I’m 53 years old, a registered nurse and planning to retire at 58. I am married, my wife is two years older than I am and she plans to retire at 62. We have a good marriage and friendship. We have three grown up kids. I only have $300,000 in my 401(k), and not on aggressive mode.
My work at a prestigious hospital will give me more or less a $700,000 pension from 26 years in service. I plan to get Social Security at age 62. When I was younger in my 20s and 40s, I never had planned on retiring, but sickness got in the way (my knee is giving me problems that I’m unable to walk for longer hours. I had two minor surgeries and it didn’t fix it).
In my situation, I think it’s doable. I plan to live a simple life. I plan to add an extra $1,000-$2,000 yearly to my mortgage.
Do you think my money will be sufficient? I’m so embarrassed that I did not prepare well enough. I have no savings at all or cash on hand. I lived paycheck to paycheck because my wife and I were careless with our expenses. We don’t have debt. I have six cars and I’m planning to limit it to two cars in the future. And sometimes it bugs me that 5-6 years until retirement is so close and I’m still young. I started working when I was 22 years old.
What is the best plan for the coming years? In the next 5-6 years, I don’t want to open my eyes, because I think I’m not ready for the next chapter of my life. Thank you.
See: We’re 58, have $1.3 million saved and two homes, but ‘I would give myself a grade of B-’ for retirement planning
Dear Mr. Wonderman,
First of all, you’re not alone. Many Americans are surprised to see they have not prepared as well as they had hoped for retirement when they finally get ready to call it quits. And having a medical condition certainly doesn’t help the situation.
The good news is you have time, especially if you’re both planning to work another five to seven years. And you also have a healthy sized pension, which is something many Americans these days cannot rely on. So you’re not as bad off as you may think.
The bad news is, you’ll probably have to make some realistic assumptions of what your retirement will look like. If you’ve lived primarily paycheck to paycheck in your working years, that may continue to feel the case in your …….