My bold journey to early retirement started with a decision that seemed simple at the time: I wanted to move to a place where I could afford to buy a house. After watching Colorado’s housing market become increasingly out of reach, I relocated to Virginia. But, as life often does, things didn’t go exactly as planned. My car broke down shortly after I arrived, forcing me to buy a new one. On top of that, I had to put some moving expenses on a credit card. By the time I’m ready to buy a house, I will have lived here for a little over two years.
In the time I have been here, a few key events have made me start thinking seriously about retirement—and how I’m going to get there.
- The Survivor Benefits Surprise
It all started during lunch with a friend. I mentioned, almost offhand, that I didn’t think I’d ever be able to retire. After all, I didn’t have a 401(k), IRA, or any savings for retirement. That’s when my friend told me something that completely changed my perspective: I could potentially be eligible for survivor benefits through my ex-husband’s Social Security.
I was stunned. Since I’m 60, was married for over 10 years, and haven’t remarried, I qualify for these benefits. I hadn’t realized that I could tap into this, and it immediately made me reconsider my future options. Click here if you want to read more.
- A Friend’s Early Retirement: A Wake-Up Call
Around the same time, a good friend made a big decision—she retired at 62 after being laid off from her job. When she met with her financial advisor, he crunched the numbers and told her that her “break-even point” (the time when the dollar value of claiming benefits later surpasses the value of taking them early) would be more than 10 years after retirement. Given that no one can guarantee us an extra 10 years of life, she decided to retire early and take a smaller monthly amount.
To say I was jealous is an understatement. I couldn’t help but think, “Wouldn’t it be nice to no longer have to punch a clock every day?” My friend’s decision made me realize early retirement might be more feasible than I’d thought, pushing me to explore my own options.
- The Reality of My Job Situation
Since moving to Virginia, I’ve landed a better job, but it comes with its own set of challenges. The workplace is full of political conflicts and hostility, which have made me dread going to work. It’s not just the stress—I’ve found myself wondering if I even want to continue working full-time at all.
So, I’ve started digging into what it would take for me to retire earlier than expected. Here’s what I’ve learned so far.
Crunching the Numbers: Can I Retire Now?
The first thing I looked into was whether I could retire now, relying on my ex-husband’s Social Security survivor benefits and the $23,400 limit for working part-time. Together, that would give me around $45,000 a year. While that sounds good in theory, it’s simply not enough for me to live on right now. I still have a car payment, credit card debt, and student loans from my master’s degree that I’ve been paying off for over 15 years.
The Plan: Pay Down Debt First
My first goal is to eliminate my debt. That’s about $50,000 in total, and once I pay it off, I’ll be in a much better position to consider retirement on a reduced income. Paying off these debts will give me the freedom to live on much less without constantly worrying about my finances.
Should I Buy a House or Keep Renting?
The next question I’m grappling with is whether I should buy a house here in Virginia or continue renting. If I buy a house and can sell it for a profit in two years, I could use that money to pay off some of my debt. On the other hand, I could focus entirely on paying down what I owe and keep renting for now. Click here to explore your own options. It’s a tough decision, and I’ll be exploring it more in next week’s post. Retirement is starting to feel achievable, but it will take time and careful planning.
