I just registered for my retirement planning session
Posted by mysissy72@reddit | GenX | View on Reddit | 24 comments
Looking at the sent email in my work email with the request to sign up for the upcoming retirement planning session, has sent my mind into a tailspin! How is it possible I am looking into my upcoming retirement from my work that I’ve been with for 25 years! I swear I’m still youngish even though I’m 53.
Boshie2000@reddit
Me too
Waffuru@reddit
Lucky. Blue collar job is it? Those tend to let you retire earlier. I'll be retiring from mine at 55 and I can't wait. I'll have been at my company 30 years by the time I can do it x.x
purl2together@reddit
Realized last week that I can start drawing Social Security in 5 years. That hit harder than realizing I can retire in 3 and shift to a more flexible version of my work.
Irishfan72@reddit
Just turned 53 so I can relate. Never thought about retirement until I crossed 50 so must be some switch that gets flipped at this age.
Not ready to retire but don’t want to work the long hours either. My motivation has definitely decreased. Maybe a part-time job or barely full-time job is in order.
Glad I am not the only one thinking about this in my early 50’s.
In_The_End_63@reddit
Disclaimer - I'm not a financial planning pro ... merely someone with a technical bachelors and some grad school but no masters.
Here are the real world Gen X milestones for normal people who are not 1%ers or even for that matter 5%ers.
a) 65 - Medicare (though beware if younger spouse or other adults who are current dependents on your company plan if you have that).
b) 67 - FRA (FWIW)
c) 70 - SS sweet spot
d) 75 - RMDs start. Tax implications.
e) (a variable) - depending on your forecasted worst-case money run out date.
I define money run out date as everything but SS is gone. How to forecast that IMO is, you apply business planning best practices looking at both history of expenses plus some reserves planning for various contingencies such as unplanned health expenses, disaster expenses, and the like.
ScreenTricky4257@reddit
If you're wise, that shouldn't happen. Let's say you're retiring at 65. So let's consider the extreme case that you live past 95. A life annuity purchased at that age pays off about 25%. So if you want $50,000 a year, you'd need $200,000. If you leave some investments in the market starting at 65, you'd have 30 years of growth to build that. if you get 7% return in the market, you'd need about $25,000 earmarked for that. So that's 95+ taken care of.
So then let's consider 85-95. A 10-year annuity probably gets you about 6%, so you'd need ~$400,000 to buy one. This only has 20 years of market growth, but we'd still expect 7% over that time, so let's say to set aside $100,000 at retirement. And if you die during this time, the annuity is still part of your estate.
So if you set aside just $125,000 at retirement and keep it in the market, you can ensure a regular supply of money for as long as you live. Then you have the rest of your nest egg to live on for twenty years.
BraveG365@reddit
So are you saying annuities are good?
ScreenTricky4257@reddit
For turning a lump sum into guaranteed income--"buying a pension," yes. For investment, not so much.
BraveG365@reddit
The reason I ask is I have a friend who is 52 and he recently got 300k from inheritance....he has some disability issues that make it hard for him to work so he is worried that the 300k now is all that he might have for retirement on top of any SS he gets when he collects at 67.
He has checked into annuities from different websites and for 100k he can get about 16,000 yr payout if he defers payments for 10 years....but I have told him it might be better to invest the 300k into the market and in 15 yrs at 67 it could double twice which might give him anywhere from 800k to 1.2 million if the market does good.
The issue with an annuity is inflation which can eat an annuity away.
vwaldoguy@reddit
I am retiring early at the end of the month. I'll be 55 next month, and my agency is offering an early buy out. I'm taking it.
Budget-Rub3434@reddit
Omg you are SO LUCKY
baby_maker_666@reddit
Re-tire? Like you're going to put more tread on a tire? Or are you going to "tire again"? I'm genuinely confused? What is this re tirement planning? I dint get it.
SquarePea6155@reddit
Just turned 50. I remember when retirement was something the old guys at work talked about. Surreal to see it much closer on the horizon and its for me, not some “old guy” at work.
Powerful-Union-7962@reddit
Bah! 54 here with a 13 and 10 year old, retirement is waaay off.
ishouldquitsmoking@reddit
I just restarted my 401k after a divorce and all the blah - I have $6,000 to retire on.
snortWeezlbum@reddit
Jealous. :(
Flaky-Artichoke6641@reddit
Retirement planning should be years earlier. Some people take it as a joke and now suffering
MaximumJones@reddit
Welcome to the amazing world of retirement.
donutello2000@reddit
Some (not all) of these are hosted by insurance salesmen who’ll try to scare you into buying annuities with them. Listen, but be skeptical of any sales pitches.
That_Old_Nerd@reddit
Congratulations, I still have seven years with the state, but am hoping it will go fast. Soo looking forward to starting that next chapter in life.
Walking-around-45@reddit
Pulling the trigger In a few months, already cleaning out the house to sell up and put all that capital city money elsewhere, mostly in a travel fund.
Zerojudgementhere@reddit
Congratulations!!! It’s a crazy but wonderful feeling!! I was with the same company for a little over 26 years and was able to get out at the end of last year. I’m 52 so definitely earlier than I originally planned, just couldn’t take the gross incompetence from our “leadership” anymore.
dingonugget@reddit
I'm pulling the plug on this career @ 55 (little under 2 years now)
buckinanker@reddit
I can’t freaking wait! I’m so tired of the rat race! Congrats on planning ahead though!