever that is) and someone were to offer you 4 years more of life (the difference between 62 and 66). Not at your current age and debilitation, but in the same shape you were when you were 62. How much would that be worth to you? Would it be worth the extra social security you might receive by waiting till you're 66 (if you happen live past 82)? To me I'd pay whatever I had to, to get 4 more months or even weeks of enjoyable life. Who wouldn't? When you choose to retire at 62 rather than 66 that is what you get - 4 more years of live while still young enough to enjoy it. Because if you choose to work those years at an unpleasant job then that time is lost, and regardless how much money you have you can't buy it back.

Well that's what early retirement means to me. Maybe you like your job? Maybe your job is fulfilling and they don't make you work 70-75 hrs a week, being away from your loved ones, living out of a suitcase half the time, while tracking your location constantly with a GPS? If you enjoy what you do, it's rewarding work and you get to sleep home every night, kiss your wife and pet your dog, then go for it and work while you are able. But I'd like to have a few years of enjoyment out of life before I die, living the FT RV lifestyle as a real family for whatever time I have left. Fortunately my DW feels the same and we can't leave soon enough. I hope to see you guys on the road in 202 days. Wish me luck.

Chip

 

Link to post
Share on other sites
33 minutes ago, Barbaraok said:

Zulu, where did you get your hypothetical income level from?   We would make sure to structure retirement income so that we would qualify for subsidies since we would know ahead of time what we would need for those three years until Medicare kicks in.

The $65K was just used as the limit for subsidies to exemplify what someone might end up paying. That's it. My post was an example of what I thought might happen to anyone, not you per se.

 

33 minutes ago, Barbaraok said:

Again it comes back to planning.  We planned . . .   We knew in ‘93 when I had ovarian cancer surgery/chemo this is what we were going to do at 65, and when Dave had his stroke moved our time table up and adjusted our plans.  All about planning.

The best laid plans of mice and men . . .

Planning is great. We did it too (even virtual RVing). But things happen that you just didn't foresee . . . that's why I included the real possibility that decent health care for those under 65 may not be available soon.

Finally, getting ill before retirement can be a whole lot different than getting ill after retirement. Despite all the planning we did, my wife still got ovarian cancer after retiring. As you know, that puts a major crimp on things.

 

Link to post
Share on other sites
11 minutes ago, sushidog said:

My dad retired at 62 but lived till 90 (cancer.) My mom died much younger at 55 (cancer.) My FIL also died young, during a minor operation. He worked hard all his life supporting his family, wanting to go to Hawaii but never made it. So who knows how long we will live?

I plan on retiring the first of the year if I can make it. I turn 62 in July and my DW does in December. We will be without health insurance during the gap years, as we have no other choice. We will be living off SS. My DW has some retirement money available at 65, but I spent all my savings (and went in debt) trying to keep my former DW alive - so everyone's situation is different. We plan to make some day trips to Mexico if we need any meds or dental work during the gap years, till medicare kicks in. We'll have no choice but to roll the dice and take our chances. At least we won't be saddled with the ACA penalty during this time - paying for someone else's healthcare while we must go without it ourselves. 

I look at early retirement this way: Suppose you are on your deathbed (whenever that is) and someone were to offer you 4 years more of life (the difference between 62 and 66). Not at your current age and debilitation, but in the same shape you were when you were 62. How much would that be worth to you? Would it be worth the extra social security you might receive by waiting till you're 66 (if you happen live past 82)? To me I'd pay whatever I had to, to get 4 more months or even weeks of enjoyable life. Who wouldn't? When you choose to retire at 62 rather than 66 that is what you get - 4 more years of live while still young enough to enjoy it. Because if you choose to work those years at an unpleasant job then that time is lost, and regardless how much money you have you can't buy it back.

Well that's what early retirement means to me. Maybe you like your job? Maybe your job is fulfilling and they don't make you work 70-75 hrs a week, being away from your loved ones, living out of a suitcase half the time, while tracking your location constantly with a GPS? If you enjoy what you do, it's rewarding work and you get to sleep home every night, kiss your wife and pet your dog, then go for it and work while you are able. But I'd like to have a few years of enjoyment out of life before I die, living the FT RV lifestyle as a real family for whatever time I have left. Fortunately my DW feels the same and we can't leave soon enough. I hope to see you guys on the road in 202 days. Wish me luck.

Chip

 

Good luck Chip..hope to see you on the road

Link to post
Share on other sites

Zulu, I'm in pretty good health, but one never knows. What I was referring to was not being fired. I've seen people at my company fired if they get a whiff you are ready to retire. One guy in upper management gave a 6 month notice and they fired him immediately. When you're in an "at will hire" state they can term you without giving a reason, regardless how long you worked there. And if you have been there a long time and are making good money they are looking for a reason to let you go - to bring in cheaper, younger blood. They know the new hires won't do as good a job (they might even have to go through a few) but that's ok if they can pay them half what they are paying you, plus it shakes up the rest and motivates them to work harder so the same thing won't happen to them. You won't get unemployment either. They will fight you tooth and nail, making up some trivial thing, like punching in a few minutes late for work ( yes they make you punch the clock even if you're on salary)  or calling a last minute meeting, the night before on your day off, making you get up at 3:30AM or so on your only day off and drive 150 miles, (it happens all the time) reimbursing only 25 cents a mile (I've only had one day off a week for the last 15 years - no holidays at all but Christmas day) If you say you can't attend or show up a little late then it goes in your file. I almost got fired once for taking my regular scheduled day off, after working 3 weeks straight without a day off, after a hurricane (to reattach my back porch to my house that had got washed away during the flood.) Now you see why I'm looking forward to retirement. 

It's after midnight so I only have 201 days, and counting.

Chip

Link to post
Share on other sites
34 minutes ago, sushidog said:

Zulu, I'm in pretty good health, but one never knows. What I was referring to was not being fired.

Well, you certainly have the job from hell. Fully understand why you want out. Good luck.

Sorry about your experience with the ACA. It saved our arse.

Link to post
Share on other sites
7 hours ago, Zulu said:

Planning is great. We did it too (even virtual RVing). But things happen that you just didn't foresee . . .

Life doesn't come with any guarantees, but one can influence the probabilities of where it will take us. I have first-hand knowledge of hearing the "C" word from a doctor although mine was after I had retired. It is very difficult to impossible to predict how long we will live or to be sure how healthy we will be, but I still believe that it is wiser to plan than to not do so. Planning may not guarantee success, but a lack of planning is very likely to assure a bad result.

Link to post
Share on other sites
14 hours ago, GR "Scott" Cundiff said:

By the time people reach 62+ years their circumstances vary wildly.  There simply is no one size fits all.   There are elderly parents, disabled children, past health issues, financial windfalls and disasters and a thousand other situations that impact one's retirement decision.  That doesn't take into account one's current work situation - some people love their jobs and are having the time of their life going to work every day.  Others are just barely hanging on trying to get to exits.

If you narrow the discussion down to just one specific aspect of retirement - like which will get the biggest monthly check or will result in the biggest pile of money at the end of life - it gets a bit easier but even then different people have different life situations.

So, ultimately, we have to each do what we think is best for us at the time.  For me to tell others they need to do what I did is foolish on my part and, if they copy what I did it would be foolish on theirs.

Your post "nailed" it in my mind Scott.  One size does not fit all.  I'm retired military and 70 years old so health care isn't the issue it is for some.  I waited until 70 to collect social security but I did collect spousal benefits at 66 which reduced the break even calculation.  But the real key is I have one of those jobs that is way more fun than work.  It's not that I don't do other fun things like ride motorcycles, fly airplanes, winter in FL etc.  But I have no intention of giving up my job any time soon.  I just ran a 10k this past weekend so I consider myself relatively fit and healthy.   I realize I could be dead tomorrow but that doesn't change my thinking and it's a true statement for all of us.  I'm happy for the other posters who have no regrets about their retirement decision.  It's your life but as Scott stated, "no one size fits all." 

Link to post
Share on other sites

My jobs are short jobs. Always has been. I can go to work and make 12k monthly. Really enjoy them too. I would hate to be stuck to a crummy job this stage of my life. I have been off more than on this year. May just continue that.

Link to post
Share on other sites
17 hours ago, GR "Scott" Cundiff said:

By the time people reach 62+ years their circumstances vary wildly.  There simply is no one size fits all.   There are elderly parents, disabled children, past health issues, financial windfalls and disasters and a thousand other situations that impact one's retirement decision.  That doesn't take into account one's current work situation - some people love their jobs and are having the time of their life going to work every day.  Others are just barely hanging on trying to get to exits.

If you narrow the discussion down to just one specific aspect of retirement - like which will get the biggest monthly check or will result in the biggest pile of money at the end of life - it gets a bit easier but even then different people have different life situations.

So, ultimately, we have to each do what we think is best for us at the time.  For me to tell others they need to do what I did is foolish on my part and, if they copy what I did it would be foolish on theirs.

That's the best answer yet, to a very complex decision.  everyones circumstances are different. If we knew when we would die, planning our retirement would be much easier. avgs are just statistics. planning your retirement based on avg death ages is like planning your next major purchase based on avg salaries of others. speaking of a "fools choice", basing the decision solely on one factor and ignoring the dozen other valid factors is a fools choice. 

For the record. I retired at 60 because that's when I had enough invested to support myself for twice as long as I expected to live, and to live an active life at the level I was accustom to. I actually liked my job and had lots of fun and was able to travel all over the world while working. I made the mistake of volunteering to open a new branch of the business in California. I hated California and that was a big motivator in deciding to retire early. After 10 yrs of retirement and fulltime, extended time & part time RV'ing, I bought a live aboard ocean going sailboat and now spend my winters sailing around the Fl Keys, Bahamas and Caribbean islands. I still have my motorhome for part time use during summers in the Rocky Mountains. My health is not perfect but I don't let it control my life. My kids & grandkids worry about me getting sick alone on a boat in the middle of the ocean. I tell them I'd rather die out there having fun, than sitting on my couch at home being safe.

Link to post
Share on other sites
9 minutes ago, GlennWest said:

My jobs are short jobs. Always has been. I can go to work and make 12k monthly. Really enjoy them too. I would hate to be stuck to a crummy job this stage of my life. I have been off more than on this year. May just continue that.

This is also what I am thinking.  GlennWest is fact.  The mythical walmart starving slave old man, is fake news for anyone here with half a smart brain to deal with economy and getting a good easy job as a retiree person.  Go drive a school bus part time.  Go be a teacher at trade school in high school.  Most here have some serious skills that can be passed on for a price.  How do you think you will be starving and working poor, when you never were that?  Okay okay, turning off my RED character FROM 70s SHOW attitude rant from wanting to yell dumbass.  lol

 

Link to post
Share on other sites

Sadly I know people that have no skills. I do and am so thankful. My brother, 10 years older than me, retired at 48, Got fed up with the rat race he was in. Started plumbing, farming, odd jobs of anykind. Made a good living and had fun doing it. He now , in his 70s, grows peanuts, boils them and sells to public. Hires retired widowers to pick off peanuts. They are in ac too. They have a blast. He makes enough off those peanuts to carry him through the year. But he is a person that can do whatever he wants to. 

Link to post
Share on other sites

Unless you have the ability to see into the future and know what is in store for you do what you want to do when you want to do it.We know folks who love to work  like their job and have no plan to retire. We know folks who work their butt off in low paying jobs and can  not afford to retire.Wife and I are both retired and we do what we choose to do.

We both worked at WDW in Florida  part time during our winter stay not because we had to but because we thought it would be a "experience"It was.We no longer work there but it added a lot of $$$ into our Rv'ing fund. I would be a greeter at Wall mart as it sounds "interesting" but I could not stand for that long. Target hires part time and wife may work there part time during the winter.She was  cashier in food service at WDW. Home depot hires part time  and if I can get a job that suits me I may work there during our winter stay..... Or we may do nothing. We have more choices as retirees  than we did in our working life.

Link to post
Share on other sites
3 hours ago, offroad said:

This is also what I am thinking.  GlennWest is fact.  The mythical walmart starving slave old man, is fake news for anyone here with half a smart brain to deal with economy and getting a good easy job as a retiree person.  Go drive a school bus part time.  Go be a teacher at trade school in high school.  Most here have some serious skills that can be passed on for a price.  How do you think you will be starving and working poor, when you never were that?  Okay okay, turning off my RED character FROM 70s SHOW attitude rant from wanting to yell dumbass.  lol

 

I'm not sure if your glasses are too rosy or you lead a sheltered life, or you're choosing the wrong words to describe this complex situation. When you start traveling around the country you will find dozens of trailer parks in all areas of the country, filled with folks forced to decide between fuel for travel or food for survival.  Many of them had the RV dream and ended up running out of resources and permanently parked. Some end up in that situation through lack of planning, underestimating the cost of fulltime travel, no reserve fund for emergencies and some end up there due to circumstances forced on them or their own poor choices. Most here may have employable skills and good sense, but most here represent the middle to upper class of RV'ers.  There is a whole other class of RV folks living hand to mouth with no employable skills or with one of a 1000 other life problems that prevent meaningful employment. Your stated outlook and generalizations are a bit too mythical, narrow and gilded.

Link to post
Share on other sites
3 hours ago, offroad said:

The mythical walmart starving slave old man, is fake news for anyone here with half a smart brain to deal with economy and getting a good easy job as a retiree person.  Go drive a school bus part time.  Go be a teacher at trade school in high school.  Most here have some serious skills that can be passed on for a price.  How do you think you will be starving and working poor, when you never were that?  Okay okay, turning off my RED character FROM 70s SHOW attitude rant from wanting to yell dumbass.  lol

 I read where you will start full timing next month. In a year or two, why don't you stop back here for a reality check.

Link to post
Share on other sites
1 hour ago, richfaa said:

We know folks who love to work  like their job and have no plan to retire.

That was Dave. He actually enjoyed his job. Until management changed. Causing him to decide to retire at age 60.

Linda

Link to post
Share on other sites
53 minutes ago, sandsys said:

That was Dave. He actually enjoyed his job. Until management changed. Causing him to decide to retire at age 60.

Linda

Sort of same here at about the same age. We were with the Federal Aviation Administration, Air Traffic Control on the technical side, Computers , etc. We had a challenging job  were you never knew what  challenge you may face that day.We were  about to go through a complete change of Technology . Having been through that before when much younger I just thought, not again. We let the younger folks go to school and take up the challenge  while maintaining the technology in place. It finally became time when we older folks and there were not  many of us left had to make a choice and we chose to retire.We could have stayed on but we felt it was time.We had plenty of Government time for retirement. We were very fortunate to have a job that we liked to do.My retirement papers had been in my desk drawer completely filled out except for the date of retirement for a long time.Filled in the date gave it to our administrative assistant  asked her to send it whenever these things went  and retired Jan 3, 1999.No regrets. Wife also with the Federal Aviation Administration retired in 2006 and we have been on the road ever since.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...