Author Topic: At what age do you want to retire?  (Read 2563 times)

littleman

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At what age do you want to retire?
« on: February 21, 2019, 06:53:28 PM »
And what will that mean to you?

I personally know a lot of people who call themselves retired but are still doing part time work.  I guess in my mind retirement would be the ability to make work decisions without having to worry about the economics of those choices.   Realistically, I won't be able to get there for another 20 years.
« Last Edit: February 23, 2019, 03:37:16 AM by littleman »

ergophobe

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Re: At waht age do you want to retire?
« Reply #1 on: February 21, 2019, 07:50:53 PM »
Two answers

1. Never if retirement means sitting around and not "working" on something that interests me.

2. Now if retirement means "the ability to make work decisions without having to worry about the economics of those choices."

Realistically, #2 is a long ways off. I am down to a rather busy "part time" these days at age 55. The master plan is to get Theresa to #2 this year, in her late 40s and see how that goes.

One of the big discussions we've been having is how much stuff we would or wouldn't give up in order to retire early or scale back to a part-time that basically feels like retirement.

Willing to pass on: fancy trips, fancy gear, new cars
Not willing: health insurance, healthy food, simple trips, visits to family

rcjordan

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Re: At waht age do you want to retire?
« Reply #2 on: February 21, 2019, 07:55:18 PM »
Currently in the US, unless driven by dire personal circumstances, it is best to postpone drawing Social Security until you're 70 --even if you have to use other savings to supplement your income after age 62.  (SSA regs change as to "full retirement" age based on year of birth, so this may vary some.)

Basically, SSA pays you 8% per year if you postpone after full retirement age (mine was 66).  It penalizes you 8% per year if you start early.  So the difference between 62 vs 70 is massive.

When I first hit on this back 15 years ago, it was a radical idea.  Supposedly, the stock market was *guaranteed* to do better than 8% per annum.   Heh, that's since changed and I see the above advice touted all the time now.

ergophobe

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Re: At waht age do you want to retire?
« Reply #3 on: February 21, 2019, 09:14:59 PM »
When I first hit on this back 15 years ago, it was a radical idea.

When my dad retired back in 1992, he said that was his strategy - he said that he would put off taking SS or his military pension until he reached the max benefit, even though it meant a few tight years. Now he sits here at almost 90 able to offer himself all manner of luxury that he couldn't afford thirty years ago.

The one difference now is more skepticism about the solvency of pensions, govt or corporate or union. I took my tiny state pension (few years at low pay = small pension) the first year it was available (2018!), as advised by the state, because I wouldn't hit breakeven until 33 years from now. So by waiting until 67, I was going to be betting that everything was going to be the same or better until 2051. That didn't seem like a good bet to me.

ergophobe

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Re: At waht age do you want to retire?
« Reply #4 on: February 21, 2019, 09:19:13 PM »
Other tidbit from my dad during this visit that surprised me. He said he had often thought about building a very small house that was super efficient and had low expenses (taxes, insurance) and just not having to worry.

It sparked the idea that we are close to where we could sell our house, buy a piece of land somewhere cheap, put a really modest and efficient home on it and be totally retired (in the sense that LM defines it). My wife says she wants to wait at least two more years before looking at that plan in detail.

PS - when I was six, someone asked me what I wanted to be when I grew up and I said "retired." I've been asking myself this question for almost 50 years now. The problem is for the first 40+ years I had an aversion to making money, so I didn't make that much progress on it.
« Last Edit: February 21, 2019, 09:20:46 PM by ergophobe »

rcjordan

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Re: At waht age do you want to retire?
« Reply #5 on: February 21, 2019, 09:47:16 PM »
The tough part is to *realistically* calculate what income you're going to need to support a tolerable lifestyle after you retire.  I am shocked by the wildly optimistic factors I see out there.

Inflation is the toughest, and inflation for expenses is going to be higher than inflation for revenues. 

>Now he sits here at almost 90

The other tough one is projected lifespan.  You can't bank on the population demographics of M81/F83.  Use 91.

Oh, and the average US couple spends something like $250k on out-of-pocket medical, even with Medicare and supplemental insurance.

ergophobe

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Re: At waht age do you want to retire?
« Reply #6 on: February 21, 2019, 10:04:00 PM »
All those factors, and especially the last one, is why the smarter half of our couple insists that whatever we do for the next decade, maybe two, we have to live so that, barring major events like medical issues, we are adding to savings, not pulling out.

littleman

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Re: At waht age do you want to retire?
« Reply #7 on: February 21, 2019, 10:22:35 PM »
>the average US couple spends something like $250k on out-of-pocket medical

I believe Aaron called the US health care system a wealth extraction program.

littleman

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Re: At waht age do you want to retire?
« Reply #8 on: February 22, 2019, 11:13:53 PM »
I am really looking forward to what you described in #2 Ergo; I just hope I have inspiration and creativity by the time I get to that point.  I have a list of projects I'd like to do, but I have no idea if they will still be relevant by then.

nffc

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Re: At what age do you want to retire?
« Reply #9 on: February 24, 2019, 07:48:28 AM »
I'm at 2. but it isn't any different, you still the same person.

When I wake up I think what woolly mammoth I need to kill today.

It's very hard to turn the switch off. I'm getting there though.

buckworks

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Re: At what age do you want to retire?
« Reply #10 on: February 24, 2019, 07:51:28 PM »
I'm at #2 and life is good.
I don't think of myself as retired, though.

>> list of projects

Yep. It never ends!

ergophobe

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Re: At waht age do you want to retire?
« Reply #11 on: February 25, 2019, 03:19:07 AM »
I have no idea if they will still be relevant by then.

I would guess that if they aren't relevant, it's because you have found other projects that are.

Rupert

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Re: At what age do you want to retire?
« Reply #12 on: February 25, 2019, 09:36:59 AM »
Quote
The tough part is to *realistically* calculate what income you're going to need to support a tolerable lifestyle after you retire

Interesting thoughts here, but I think Mark touches on the above.  It is surprising what low income you can be happy on, although I am not sure we need to downsize just yet :) ( Re get a smaller efficient home, as the garage is always too small)

Also, its important not to forget that spending requirement changes as we age.  In our 60s we are hopefully but not necessarily still very active, still wanting to "do". Many of us continue that in our 70's and a few into our 80s.  But that vast majority of us will be dead in our 80s, and many of those still living will not want to spend too much time outside. 

When we are younger, we only see the active oldies.  Not those that cannot do anymore as they are sat in their chairs.

This is interesting I think:
https://finalytiq.co.uk/busting-myth-u-shaped-retirement-spending/

Enjoy life today.... :)
... Make sure you live before you die.

rcjordan

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Re: At what age do you want to retire?
« Reply #13 on: April 02, 2019, 04:07:57 PM »
>>the average US couple spends something like $250k on out-of-pocket medical

"A male-female couple leaving work this year can expect to pay $285,000 in healthcare and medical expenses throughout their retirement, Fidelity Investment said in a report released Tuesday.

For single retirees, women can expect to spend $150,000 toward healthcare and men $135,000, the financial services firm said. Those costs are up 3.6 percent from two years ago, a slower rise from 2015-2017, when the costs jump 12.2 percent."

Study: Americans could spend $285K on healthcare in retirement
https://www.upi.com/Top_News/US/2019/04/02/Study-Americans-could-spend-285K-on-healthcare-in-retirement/1241554208800/

Rupert

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Re: At what age do you want to retire?
« Reply #14 on: April 02, 2019, 08:58:13 PM »
UK... NHS... :-X
... Make sure you live before you die.