Is anyone else working towards early retirement?
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  1. #1
    Moderator nuisance26's Avatar
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    Question Is anyone else working towards early retirement?

    ~I just read that the new average expected age of retirement is age 67. My own dad just retired last week at age 62 but he and my mom downsized to full-time RV living to do it.
    If our savings grows the way we think it will, my DH will be able to retire anywhere from age 50-55. It depends on whether we buy land and build our tiny cottage or if we get something already built, and what the cost of healthcare will be in 10+ years.
    Our plan of attack is a company matched 401K and investment account and an IRA. We've saved an average of 25% of our income every year we've been married(12 next month). Unfortunately DH's pay has always been fairly low and the market over the past decade hasn't been the best so our savings isn't as impressive as it sounds. It's more than enough for how I want to retire though and I'm happy about that.
    I keep doing research and running plans as we continue to save but I still feel like I have no idea how this is going to work out. It seems like the people you know in real life don't want to talk about how they retired and with what and how they did it and what they would do differently. Reading online stories is one thing but seeing it work in person is another thing entirely.
    In fact, most of the people I know personally will or have retired with much less than we plan to have. I almost feel over-prepared. But then again, those retiring now can and do collect Social Security checks. 10-15 years from now who knows?
    So, is anyone else bucking the norm with retirement? What age are you planning on? Will your lifestyle remain largely the same or do you plan a drastic change(good or bad)to swing the financial impact?~

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    Retirement for me is one of those things that have too many question marks for me. What if DS#1 needs help as an adult? What if I end up having to leave my job to take care of elderly parents? What will our healthcare needs end up being?

    Right now I'm 34. I will be 56 when he complete college, assuming that he goes at 18 and graduates in 4 years. That's about the age I'd like to retire.

    We'd also like to build a house. We plan on staying in our house for the next 20 years or so and then we'd like to build a cave house. Not sure yet how the money would work out - maybe we'd have to work a few more years or so. So I have a plan, but I'm not sure how to get there. A lot can happen in 20 years.

    We do save a lot of money - around 15% of our gross income. We also have it spread across different types of accounts (taxable, non taxable, Roth, non-Roth, IRA's, 401K, etc). I'm hoping to pretty much just give us enough flexibility that we can have options open to us when we get closer and have more details about our plan.

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    I would loooove to retire early but I am not sure it's in the cards. We have 2 kids that we want to help get thru school. We are saving for retirement but how much is enough? We max our Roth's and we both save in our employeers retirement plan. Hard to know what will happen. My DH's parents may need help as they get older. I only have my mom still living and she is well prepared financially (I would love to be the same way as it takes a huge burden off your children).

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    Registered User monkeywrangler71's Avatar
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    We are planning, and on track, for retirement at 60. Whether or not we would actually want to retire at 60 is another story; I think we'd be bored senseless.

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    Moderator nuisance26's Avatar
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    Quote Originally Posted by monkeywrangler71 View Post
    We are planning, and on track, for retirement at 60. Whether or not we would actually want to retire at 60 is another story; I think we'd be bored senseless.
    ~That's what my DH says. But if the kids are grown and he's still going to work, I'll be bored senseless. And at that point we will have enough money that I would have no reason to go work. I could volunteer more but I don't want to socialize with a bunch of people nearly as much as I'd like to have time with my hubby. He doesn't quite get it. :/
    So who knows. He may want to work until he's 70. But we're saving so that he can actually choose to do that, not be forced to do that. ~

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    Hubby and I were semi-retired in our late 40's. Hubby continued to work just enough part-time to qualify for health insurance. Without the group insurance through hubby's employer, our insurance would have taken our entire investment income.

    A couple of things changed, though. #1 - The economy tanked. Our investment income sank. Since hubby was already working part-time, I took a part-time job (that I loved). #2 - We had a family crisis and ended up getting custody of a few children while their parents were dealing with legal issues. We were glad to be in a position where were could help. However, this ended up being very expensive. Our expenses went up and income went down because I quit work to do all the running around for the kids that they needed (multiple doctor appointments). We thought the situation was going to be temporary so we didn't mind the expenses. When the crisis was over, I could always go back to work. Well, the temporary situation ended up being permanent where our now-daughter is concerned. I tried going back to work, but that never really worked out for her. I'm now a full-time SAHM.

    We're now about 10 to 15 years out of retirement. Hubby will continue working until DD is out of her first 4 years of college.

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    Registered User Brat's Avatar
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    My late dh and I by age 30 had 5 years of our income in retirement...we keep it going every 3 years adding a year of income to it...which was 1/3 of our income going into saveings every year..We both had company pensions and when IRA's came into effect we did it for 5 years..and also did a life insurance on retirement. We thought that we was doing the right thing..We also bought a fixer up home with no morage and lived in it until our family was grown..Then we downsized and got a smaller home..which we fixed up with handiecap in mind on all the updateing we did with it..We paid it off in 5 years..so there was no morage on it either when I quit my job..Dh had to take disability retirement at age 49..and I worked until I was 55 and he needed full time care. We was lucky that we could keep our health insurance until his death at age 64..I did go back to work after his death part time but thinks to our planning ahead it has all worked out for us..

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    We're thinking about 55-60. We're young enough that this seems reasonable.

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    I'm a 24 year old chemical engineer.

    My company matches .5% of my contributions up to 6% into my 401k. I only put in 6% into my 401k to get the full employer match (3%). My 401k, like most 401ks, has high fees and few choices. I max out a Roth IRA $5k/year; i much prefer the lower fee index fund options over my 401k options. I am putting 14% of my income towards retirement and my employer is putting an additional 3%.

    I think I'm on my way towards early retirement. I am only putting away 17% of my income, but I have two key things working for me: time and above average salary. I am hoping to retire in my mid 50s.

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    Moderator aka AmyBob AmyBoz's Avatar
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    Governor Christie changed the rules for retirement for educators in NJ, so in order to get my full pension (as of now...he may change it again) I cannot retire until age 65. Our youngest should graduate from college when I'm 62, so that's only 3 more years of working and saving everything. We are also hoping to pay off the mortgage early so we don't have that hanging over our heads in retirement, but four kids going through college may put a dent in that.

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    Registered User nodmicks's Avatar
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    Dh is eligible for his pension at 59. We are on track for 62-64 but are shooting for 59-60 if possible. We will both be 43 in the spring. We were putting away about 20% in investments but plan to strive for 40% this year since we no longer have a mortgage. Once we are closer to 59 things may change based on if retires in his company still get almost free health ins. If not dh said he would consider part time there since PT also gets free bennies. Who knows. A lot could change by then.

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    Registered User hmcart's Avatar
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    As far as retiring, we had our kids very young so we will definately be working through their college years. My job is very hard on my hands and its starting to show so I dont know that I can keep up this pace for another 20 years or not. I could always switch to more of a office job in the same field at some point. I hope that we can both retire before we reach 60 though.

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    Registered User onencgirl's Avatar
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    I was basically forced into early retirement to care for my dd. I retired at 58. It's hard being on a fixed income but doable.

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    Retiring early:
    I've got it in the back of my head, yes, but I do not have an age attached to it. Instead, I am focusing on a number in investments that will put me in the position to retire at any time.

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    Registered User nodmicks's Avatar
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    Im curious what percentage of current income people are shooting for in retirement. We picked 95 adjusted at 3 percent inflation.

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