Early Retirement Discussion

[Saab2000]

As many of you know, I work in the airline business as a pilot. I’ve been a diligent saver over the years and just turned 58. The mandatory retirement age in my business is 65. I have no intention of staying anywhere near that long and have decided that I want to retire as soon as practical. My current target is calendar year 2025, probably around the end of November, so I still get paid in December for November’s work. I digress.

I no longer enjoy going to work, getting up at odd hours, working really long days but above all, I’ve achieved all the goals I set for myself when I got into this business.

Who among this wise crowd pulled the plug on their careers earlier than you had to? Have you had regrets? What would you have done differently?

I think I am set financially but I don’t have an advisor. I’m largely self-taught WRT finances, through reading and a lot of video content. I don’t own my house outright but I’m in at such a low interest rate it really doesn’t make a ton of sense to pay it off. I can make more in money market funds.

Other than my house I have no debt and have no dependents.

I’d love to hear from those who called it quits at work before they had to do so. Thanks for the discussion!

[Bob Ross]

For most of my life I presumed I would work until 65, if not 67 or 70.
As I approached those ages, the missus and I had some discussions about how her income -- which, for the last 10 years was substantially higher than it had been for her entire career previous -- could impact retirement age for both of us. We decided that she would work for as long as she was capable (she's a licensed massage therapist, so the hands decide when it's time to quit), and I would retire at 65.

Then in January 2023 she got laid off. But she got a ridiculously generous severance package. (full disclosure: she worked as a massage therapist at Google.)
And after spending several months debating whether she was "unemployed" or "prematurely retired" we decided to see whether the latter would work for us, so we sought out a financial advisor.

Long story short: Not only did the advisor confirm that my wife could comfortably be prematurely retired, he also pointed out that I could retire early. So that's what we did. I worked my last day on June 28th 2024, at the age of 63-and-a-half, and we've been living the Good Life as a pair of retirees for these past ~8 months.

Some might say it's premature to say how it's going after only 8 months, but great-googly-moogly are we enjoying it! Comfortable retirement is highly underrated; if you can do it, do it! ...and as soon as possible.

[Mabouya]

If you haven't already done so, it's instructive to spend time on the Bogleheads forum. So many different rabbit holes there, but it's pretty clear right now that for quite a few folks the "don't time the market" mantra is being severely tested.

https://www.bogleheads.org/forum/index.php

[rccardr]

Retired 11 years ago at 62. Had intended to pull the pin a year earlier but my employer requested I remain to assist with integrating a company they purchased. As a result I also received a very generous separation package (although we would have fine without it). Wife’s job was eliminated a year or so later which impacted our income less than it did her peace of mind as she was not prepared for retirement.

Like you, I was in a high-stress environment. I’d scaled every professional mountain and won every footrace within my area of expertise. It was mentally and emotionally important for me to go out on top in order to embrace this change in life. Two things made a HUGE difference for me:

1) Work with a professional financial advisor who specializes in retirement. I had directed all of our investing since the early 80’s and although the results were spectacular, the pressure and concern over individual share performance was not something I wanted to bring into my retirement lifestyle. This was not easy, and finding someone whom I could trust both personally and professionally took some experimentation. In the long run, it has been well worth it- I keep track but don’t interfere and the income stream has been more than adequate for our needs.

2) Determine your Preferred Retirement Lifestyle (PRL). This is a term I coined while preparing for retirement, and it can be as broad or narrow as one chooses. I wanted as little day to day responsibility and scheduling as possible, so that I could pursue whatever goals appealed to me as time went on. We wanted ro continue to support a number of charitable activities. We travel quite a bit (12 weeks last year, for example) both in the US and overseas. I ride 5-6,000 miles per year including several week long bike tours, mainly with a group of about a dozen folks who gather a half dozen at a time and make our own arrangements. We have two grandkids who (thankfully) live within less than an hour away with our daughter and SiL so we see them every week. This works FOR ME but my wife’s retirement is very different, more involved with her friends, church, etc. And it took a while for her to find out what works FOR HER but as mentioned above her retirement was a surprise. So plan.

[Saab2000]

I lived in Europe for a fairly long time and have friends and relatives in Switzerland, so that’s in my future, though not likely full time. I moved to the western suburbs of Chicago in autumn of 2019 and have been pleasantly surprised by it. Other than mediocre cycling opportunities, I like where I live. I bought an affordable townhouse and have invested in it to get it up to date.

I would like to get to a warmer climate from about January 1 until the end of March. So three months somewhere else becuase those are the least nice months in the upper Midwest.

We’ll see about an advisor. The ones I’ve talked to charge an automatic fee of about 1% and I’m not really prepared to spend tens of thousands annually for something I can probably manage myself. But I’m open minded if anyone has a good suggestion, not of a specific advisor but of what to look for. I am absolutely willing to pay for a per-visit consultation. Just not an ongoing AUM fee.

[holliscx]

James my brother used to live in Arlington Heights when he managed ORF for United. He's now in Virginia Beach ironically but I have a financial advisor friend, two actually who are business partners, and one used to work for Continental under Gordon Bethune. At the time this guy was a revenue analyst.

I inherited a small nest egg from my aunt that I wasn't expecting. I asked this friend where he recommended I park it at Schwab and he gave me his advice free. I didn't ask for any more of his time than that. I don't know what they charge but they're two very good guys if you want me to put you in contact. The other partner went to my college a strong liberal arts school in rural TN

Thank you for your air service. I salute any pilot with grey or white hair — they're my favorite kind! When the kids are flying RJs man I get so nervous especially when they get pummeled by muscly summer air

[Tom]

As rccardr says, think about how you want to live your life after retirement and analyze how your funds will work. I retired at 62 because for a whole bunch of reasons what used to be a fun and interesting job became a situation that over the 18 months before I told them that I was gone in one year completely and totally burned me out. Karen and I were over-savers, when we looked at what we set aside we realized we both could retire and pretty much keep our current lifestyle. Of course, these days it doesn't look quite as certain but what guarantees do any of us have? The most important thing we have is time.

[SlowPokePete]

I retired at age 55 from a teaching career.

Early retirement meant a significant (27%) cut to my pension.

Time is so much more important than money.

I have no regrets.

SPP

[Saab2000]

James my brother used to live in Arlington Heights when he managed ORF for United. He's now in Virginia Beach ironically but I have a financial advisor friend, two actually who are business partners, and one used to work for Continental under Gordon Bethune. At the time this guy was a revenue analyst.

I inherited a small nest egg from my aunt that I wasn't expecting. I asked this friend where he recommended I park it at Schwab and he gave me his advice free. I didn't ask for any more of his time than that. I don't know what they charge but they're two very good guys if you want me to put you in contact. The other partner went to my college a strong liberal arts school in rural TN

Thank you for your air service. I salute any pilot with grey or white hair — they're my favorite kind! When the kids are flying RJs man I get so nervous especially when they get pummeled by muscly summer air

Don’t worry about the young boys and girls flying. I fly with many youngsters and without exception they have been great. I have said for years this is a young person’s business. We had a hiring boom for the past 10 or so years and hired many people who didn’t need to do an overly long stint in the RJ world. When I was in that world it was normal to spend years or a career flying 50-76 seaters. I’m glad I escaped that world and am thankful. It’s been fruitful. And I got to upgrade to the left seat a year and a half ago. That was my final goal in my career and now I’m only here for the money. Bad reason to stay but it does keep the lights on.

[BBB]

I'll add a non-financial perspective to factor into the mix.

My Dad was 57 when he retired. He was a school teacher and accepted a voluntary redundancy. He ran an antique shop for two years and then I can't really say for sure what he did. He did a bit of furniture restoration and maintained a 5 acre property. He tutored two brothers in Maths. My Mum retired probably 10-11 after he did. They did some travel and that was pretty much it (well aside from the normal things people do, socialising etc etc).

We were always concerned that my Dad did not have enough to occupy his mind after he retired. And sure enough, and slowly but surely, he went downhill mentally. He passed away in 2023 aged 87 following complications from Lewy Body Dementia. While that may have happened in any event, I think my Dad had a lot more to offer and not using his mental faculties, he slowly lost them. He could have done some volunteer work, or something that involved some sort of routine to occupy his mind. It felt like a bit of a waste.

So, my two cents is by all means retire early and good luck to you if you have the means to do so, but have a plan to use the grey matter (as well as bike riding and travel, both of which sound great when not anchored to full time work).

[Philster]

I retired at 56 because I wasn’t enjoying it and it turns out that I’m pretty much a “natural”. It sounds like a joke, but some people really aren’t cut out for not working. I’d try to have a plan B just in case. Would you ever be a corporate pilot or flight instructor? I’m not saying do that, I’m just suggesting you are mentally prepared to do something else if you feel too isolated or whatever post retirement.

I retired from a career in finance, so I’m at least literate. My advice would be to not over-estimate your knowledge base and be very careful of the information sources you buy into. There’s an awful lot of fake news out there. If you have a Schwab account, their resources are a place to start. The two old metrics I would start with are 60% equity and 40% cash/fixed income with declining equity and spend less than 4% per year. If you are straying far from these two, you should really know why.

[Saab2000]

I retired at 56 because I wasn’t enjoying it and it turns out that I’m pretty much a “natural”. It sounds like a joke, but some people really aren’t cut out for not working. I’d try to have a plan B just in case. Would you ever be a corporate pilot or flight instructor? I’m not saying do that, I’m just suggesting you are mentally prepared to do something else if you feel too isolated or whatever post retirement.

I retired from a career in finance, so I’m at least literate. My advice would be to not over-estimate your knowledge base and be very careful of the information sources you buy into. There’s an awful lot of fake news out there. If you have a Schwab account, their resources are a place to start. The two old metrics I would start with are 60% equity and 40% cash/fixed income with declining equity and spend less than 4% per year. If you are straying far from these two, you should really know why.

This is outstanding advice. Most of my stuff is with Schwab. I’ll investigate. Our local Schwab office hasn’t been super helpful unfortunately. I probably don’t have enough for them to care. Anyway, I think I’m reasonably literate but there’s always more to learn. The percentages you give above give me some pause. I’ve been all equity, all the time for 20+ years, with not enough emphasis on cash or cash-equivalent. That’s coming along.

Always more to learn. I work a lot of overtime and all of this gets saved and rarely spent, beyond living costs and a few minor (and I mean minor) luxuries, like carry out dinners. I’m a single guy and cooking for 1 kinda sucks, so there’s a fair amount of prepared food in my life, most of which lasts for a couple days.

Thanks for the responses. Looking to learn more on where folks are on this journey. I don’t wish to work until I drop over. My former in-laws did this, quite literally. Not exaggerating. Died between work days or almost immediately after retiring.

[rwsaunders]

Sort of a contrarian here. My business partner and I transitioned our firm over a 3-period to several key employees when I was 61 and I had an agreement to stay onboard for 3 years. When the time came to “hang up the boots”, I was asked to stay to and help grow the firm, based on several new clients that we had acquired who came with some pretty complex projects that were in my wheelhouse. My wife and I had some deep discussions, and I agreed to stay for another two years, as she is busy with volunteer work and taking care of her 99-year old Mother, and she’ll travel with me to some of the nicer client sites, and to see our daughter in Seattle, as our office is in the Emerald City.

Fast forward to today, and I can see myself stepping away from the grind at the end of next year, with an engagement that limits me to 2 select client relationships that I really enjoy. I also agree with the comments regarding a financial professional, as we have done very well by their advice and management and the financial and legal complications related to transitioning a business were best handled by someone other than myself. My wife handed me an ad yesterday, for a bike mechanic at the local e-bikeshare program. I guess that was a hint that she wants me to stay busy, or just a hint that she wants me out of the house.

Best of luck to you Jim.

[PaMtbRider]

Good timing for this thread. My wife retired last August at 59 1/2 after being burnt out from 40 years in banking. I will be 60 in a few weeks. I can start my company pension in 1 year without penalty because I will have 30 years of service. My biggest unknown fear is healthcare costs. I won't get healthcare benefits in retirement but will be given a fairly large lump sum to be used strictly for medical insurance. Buying insurance for 4 years till we both reach medicare is going to be expensive.

One word of advice I can give is make sure you have a non sports related hobby or activity you can devote time to. I expected to retire next year and spend the majority of my time hiking, biking, and being outdoors doing all the things I have enjoyed in my life so far. I've had to deal with some medical issues that have kept me off a bicycle since last June. I am working through it and hope to be able to return cycling in the future, albeit at a much reduced level. For a period this winter I couldn't even go for my daily walk and was off work for a month. I spent a lot of time the last few months inside playing with ham radio. I got licensed several year ago but never really pursued it any further. Without something to occupy my time and stimulate my mind I would have been seriously depressed. You can only spend so much time on Youtube and V-Salon.

[rccardr]

Should mention in addition to my above remarks that one of my duties prior to retirement was to manage the company’s $90+ million 401k plan. Took all of the courses & got all of the certifications needed to do so.

From this I learned that “good advice is worth the price”. Yes we pay our FA a % but as the pot grows larger the % gets smaller. He forgoes any 12b fees which makes up for some of the difference. And contractually he’s a fiduciary- that’s important. So much so that much of the industry doesn’t want the designation. Look it up.

[robin3mj]

Watching this topic with interest. My first job out of college was with a retirement benefits consulting company, and the second was an advisory firm for endowments etc. So that set me up with a firm plan to always max out retirement savings and pursue a long term asset allocation (low fee) strategy.

My twins will graduate college the year we turn 60 (assuming four year plan) so that is my bogey.

I’m also in the process of winding down our company and the proposed payoff at the end may allow me to take a full year off before getting back on the treadmill. I’d much rather borrow one year of retirement now than from my empty nest days a decade plus hence.

[bigbill]

Well Jim, my wife and I are spending the night at a Holiday Inn in Riverton, Wyoming, tonight with two Uhaul trucks with all our belongings sitting outside. Tomorrow, we will move into our new home in Worland, Wyoming, which is a better fit for our lifestyles. I have technically retired three times, first from the Navy in 2012, next from Kimberly-Clark in 2018, and finally from American Woodmark in 2022. The last retirement meant a reduction in annual income of around $120K, but I built up a 401K and rolled it into an IRA a few years ago. Financially, I was a little stressed until I sat down with a pad of paper and figured out our living costs, and felt much better. My pensions pay all the bills plus a little more. We sold our house in AZ and the cost of living is much lower in Wyoming. We have a travel trailer, horse trailer, and two 3/4 ton trucks. We have 9 acres about ten minutes from our new place where my wife will work her horses and give dressage and show jumping lessons, I will enjoy all my bikes on the spectacular area roads, both pave and gravel, teach some history classes at the local library, umpire American Legion baseball, serve as the regional Blue and Gold Officer (Naval Academy recruiting), and work on a PhD. I'll have plenty of mental stimulation. Because of my pensions, the IRA is for stuff and experiences. After 2+ years of "retirement," I'm busier than I thought I would be, but it's stuff I want to do instead of have to do.

[Clyde]

I just pulled the cord age 64 in Oct. So far so good, got my first SS deposit a week or so ago. Hopefully that holds out, and the market stays strong. I am one of those "work to live" people so it was a welcome event. Our house in Saluda NC is about finished so my jobs have been around cleaning up/out our current house and getting set for the new life in the NC mountains. All good so far! Best to you in your ventures, and we use a FP, though not completely as much as we should, likely that will change once we get moved/settled.

[d.bancroft]

I retired when I turned 60 in 2020. The biggest reason was to create time to help my son and his wife with our youngest grand daughter who was born with a rare genetic missense mutation. I dont miss work at all but I do miss the people. I keep in contact with a few via texting or emails or the occasional lunch date. I love waking up and not have to drive to work - I can fill my days as I see fit. I was hoping for a huge increase in my riding but the increase has only been moderate for a number of reasons. I've taken up bread baking and next month I going to sign up for a Fundamentals of Art class. And I'm getting stuff done around the house that has been neglected for years. Financially I'm ok with a gov't pension and SS plus my FERS account. If you can retire early then do it, life really is short.

[j44ke]

Our friends are not a large enough sample size, but there's a lot of cancer. Serious cancer with finite life expectancies. Everyone wonders whether they will have enough money to retire, but things happen and you end up dying before you spend that money. In a way I think you have to seize your health as an opportunity to live your life now.

But things are changing now. Social Security and Medicare aren't going to be around much longer.

My wife's job heated up when I turned 50. Living in Europe had basically taken me out of the teaching profession and getting back in would mean fighting good people who needed rent money desperately to keep up the dream of writing and living in Manhattan. So instead, I started looking for a house in the country, then land, then building a house, aiming for 2024 as retirement for my wife. Then she was asked to apply for a dream job. And then she got it. So here we are in 2025, she travels the globe, I live in a nice house in the woods, and we see each other once every couple months. The job has a finite term, so she'll be done in three years but her contact list is immense now and there are already noises about this and that here and there. I'm all for it. Go as long and as far as you want. Then I see the story of Gene Hackman and Betsy Arakawa, and it feels a bit too close to home.

They call it the future because you can't predict it.