huskergal
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Post by huskergal on Oct 3, 2024 20:36:30 GMT
I plan on retiring in 4 years. I will be 65 and will have 20 years in at the district. With that 20 years of service, I will get unused sick days paid back. I also thought I was eligible for the Voluntary Separation Program. I just got a copy of the retirement booklet. In order to qualify for VSP, I have to have worked 20 full years in the district. My first year I was part time which would leave me at 19.5 years of service. The VSP bonus is $35,000 paid monthly over 2 years. It goes into a 403B. In order to be eligible, I would have to teach an additional year.
My dh is younger than me so he will still be working.
I was mentally prepared to be done in 4 years. Every year is getting harder. Is the money worth it?
*I messed up the poll and don't know how to delete the first option.*
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pantsonfire
Drama Llama
Take a step back, evaluate what is important, and enjoy your life with those who you love.
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Post by pantsonfire on Oct 3, 2024 20:38:43 GMT
I would definitely work one more year. Unless health issues arise making that harder, I would get that other half year in by doing a full year.
Especially since spouse is younger and will be working.
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Post by christine58 on Oct 3, 2024 20:47:11 GMT
huskergal. Could you work half a year to get to 20? We had teachers do that and as a union president, I helped to facilitate it. In the long run it saved the district money because they were hiring somebody at a lower salary for the rest of the school year. I don’t know if you belong to a union, but we would sign memorandum of agreements with staff and administrators if the issue was outside the scope of our contract. When I retired in 2017 we got paid for our sick days at $165 a day at that point we had a couple options none of which was putting the money in a 403B that they chose. Now any new hires that’s where they’re sick days ago. I took the payout and put the money into my own 403 not into one they selected. We got paid out over the remaining paychecks, depending upon when we turned in our letter of retirement. So I just increased my withholding into my own 403B. With that amount of money, I might be tempted to ask about staying for half a year. I was also 58 when I retired with 36 years of service.
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Post by katlady on Oct 3, 2024 20:54:49 GMT
Do you have to make a decision now or can you wait until closer to 65? I mean, a lot can happen in 4 years that can sway your decision either way such as health or financial issues. Right now, I would probably put in the extra year.
But let me tell you, I’ll be retiring this year. If someone asked me to work an extra year, the added benefit would have to be really worth it because my mind is already in retirement mode. If they had asked me 4 years ago, I would have been more open to working that extra year.
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Post by mom on Oct 3, 2024 20:57:58 GMT
If you physically can, I would work. Do you have a reason NOT to work?
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Post by librarylady on Oct 3, 2024 21:05:36 GMT
Stick it out for that time.
Is it possible to "buy" that year? I needed a few months to get a maximum amount and paid into the system to qualify for the entire amount.
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huskergal
Pearl Clutcher
Posts: 3,441
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Post by huskergal on Oct 3, 2024 21:10:42 GMT
Stick it out for that time. Is it possible to "buy" that year? I needed a few months to get a maximum amount and paid into the system to qualify for the entire amount. I am guessing the amount of buying a year would be more than the VSP. |
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huskergal
Pearl Clutcher
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Post by huskergal on Oct 3, 2024 21:11:18 GMT
If you physically can, I would work. Do you have a reason NOT to work? I do not have a physical reason not to work. It is the mental and emotional part. |
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Post by fuji on Oct 3, 2024 21:16:48 GMT
I would put in the extra year. I'm also a teacher and recently found out that I qualify for early retirement. It was a unique (and miraculous) situation, so I had no clue I was eligible. My official date is Christmas this year. However, if I stay 2 additional years, I will make $1000/month more. I would prefer to retire this year, but I'm going to suck it up. $1000 will allow me to do a lot more in my retirement.
But I totally understand being mentally prepared to be done.
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Post by ntsf on Oct 3, 2024 21:18:52 GMT
I think your mental health is important. this decision would depend on how much else you have for retirement. when my dh and I retired, that sum would not make that difference. for many people, that is a big chunk of change. so I would meet with a financial planner and talk over their advice.
retirement only lasts a short time in most cases.
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huskergal
Pearl Clutcher
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Post by huskergal on Oct 3, 2024 21:25:32 GMT
I think your mental health is important. this decision would depend on how much else you have for retirement. when my dh and I retired, that sum would not make that difference. for many people, that is a big chunk of change. so I would meet with a financial planner and talk over their advice. retirement only lasts a short time in most cases. I will have my pension plus I have a 403B and an IRA. I will draw SS at age 67. Dh has a great 401K plus a rollover. We will financially be fine. This money would just be extra. It would be a nice extra. |
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Ryann
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Post by Ryann on Oct 3, 2024 21:29:02 GMT
I think it depends on whether that extra 35k would make a noticeable difference in the quality of your retirement. If it would make a difference and you are able to commit to the additional year then it may make sense to do so. If it's a negligible amount when looking at the big picture, then sticking to the original plan may be a better option. Good luck with whatever you decide! Retirement is awesome.  |
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Post by Bridget in MD on Oct 3, 2024 21:33:42 GMT
DH and I just went to a govt retirement thing (he's govt, im not). He went in thinking he was going to retire at 60, but if he worked an extra 2 years, he got an extra .1 and that .1 makes a big difference. So while he was kind of bummed to think about going longer, it's not like he was retiring soon...
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peabay
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Jun 25, 2014 19:50:41 GMT
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Post by peabay on Oct 3, 2024 21:41:49 GMT
You can do anything for a year.
Would you regret more staying and doing the extra year or retiring and thinking "oh, what I could've done with that extra 35K!"
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huskergal
Pearl Clutcher
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Post by huskergal on Oct 3, 2024 21:48:53 GMT
You can do anything for a year. Would you regret more staying and doing the extra year or retiring and thinking "oh, what I could've done with that extra 35K!" I don't think I would regret retiring. If I really need the money, I can do something else. |
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Post by hopemax on Oct 3, 2024 21:50:11 GMT
In 4 years time, things may be different from how they look or feel today.
However, if you are financially secure $35,000 doesn’t really sound like a lot to me anymore. That’s not even a new car. I’d be tempted to contact a financial planner and say, “What can we do starting now, to generate that $35,000 on our own over the next 4 years. Then you wouldn’t have to extend. But if things are better, and the extra year doesn’t feel so burdensome then do it and get the extra money in addition to what you saved.
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Post by ~summer~ on Oct 3, 2024 22:01:45 GMT
I would not.
Let’s say you are retired for 25 years, that’s only a bit more than $1k per year (spread out of course).
Also I would greatly value my retirement years when I was younger - so many people regret not retiring earlier. I would not give up an extra year of retirement in my 60s.
ETA - reading your comments I definitely would NOT wait. An extra year is priceless.
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MorningPerson
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Post by MorningPerson on Oct 3, 2024 22:31:39 GMT
You can do anything for a year. Would you regret more staying and doing the extra year or retiring and thinking "oh, what I could've done with that extra 35K!" I don't think I would regret retiring. If I really need the money, I can do something else. I think you have your answer. |
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Post by mom on Oct 3, 2024 23:09:40 GMT
So thinking about this more, I think I would probably go ahead and retire. You aren't *losing * money that you already have. It's just extra money. And your mental health is worth something. And if you are comfortable with the retirement that you already have, then go for it. Life is short.
I would buckle down and make sure I had paid off all I could before retiring and stashed everything I was able to in preparation. You don't want to retire and then be stressed about a million little bills laying around.
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Post by KikiPea on Oct 3, 2024 23:14:32 GMT
$35,000 would be worth it to me to stay one more year would. It’s only one year, not 10, so that’s what I’d do.
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Post by allison1954 on Oct 3, 2024 23:18:55 GMT
It’s an extra 35k plus a years wages.
So factor that in
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huskergal
Pearl Clutcher
Posts: 3,441
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Post by huskergal on Oct 3, 2024 23:26:19 GMT
So thinking about this more, I think I would probably go ahead and retire. You aren't *losing * money that you already have. It's just extra money. And your mental health is worth something. And if you are comfortable with the retirement that you already have, then go for it. Life is short. I would buckle down and make sure I had paid off all I could before retiring and stashed everything I was able to in preparation. You don't want to retire and then be stressed about a million little bills laying around. That plan is in place. My only outstanding debt is my car. It will be paid off before I retire. |
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Post by mom on Oct 3, 2024 23:27:49 GMT
It’s an extra 35k plus a years wages.
So factor that in Ohh that's a great point. I hadn't thought of that. |
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twinsmomfla99
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Post by twinsmomfla99 on Oct 3, 2024 23:37:50 GMT
I get wanting to be done in 4 years. Teaching is exhausting, especially with all the paperwork required these days.
If you just need an extra half-year to qualify for the extra money, and if they won’t accept a half year of teaching, could you maybe take on the role of an aid or other district employee for just 6 months and then formally retire? That would not affect my pension negatively, but of course YMMV.
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peabay
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Jun 25, 2014 19:50:41 GMT
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Post by peabay on Oct 3, 2024 23:38:42 GMT
You can do anything for a year. Would you regret more staying and doing the extra year or retiring and thinking "oh, what I could've done with that extra 35K!" I don't think I would regret retiring. If I really need the money, I can do something else. Then retire for sure. That's your answer!! |
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Post by gizzy on Oct 3, 2024 23:41:35 GMT
I'd stay for the $. I subscribe to the camp of you never know how your life will go. The more $ you have to prepare, the better.
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Post by scrapmaven on Oct 3, 2024 23:42:03 GMT
Dh retired 4 years early. We spent a long time drawing up a financial plan in order to make sure that we would be comfortable and not have to worry. In our case, it worked well and we're enjoying life. It's really all about priorities and income. If your income would be sufficient to take you into your 90's or longer then it's worth being able to spend the rest of your life doing the things you love to do. However, if that $35k would make enough of a difference then wait a year.
Dh doesn't regret not working forever. I don't know anyone who does. We're having some fun and he's doing projects that he's been wanting to do for years. However, we worked it all out on paper w/experts and planned for this. It's all about the planning and that also means planning for emergencies and crisis.
Love your life, because you only get one.
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Post by Darcy Collins on Oct 3, 2024 23:46:00 GMT
Personally, I think I'd spend the next 4 years planning on it and just see how I feel then. I agree with a previous poster that a lot can change in 4 years, both positively and negatively.
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Post by katlady on Oct 3, 2024 23:47:41 GMT
One thing to consider is how that $35K will be taxed. Will it be regular income or unearned income? And see if it will be added to your income with regards to SS benefits.
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huskergal
Pearl Clutcher
Posts: 3,441
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Post by huskergal on Oct 3, 2024 23:56:43 GMT
I'd stay for the $. I subscribe to the camp of you never know how your life will go. The more $ you have to prepare, the better. Alas, that is my dilemma. The thought of not having a paycheck already is stressing me out. |
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