Great post Jonathan. One thing I see here that can also be a factor in either taking early retirement or in some cases forced retirement as in my case and some others is our ābodiesā wearing down/outā¦ I am early GenX, just turned 60. Did a lot of hardcore skiing/water skiing, contact style sports, heavy labor style jobs early in life, etcā¦I keep in touch with a few friends from high school and college who I ran with who did similar sports, work, etcā¦all had differing careers later in life but one thing Iām seeing in my group is strokes, hip replacements, tendon blow-outs, rotator tears, arthritis and overall health related issues that seem to be coming on earlier than they should. I must note also that all of my friends are still in great shape, no weight issues, still for the most part āactiveā and so it makes one wonder why our Gen is wearing out so fast, at least what Iām noticing anywayā¦so retiring for all those aforementioned in your post makes total sense but some of us want to keep going but physically are just too limited/worn outā¦just my two cents.
My plan is to keep working at least part time until I can no longer handle it or Iām forced out due to technology.
Keep up the great posts Jonathan, you always make us smile, relate and reflect when you bring up all of our old days from being āfree range bad assesā
I relate to this! I'm about to be 58, so, same era as you. Growing up I did a ton of sports, trained very hard for years, etc. And now I'm paying -- joints unhappy, old tears and breaks acting up, multiple surgeries and extended periods in PT, a fragility and tendency to injury and chronic pain that feels like payback for all the years I pushed through pain and ignored my body's efforts to tell me to slow down or stop. I can't do a lot of what I used to. But I have discovered low impact things I *can* do, that feel good and right and that I love -- yoga, pilates, strength training, walking. We are an adaptable generation, and we are adapting to age.
I'd like to go at 52. We'll be empty nesters and I'll have 30 years in at my job. Just want to make sure I have something to retire *to.* Spending my days playing Farkle and going to garage sales doesn't sound appealing at all.
I think one thing we're doing generationally is reconceptualizing retirement. I have no desire to stop living meaningfully in the world, with purpose and a desire to contribute. Much of my working life in my fifties has been about rebooting my mindset to where my work and my play feel intertwined, rewarding, creative, and squarely within my values and priorities. I may never technically retire, but I want my working life to be sustaining and sustainable.
This is a wonderful breakdown of the various psychologies and circumstantial crunches of our very special generation. I expect I'm not alone in noting that a number of them apply to me ā I love to work and I don't want to stop doing meaningful things in the world, but I'll be damned if I ever work for anybody else again on their terms, and I want a life that is larger than work, and I've had a bunch of economic hits along the way. Bottom line: as the great poet might have said, had she not become a billionaire, I will never, ever, ever retire.
I had a 20 month lapse in work recently and enjoyed it a lot. I was volunteering, learning things and more creative. Retirement in five years (at 60) is my current plan but it may come with a part time gig I create for myself
I am gonna be the part time retired. I love what I do and if I could just talk to customers all day and snuggle pets for smooches and then hand everything off to a younger vet for the hard work... I will be good. I sort of envision it as being the Walmart greeter of my practice
Maybe retirement is the wrong question. I do not necessarily want to stop working, creating, teaching, or serving. I want the freedom to stop giving all my time to work that no longer deserves it. There is a difference between retiring from purpose and retiring from somebody elseās schedule.
I've been a writer and musician for 40 years what the hell would I retire for? And what would I live on? Vibes? My father was 81 when I found him dead in front of his computer as he said he would go.
Fortunate early Gen X (60) married to late Boomer (63). She cannot imagine retiring, wants to work which will allow me to retire at 62. One of those fortunate gov't jobs for me with healthy benefits. Yes INSURANCE coverage and cost is biggest worry even though we've never gone without.
Youngins' Set aside money cause ain't nobody gonna give you a god damn thing. You have to Build Your Own Nest baby bird!
I don't know if this is something that might benefit some of you, but the spousal excess is a thing where a lower earning spouse can collect off the higher earning spouse's record, regardless of the lower's lifetime earnings. In my case, I'm supposed to get $3000 at 62, $4000 at 67 and just over $5000 at 70 (I was a pilot). My wife, who was a SAHM and part-time teacher later on, has a very low SS benefit coming to her, based on her own record, but with the spousal excess, she's eligible for a top-off which brings her benefit up to 1/2 of my FRA (age 67) benefit, so $2k per month.
Oof. I'm 59 and have been freelancing for most of my adult life. My husband has the "real" job, but it's not some huge salary, there's no 401K or pension, no retirement plans, yada yada yada. We've got a small nest egg and own our NYC apartment, but we also live in NYC, which means it's expensive, so the nest egg combined with social security ā if it even still exists when I have access to it ā would probably not really allow us to have a particularly comfortable life without any additional income. Our apartment is great for aging in place, and our building is filled with elderly folks who have lived here for 40 or 50 years and are doing just that now, but if we can't afford to stay 20 years from now, then it's a moot point. I recently found out that you can collect social security and keep working (which maybe was common knowledge to a lot of folks but was news to me), so my husband, who is now eligible, is thinking about collecting so that we can at least bank that amount for the future while he continues working.
In the meantime, being a freelance journalist is certainly no picnic these days, with more newsrooms cutting staff and forcing more people into the marketplace. All I really want to do is to be able to write interesting things and get paid for it, but that's no easy task these days, even though it sustained me quite well for a few decades. These are tricky times indeed!
I will also note, as others have, that working and keeping your brain active, is actually a really good thing. That doesn't meant there isn't a way to retire and stay active too, and I'd relish the idea of being able to stop hustling for gigs and just be able to focus on my own creative projects. My mom worked until she was 88, and I think she'd still be working now at 96 if she could, at least in some capacity -- she's still pretty sharp, albeit with less energy! My father in law had to retire at 62 because of union rules, and I think that led to cognitive decline far quicker than it should have.
Interesting to see the different approaches to this. There are many approaches that one could take. I have some colleagues that did the same job, same pay who Iāve sat down with to talk about how I was able to retire and they are still looking at several years. The advice I would give anyone is to
1. Have no debt including your domicile.
2. Have a war chest of out of retirement money to bridge the years between retirement and 59 and a half. (If you have adequate 401/IRA savings to utilize at that age).
3. If you retire and your income is low the ACA is fantastic. Based on income not assets. Have to keep your income less than 84,600 as a couple to have subsidized insurance. If you fall off the cliff you have to pay full price for insurance.
4. If you have access to an HSA save every single dollar and invest it in a conservative growth and income fund to have a fund to pay for later medical expenses, prescriptions, etc. Itās tax free when used for qualified expenses.
5. If you invest in the right vehicles you can realize up to 98k as a couple and pay 0% tax. (Capital gains and qualified dividends).
For example. If you have out of retirement investments that pay 80k a year (capital gains and qualified dividends) and use cash to fund the difference you will pay 0% in federal taxes and have free healthcare through the ACA. HSA funds can be used to pay for any healthcare needs so it
doesnāt affect your income that you use to live on.
Thatās one way to skin a cat.
However if I could have I think the Roth is a super vehicle.
The point is that with planning there are many ways that a plan can be hatched to accommodate and accomplish your goals.
Early GenXerā¦retiring at about the average, a few months shy of 61. And I know I am very, very lucky. I can only do this because I am married to someone who made more than I do. If I were on my own, Iād be chronically broke and working till Iām dead.
I was offered an early retirement from the federal government last year. I wanted to push to 30 years of service, but when the offer was made after I was unable to move on to another job and a few health issues cropped up, I took the offer.Twenty eight and a half years of my life giving over to the civil service was enough.
Great post Jonathan. One thing I see here that can also be a factor in either taking early retirement or in some cases forced retirement as in my case and some others is our ābodiesā wearing down/outā¦ I am early GenX, just turned 60. Did a lot of hardcore skiing/water skiing, contact style sports, heavy labor style jobs early in life, etcā¦I keep in touch with a few friends from high school and college who I ran with who did similar sports, work, etcā¦all had differing careers later in life but one thing Iām seeing in my group is strokes, hip replacements, tendon blow-outs, rotator tears, arthritis and overall health related issues that seem to be coming on earlier than they should. I must note also that all of my friends are still in great shape, no weight issues, still for the most part āactiveā and so it makes one wonder why our Gen is wearing out so fast, at least what Iām noticing anywayā¦so retiring for all those aforementioned in your post makes total sense but some of us want to keep going but physically are just too limited/worn outā¦just my two cents.
My plan is to keep working at least part time until I can no longer handle it or Iām forced out due to technology.
Keep up the great posts Jonathan, you always make us smile, relate and reflect when you bring up all of our old days from being āfree range bad assesā
šā®ļø
Great point, Mike. I've had desk jobs my whole life and I still needed a hip replacement at 53!
I relate to this! I'm about to be 58, so, same era as you. Growing up I did a ton of sports, trained very hard for years, etc. And now I'm paying -- joints unhappy, old tears and breaks acting up, multiple surgeries and extended periods in PT, a fragility and tendency to injury and chronic pain that feels like payback for all the years I pushed through pain and ignored my body's efforts to tell me to slow down or stop. I can't do a lot of what I used to. But I have discovered low impact things I *can* do, that feel good and right and that I love -- yoga, pilates, strength training, walking. We are an adaptable generation, and we are adapting to age.
Union says I can retire early at 62.5 years. Got 6 years to go. But next year get a 5th week of vacation. Want to enjoy that.
62 is my target.
I'd like to go at 52. We'll be empty nesters and I'll have 30 years in at my job. Just want to make sure I have something to retire *to.* Spending my days playing Farkle and going to garage sales doesn't sound appealing at all.
I think one thing we're doing generationally is reconceptualizing retirement. I have no desire to stop living meaningfully in the world, with purpose and a desire to contribute. Much of my working life in my fifties has been about rebooting my mindset to where my work and my play feel intertwined, rewarding, creative, and squarely within my values and priorities. I may never technically retire, but I want my working life to be sustaining and sustainable.
Love your perspective and the intertwining!
Thank you!
This is a wonderful breakdown of the various psychologies and circumstantial crunches of our very special generation. I expect I'm not alone in noting that a number of them apply to me ā I love to work and I don't want to stop doing meaningful things in the world, but I'll be damned if I ever work for anybody else again on their terms, and I want a life that is larger than work, and I've had a bunch of economic hits along the way. Bottom line: as the great poet might have said, had she not become a billionaire, I will never, ever, ever retire.
Thanks, Erin. I hear ya!
I had a 20 month lapse in work recently and enjoyed it a lot. I was volunteering, learning things and more creative. Retirement in five years (at 60) is my current plan but it may come with a part time gig I create for myself
I don't know... a $1 million doesn't sound like enough anymore to cover you through retirement. With inflation and people living longer.
Agree!
I could live for 60 f****** years on a million dollars I've lived on 13,000 a year for 40 years
I am gonna be the part time retired. I love what I do and if I could just talk to customers all day and snuggle pets for smooches and then hand everything off to a younger vet for the hard work... I will be good. I sort of envision it as being the Walmart greeter of my practice
Maybe retirement is the wrong question. I do not necessarily want to stop working, creating, teaching, or serving. I want the freedom to stop giving all my time to work that no longer deserves it. There is a difference between retiring from purpose and retiring from somebody elseās schedule.
I've been a writer and musician for 40 years what the hell would I retire for? And what would I live on? Vibes? My father was 81 when I found him dead in front of his computer as he said he would go.
Fortunate early Gen X (60) married to late Boomer (63). She cannot imagine retiring, wants to work which will allow me to retire at 62. One of those fortunate gov't jobs for me with healthy benefits. Yes INSURANCE coverage and cost is biggest worry even though we've never gone without.
Youngins' Set aside money cause ain't nobody gonna give you a god damn thing. You have to Build Your Own Nest baby bird!
I don't know if this is something that might benefit some of you, but the spousal excess is a thing where a lower earning spouse can collect off the higher earning spouse's record, regardless of the lower's lifetime earnings. In my case, I'm supposed to get $3000 at 62, $4000 at 67 and just over $5000 at 70 (I was a pilot). My wife, who was a SAHM and part-time teacher later on, has a very low SS benefit coming to her, based on her own record, but with the spousal excess, she's eligible for a top-off which brings her benefit up to 1/2 of my FRA (age 67) benefit, so $2k per month.
I just learned about that a few years ago.
Oof. I'm 59 and have been freelancing for most of my adult life. My husband has the "real" job, but it's not some huge salary, there's no 401K or pension, no retirement plans, yada yada yada. We've got a small nest egg and own our NYC apartment, but we also live in NYC, which means it's expensive, so the nest egg combined with social security ā if it even still exists when I have access to it ā would probably not really allow us to have a particularly comfortable life without any additional income. Our apartment is great for aging in place, and our building is filled with elderly folks who have lived here for 40 or 50 years and are doing just that now, but if we can't afford to stay 20 years from now, then it's a moot point. I recently found out that you can collect social security and keep working (which maybe was common knowledge to a lot of folks but was news to me), so my husband, who is now eligible, is thinking about collecting so that we can at least bank that amount for the future while he continues working.
In the meantime, being a freelance journalist is certainly no picnic these days, with more newsrooms cutting staff and forcing more people into the marketplace. All I really want to do is to be able to write interesting things and get paid for it, but that's no easy task these days, even though it sustained me quite well for a few decades. These are tricky times indeed!
I will also note, as others have, that working and keeping your brain active, is actually a really good thing. That doesn't meant there isn't a way to retire and stay active too, and I'd relish the idea of being able to stop hustling for gigs and just be able to focus on my own creative projects. My mom worked until she was 88, and I think she'd still be working now at 96 if she could, at least in some capacity -- she's still pretty sharp, albeit with less energy! My father in law had to retire at 62 because of union rules, and I think that led to cognitive decline far quicker than it should have.
Interesting to see the different approaches to this. There are many approaches that one could take. I have some colleagues that did the same job, same pay who Iāve sat down with to talk about how I was able to retire and they are still looking at several years. The advice I would give anyone is to
1. Have no debt including your domicile.
2. Have a war chest of out of retirement money to bridge the years between retirement and 59 and a half. (If you have adequate 401/IRA savings to utilize at that age).
3. If you retire and your income is low the ACA is fantastic. Based on income not assets. Have to keep your income less than 84,600 as a couple to have subsidized insurance. If you fall off the cliff you have to pay full price for insurance.
4. If you have access to an HSA save every single dollar and invest it in a conservative growth and income fund to have a fund to pay for later medical expenses, prescriptions, etc. Itās tax free when used for qualified expenses.
5. If you invest in the right vehicles you can realize up to 98k as a couple and pay 0% tax. (Capital gains and qualified dividends).
For example. If you have out of retirement investments that pay 80k a year (capital gains and qualified dividends) and use cash to fund the difference you will pay 0% in federal taxes and have free healthcare through the ACA. HSA funds can be used to pay for any healthcare needs so it
doesnāt affect your income that you use to live on.
Thatās one way to skin a cat.
However if I could have I think the Roth is a super vehicle.
The point is that with planning there are many ways that a plan can be hatched to accommodate and accomplish your goals.
Early GenXerā¦retiring at about the average, a few months shy of 61. And I know I am very, very lucky. I can only do this because I am married to someone who made more than I do. If I were on my own, Iād be chronically broke and working till Iām dead.
I was offered an early retirement from the federal government last year. I wanted to push to 30 years of service, but when the offer was made after I was unable to move on to another job and a few health issues cropped up, I took the offer.Twenty eight and a half years of my life giving over to the civil service was enough.