Many people work for decades, hoping that they can retire when the time arrives. One Redditor recently turned 59 1/2 years old and wants to retire. This individual doesn't have millions of dollars in the bank and shared a post on Reddit that details their situation.
A $900,000 401(k) and $400,000 in cash are his main liquid assets. A fully paid-off home and a pension that will bring in $1,000 per month are the other highlights. Redditors debated if it was possible for the 59 1/2 year old to retire.
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It's Possible If Expenses Stay Low
The Redditor mentioned that he only spends $500 per week, which comes to $26,000 per year. A mortgage-free house makes that stat more believable, and it will give $1.3 million more mileage.
Furthermore, the Redditor will soon bring in $1,000 per month with a pension. The $400,000 in cash yields $1,100 per month in interest. Combine that with Social Security in the future, and the Redditor is already generating enough cash to cover monthly costs.
Some commenters questioned if the Redditor had any hobbies, but the original poster referred to himself as a "boring guy." Fewer hobbies mean lower costs, and he even mentioned that his few hobbies aren't expensive.
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Scaling Down To A Better Job
Although the 59 1/2 year old wants to know if retirement is possible, he's okay with working a more reasonable job. The original poster earns $110,000 per year but works 11 hours per day. He's burned out and has paid off the mortgage. He doesn't have to work that many hours anymore, but he is open to working eight hours per day.
Working at a different job can reduce his work responsibilities while ensuring that he has access to health care. He calculated that leaving the job can increase the couple's health care costs by $1,000 per month. It's still doable for him to retire, but a more reasonable job that offers health insurance can save him money while allowing him to continue contributing to his retirement account.
However, a big job switch may not be necessary. If the original poster is serious about getting better hours, he can start by asking his employer.
"You should approach your employer about cutting your hours back. You might be surprised [by] what good employers are willing to do to keep good people around for a couple [of] years. Work a deal where you work 20 to 30 hours and get health insurance," one commenter said.
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Don't Let Life Slip By
The original poster referred to himself as a country boy. He's not looking to go on any exotic vacations or drive any more miles.
"The last thing I want to do is drive," he said.
Given his minimalist nature and zero debt, it sounds like he can walk away at any time. He doesn't have to work long hours if he is feeling burned out. He may still want a part-time job to be active in the community, but he is financially ready to retire.
It wouldn't be possible to retire with $1.3 million if he lived in New York City, but that's not the case. Each person has a different lifestyle, and if you can keep your costs low, you can retire sooner than most people. By retiring soon, he can do certain things right now instead of lamenting about retiring too late to check off important items on his bucket list.
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