Retiring sounds like a dream, especially when you’ve worked for decades. At 57, with two strong pension plans and a decent amount in savings, you’re asking a very important question: Can I retire next year and still live comfortably for the next 30 years? Your wife says no. Let’s explore why.
Understanding Your Retirement Income
You’re lucky to have two defined-benefit pension plans that will give you around $7,500 per month. That’s $90,000 a year — not bad at all. Add to that your 401(k) worth $300,000, and your wife’s 403(b) account with $650,000, and together you have nearly $1 million saved.
But there’s a key thing to remember: this money has to last. You could be retired for 30 years or more. That means you’ll need careful planning to avoid running out of money later.
Health Insurance Costs: A Hidden Expense
One big cost that people forget about is health insurance. Right now, your plan costs $880 per month. That drops to $567 when you turn 60, which is helpful. But what happens until you’re eligible for Medicare at 65? If your wife stops working too, and you both don’t have employer insurance, you might face higher health costs or need private insurance. That’s a serious factor to consider.
What About Your Mortgage and Debts?
You have a $1,400 mortgage each month and very little debt otherwise. That’s great. But how many more years will you be paying that mortgage? If it ends soon, that money can go towards living expenses or savings. If it stretches into your 70s, you’ll need to plan for that.
Lifestyle and Expenses Matter
Do you plan to travel a lot? Start new hobbies? Help your children or grandchildren financially? Your lifestyle in retirement will affect how much you need. If you plan to keep things simple, your current income might be enough. If you plan to spend more, you’ll need to be extra careful.
The 4% Rule: Can It Work for You?
The 4% rule is a common guide for retirement: you withdraw 4% of your savings each year so the money lasts 30 years. With your combined $950,000 in savings, 4% gives you around $38,000 per year — on top of your $90,000 from pensions. That’s a strong income. But inflation, market changes, and unexpected medical bills can affect this.
Why Your Wife Might Be Right
It’s not about doubting your decision — it’s about being smart. Your wife wants to be sure you’ll both be comfortable for years. Retirement isn’t just about having money today; it’s about having enough for tomorrow, even 20 or 25 years from now.
Should You See a Financial Adviser?
Absolutely. A certified financial planner can look at your numbers in detail — your income, health costs, taxes, and how long your money will last. They’ll help you create a plan that gives both of you peace of mind.
You’re in a better position than many people your age. With a strong pension, decent savings, low debt, and manageable expenses, early retirement could work — if planned carefully. Your wife’s caution is not to stop your dream but to protect your shared future. Meet a financial expert, explore part-time work if needed, and take smart steps now so you can enjoy your retirement without worries later.
