i am 55. i will earn 38k a yr if i retire now. I have no debt. Can i afford to retire ?
my retirement earns a cost of living raise of 3% a year..my wife will continue to work and earn 14K a year. I have no medical insurance upon retirement and must purchase my own
Public Comments
- yes.
- You could if there was no inflation but since there is you will probably have to save and invest a bit. No one knows what things will cost in 20 years, if you just save a couple of hundred dollars a months even if you retire and invest in diversified stocks, and gold and silver(not all at the same time but gradually) you will decrease your risk.
- I cost out the meds first
- You can't seriously be asking a bunch of strangers to evaluate whether you can afford to retire on 38k per year. None of us know your expenses or what you want to do in retirement. Have you budgeted for the trips to Europe you've always wanted, or are you a stay-at-homer who prefers playing cribbage with your friends? You had better ask yourself these and other pertinent questions before you retire, rather than rely on uninformed responses on Yahoo answers. I will give you one piece of advice - unless you are absolutely, positively, 110% certain that you have enough income to retire, then you probably should wait. The fact that you are asking for other people's opinions and that you haven't provided for your medical insurance leads me to suspect that you aren't quite ready to hang 'em up at age 55.
- WOO HOO!!! Party!!! Might want to keep working until the economy stabilizes and hedge your investments with some additional savings in bonds denominated in foreign currency. I'm partial to Australia and Brazil which have growing economies and ample natural resources and pay high rates of return. But otherwise you're in good shape.
- If you want a vacation - take one. If you really need to retire have you calculated what it would cost you to live for the next 30 years? If your income(saving, retirement income, and wife's income ) vs expenses do not add up you will be working. I would not count on Cost of Living Adjustments calculated by the government. Real inflation is probably running around 18%. Real being the things you actually buy - not steel, and other manufacturing cost.
- Me too... I think a lot will depend on where you live. If you are in a socialist state like Maine, Taxes may hurt you, and the cost of heating a house at 40 below zero can only get worse. If you live in the DC area, Housing costs and taxes can get you. If you live in rural west Texas of a small town somewhere, you may find (or have) an inexpensive place to live. What about major purchases such as a car. How long before you replace it. Do you have a digital tv yet. You 3% can be over run. look how gasoline has doubled in just the last few years. For your medical insurance, start checking around for a policy to see what it will cost. I am looking at 4 years from now. I have a house to sell for pre-retirement income. I hope to invest the money and live off the interest. Later my pension, 401k and Social Security will kick in to make life easier. We may live on a sailboat and cruise the Atlantic coast for a couple years. Good luck.
- Depends on your lifestyle. For example, The Hoss and Mrs. Hoss live very comfortably on about 40k a year. We pay our own medical about $100 per month. However, we own our home clear and free so no rent no mortgage. We did our travelling when we were younger and now just spend our summers at a lake close to our home. One catch, we live in Canada and that $100 per month medical covers all our medical expenses except those that would be considered optional. I wish you luck whatever you decide. The Hoss
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- Start with a budget (Microsoft office has a good spreadsheet). Allow utitilites, entertainment, clothes, insurance, medical, dental, etc. You will make a little over $3,000 a month. Allow for taxes (about 25 %). Try to get insurance through your wife's employer. That will save you money. None of us know where you live to know what your cost of living is.
- Congratulations on having no debt and a pension of 38K per year. I am assuming that by no debt, you mean that your house is paid for. Before I would retire I would: 1. Determine the cost of insurance for yourself/spouse. Does your wife have insurance at her work? Can you be added to her insurance? Don't forget dental/vision insurance along with the medical. Can you wife take advantage of a Medical Savings Account at her job? If so, you could have the cost of deductibles, premiums, and medications deducted before taxes to cover those costs. 2. Will you be working at a new job either full or part time? Will there be benefits? 3. Can you live comfortably on your pension and her income (52K) minus the costs of the insurances (medical, dental, vision)? Will you have enough money for fun, travel, dinners out? Retirement is no fun if you can't do what you would like to do. 4. Do you have any 401(k)s, IRAs, or Roth IRAs to draw on in the future? Can you let those accounts grow for the next 4-11 years? 5. Are you eligible for Social Security? Are you going to collect at 62 or at 66 (which is your full retirement age)? Remember that you benefit is reduced if you start collecting prior to age 66. How much will your benefit be? Will you have enough money to last until then without depleting you retirement accounts?
- Medical insurance is your biggest expense. I have a buddy who retired and is paying $1300 per month for his medical. I wouldn't try it yet. As my father always said, as you get older, the parts wear out. I'm 64 now and retired, but my wife is 58 and still works and i'm under her medical and like you, I have no debits. Your choice
- You can retire, just make sure you live within your means. And DO get that medical coverage before you do anything else.
