Hey Ramblers, we did it! We both retired before the age of sixty! Who knew that we would be looking at retirement in our 50s? Our road wasn’t a straight one, but it was full of the choices we made for our family and it was, to borrow from Joseph Campbell, an adventure of bliss. Retirement in your 50s can be a great choice. Is it for you?
What We Did
We are both social scientists by temperament as well as training. Leah started in business- banking, specifically. Her heart led her to work with children and she did. She was a classroom aide, Spanish Teacher, Assistant Principal, Associate Principal, and Principal. Her forte was taking failing schools and leading the teachers and students to success. She got awards and recognition, but relationships with people are what energized her.
But I was a lot more aimless for the first decades of my working life. I focused more selfishly, in some ways, on straight-out bliss. I lived adventures I loved- ministry, service industries, retail, and even plain old manual labor. In one way or another, everything was fulfilling to me. That is to say until it wasn’t. Changing fields energized me and enabled me to grow as a person. I too, went into education when our kids were in High school. I taught English, reading, and Writing, and eventually went into administration. When I reached the rule of 80 (age + years of service 80 in my case), I knew it was time to follow other blisses.
Leah and I each spent many years working on and getting graduate degrees in several soft science realms. We just love to learn. We did a lot of parenting, and our three are grown, independent, and have loving families. Our focus never seemed to be getting to retirement, but it happened quickly, thanks to Texas Teacher Retirement Services. We have other trickles of income that help us travel and do other things.
The golden years are different now than when my Big Mama was my age. Big lived exactly the life she wanted. She sold flowers from her garden and eggs from her chickens and lived on Social Security benefits. She didn’t do any retirement planning and didn’t have a pension plan. Her lifestyle didn’t demand much from her finances. She loved her home friends and her routines.
We like to go places, meet new people, and have interesting experiences, and those always seem to cost money. Based on our preferences and lifestyles, we chose to prioritize travel and adventures. This results in us sometimes having to make choices whether we make a large luxury purchase of some type or take another trip in the style we prefer. We have found that, for the most part, we are happier with fewer purchases and more experiences.
We also have numerous hobbies and activities that we pursue while we are at home and not traveling. From playing with granddaughters, gardening, painting, wood-turning, cooking, and lawn care, we are seldom bored. Some people, however, do not seem to care for having or pursuing travel or hobbies. Retirement in their 50s may not be something they would enjoy as much as we do. That’s an important piece of self-knowledge that is highly personal and unique to each individual.
Plan to Fund Your Retirement in Your 50s
The perfect time to get a financial advisor and start either a Roth IRA or a traditional IRA is early in life because it takes a lot of annual income to maintain a certain lifestyle. Since there is no such thing as extra cash and also no such thing as too much money it takes some thought to reach your retirement goals before you reach full retirement age. The good news is this: your retirement funds can make early retirement a reality.
All of us want to make sure that we have enough money in our retirement budget for us to enjoy the adventures of life in our early 60s. A comfortable retirement for the average American covers student loans if you still have them. Also, health insurance is an obligation until you qualify through the Social Security Administration. Not to mention everyone wants zero credit card debt, and enough of an emergency fund in your savings accounts to make all of the monthly payments that you hadn’t eliminated with your pre-retirement income. Even after retirement, we pay income taxes
It should not take as much income to remain comfortable in your retirement years as when you work. But you will still have obligations like property taxes and it’s also a good idea to have long-term care insurance. Your financial situation may fluctuate some during these extra years. Financial advisers and other financial experts can help you design an investment strategy to provide for your financial security. Depending on your situation, you may need legal advice in addition to online retirement calculators to ensure that you meet the retirement savings goal.
Be Specific about Your Intentions
The first step and getting ready for your senior years starts when you write down your savings goals and together with a certified financial planner begin to design your retirement accounts. Some investment tools have contribution limits and you may need to make annual catch-up contributions up to the annual contribution limit.
One important consideration is- do you want to have a part-time job. Another is- will your investment tools (like mutual funds and other stock market equities) provide enough annual salary for you so that you do not have to have a side hustle. Get all the expert advice before you need it. A tax advisor can only give tax advice for your future and can’t roll back time. Your situation is unique so it is up to you to do your due diligence and find out how you can fund your long-term retirement.
After you retire, it is almost impossible to eliminate outstanding debts because there is no “extra” money. It’s preferred to make your financial decisions and reach your financial goals many years before the last year of employment.
Leah and I are still making discoveries about retirement, but we certainly have a fabulous time! Absolutely NO regrets for us about retirement in our 50s! We have documented some of our trips on our blog. Follow us HERE to keep track. 🙂 Within the last few years, we have discovered a new love for cruising and it’s now one of our favorite ways to adventure!
