Retire May 2020? How do our #'s look?

[Body Surfer]

Hi. Husband & wife both age 59. Wife retired and I want to retire May 2020.

Our expenses will average $55k/yr including healthcare from ACA, travel and taxes. (Probably lower)

IRA and liquidity: $1M
pension: $27,500/yr
SS: $50k/yr combined; will take SS after medicare age, probably both at 67.

What are your opinions?

Great advice on this site. Thank you in advance
     

[ysette9]

Good grief, yes.

I recommend putting your numbers into cFIREsim so you can model for yourself

[Kronsey]

You can easily retire.

3.5% (which is overly conservative at your age) on the $1m gives you $35k/yr. The rest of your budget is covered by the pension.

Plus SS in 7 to 8 years.

What is holding you back?

[Body Surfer]

You can easily retire.

3.5% (which is overly conservative at your age) on the $1m gives you $35k/yr. The rest of your budget is covered by the pension.

Plus SS in 7 to 8 years.

What is holding you back?

Perhaps unreasonable fear. This is the reason I wanted your advice on this.

[ScreamingHeadGuy]

Your figures are super safe.

Now you just need to get to a mental position of comfort with the idea of retirement.

[Pharacan]

Regarding your pension:
Is it inflation adjusted?
Is the pension only for primary or does it transfer to spouse upon primary holders death?
I'm not sure if it will affect your decision, but these are items to consider.
Best of luck.

[Body Surfer]

Regarding your pension:
Is it inflation adjusted?
Is the pension only for primary or does it transfer to spouse upon primary holders death?
I'm not sure if it will affect your decision, but these are items to consider.
Best of luck.

Pension is non-cola, 100% joint survivor

[reeshau]

To ask a dumb question:  Are you looking to immediately take your pension?  And is that value the value when you plan to take it, or at "normal" retirement?

If you go to the trouble of modeling, you might want to model the pension either way:  taking now (assuming that's your numbers) or having a higher withdrawal rate from the stash and delaying the withdrawal for a higher payout.  That's the same calculus as walking through social security withdrawals, which it looks like you are waiting until "full" eligibility.

[Body Surfer]

To ask a dumb question:  Are you looking to immediately take your pension?  And is that value the value when you plan to take it, or at "normal" retirement?

If you go to the trouble of modeling, you might want to model the pension either way:  taking now (assuming that's your numbers) or having a higher withdrawal rate from the stash and delaying the withdrawal for a higher payout.  That's the same calculus as walking through social security withdrawals, which it looks like you are waiting until "full" eligibility.

We will take it in May 2020 right when I retire.

[Kayad]

You have 1 mil to bridge you over for 7 years, at which point pension + ss will provide you well over your annual spend.  You are set!

[Linea_Norway]

Also consider your age. You are not getting younger. Just make sure you don't "waste" any more of your good years by working in an office, while you would rather be doing something else.