# Retirement jitters



## mzgarden (Mar 16, 2012)

So how do you mentally convert from full time paycheck to retirement without worrying yourself silly?
I bring home the paycheck for our two-adult homestead. We sold our house in the burbs and moved to 5+ acres one year ago. We are repairing the 110+ year old home and repairing the land from long forgotten horse pastures to orchard, garden, chickens, maybe turkey, pig and sheep. We have no debt except the house/land. Next year will be the final push for the âbig ticketâ structural items - roof (house & barn), kitchen remodel, bathroom remodel (all cash) and then retirement early 2015. DH does the work himself (& I help when I can), which is why heâs not out there bringing in a paycheck. Heâs very good, tackles the big jobs economically and successfully. When I retire at 57, after 34 years working for Global Big Company, I will look for part time work to keep some income coming in, plus we will have income from our investments. Weâve talked to multiple financial planners and our CPA - everyone says weâre in good shape. Weâve always lived below our means and saved/invested. This should be the time we celebrate our years of planning and Iâm just so nervous. I swing between being ready to retire today and having the jitters about 2015. Is it just a matter of planning the best you can and jumping? How do you get over the jitters?
(ps, I'm also watching the '17 months' thread to see if we've missed anything)


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## emdeengee (Apr 20, 2010)

The only financial planner that I think anything of stated that you will need 70% of what you earn when you are working as your retirement income. And this is with no mortgage or consumer debt.

This is simply because in order to retire successfully you can never stop saving. You have to consistently earn more than you use. Earn more each year or save a lot in the first years of retirement. And even cutting down your expenses may not be enough to keep up with inflation. This year alone we are paying nearly $300 more a month in $3, $5, $15, $30, $80 increases for different expenses that we have to pay. If all you have is enough to meet your expenses this year then you will consistently be using up your capital or going underwater every year afterwards.

I would not count on part time work. Lots of unemployed people as your competition. Perhaps you need to work a few more years to be at a comfortable stage with your retirement income so you are not jittery.


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## where I want to (Oct 28, 2008)

It is scary. I know what decided me on retirement was the sudden death of my sister at age 57. We had just had a visit where I took her around my area of the country to check out posssible places where she might live when she retired. She never got to retire.
So I did it. Just up and did it. Made a few mistakes but never regreted it.


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## jassytoo (May 14, 2003)

As much as we look forward to retirement I think it's natural to have the jitters. It's a big step. DH and I prepared for retirement and got all our ducks in a row but it still took time to get comfortable. DH now has a job usually two days a week at the place he worked at before. He enjoys it a lot but as nice as the paycheck is, he could stop anytime he wants to. I think you just have to go for it. You have x amount of $ to live off of and you have to make it work. No one can predict the future, we prepare as best we can, take a deep breath and jump in.


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## Grumpy old man (Aug 6, 2013)

I would pay for the big expenses roof /remodel before I quit and keep that money safe and (my opinion ) not in any bank .


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## Ramblin Wreck (Jun 10, 2005)

I don't know mzgarden. Different folks have different fears. Some fear not having enough $'s in retirement. I feared not having enough time to do some things I really wanted to do other than fight life threatening traffic every day to get into/out of town with the other rats in the race. I have no regrets. My expenses have been less than when I was working. The farm is in better shape, but no where near finished. Heck, it may never be finished, as I like the journey a lot. 

Whatever you do, don't live in fear. If you fear most being bored and not having enough $', keep on working. Besides, it helps to fund social security, which I hope to draw upon in a few years. I will greatly appreciate your support.:clap:


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## TheMartianChick (May 26, 2009)

I agree with Ramblin Wreck... Don't live in fear. You are about to embark on a wonderful chapter in your life and it is one that you've planned for. You are jittery because this is a momentous occasion. Your backup plan of part time employment might easily be replaced with a side-hobby that could generate income. In this way, you wouldn't have to fight traffic or deal with a boss.


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## mnn2501 (Apr 2, 2008)

> When I retire at 57, after 34 years working for Global Big Company, I will look for part time work to keep some income coming in


 Why would you retire from a full time job (presumably paying well) just to get a part time job to "keep some income coming in" - especially when you're only 57?


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## Bret (Oct 3, 2003)

I agree. Try not to fear. What ever you fear is the wrong thing. Glad you have a revenue stream. Keep it coming while you can, if it's not hurting you.


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## jwal10 (Jun 5, 2010)

We lived on half my paycheck for 4 years. I was going to work until I had 20 yrs in, 3 more years, but the job went sideways and my health was suffering from it. Knew we were good to go, so there was no fear of letting the job go. I had everything ready to go before I retired. Then a half time job came up and I did that for 2 years to help wind down. I was 55 at retirement. My retirement income from PERS is less than half my former paycheck but we have other income coming in. We live on half my PERS check....James


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## emdeengee (Apr 20, 2010)

I definitely do not think that you should be fearful but you should have the realistic facts and figures.

I have always used a percentage to calculate my budget categories and it has worked very well at helping us to decide what we can and cannot afford to do. I recently went through my friend&#8217;s finances with her because she is retiring in 5 years. It helped her to see where she is and what she will need to do in the next 5 years. She was very nervous about retirement but is much calmer now. 

My friend makes $4000 net a month at her job. When she retires she will have a pension of $2200 net a month. She has approximately $170,000 in retirement savings and will have more by the time she retires. She intends to travel when she retires so most of this money is intended for this and thus she will live on her pension. Her mortgage will be paid off just before she retires. She bought a newish car last year so may not need a new car by then if this one holds up.

The percentages I use are 35% for housing, 15% for transportation, 10% for savings, 25% for life and everything else, and 15% for debt. If you have no debt you have 15% to add to any of the other categories.

So right now my friend has $1400 for housing (she is about $90 over in this category so loses $90 from her life and everything else money) but will have $770 at retirement. This is why she has to pay her mortgage off. 

For transportation she has $600 but will only have $330. 

She has $400 for savings but will have $220. 

She has $1000 for life and everything else but will only have $550. 

She is paying student loan debt for her son and some credit cards right now at $600 but if she retires with this debt she will only have $330.

She intends to keep paying into retirement savings and hopefully her son will find work soon and be able to take over his own debt. 

If she is careful she should be able to retire comfortably and travel but she will need to keep saving 10% for emergencies and to meet inflation. So it isn&#8217;t a lot of money, but she started her career and savings plan quite late.


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## mzgarden (Mar 16, 2012)

mnn2501 said:


> Why would you retire from a full time job (presumably paying well) just to get a part time job to "keep some income coming in" - especially when you're only 57?


Good question, thanks. The job I do is being phased out due to offshoring and automation. By early 2015, the job is expected to be gone so I'm planning to move on as well.


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## Grumpy old man (Aug 6, 2013)

I retired young 48 and anyone can tell you the first few months I traveled and played like many others ,But I work harder, longer and I am healthier now than I have ever been in my life . it just seems I have a ton more projects than I have time for .


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## jacqueg (Feb 21, 2010)

What ramblin wreck said.

Any financial planner would have strongly advised me to keep on working, by their standards I didn't have enough money to retire. We each have to make the call for ourselves, it's the balance between having as much as is recommended to be old, and the desire to do some things while you're still young enough to do them. The old lady I'm going to be 20 years from now wouldn't thank me for making her live out of a grocery cart, but I know she would be equally disgusted with me for playing it so safe that she had no adventures to remember!


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## poppy (Feb 21, 2008)

mzgarden said:


> Good question, thanks. The job I do is being phased out due to offshoring and automation. By early 2015, the job is expected to be gone so I'm planning to move on as well.


About everyone gets those retirement jitters but it sounds like you prepared well and will do fine. You'll be surprised how much you will save by not working. Things you never considered like gas to get to work, lunches, clothing, etc. will make a big difference. We retired when I was 58 and my wife was 55 and have been retired 8 years. We were like you, saved and lived a modest lifestyle and took a big cut in income to retire but we have more more free money now than when we worked. Good luck


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## COSunflower (Dec 4, 2006)

I plan on working 2 more school years and then will be retiring at 62. I will have SS and my PERS from working 30 years in the school district. My place is paid for and I have no debt and live a VERY frugal lifestyle so have no worries about retiring. My only worry is about getting all the paper work etc. done to make sure that my first SS and PERS checks come in correctly! THEN I will breath a sigh of relief!


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## Shrek (May 1, 2002)

Retirement is nothing more than another job phase. Instead of worrying about getting to work on time and hoping you don't get laid off , your job is facility and budget maintenance is all.

For a career I spent half my time producing product and half my time checking overhead cost , maintenance expense and productivity and profit charts at my desk.

Now I don't punch a clock but still sit at my desk in my study in my home studying my household maintenance needs and cost, savings and investment incomes, savings and expendable income funds. If my income flow is lower than required, I may try to fish a consultation gig out of my former career sector or do a horse trade of some sort for a bit of extra income or finders fee to cover what I judg to be retirement budget shortcomings.

Retirement is just another job only with more flexible hours.

I know there are commercials showing retirees traveling constantly in an RV but those are just TV commercials selling this or that. 

The reality of retirement is your new job is to ensure you keep a well maintained roof over your head, utilities on and food in the pantry.

As during your career, if your lucky after doing all of that you may be able to take a week or two vacation or evening out_____but just as when working a career ,after that vacation you look forward to returning home to your retirement job where the real relaxation is with the satisfaction that you can make your retirement last for a few more tomorrows.


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## jwal10 (Jun 5, 2010)

COSunflower said:


> I plan on working 2 more school years and then will be retiring at 62. I will have SS and my PERS from working 30 years in the school district. My place is paid for and I have no debt and live a VERY frugal lifestyle so have no worries about retiring. My only worry is about getting all the paper work etc. done to make sure that my first SS and PERS checks come in correctly! THEN I will breath a sigh of relief!


 
The paperwork was not hard at all. Make sure you go to one of the planning meetings a year before your retirement date. Get the paperwork and answers to all your questions. Get everything in so it is ready to go 6 months ahead of the DATE. Then wait for your check. I didn't need to worry about having a check so I waited 6 months so it would cover the 6 months that I worked without PERS, I didn't want to pay for that. But then I was taking early retirement and that 6 months raised my monthly check a good bit. I retired/forced retirement in January before my March birthday so my first check was August. My start work date was the day after Christmas, my 6 month date was July 1st. Went very smooth for me....James


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