Next year I’m turning 50 & also become eligible for retirement. Retirement age in my country for the general population (men) is 65, but the judiciary has separate rules. I’m seriously considering retirement but I have older colleagues who are still working because they say with the life expectancy rising who knows how much that great pension in the present will be worth in the future, so why not keep it going for an additional source of income?
I have been thinking something similar recently for another reason. I think your colleagues have a great point, but if you say that you would be able to live with your pension right now, it might make sense to work few more years, but less than the remaining 16. Here’s how I approached the topic.
Think about how much money you need for living. Including the money for hobbies etc. Many people need more hobby money if they have more spare time.
Estimate the effects of inflation and other new costs (e.g. needing more health care than currently). I.e. how does the answer to (1) likely change in the upcoming years?
Estimate your income for the remainder of your expected life. Do you have any stocks? Is there no inflation factor in the pension?
Enter all of the above to Excel. You will find the spot which will likely allow you to have a comfortable retirement for the remainder of your good years. And if you are pessimistic about inflation or something else, you can easily adjust any buffers in the calculation.
For me that age will be a more than 50, but certainly lower than the average retirement age in my country. The freedom to choose to voluntarily do work or hobbies is a much more preferrable to me than having to go to work every day.
I think my colleagues are also a bit greedy. Our pensions are already way more than generous, to the point where there’s a whole discourse about it & calls (and tries) for reform in our country. For reference, this year the average pension for a judge/prosecutor was around 5000€ net per month.
What hobbies do 65 year old have? Besides Drinking decaf coffee and checking the obituaries for friends? Just a thought.
Speaking just for myself, my work-life-balance is currently such that I have one sports hobby outside of work. Basically only a couple of hours of free time per week.
If I had the time, I would watch movies (subscriptions), play games (purchase), do few other sports (memberships), travel regularly (tickets). At least for me, my monthly hobby expense would increase enormously if I had the time. I would imagine I could continue these hobbies well until my 70s, hopefully many until much older age.
Every hobby has a shite tonne of expensive gear
Who doesn’t own everything they need by 65?