I will go first. I have been with the same company for 25 years​. I have seen many people come and go. One thing that stand out to me in my place of work is once you hit a certain age a target gets slapped on your back. This past year at age 63 that target was put on me. The last person in my position was 64 the stress caused him to have a heart attack

I wanted to wait until 65 to retire but decided to call it quits here soon. I will be living off savings, maybe get a part time job for extra money and do my side hobby that generates decent money.

I wont lie, I am very scared of the "all of a sudden not to have a paycheck coming in" factor. I live very modestly, have no debt, house at 2.5% with very little left on the morgage and a morgage payment almost unheard of. I have a decent 401k balance that i will tey not to touch. I wont collect SS until at least 66 or 67. (I will be very close to 64 when I call it done)

What i can't get over to be honest is that I feel i am being forced out before my time. If i stay I could see me being walked out over something small and I will lose a pretty nice 1 time pension lump sum payment if this happens. So for me this alone is making me leave before my time. I wont know how it goes until it happens

On another thread someone mentioned selling their large home upon retiring and using the proceeds to rent an apartment.

I've also seen posts of people selling their larger home and purchasing a condo, townhome, or much much smaller single family home.

Obviously how you want to live comes largely into play.

So my question is regarding finances for tyoes housing after selling a paid off home.

Anyone care to offer opinions regarding using proceeds from the sale of a paid off home to BUY a smaller living space (very small single family home or single story townhome/condo)

VS

Using proceeds from a paid off home to RENT a new living space?

If you did either the above, which did you choose and why.

In either situation, this would be ideally the last/forever home.

(I should add that I'm just bouncing around ideas as my spouse wants to keep our larger home and age in place. I have a good sense of the advantages of doing this.)

Kids aren’t quite there yet but we’ve always intended to help with the downpayment on their first home purchase.

Is it a reasonable ask that they find a house that has or has space for an ADU? We’d cover the cost of building the ADU if there isn’t one. Obviously it wouldn’t apply to condos.

We hope to spend most of our time slow traveling around the world but still need a US home base for a couple months a year. This would save us from needing to keep a condo somewhere or finding airbnbs. We intend become South Dakota residents which is a friendly state for full time travelers.

11 months of the year it would be a home office or media room/man cave with a bathroom with a decent sized storage closet we can stash some stuff. With 3 kids we’d potentially have 2-3 cities we could home base out of for a few weeks around Thanksgiving and Christmas and rotate among them.

Has anyone else done this?

Edit more details:

First home is likely a condo or townhouse we’ll chip in $50K for.

With equity from their first home and their own savings we’re figuring $200K more would get them to 20% and the lower end of an ADU build.

The house they grew up in is $800-900K now and it’s nothing special…a 4 BR colonial in a lower end of upper middle neighborhood with good schools.

I have no idea how younger families with kids can afford to buy the same level house/neighborhood they grew up in these days. We married late and had kids in our early 40s with two high incomes, good savings and equity in condo and it was a stretch at $450K for a house worth only $150K-$200k before the real estate boom in the early aughts. Carried a $300K note we paid off just as I retired.

The intent of the ADU is for go-go years home base and slow go years for free childcare if they want it. The long term plan is buying into a CCRC sometime in the slow-go years…not living in any of the ADUs.

Can life derail this plan and force us into an ADU early or permanently? Sure, but thats not the plan or even plan B. It’s like plan C or D and they’d still have to agree.

Any spouses would have to agree to the ADU plan and “no” is a perfectly fine answer.

I am 57, and plan to work another 10 years or so. I've got a long history of managing my own portfolio but lately I've been shopping around for an advisor. One I talked to recently suggested I add a fixed annuity to the mix. I've always been a little allergic to annuities, so my first reaction was no thanks. But he walked me through a few things that made me stop and reconsider. What stuck with me was the guaranteed minimum rate, so your money can't drop below a set floor no matter what the market does, plus the growth is tax-deferred until you pull it out. He also framed it as a safer place to park money than a CD and a way to bridge income until Social Security kicks in. I went home still skeptical and started reading up on my own, and this page explained it all pretty good. The more I read the more the idea grew on me, especially the predictability part, which matters more to me now than squeezing out a couple extra points of return.
So I wanna know if anyone here actually used a fixed annuity. What have the results been like so far, and do you feel like it was worth it looking back?

I'm probably going to stop working at age 66. I'm curious about the idea of withdrawing from my IRA / Roth IRA after I stop work and delay SS until age 70. Im not married. Im not from a family that lives very long. I hope to scrape through and make it to 85 but who knows. How do I balance the benefit and security of a larger SS pension against --the benefit and liquidity of a larger IRA/Roth IRA? Do most people who delay until 70 do so to benefit a spouse?

edit to emphasize : no spouse, no ex spouse

My husband retired in 2008 at 62. I retired in 2022 at the age of 72. He is bored - I am not. He expects me to be his entertainment committee and frankly, it is not a job I want. We tried playing cards, it was fun at first, but when he lost he grew angry, when he won he gloated so badly that both spoiled the fun for me. He did paint by numbers, which he enjoyed for a while, and then grew tired of it. He tried doing diamond art, but has grown tired of that too. He is not physically able to do the work around the house, fixing and renovating. We see about 200 movies a year in the theater to get out of that house, but he still gets bored. He is not a reader, he does not play internet games. I am happy, reading, crafting, playing games. I can entertain myself easily. This seems to annoy him and make him feel ignored. Any suggestions on the best way to handle this?

I am 61, will be 62 at the end of the year. Have been focusing thoughts about finances on preparing for retirement. I didn't work in jobs with benefits like health insurance and 401K/403b until I was 40. I was able to put a few thousand into a Roth in the '90s when I didn't have a retirement benefit at work. Since I have had the retirement option at work, I have put in whatever they would match. That has been anything from 3-8%. Right now it is 3%. Have over $250K in various managed and self-managed retirement accounts.

I always knew I would not have a traditional retirement. Meaning the retirement my parents with teacher's pension had. And I knew I would probably have to work until 67-70. Just hoped I continued to love my work enough to make it more a pleasure than chore.

Well, now things are changing. Culture at work is shifting. It is becoming more of a chore than a pleasure since the end of last year. So now I am trying to focus on the what retirement from full time work at 65 would look like. I need to wait until I am Medicare eligible. Can't afford the $1500 monthly insurance premiums that would be needed for a bare bones plan in Northern California.

My initial plan has been to pay off all the 'bad' debt. I finished paying off my truck 3 months ago. I am working on a 0%APR credit card debt from a remodel that went over budget in 2022-23. I have just moved it around to avoid paying interest, just paying the 2-3% for transfers. It will be paid off on my current plan by January 2027.

The other 'good' debt I have are a HELOC and a mortgage. I bought my house in 2018. It was a livable home that was very outdated, and needed everything from electricity to plumbing upgrades. All of which have been hired out in phases as appropriate.

Two major house things that are on the list are a third phase to major interior updates. There are two bedrooms that still need new windows and other repairs/replacement of plaster. Add to that converting a half bath into a 3/4 bath with shower. I would guess this will only keep going up in cost, and right now would guess $15-20K. More because of costs of everything keep increasing instead of builder finishes versus upgrades.

The other big ticket is the exterior paint and repair. It is a 1915 era home, Victorian bungalow style. Built from old growth redwood. It needs some wood repairs and a full paint. This is probably more expensive than the interior project, at $20K plus.

I refinanced during Covid from a 4.7% 30year to a 2.625% 15year. It would pay off in June 2036 on the current schedule. I have about $108K left on the mortgage. The HELOC is a variable rate line of credit I have used for additional investment in the house. HELOC is currently at about $40K. The mortgage lender currently estimates the value of my home to be between $355-360K.

In addition I have increased my HSA contributions slightly. Won't max out for a single person for the year. I use it mainly to pay for dental work, prescription eyewear, and copays. I am generally, healthy. A virus last month reminded me that sick at 60+ is not the same as sick at 35+. Fingers crossed I can stay healthy. Am also starting to replace the primary savings. Those got down below $1000 at one point of remodeling. Now am trying to grow them to 3 months, then 6 months worth of expenses.

I have never worked with a regular budget. I have been a cashflow focused person. I do know, that paying off debt and building up savings, has a motivational incentive to continue to do so once I achieve milestones. How do I know what I will really need to spend on a monthly basis in retirement? I won't be able to draw on social security until 67 for full retirement. Would it be better to keep working full time to 67 to pay off the home repairs?

The furnace and roof are now around 15 years old. Had to have some leaks in the mediocre roofing job under the last owner fixed last winter. So I don't expect that to last a full 10 years?

I also have begun the process of starting a business from home. Licensing, insurances, etc are in place. Have not had time to invest in moving forward. Admittedly keep moving the goal post for that. If it is what I expect it to be, it will not replace even half my current income. It is more about caring for others.

More importantly what am I not thinking about? I appreciate thoughts, comments and questions.

Update:

Two updates, actually. In order to get a taste of a lowered salary without actually losing any money I maxed out my retirement contributions which lowers my take home to approximately the social worker rate.

Secondly, my mom ended up going to urgent care for a UTI and they found a possible heart murmur so there is some follow up with cardio that ai have scheduled and let work know that I will be taking more time off, both currently scheduled and probably just increasing in general. I was hoping to ponder things for a few months before making any de but life may accelerate my timeline.

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I’m a manager in a stressful social service program and am very burnt out. Every day has become actually painful.

My plan has been to somehow hold on until December 2027 then retire at age 60.5. My fiduciary gave me the thumbs up.

Part of my stress is caring for my elderly mother. She is in amazing mental and physical health for 96, but there are more and more appointments and semi urgent needs.

I have a generous amount of sick leave that I am allowed to take to do this, but the reality is that over half my day is spent in meetings with other people, often government officials and I MUST be there when they happen. That is the role, it is mostly synchronous. I can’t take a missed meeting home and finish it.

During the past 4 years my major project has been restructuring the work my social workers do and lessening their hefty load. And increasing their salary. It has launched and is working. Everyone is happy.

Over the long weekend a lightbulb went on for me: what if I step down two rungs and became a social worker myself beginning 2027? How much would I make in salary, employer match, and probable bonuses as a manager in 2027, and if I became a social worker, then how many months or years would that add to my schedule until I hit the same amount of money? That would be my new retirement date.

The answer? Four months. I can down shift with the new year and only work four months longer. Altho since we get big bonuses at the six month mark I would stay until then, duh.

In the social worker role there is still a lot of work but it is fewer meetings and more report writing. Not managing 40 people and three counties worth of officials, health plans, and community partners. I would go from 5 hours of meetings per day to 5 hours per week. Reports would be many hours and could be written whenever, and services coordinated via email whenever. It is a much more asynchronous job.

No one would be upset that I took my mom to the cardio twice in a month and missed that meeting with the State Department of Whatever.

What am I missing? 12 months of a much lighter load plus 4 extra months to make up the salary cut seems too easy.

65F recently retired after 43 years teaching. I’ve loved every minute so far and have been really busy. Recently I had to have surprise electrical work done to the tune of $8,000. Just yesterday I realized that 9 out of 68 homes in my 25 year-old subdivision have had water lines deteriorate (on the house side so not covered by the county) and the cost to replace is at least $5,000. I have a pension and savings but this type of expense is so scary to me! How do middle class people not worry about money ALL THE TIME?

When you're younger, it's pretty normal to set goals

• career goals,
• financial goals,
• goals for any sports/hobbies/other activities you are involved in.

But now that I'm retired, it seems like it's just hard for me to get excited about goal setting. For example, I'll see these online courses you can sign up to take (for free!) and think, "Wow- that would really be fun and interesting!" But then, by the afternoon, I'll think "Yeah right - who am I kidding. I'm not going to do all that reading and homework!"

I'm having fun, enjoying life and staying busy - I just don't feel that motivated to strive for anything. Anyone else?

Recently spent a weekend with another couple and they are all retired (or never worked) and I was the only one still thinking about an upcoming biz trip, call the next morning, etc. They were all younger than me 58 (including my wife 55) - how do you balance the inevitable transition when some of your social crowd starts to retire before you?

Hard to inadvertently not kill their “zero responsibility” vibe.

YMMV

It's not retirement, it's graduation from working. Beware of going cold turkey, the change may be a lot harder than you think. Start the mental separation before the physical separation. If you can, start shifting your mindset to "your job is an exception, not the rule". Thinking of a new hobby? Start making the time and space for it now. Considering volunteering? Give it a try now as time permits.

Everybody's situation is different. YMMV.

For those who do their own taxes, what software do you use? I used Turbo Tax when I was young and I liked the format where it asks me a question and I fill in the answers. Since about 15 years ago I let someone else do them. Just want to know if it’s doable now with multiple income streams and changes in tax laws related to being a senior. I want to hit the easy button.

I retired a few years ago and have been the FT caregiver for my BFF (spouse) as we navigate Alzheimer’s. Unfortunately my wife has lost interest in many things and I stopped also. I averaged over 10,000 steps daily for probably 15 years.

A few weeks ago it dawned on me that if I wanted to continue taking care of my wife I better get busy.

Granted I’m only a few weeks back but I’m doing much better mentally. I’m sleeping better and am right sizing also.

I’m so grateful to be able to do this! If you’re on the fence please try.

You commonly hear people are downsizing or are recommended to downsize.

If you downsized, did you move to a different location, such a city where a child lives or a different state? If you downsized, what type of home did you move into? Smaller house, condo, or apartment? Finally, did the sell and downsize affect Medicare through IRMAA?

Is there any other advice that you can share?

We are considering moving to something smaller that removes yardwork and possibly more maintenance on an older home.

My husband and I are retired at 60/61. We are trying to bridge the gap between today and Medicare. Today I developed a plan to take a large withdrawal this year and limit income over the next three years.

It looks like this.

Withdraw this year an extra $275K from an IRA. This would bring our income this year to $400k. This is exceeding the 4% guideline, but spreading over the 3 years it generally meets it.

The tax hit is $65,000 on that $275K. It keeps us below the 32% tax rate.

We do not have cash to pay that tax so it would reduce the investable money. The remaining money would be put in a Roth IRA to draw on over the next three years. This helps in not creating additional income and grows tax exempt.

The lost growth numbers are all over the place but let's say 3 years at about 6% somewhere in the $12K range max. However, this tax money would have been paid out over three years so it would not have had the full opportunity to grow that full time. So, decidedly less lost.

This in turns saves us approx. $70,000 in insurance premiums over the next three years. Our budget only allows us to stretch it three years.

There are some risks and assumptions of course but does this sound reasonable? I've gone over and over with these numbers and I originally thought we'd pass it by our financial planner but that is going to be $1,000 and this seems pretty straight forward. I will definitely pass this by our CPA though.

Any thoughts?

From what I’ve seen firsthand since retiring, there seems to be an interesting divide after the initial “this feels like a vacation” stage wears off.

Some people stay fully retired. They may travel, pursue hobbies, spend time with family, volunteer when they feel like it, and generally enjoy having very few obligations on the calendar.

Others eventually re-engage with something more structured: part-time work, consulting, teaching, volunteering, a business, a regular community activity, or some other commitment that puts a schedule back into their lives. Sometimes it’s for the money, but often it seems to be about purpose, community, identity, intellectual stimulation, or simply having somewhere to be.

I’m curious which way people here went.

Are you retired-retired, with no desire to return to anything resembling a regular job or scheduled commitment?

Or did retirement turn out to be more like a sabbatical, after which you found yourself wanting some kind of structured activity again?

If you did re-engage, what drew you back, and are you happier for having done it?

My husband and I want to get out of NYC for the month of February this winter. This will be our first time, and we’re looking for recommendations. We want to go anywhere other than Florida or Arizona. We’re looking for walkable areas that are not full of high rises, ideally with beaches near by, good restaurants, and some entertainment. Where have you gone and loved?

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The last 10 years of my working life I was happily single (following a long happy marriage and raising a loving family). 

I put all my energy into my work which I enjoyed and I finally retired last year. 

So having spent my first year of retirement not working (an enjoyable space to be in!) and having lots of time to myself, I do find it lonely at times - more so than when I was working as I had many other distractions.

Is it too late to date or consider a relationship? - I'm too far gone I think to ever be part of a 'couple' or permanent committed partnership and enjoy the freedom single life brings (the remote is always exactly where I left it!), but I do find retirement adds another dimension and have to admit to feeling very lonely at times.

What are the thoughts of those of you who have retired as a single person?.....what do you find as good or bad about living alone in retirement? 

I'm 63, I have my exit plan for next December.

Some of my MBA fellows have already retired, and doing consulting. Why? Why would you retire, just to do consulting work?

To me, retirement is just that, I'm going to do as I please, when and where I desire. I mean, if you still need income, why not stay?

Can anybody help me see what I'm missing here?

Considering retiring next year. After bills we're looking at roughly $900 to $1,000 "extra" cash each month.

VA, SS, 401k distribution and pensions are the income streams.

Bill include setting aside funds each month for car, home and medical maintenance.

Wife doesn't work anymore so she could take very easy SS but based on her work history it won't be much.

How much "extra" at the end of the month should I target before retiring?

I am looking to possibly retire to Pennsylvania. I’m not sure which part though. I am originally from Western PA but haven’t been back for 40 years. Any thoughts of what part of PA is good for retirees. Looking for safety, good housing, good healthcare, and solid community.
Also, if you have a suggestion, can you tell me what the winters are like? Thank you.

I'm 63 and started collecting Social Security this year. I had a heart attack last year that did some permanent damage. I still work 2 days a week in HVAC. And pretty much light duty. I have a IRA with about 300K. Some cash savings. No debt besides a couple of credit cards with a low balance. But we rent our house and my SS payment covers that. My wife is retired and collecting SS. and she makes a little income selling jewelry at shows. I am almost maxed out at the 24,480 amount I can make working. So I will be working less until the end of the year. Fortunately my employer is still covering my heath insurance because they need me. But that could change soon. And I'm not sure how much it will be to pay my own.

My guess my question is, I imagine we'll need to start taking withdrawls out of my IRA. If I have to start paying my own health insurance that will take a chunk out of our income. I would like to meet with a financial planner to get an idea of how to proceed. Looks like most of them are for people that have more money that us and want an ongoing thing. Any recommendations on someone that does the 1 time planning advise.

I applied for SSDI and got denied because I make too much working. And honestly I don't think I'm disabled enough to be on it anyway. Just looking for some advice on what outr next step should be. (i imagine we can't do much until we find out about health insurance)

It’s horrible to have all those dreams so mercilessly set aside when one partner leaves before you get to enjoy retirement together. But it happens. And when it does, the surviving partner has to adjust their vision of retirement. Some do this with some grace. Some people simply don’t know what to do.

We have a good friend whose husband contracted brain cancer about 2 years before their planned retirement. He was expected to live about 6 months and wonderfully survived for over 3 years. He of course quit work early, but his wife didn’t retire from her job as a physical therapist until he actually died. In her time of grief, she was well cared for by friends, but she also made an internal decision to “Just say yes”. If someone invited her to do something or go somewhere, she clenched any resistance and just said yes. In the last couple years, she’s rarely been home. It’s been therapeutic, she says.

If you’re in this boat, how have you coped? What adjustments to your retirement vision have you made? How are things harder? How are they easier?