Contemplating Retirement - Describe Your Transition

[Reframmellator]

I retired July 1 after 45 years in industry, at 66 years 4 months - full Social Security retirement age for me. Our financial advisor told us 18 months ago I was good to retire any time I wanted to. My manager told me I could work as long as I wanted to. So I had an option that many do not - I chose my retirement date instead of having it chosen for me. I wanted to do some fine tuning of the balance sheet, collect a historically large incentive compensation bonus, and get to full SS retirement age. I enjoyed my role, but it was time to do something else. I knew I was going July 1 about this time last year, but my wife and I did not tell anyone until early March.

I had a full time offer, as well as a part time offer from my old employer, but I said I needed some time off and I have no urge to go back.

One of the driving factors in my decision was my dad and some really good friends. My dad was a steelworker for 42 years. He debated about the money and took early retirement at 62. Two years later he had stroke that left his right side paralyzed and confined to a wheelchair. Five years alter retirement he was dead. Two good friends of mine both died at 64, never getting to enjoy any kind of retirement. (Incidentally, I'm told the Beatles tune "When I'm 64" has that age because that was the life expectancy in the UK at the time.) Of the 492 grads in our high school class of '73, 54 are gone. That sense of nothing being guaranteed colored my thinking.

In addition, our financial advisors talk about "active" and :"passive" retirement. For most the former runs through about age 78, at which point they have probably done all they wanted to, like travel. More importantly, they are less capable of doing things like traveling. Life after that becomes much more sedentary. They tell clients they hear two comments consistently:

- I wish I had retired sooner.
- I wish I had spent more money earlier in retirement. Now I'm 84 with all this money and I'm not able to spend it on anything enjoyable.

My wife retired a few years ago, and we've enjoyed the first few months. There are so many freakin' things to catch up on around here that in some ways I'm working harder now. I take time to play 18 weekly. I expect that to change (go up) next year once some of the projects are out of the way. I'm sure part of it is the season, but I had more time to be active on THP when I was working.

My transition plan? We wanted to take the first few months easy, catching up on things and taking short breaks to have some fun. Making no major commitments. When the job list goes away, there's a stack of books awaiting me, some writing to do, exercise programs, and volunteer work. It wasn't a big transition at all and I wonder how I had the time to do anything else when I was working.

Hope this helped.

ONE MORE THING: I went July 1 instead of June 30 because that gave me employer's insurance coverage through July 31. I could have picked July 5 and gotten an extra paid holiday, but I didn't.

 

[golfinnut]

This is me now. I’m 51 and ready. The health insurance dilemma is a real problem.

For sure. Its ridiculous what I contribute to it now with my employer I can't imagine later in life

 

[Matthew]

I’m 41 & had a talk with my finance guy a week or so ago. I have enough saved to go the rest of my days, as long as I don’t plan on making the weekend.
It’s going to be a while for your boy.

Most of the guys I play golf with are retired. A few had no issue moving away from work but 1 did. His job was a huge part of his identity, it was who/what he was & still takes the ladies from the office to lunch once a week. I don’t understand it but it makes him happy so who am I to judge?

 

[badolds]

I retired 12/31/21 after operating a business for 28 years. I am 51 and figure I will get the urge to work again later on but am taking a few years off at least. My transition has been easy so far. I had to completely remodel my building inside and out and that took 2 months to complete. I now have it leased out and cannot wait for my rent check to arrive each month. I just got a travel trailer and will be taking it on several trips soon. I have been jogging and working out for the first time in my life and am really enjoying not having anywhere to be unless I want to be there. Don't sweat it man, you will find plenty of things to keep you busy and if you get bored you can always go back to work if you want to.

 

[leftshot]

...My manager told me I could work as long as I wanted to. So I had an option that many do not - I chose my retirement date instead of having it chosen for me...

As I can tell you understand, this is a rare and wonderful gift, getting to choose your retirement date rather than having it chosen for you. I too got that opportunity. As I have told others many times, usually someone's retirement date is either determined by your employer or a collaborative discussion of coming to a date that both the employer and employee can live with.

I was prepared to do the latter and when I proposed my departure date told my employer I had some flexibility in that date and wanted to make sure both the business and personal needs were met. In my case, I'd had several preliminary conversations coming up to this point and am well down the road in leaving my employer in good shape relative to my job responsibilities and leaving many procedures, tips, and information to help the next people that pick up these responsibilities do so and do so well. No doubt that figured in to their response that they were willing to accept my proposed retirement date.

I'm really glad you got that opportunity.

 

[JonMA1]

P. S. By upper Michigan do you mean the upper peninsula or somewhere around Traverse City, Mackinaw City, Alpina, or Grayling part of the state? I lived in Michigan for 10 years and traipsed all over the state.

I work in Traverse City and reside 25 miles south in Mesick. Where did you spend most of your 10 years?

Are you retiring with a healthcare plan that you can keep, or will you need to purchase one for you and your family until you reach 65 and are eligible for Medicare? In Texas, my wife and I were paying over $1,100/month for pretty crappy insurance.

The agency my wife works for has a retirement plan that includes very good health insurance at a great price. It seems too good to be true... and you know what they say about that. Honestly, health insurance is still a concern.

I've got this idea in my head that we humans need a certain amount of regular reoccurring stress in our lives. Not the kind they kills you, but the kind that gets you up in the morning...maybe its routine. I just can't see me stopping the routine. Maybe the OCD is taking over.

I can relate to this. I like a certain amount of stress in my life as you've described. Random stuff is always going to happen, and that challenge is what I sometime thrive on. When I start losing too much sleep at night, that's a sign that the stress is too high. On the other hand, if I'm not engaged or motivated by some sort of challenge, I lose focus and that isn't any good either.

That said, I'm more in the camp of having a decade or so of some leisure time, some physical activities and hopefully, remaining healthy. If my health doesn't hold up, so be it. But I don't think work makes me happy enough to continue longer than I have to.

My transition plan? We wanted to take the first few months easy, catching up on things and taking short breaks to have some fun. Making no major commitments. When the job list goes away, there's a stack of books awaiting me, some writing to do, exercise programs, and volunteer work. It wasn't a big transition at all and I wonder how I had the time to do anything else when I was working.

I can see myself volunteering - at least for a while - probably at a humane society/animal shelter. If I do transition to part time, I'd like it to be something more physical than my current work. My employer will likely accommodate whatever works for me as long as I remain productive.


We met with our financial advisor earlier in the year and I had no idea. I always thought we'd have to live off a tighter budget, but it doesn't sound like that's the case. He said if we work 3 more years, between SS, my 401k, the wife's retirement plan and a couple small Roths, we'll easily have the same income all the way up into our mid 90's. That was not including any kind of part time job. We currently enjoy a modest income, but the point is, we won't have to drastically downsize once we make the leap.

Of course, the market needs rebound in the next couple of years. Fortunately, I'd already been shifting to safer investments before it took a dump. It might get worse yet, but hopefully it will come back.

 

[Reframmellator]

As I can tell you understand, this is a rare and wonderful gift, getting to choose your retirement date rather than having it chosen for you. I too got that opportunity. As I have told others many times, usually someone's retirement date is either determined by your employer or a collaborative discussion of coming to a date that both the employer and employee can live with.

I was prepared to do the latter and when I proposed my departure date told my employer I had some flexibility in that date and wanted to make sure both the business and personal needs were met. In my case, I'd had several preliminary conversations coming up to this point and am well down the road in leaving my employer in good shape relative to my job responsibilities and leaving many procedures, tips, and information to help the next people that pick up these responsibilities do so and do so well. No doubt that figured in to their response that they were willing to accept my proposed retirement date.

I'm really glad you got that opportunity.

Well done! Did you find prepping that transition stuff took more time than you thought it would? I know I did.

The only observation I'd add is that sometimes, one's retirement date is determined by one's health.

 

[Reframmellator]

I can see myself volunteering - at least for a while - probably at a humane society/animal shelter. If I do transition to part time, I'd like it to be something more physical than my current work. My employer will likely accommodate whatever works for me as long as I remain productive.

I've mentioned it here before, but part of my volunteering will involve dusting off the ol' Yamaha trumpet and building up my lip enough that I can play Taps at military funerals. I understand demand far exceeds supply, and with Saratoga National Cemetery less than fifteen minutes away, I hope to be able to make a small difference and give some respect to those deserving veterans.

 

[Reframmellator]

I’m 41 & had a talk with my finance guy a week or so ago. I have enough saved to go the rest of my days, as long as I don’t plan on making the weekend.
It’s going to be a while for your boy.

At 41, you have time on your side. I was 53 in March, 2009 and my retirement account balances totaled $35,000. I got after it in a sacrificial way and got to over $850k at the market peak, I was aggressive and I got lucky to some extent, and my wife's pension from 20 years of teaching made my retirement possible, so it can be done. At 41, you can outperform my record with less pain in terms of your savings rate. If you are in the market and contributing regularly, time will be your friend.

 

[leftshot]

I work in Traverse City and reside 25 miles south in Mesick. Where did you spend most of your 10 years?

We lived in East Lansing and a little town 20 miles south called Eaton Rapids. But in those days my dad was an industrial paint salesman for Valspar and had the entire state as his territory. So we'd pile all the family in the company car (especially in the summer) and travel all over the state with him, mixing in a little family vacation time. We also picked out spots that we wanted to go back to on a dedicated family vacation. One of our favorite places to vacation was in and around the Traverse City area. Made several repeat visits to Glen Lake.

 

[leftshot]

Well done! Did you find prepping that transition stuff took more time than you thought it would? I know I did...

It does take some time, doesn't it? I've done this a few times in my work life, so I pretty much know what it takes. I'm also one who tends to take this longer term view of my work responsibilities. So, my standard practice is to create policies and procedures as new things get thrown at me, often long before the need to pass them along to someone else comes into view.

The first time was when I was 20 YO and graduating from college. I worked at Sears to pay my way through college. This was back in the 70s when they transitioned store credit departments to Customer Convenience Centers. I was the department manager and when they opened those customer care centers it was pretty much no plan--much less prescribed policies and procedures. I ended up creating them. Came back to that store 5-7 years later and even though I no longer knew anyone working there, they knew me because of those policies and procedures. It was like getting a homecoming from a bunch of appreciative strangers. I've had a handful of other opportunities to do this throughout my career.

 

[Vortex]

Interesting topic. I'm still years away from SS but this option consumes more mental bandwidth than I care to admit. Becoming a Florida resident when Covid started has been interesting. As you might expect, I meet lots of retired guys at the golf course. None of them say they should have worked longer. That said; it's very important to figure out your desired standard of living and how you'll pay for it. I'm pretty sure I could stay busy for a 1 or 2 years without a problem. Year 3 and beyond is a mystery right now. My job is rewarding and the pay covers all my bills. Health insurance and boredom are the two biggest items holding me back. I invested in a small technology company. We're in the process of licensing our patents. If we strike a reasonable agreement, then I may elect to retire shortly thereafter. If I rejoin the workforce at a later date, then so be it. If the license thing doesn't work, then I'll keep working until the desire fades.

 

[BigMac]

I'm coming up on 10 years of retirement as of this November. I was able to retire right after I turned 50, with a decent pension and medical/dental/vision benefits. I've never regretted retiring or wished I could go back - I miss the adrenaline and the camaraderie, but not the job itself. I keep plenty busy - I play golf 3-4 days a week with my buddies, take my boat out on the lake, go to the gym, do some bicycling, running and kayaking, and now that I have time I started playing more guitar and finally making a little progress with it. There are some days I never get out of my 'jammies, and that's fine too - I don't at all mind some down time mixed in there.

Retirement is just like any other part of our lives, it is what you make it. I have friends who started second full-time careers because they like working and want to keep busy, some who do a little part time work just for the extra cash, and others who have plenty of hobbies/projects to fill their time and wouldn't have time for a job. Of all my retired friends, I don't know of any who spend their days lying on the couch watching TV all day and wasting away. Nice thing about it is that it can be whatever you want it to be.

 

[sheepdawg]

I retired on the last work day of 2016 after 35 years with a really great regional paint manufacturer in Memphis. I started out as a grunt and ended the Memphis DM. I was really burned out with the responsibilities so at 62 it was time to enjoy things. The money was there but two months later and after one of my favorite store managers cajoling I went back to work as a part time clerk for the old company. No responsibility just show up and do the same grunt work I had done years earlier. That lasted till August 2020 when I said to hell with Memphis, a hellhole, adious, good bye. Bought an acre on top of a hill in NE Georgia with a smaller house. Now i play golf, great senior rates. Shoot my collection of 100 year old Mausers at a nice State of Georgia range for $5 a year. Reload,.Screw around with a garden, Ride around in my GT Mustang and stay up till 3am. everyday. I've even painted a few bathrooms and kitchens for mad money. Don't let people lie to you, personally I can always find something to do.

 

[1860VS]

After 35 years managing building material distributors I retired in Jan 2018 at the age of 58. Six months later I was working for the county road department. I just wasn't ready to golf, hunt and fish every day. The morning I woke up and found myself not wanting to golf or fish because I was bored with them, I went back to work at a stress free job. Already possessing a CDL A, I had a lot of options. I had standing offers from old competitors and customers to remain in the building industry, but I was overdue for a change.

 

[Boone]

I am looking at 3-4 years more of work and targeting age 65 to hang it up. I have a ton of hobbies and don't think I've been bored a day of my life, so I have zero concerns with that. I have no plans to work in any capacity after I retire. I've been at it full time since my early 20's and that is enough for me. My wife will probably have to be forced to retire so we are very different in that way.

I have put a lot away over the years but I still worry about the financial end of it. Probably don't need to, but I still do. My mindset has always been that I want to retire while I still have lots of energy and can do the things I want to do. I doubt there are many folks who lie on their death bed thinking 'I wish I'd spent more time at work'. We own our home, so other than padding the retirement account as much as possible in my remaining work days, the only other thing I am focused on is eliminating what debt we do have by retirement age.

I find it increasingly difficult to care about work. But one fortunate thing for most of us salty dogs is that we become so good at what we do, and were probably raised with 'work ethic' and 'pride of doing a good job' being so paramount that no one can tell that we have ceased actually caring about our employer. That's where I'm at (I believe they call it 'quiet quitting'?).

I know one thing. Walking out of work on that last day of employment - ever - I am going to have one big ****-eating grin on my face.

 

[Acesteve]

I find it increasingly difficult to care about work. But one fortunate thing for most of us salty dogs is that we become so good at what we do, and were probably raised with 'work ethic' and 'pride of doing a good job' being so paramount that no one can tell that we have ceased actually caring about our employer. That's where I'm at (I believe they call it 'quiet quitting'?).

very well said! reminds me of something I saw about a month ago on a Sunday morning early in Wal-Mart

so I'm in the produce section about 8am and everything is moving but very slow. then out of the corner of my eye a lady around 70 is pushing one of those big sweeper brooms. I stopped to watch as she was flat killing it. She is literally moving at 2x the speed of any worker or customer in the store and she is doing a good job. I pause to ask myself why. My conclusion was sense of purpose and what @Boone writes.

I'd also throw out that good managers of others are in tune with where we are in our journey and try and leverage the old tools for unique situations where mastery wins over brute force

 

[Boone]

very well said! reminds me of something I saw about a month ago on a Sunday morning early in Wal-Mart

so I'm in the produce section about 8am and everything is moving but very slow. then out of the corner of my eye a lady around 70 is pushing one of those big sweeper brooms. I stopped to watch as she was flat killing it. She is literally moving at 2x the speed of any worker or customer in the store and she is doing a good job. I pause to ask myself why. My conclusion was sense of purpose and what @Boone writes.

I'd also throw out that good managers of others are in tune with where we are in our journey and try and leverage the old tools for unique situations where mastery wins over brute force

I actually work in health care and my current boss used to report to me - in fact, I plucked her from staff to promote her back in the day. I try not to take advantage of that previous relationship, but she knows where I am and as long as I produce good work, she leaves me alone. At my last 'evaluation' she asked me what my biggest challenge was (a required question) and I responded 'Getting motivated enough to show up every day' - said with humor but not far from the truth. She then asked me if I planned on being here a year from now and my response was 'As long as no one pisses me off' Not necessarily proud of being at that place but it is what it is and I still do my job better than anyone else could.

 

[Acesteve]

I actually work in health care and my current boss used to report to me - in fact, I plucked her from staff to promote her back in the day. I try not to take advantage of that previous relationship, but she knows where I am and as long as I produce good work, she leaves me alone. At my last 'evaluation' she asked me what my biggest challenge was (a required question) and I responded 'Getting motivated enough to show up every day' - said with humor but not far from the truth. She then asked me if I planned on being here a year from now and my response was 'As long as no one pisses me off' Not necessarily proud of being at that place but it is what it is and I still do my job better than anyone else could.

similar converasation on my side. I shared that I work on things I find interesting. Boss says if you wake up and don't have anything that energizes you then please come see me.

 

[ULEWZ]

I retired at 61, almost 62, a couple of years back. I now golf 2 days per week, and play with the granddaughter 2 days per week, and I never look back. It sucks that I do not touch my 401K and it is still going down, but it is what it is. Two SS, one pension, and enough to live on.

 

[CTRosarian]

I am retiring in two months. I wrote the official letter back in September.
I had enough money years ago but wanted to weather one last final financial storm before making the jump. Didn't bother me at all.
Over the years my job has evolved to being mostly customer service as well as fixing stuff when someone else screws up.
While I can do it extremely well, I realized that it just isn't worth the money anymore as my wealth has increased.

In New England the end of winter is a good time to retire. Tax rate is less for the reduced salary for the year.
Beginning of spring is where I really need the time for my hobbies. My gardens have gotten large enough that keeping them up properly takes all year.

I find I socialize much more when I'm not at work! Helping customers is more like playing chess in which you are thinking of the next move, trying to figure out what they really want and how you can help them get there. Maybe that is why I have excellent course management skills!

 

[tequila4kapp]

Depending on how some things break I’m somewhere between 3-7 years away from retiring.

Has anyone out there retired before qualifying for Medicare? I guess staying on the spouse’s insurance is one option. What else…buying it off the Exchanges???

 

[goalie]

Depending on how some things break I’m somewhere between 3-7 years away from retiring.

Has anyone out there retired before qualifying for Medicare? I guess staying on the spouse’s insurance is one option. What else…buying it off the Exchanges???

That question is a huge part of why I went to the VA. I get to keep my health insurance as if I was an employee of I retire before Medicare age.

It's a huge benefit, as buying your insurance isn't cheap

 

[GolfTravelDude]

I retired at 50. Prior to that I was very successful. No financial planner would have said it was a good idea. Ultimately your most precious commodity is time. Have not been able to lead the life we lead prior but predominantly can do as we please.

 

[sheepdawg]

Depending on how some things break I’m somewhere between 3-7 years away from retiring.

Has anyone out there retired before qualifying for Medicare? I guess staying on the spouse’s insurance is one option. What else…buying it off the Exchanges???

I did and thought I was on the spouse's insurance. She even said she made sure. Imagine the surprise 6 months later when I found out I had no medical insurance. We got that remedied at warp speed and it cost me a few bucks. Rode her insurance out for 2 1/2 years till Mediscare hit.