[USER]

I’m 58 and have $1.5 million split between IRA and a managed investment account. Recently signed a separation agreement with my employer due to a major surgery and my recovery is much longer than I expected and I can’t go back to the same high pressure / high stress job.

It was just too much at this stage and age for me.

My disability policy through my employer will basically cover my full salary for “same job capacity” for up to 36 months and “any job capacity” up to age 65.

Upon separation, I opted instead of severance (which would offset my disability income anyway) I opted for 18 months of employer paid COBRA.

My home is paid off and annual expenses for it with taxes and insurance is only around $12k per year.

No credit card debit other than monthly Amex which I hate to admit is usually around $5k because I’ve made a decent living so have not really cut down to a budget.

No car payments.
I guess my question is, what happens when the 36 months disability ends and if I don’t qualify for the “any job” disability?

What kind of jobs are out there for 60+ just going back to work after such a long recovery? Or am I able to actually retire?

Any advice is appreciated – please don’t judge!

I’m also wondering if this is a good or average position ? I am really not sure

[Katie]

Depends on what your expenses are. $1.5mil gives you $60,000/year per the 4% rule.

[Ron]

Your annual housing expenses are pretty low. With income still coming in for 36 months, or until age 65, low housing expense, low current car expense, you probably are in great shape.

Will you get any Social Security? I would start collecting at 62 and lower my expenses. That’s what I did.

I think it’s a question of whether you want to continue working, assuming you keep your non-housing expenses below $4000/month once you are no longer collecting a full or partial salary.

[Alicia]

Think about applying for social security disability. It’s typically easier to get the closer you are to standard retirement age.

Get a free consult with an SSDI lawyer in your area to discuss your likelihood of getting approved.

[Jenny]

Based on the numbers, you have enough to retire after the disability benefit runs out as long as you keep the expenses within reason.

[Joel]

You have significantly more assets than the majority of Americans. Many retire with much less.

In terms of Retirement readiness you (or an advisor) really need to understand your Cashflow needs (Income – Expenses).

Use an Amortization Based Withdrawal approach and a Monte Carlo analysis to get a better understanding of your spending capacity.

[Albert]

Sorry for having had the major surgery, but it sounds like you’re in a good place financially with your disability pay.

I’m your age and I got laid off last year and got many months of severance and I think I’m very fortunate.

I took much time off and I’m finding out now how hard it is to get employers to show interest in giving me a chance to continue my career.

But to be fair, I’m not sure I can strap it on like before if I were able to get hired.

Give yourself time to rest, heal, decompress, have fun, downtime, etc.

and then think about what work you eventually might want to do- if anything.

[David]

It sounds like you are good to retire as long as keep your expenses low.
I am 58 and have retired early with a heart issue.

Was on COBRA and moved to an ACA plan for this year. It is expensive but has been working out just fine.

Your 1.5M should generate enough to carry you up to when you have Social Security as an option to help reduce how much you take out of investments.

You are also close to 59 1/2 to access the IRA.

Have you tried plugging all of this into a Monte Carlo simulation?

That might give you some confidence

[Mor]

So, if I did the math right your annual expenses are $72K. Do you expect that to stay at that level or go up or down after you stop working?

How much of that is due to work?

How much do you think you’ll travel more or spend more in retirement?

It’s potentially doable, just honestly depends on your expenses after the 36months end.

[Jeff]

I’d retire. On a disability contract “any occupation” means that you are considered disabled and eligible for benefits if you are unable to perform any job for which you are reasonably qualified based on your education, training, and experience, regardless of your previous job.”.

Not knowing the extent of your health issues I really can’t comment on whether you’d qualify to continue to receive DI benefits.

But in most cases, outside of meeting the definition of total disability, it’s unlikely.

[Tony]

Just retire at the end of the years. That 1.5 will be over 2 which gives 80k a year to live on.

[Author]

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