Learning From Early Retirees

For my birth year, retirement age, or the age I can draw full social security is 67. Technically, anything under that then would be early retirement but I'm setting my eyes on 62, roughly 8.5 years. When I originally changed jobs, I had a more ambitious target of 59 1/2, but with multiple number crunching, I can't see that working unless I had lucrative very part time work doing consulting or short term project management. That isn't beyond possibility, but would be too dependent on others to adequately plan now. I also would need to think about stretching my retirement date from my 62nd birthday until my anniversary date of employment in March, which would give me an additional year of credit to my pension, or roughly estimate, another $1400 per year. I'm sure I'll have a lot of vacation accrued so I wouldn't actually be working full time right up until then, so it makes sense. 

Without a doubt, DH needs to retire at 62. He continues to work incredibly long hours at a job he is good at, but no one else he works with seems to be. This has him regularly jumping through hoops problem solving for others, which then impacts his time with customers, and thus his income potential. There is also the ongoing implied threat that his store will close, and when and if it does, it would be with little to no notice. I feel like every month he keeps earning paycheck there I should be grateful. For both of us, we are roughly four and nine year away. I don't know if still having a dependent (or at least college dependent child) is typical or average  for our ages but her needs are part of our planning now as well in the first target of four years. 

I read a lot of blogs from people in the same age bracket as me, but more and more I'm looking for those for those just ahead of us on the life journey, and importantly those that are about to retire, have recently retired, or retired in their late 50's or early 60's to glean whatever wisdom I can from their experiences. There's one blog I read intermittently, and despite her posts that are all over the place (I did this perfect, I messed this up, my kids hate me, I have the best family ever, everyone else is doing it wrong...), I do pick up much from her, but some based on hat I would describe as her less than stellar retirement habits. Not all the lessons are specifically about money, but they are about quality of life. Here's some of the top ones that I'm trying to encapsulate into my life, and I am sure at greater and lesser degrees of success. I'm phrasing these as if I am directing  you, but please take what resonates with you and disregard what doesn't.

1. Figure out the lifestyle you will want in retirement and begin to make a budget now. If you don't know what your needs will be once you stop working it is hard to set targets and aspirational goals, the first step in saving towards retirement. Use retirement calculators, but also don't get discouraged when they throw out  savings targets that are so far beyond your reality. Add where you can, in whatever means you can-. (see #3). Edit based on a wise commenter-health care for the time between retirement and Medicare eligibility, as well as any supplemental coverage must be in the budget. 
2. Start weeding the spending clutter from your current budget. This last 4-9 years of DH and I working needs to be a time to cut clutter out of our lives and our budget should be first. Sure things will break and get run down and will need replacing but as for entirely new additions, we need nothing. Of course, I consider our minor and incremental home improvements part of maintaining the home, but even then we need to be cautious to spend right. 
3. Maximize every savings vehicle you have available. If you started late, make up where there are options to do so. Putting $13,000 into the Roth was scary for me this spring with college tuition looming. We though are earning good money on that retirement fund. Unlike my pension, and our 401K, the earnings on the Roth are tax free. We also need to make sure we are topping off DH's 401 K if he doesn't naturally reach it through his standard deduction. 
4. Make sure you retire with as little to no debt as possible, but for sure none on your home. While I have a no interest car loan, this is it. I do not want another car loan hanging over us. I'll drive this car as long as possible, while we keep making payments to ourselves, and then eventually replace for cash. this goes without saying, but no home equity loan, no second mortgage-even if we are getting offers it seems daily to do this to cover college and home improvement. Knowing you have a place to call home, and if we decide to, sell it and downsize to something smaller in a less expensive community, brings me peace of mind.
5. Since your active earning stops, build  cash savings up to a minimum of 12 months of living expenses plus lifestyle spending prior to retirement. There will be months in retirement that are just more expensive. Murphy doesn't retire. However, with no active earning, the need for a greater cushion should we need to tap into savings feels like a necessity. Of course we are not risking layoffs or under employment, but we still will be subject to the market with our retirement account and if we can hold off drawing down if the market takes a turn until it rebounds, we'll be might happy we have the cash to pay living expenses. We hope to do some travelling for long periods of time, perhaps a month at a time, so having that saved ahead would be a win as well. 
6. Budget everything-make no purchases on a whim. I've never been a big shopping as entertainment person, but I can get caught in the great clearance sale mindset. I just need to keep reminding myself that every dollar needs to meet a purpose and money spent on something 75% off is still money spent and not put towards retirement. 
7. Ensure your future is secure before supporting others. I feel blessed that we could help our kids with their education. I hope to contribute to their weddings at some point, and be available should they need any emergency help. However, these cannot come at the expense of our retirement investments. Same with helping other extended family and in charity giving. I want to be generous with all, and will budget intentionally, but self investment has to come first on that budget. 
8. Do not take your health for granted. Maximize resources and support to keep you as healthy as possible now and into retirement. This one-man do I need to embrace! Our insurance covers annual exams, preventative procedures, and we have good dental care. Use them. I need to reduce or cut entirely processed foods, sugars, simple carbs, eat better and move more. What's the point of retiring young if I feel old? 
9. Develop interest and hobbies that are meaningful but not expensive. Many retirement bloggers lamented about not having enough to do, feeling bored or their spouse was uninterested in trying new things. By finding interests now that I like, that he likes, and that we both can enjoy together now even though on a limited basis, will help ensure we have a lot to keep us busy. My Mother-in-law is never bored, always active in her sewing circles, her bridge clubs, her civics groups. My father-in-law before he died as a rock hound and a golfer. My parents also enjoyed card clubs, volunteer work at the veterans home and hospital, civics groups and increased their reading, attended local sporting events. Both sets of parent in their health also liked to travel, and when they couldn't, were role models for exploring your own back yard with local day trips and drives. I want to build interests that are a mix of doing for others, doing with my family and friends, and doing just for me.
10. Maintain positive family and friend relationships and expand social networks. People are at the heart of a quality life. Knowing that when my kids come home we enjoy our time together and the time with our siblings and their family. Having friends to meet up with or stop over, go for walks with adds a social safety net when the sad times come, and people in our life leave us, the inevitability of retirement. This is by far the most important  tip for ensuring a smooth retirement, because if I don't have people I love in my life to use my new retirement time with, I might as well keep working. I think that is why some people do put off retirement and not really to do with money at all.

I'm not an expert and the people I am reading are not either. They do have life experience and that is as expert as I need. While no two families or people are the same when it comes to retirement, we all need to incorporate what works and is doable for us. If I am moderately successful following the 10 points of guidance I gleaned, DH and I should have a pretty good remaining life.