Mid 50's retirees question

[bradr]

I'm in the process of making a decision in the next year and a half or so on whether to retire from my LE career at age 56, or stay for another year past that, and retire at 57. The difference in staying the additional year until age 57, would get me another $300 a month on the monthly pension that I'll receive. My wife and I are debt free. She will continue working full time, and carry our health insurance for the next 9 years until we hit age 65. During those 9 years, I'm planning on working my part time job about 3 days per week, just so that I can still maintain my current LE salary (pension plus 3 days a week at my PT job =same amount as current LE salary). This will also allow us to continue maxing out our roth IRA. Wife has a 401k at work, she'll also get a full SS check when she retires. I'll get a reduced SS check (Windfall Elimination Program) because of my pension. We keep a very detailed monthly budget, so we are very aware of our monthly needs. Even without staying the additional year to gain the extra $300 per month, we will have enough cash flow to easily cover our monthly expenses.

I'm currently very healthy, and have a decent level of fitness, and am more than ready to step out of this career. Looking forward to more hunting trips, etc. We've talked about this, and agreed that it might be nice to have that $300 extra per month, just to have a little extra. Not sure if it's really worth it or not. I realize this is a decision based on our personal situation.

Were any of you early retirees faced with a similar decision? If so, did you leave early, or stay the extra year or two, and was it worth it?

 

[MThuntr]

A guy you may know says "You're going to run out of health before you run out of money"...Randy Newberg.

I've been told by financial planners that I'm on track to retire comfortably and that I should go when eligible and I plan to do so as long as I don't screw up and get married/divorced

 

[Big Bore]

I'm not there yet, but I can tell you this for sure. The minute, scratch that, the second I realize I can continue my standard of living without working, I'm gone. I'm not even going to say goodbye to my co-workers.

 

[JEL]

I retired at the end of this year. I did stay a couple years past my eligibility to increase my monthly take home. It was worth it and went by pretty dang fast.

 

[TheTone]

Is $300 a month worth another year of LE work? I don’t know what position you’re in but if it’s patrol I think I’d lean towards being done. I can retire at 52 and fully plan to regardless of finances. I’ve given up a lot of my time for a job and getting out early is my reward for that I guess. I plan to work after retirement but it will be something with lower stress and a schedule that allows me to shut it off and not bring it home

 

[TOGIE]

i dont know much.

but it seems you've given it more critical thought than 98% of folks. go on more hunting trips.

 

[MarvB]

I was eligible at 55, waited till 60 to just keep adding “a little bit more”. Our debt/bills in retirement prob come out to equal less than the “little bit more” I gained by continuing to work. We just don’t spend nearly as much now as when we were trying to work and live a somewhat hectic lifestyle. Short of it, I should have bailed at 55 and put those 5 years of “life” into play rather than the money!

 

[D4570]

I retired from the teamsters at 51 full retirement with 35 years.
The company I worked for was going broke and stopped contributing to it. Ever year I stayed I lost money. The day I could I did.
I worked small jobs since then. I took MY SS when I qualified too.
The wife is still working part time and gets SS and a public school retirement on 33 years too.

I did not work at all for a few years, I found the money was a bit tight and I needed a purpose so I now work a few Nights a week. NOW, thanks to "JOE", I Need to work some, when it takes a $100 to fill my tank to go hunting.

Anyway I wish I had worked on my retirement back when I was 40.
But $300 a month is only 2 day work, I would retire now and never look back.

 

[2rocky]

Being LE in iowa is probably different than in CA. Congratulations on being financially set.

But $300 a month is only 2 day work, I would retire now and never look back.

I think this is a good point. If you are paying taxes on your pension payout, a parttime gig doing something you enjoy, for the same amount of $ at the end of the day seems like an easy decision.

 

[JLS]

I think this is a good point. If you are paying taxes on your pension payout, a parttime gig doing something you enjoy, for the same amount of $ at the end of the day seems like an easy decision.

Yes and no. Now you are obligated to a schedule, which in my mind is contradictory to what I want in retirement. No perfect answers.

 

[406LIFE]

An extra $3600/yr is another decent hunting trip. Just saying...

 

[2rocky]

An extra $3600/yr is another decent hunting trip. Just saying...

$2700 after taxes?

 

[300stw]

i would of allready did the paperwork,,,, you can mow lawns in the summer to make the extra, talk about stress free,,,, kill weeds, and push a mower for exercise,,,,
dang kids wont do it,,,,

 

[wolfpup]

Get out at as soon as you can. Pick a part time gig that fits your schedule. Your more than qualified for many jobs if working is what you want. Play for 7 years then go back to working something else if you so wish.

 

[bradr]

Is $300 a month worth another year of LE work? I don’t know what position you’re in but if it’s patrol I think I’d lean towards being done. I can retire at 52 and fully plan to regardless of finances. I’ve given up a lot of my time for a job and getting out early is my reward for that I guess. I plan to work after retirement but it will be something with lower stress and a schedule that allows me to shut it off and not bring it home

Very good point. Is it worth it? I keep asking myself that question. I supervise a patrol shift. I have it pretty good because my shift is experienced, and they require very little supervision. So on one hand, it'd be easy money to stay another year, but on the other, I'm tired of the stress of the job, dealing with the assholes, and my hips ache all the time from being in the patrol car so much, working nights half the year, etc.

 

[bradr]

Lots of good points to ponder. Thanks.
I've heard other guys say that by staying another year, I would actually lose money. Something about that little extra money I'd be getting from staying another year, wouldn't ever "catch me up" to what I'd make if I retired a year earlier? Not sure if I'm explaining that correctly & my small brain wasn't able to fully understand what they were telling me. Anyone know what I'm referring to here?

 

[FlatlanderAZ]

300 / month for roughly 43 years is like $155k total. Is one year of work worth that?

It’s not a lot. But it’s a new toy 3-4x per year. All up to you. There are certainly other ways to make that money if you prefer.

 

[SAJ-99]

I'm in the process of making a decision in the next year and a half or so on whether to retire from my LE career at age 56, or stay for another year past that, and retire at 57. The difference in staying the additional year until age 57, would get me another $300 a month on the monthly pension that I'll receive. My wife and I are debt free. She will continue working full time, and carry our health insurance for the next 9 years until we hit age 65. During those 9 years, I'm planning on working my part time job about 3 days per week, just so that I can still maintain my current LE salary (pension plus 3 days a week at my PT job =same amount as current LE salary). This will also allow us to continue maxing out our roth IRA. Wife has a 401k at work, she'll also get a full SS check when she retires. I'll get a reduced SS check (Windfall Elimination Program) because of my pension. We keep a very detailed monthly budget, so we are very aware of our monthly needs. Even without staying the additional year to gain the extra $300 per month, we will have enough cash flow to easily cover our monthly expenses.

I'm currently very healthy, and have a decent level of fitness, and am more than ready to step out of this career. Looking forward to more hunting trips, etc. We've talked about this, and agreed that it might be nice to have that $300 extra per month, just to have a little extra. Not sure if it's really worth it or not. I realize this is a decision based on our personal situation.

Were any of you early retirees faced with a similar decision? If so, did you leave early, or stay the extra year or two, and was it worth it?

$300/mo for 10 yrs is $36,000 nominal. Round guess at $30,000 discounted present value. Just make sure you frame it correctly. If I get this right, that is not the benefit of a year of extra work, it is the benefit of working 5 days/wk for another year versus 3 days/wk, because it sounds like you are still going to work.
In the end, only you know the answer, but it is a good position to be in. congrats.

 

[D4570]

300 / month for roughly 43 years is like $155k total. Is one year of work worth that?

You will be 98 years old at that point

 

[2rocky]

I've decided when and if the time comes, I'm not retiring as much as being able to take a lower paying job that I would enjoy more...Because of it being less structured, more flexible, less stressful, etc. I don't think any one just retires and stops working overnight. From the board room to the beach so to speak...