Retirement musings...what are people thinking?
I'm not quite ready to hang it up, but I can see it from here. A lot of colleagues are getting there as well, and I hear lots of retirement talk around the "water cooler" (no, we don't have an actual water cooler). The conversations generally start with something along the lines of "how much longer are you going to hang around here"?
Surprisingly (to me, anyway), for many if not most here the answer isn't "I'm retiring as soon as I'm eligible to do so". In fact, some seem to be planning to work more than 5+ years longer than necessary.
Us old-timers here are grandfathered in to a pretty sweet pension, guaranteeing a retirement benefit that is a decent percentage of our salary.
So here's my thinking...lets say that retirement benefit is 68% of what you would make if you worked another year. If you choose to forgo retirement, and keep working you would of course get the full 100%. Let's put some round numbers on it for illustrative purposes. Lets say you make $100K and your retirement benefit would be $68K. So $100K for dragging your ass into the office every day, or $68K for sitting on your couch day drinking in your underwear.
In my mind that means if you choose to continue working after you're eligible to retire, you're taking a $68K pay cut. You're doing the same work you've always done, but you're only making $32K more than if you did nothing at all. So now that $100K job is paying you $32K.
Assuming no other complicating factors (need for insurance or some other benefit), Why would anyone ever do that? If you've mismanaged your life so badly that you actually need that extra $32K, find part time work to make that up...you'll likely be able to work way less/fewer hours in a much "easier" job (less stressful, less intense, less whatever).
As I've repeatedly demonstrated on this board, financial literacy isn't exactly my strong suit...but this makes no sense to me. What am I missing?
67 Replies
1y
Vs be retired and all that comes with..it was clear as day.
And I had completed my goals
(In response to this post by JoesterVT)
I'm a Fed...and I love the work I do...and the agency I do it for.
I'm already eligible to retire...but I'd like to keep going for another 3 - 5 years...and our financial plan sort of needs a few more years. I know that there's a place in my agency for what I do...and there is no redundancy. I also know that leadership is pleased with my performance. Sadly...none of that seems to matter at the moment...and I'm bracing for the possibility of being shown the door in the months ahead. If I do get placed on Administrative Leave...at least there will be some time to contemplate next moves.
(In response to this post by JoesterVT)
Is it too Gen-X of me to say that as a 47 YO I would have retired yesterday
If you like your work, you’re going to work. If you like other stuff you’re going to prioritize that.
The beauty of this question is like picturing what you’d do when you win the lottery.
Me, if I could play golf at a different course with 3 different friends every day of the year, that’s my mentality. Could actually probably do so relatively soon if most other factors staid relatively static.
Heard somewhere that if you can live off 4% of your savings per year then you never even deplete what you’ve got based on historical interest returns.
Based on that I need $2M after everything is paid off to spend about $219 a day and still would not have touched the original savings.
So many other variables that you can shoot me down with, but it boils down to this for me - you can’t take it with you.
(In response to this post by JoesterVT)
1y
I had planned to work for 3 more years, but I had to choose between family and work and the choice wasn't hard. We already had a budget, and moved to a cheaper part of the country (bigger house, at 2.5%). Both kids are still in college (one finishing this semester, knock on wood) but we had saved for that, and they have to pay half-ish. A few things I have learned:
- The mental part is tougher than the financial part. No matter how many projects you have to do, or TV shows you want to finally watch, you will eventually finish them or lose motivation to do so. You will get bored and have to avoid a rut.
- Consulting is cool when people want you, it is a pain when you have to sell yourself.
- Volunteering is awesome. I've been volunteering at a horse rescue for 2 years, and teaching English online for almost a year. I start at another farm animal rescue next week.
- I miss "fun money." Our budget is solid, and we planned well (and will be even better off when the kids graduate college and are off the family plan). But there isn't a lot of money to do really cool stuff. A driving trip around the region? Sure. A week in Cayman? Not really.
- Home maintenance cans stress your budget. Sometimes a bunch of things need to be fixed at once. Over time it evens out. In the moment, ugh.
I'm taking SS at 62, even aware of the 8% per year impact of delaying. I'll be lucky to live to 80, and who knows how badly they are going to screw SS up over the next few years.
If you have any questions, fire away.
(In response to this post by JoesterVT)
1y
spreadsheeted out and we're taking as soon as we can, and not even taking the survivor benefit option on my pension, as it really won't be necessary. The options/scenarios via spreadsheet convinced us!!
(In response to this post by WestyHokie)
1y
and I have both maxed out of SS benefit (we would have done better to take that money and let ride in the S&P 500, but that’s a different discussion). So, my FedEx pension and our maxed out SS (we planned on never seeing), will allow us to retire without having to touch any of our 401k/IRA/other savings and investments. Yes, you’re working only for $32K a yr in your scenario. However, you still need to consider health care (If employer funded), especially if you or a family member have health issues.
** Edited by B777Fr8Dog at 2/26/2025, 2:09:10 PM
(In response to this post by JoesterVT)
1y
...and at 53, I worry that nobody would hire an old guy (software engineer with leadership). So I have played out my worst case scenario...moving out of NOVA, perhaps to another state and retiring way early. I hope I don't have to do this but we could probably make it work
(In response to this post by JoesterVT)
1y
Even if it is for contract work. We moved to a new state as well. Happy to share experiences.
(In response to this post by KfgsHokie)
1y
(In response to this post by JoesterVT)
1y
If it's 68% today and will be 68% in five years then, yeah, I'd think long and hard about if it's worth it to stick around.
(In response to this post by JoesterVT)
1y
I totally realize this question is completely dependent on location, lifestyle, debts etc.
But just to get a TSL centric average idea...
What are people thinking in terms of the gross monthly income they want in retirement?...
all type answers welcome...from threefiddy - to - "One miillllon dollars"
(In response to this post by JoesterVT)
1y
My financial guy says we don't spend a lot, which makes me wonder about other people's priorities.
(In response to this post by RTFC)
1y
that out of the equation. With Pensions, SS, 401K we are actually bringing in a bit more than whe we retired.
(In response to this post by RTFC)
1y
however this is similar to the answer I almost always get from whoever I ask...including my 85yo dad who retired at 57 - almost thirty years ago...
I just would really like to hear actual numbers, out of curiosity, from my "contemporaries" realizing that people vary from being in a low cost of living area living on just SS - and working longer - to others wanting to maintain 3-4 houses and travel extensively. Just really curious of the plans/expectations of the average/typical TSLer. EDIT- I'll add I'm not asking for that if I know you personally or you are someone well known to others on here - but I can count the TSLers I've met in person on one hand, that's my perspective.
I'll go first. If the market tanks tomorrow and my dad lives to 99 as his mother did and requires care - I'm working several more years and retiring in my pretty low cost of living area around the ~8$K/month range with my current SEP/IRAs/SS/wife's pension and current assets - at minimal ROI rate and without touching the principal (but also not factoring in inflation) - I've planned till I'm 95yo, but won't make that. I own my house mortgage free and have no debt. I can make that work, but not at the level/peace of mind I really "want" - not need.
Now if the market stays at least at or slightly above long term historical returns and, God forbid, my dad was to get hit by a bus tomorrow - well, I'll retire much sooner - and have a second, nice vacation home with a "guy" maintaining it while I travel. But I always calculate my retirement on the basis of my assets only - not what I might inherit.
As in almost all things, the real answer is most likely somewhere in between.
** Edited by RTFC at 2/26/2025, 1:42:46 PM
(In response to this post by UTPr0sim)
1y
I plan on retiring at 65 and my wife 63. Given our 401k projection, we'll have about the same income through retirement withdrawal as we do now but without a mortgage. We also plan on moving to an area with a significantly lower cost of living (somewhat depends on where our kids end up). If the markets do better than conservatively projected, my may retire a couple years earlier.
(In response to this post by RTFC)
1y
I'm 100% working part-time at Lowe's or ACE or something. Just something to do to get out of the house for some extra cash I (hopefully, unless everything's gone to crap) won't really need.
I fully intend on being the old-timer distributing priceless lawncare knowledge from the depths of the garden section.
(In response to this post by JoesterVT)
1y
my Land Cruiser, pulling a camper trailer, overlanding through the US/Canada for 1.5-2yrs, then cruise around on our sailboat when it leaves the charter fleet. Tough to work at Lowe’s with those plans. 😎👍🏻
(In response to this post by TechHokie13)
1y
I want to live in Uruguay but Mrs. Gooby is starting to push for rural Italy.
Uruguay in particular is attractive because a retired couple can live there on ~$1200/mo (including health care), so with what we're estimating we'll have, we should be living very comfortably
(In response to this post by JoesterVT)
1y
Made the last mortgage payment my last month at work.
Being retired gave me the ability to make two 2 month 8,000 and 9,000 mile trips across this great country.
It has allowed me to make big football road trips, such as this past season's trip to Nashville and following home game and the year before same deal except to Louisville.
It has allowed me to do Thursday night games and not run out of vacation time.
And if the Good Lord is willing and the creek don't rise, I plan on another extended road trip meandering up the Mississippi from Dyess, AK to the headwaters of that great river, and then possibility across Wisconsin to Michigan's Upper Peninsular.
If I had it to do over, I'd do it again.
(In response to this post by JoesterVT)
1y
I'll have the house paid off about 2 years before I'm eligible to retire. 2 years of stashing that extra money away ain't gonna hurt....
(In response to this post by Atlee Hokie)
1y
...will no longer be coming off the top (and the ability to save that money for the couple of years while still working).
We made a grate decision about 13 years ago to refi when the rates were under 3%. We went from having 25 years left on a 30 year mortgage, to a 15 year mortgage for not a lot more each month, and even had some excess fund to pay off some other crap.
(In response to this post by WestyHokie)
1y
There are still people running around saying paying off a mortgage is the best choice, ignoring the very low int rates in recent years. I'd rather have that money in the market vs. paying off 2.5%.
(In response to this post by JoesterVT)
1y
the principal. I hope we can keep doing so. That would pay it off about the time I'll want to dial it back or hang it up.
(In response to this post by JoesterVT)
1y
most of her time. Housing market in my town wasn’t good and I panicked thinking I needed to get it on market before selling my business. Dang thing sold in a few weeks and I had to move out. Downsizing was liberating! I rented a studio apt from a friend for a few hundred $$$ a month. Had no mortgage, no insurance or taxes, no utility bills, tv or internet. Crap, I should have sold house five years earlier and invested the savings!
(In response to this post by JoesterVT)
it's like Demetri Martin said
Saying "I like kids" is fine. Saying "I like 6 year olds" - not so much
(In response to this post by HokieGator)
Some people like to work
My dad for example retired in his mid 50s and in six months he was back at work cause he really missed it and worked until he was 72. It hit him like a ton of bricks that he really had enjoyed work, the camaraderie, solving problems, talking to customers, etc. He realized he could only play so much golf, so he went back.
At 72, he felt he was getting too slow mentally so it finally made sense. He's 84 now and in great health and golfs and bowls a lot.
(In response to this post by JoesterVT)
1y
We are a smallish non-profit, (11 mill in revenue) so the work is rewarding and no one has my skill set at work. Everyone I work with is younger than me and it definitely keeps my mind fresh. I get all the time off I want too. My spouse, who is 9 years my junior regularly tells me that despite the fact I'm turning 68 in a few weeks, I don't look a day over 67 and 11 months. 🤣
(In response to this post by MrBayAreaHokie)
1y
thankful that I stayed in that job for 40 years. Mostly
Although there are days when I see something that makes me say “how the hell did I do that for 40 years”. But it all thankfully worked out very well.
(In response to this post by JoesterVT)
1y
It was a good ride!
(In response to this post by Stork)
1y
provided them than today.
(In response to this post by hoosnowahokie)
1y
as a benefit for my staff also, although they didn’t see the value much at the time. It allowed me however to age weight my plan providing higher benefit for me than the stingier limits available years ago. Created a nice little stash over time. It’s all spend-down now babay!! I keep telling wifey I’ll let her know when we’re out of money.
(In response to this post by Stork)
1y
(In response to this post by Stork)
1y
(yet) found anything better to do. I work from home, so I don't have to hassle with commuting. Quite frankly, I will either stay at home, play on the computer and get paid for it or I will stay at home, play on the computer and not get paid for it.
(In response to this post by JoesterVT)
If push comes to shove, you could start your own trivia gameshow.
(In response to this post by lilhokie525)
1y
I think he would be very good at it.
(In response to this post by Chris Coleman)
1y
(In response to this post by Chris Coleman)
1y
Combination of pension, Social Security (assuming it still exists in its present form), and retirement savings/investments should be good to cover my lifestyle plans. Mrs. Fiji (same age as me) says that her current plan is to work beyond that point. And if she does, then we are that much more to the good.
Plan to occupy myself with volunteer work, travel, and family -- and largely due to my career choices, I feel like I have a lot of lost time to make up on that last one.
(In response to this post by JoesterVT)
1y
one extra if my son is still on my insurance. Since I'm nearing 59y/o that isn't too far away.
(In response to this post by Hokie Fiji)
1y
long. If you have enough, a less stressful part time job and more time to spend on life is well worth it. Or, no job at all. Also remember, if you don't have to dig into any IRA/401k/etc immediately, they still keep growing even if you don't add to them.
(In response to this post by JoesterVT)
1y
(In response to this post by JoesterVT)
1y
Let me sit at a desk, tie flies, buy equipment at cost every now and again... Guide clients occasionally... I'd live off tips and be happy. Get me out of the house on the water doing things I love... That said, I'm only 40 and have a ways to go...
(In response to this post by HokieNoVA)
1y
That'll show 'em!
** Edited by JoesterVT at 2/26/2025, 9:20:52 AM
(In response to this post by HokieNoVA)
1y
(In response to this post by vthokieq)
1y
was working for $2 an hour by not retiring. He hasn't regretted the decision one minute. I on the other hand owned my own business and worked till I was almost 70. Sold the business and only miss my customers. Non of the stress of making payroll, HR issues, lawyer interactions and waking up at night and wondering why. Retirement with a good nest egg is the best.
(In response to this post by JoesterVT)
1y
(In response to this post by UTPr0sim)
1y
I'm getting closer and doing the math fairly often but am not sure of what the correct number is.
(In response to this post by UTPr0sim)
1y
source of our living funds. the IRA pulls are for the good life (and donations!)
(In response to this post by radhokie1)
If the numbers were actually what you're saying, then yeah, get out of
the rat race and close the time gap with either volunteer work or something you like doing that pays and makes up the $32 K gap.
Heck, assuming you're SS eligible, hang 'em up.
But yes, other factors enter into it, such as Health Insurance and your savings. Or, in my case, having kids later than most and still looking at at least 7 more years of paying for college between the 2 of mine, and paying for 2 at the same time for at least 1 year, probably more.
(In response to this post by JoesterVT)
1y
ed until 65 for Medicare.
(In response to this post by Late 80s Hokie)
1y
to dial it waaaaay back in the next 5 or so years. Retirement will either come when I've got enough saved, or we sell the business. If we sell, there's a good chance the new company will want us to stay on board, at least temporarily.
No matter. Once I can retire, I am positive I can find plenty to do, or not to do. I think I'll be really good at it.
(In response to this post by Late 80s Hokie)
1y
you do everyday.
Sit on your ass? Go for it
Volunteer? Be my guest
Travel? Go have fun
Find a partime job to stay active? Good for you
But, by continuing to work, you know what you’ve got to do. And someone else controls that.
(In response to this post by reestuart)
E
EDGEMAN
1y
As you get into your twilight years, health and fitness cannot be understated.
(In response to this post by Stork)
1y
..."but it was 30% off".
(In response to this post by JoesterVT)
1y
(In response to this post by reestuart)
1y
But to hear my wife, she basically saves enough to pay for the house each time she hits Target.
(In response to this post by Brown Water)
1y
🎶Looks like [I] made it...🎶
Getting pulled out of bed at 2,3 am for vehicular bridge and overhead sign hits, and 10-12 hour days, was too much at that age.
(In response to this post by JoesterVT)