Your cart is currently empty!
James (63) and Jess (58) live a relaxed yet adventurous life in Barstow, California, with their playful Golden Retriever. With Jess already retired and drawing a stable pension, they’re contemplating if James should retire from his demanding technology job and embrace a life of full-time leisure and travel.
Barstow Lifestyle: Peace, Affordability, Adventure
Barstow is a quiet, affordable city in the Mojave Desert—a haven for retirees who value low living costs, tranquility, and a friendly, small-town vibe. Their $1.2 million home, owned outright, anchors their finances and grants security. Barstow offers easy access to scenic drives, desert hikes, and relaxed living with options like independent living communities that foster social connections and convenient amenities. The local senior center brings activity, learning, and excursions, making retirement never dull.seniorliving+3
Family Life: The Joy of Their Golden Retriever
The couple’s Golden Retriever is at the center of their household. This cheerful, affectionate breed thrives on attention, regular play, and inclusion in daily activities—perfect for active retirees. With daily walks and interactive games, their dog is a loyal travel and adventure companion. Regular grooming and healthy habits help ensure their pup enjoys a long life, matching the couple’s retirement dreams.petmarketnyc+1
Financial Profile and Retirement Readiness
-
Home: $1.2 million (owned outright)seniorliving
-
Savings: $750k total ($600k IRA, $100k brokerage, $50k cash)
-
Jess’ government pension: $6,500/monthbulmanwealth
-
James’ salary: $210,000/year (currently working)
-
James’ Social Security: $5,546/month at 70
-
Jess: no Social Security (government pension offset)ssa
Barstow’s low expenses and their strong financial base offer flexibility. Jess’ guaranteed pension provides steady income, while James’ retirement options center on maximizing their IRA and Social Security for future security.smartasset
Retirement Options for James
-
Continue Working: Maintain his $210k salary to further bolster savings for a few more years.
-
Retire Now: Rely on Jess’ pension, withdraw from IRA/brokerage as needed, and travel more often.
-
Semi-Retire: Reduce hours, take consulting/freelance roles, begin partial withdrawals from IRA.
-
Delay Social Security: Waiting until 70 increases James’ monthly benefit to $5,546, maximizing lifetime payments.ssa
-
Bridge With Savings: Use their current assets to cover expenses before Social Security starts.bulmanwealth+1
| Option | Pros | Cons |
|---|---|---|
| Keep working | Builds more savings, health insurance | Less leisure, travel limited bulmanwealth |
| Retire now | More free time, enjoy travel and pets | Might need closer budgeting |
| Semi-retire | Partial income, flexible lifestyle | Possible loss of benefits |
| Delay SS to 70 | Maximizes benefits, long-term security | Need to use savings upfront |
What would happen if James retired now?
James can retire now, but the couple must carefully manage cash flow for health insurance until Medicare at 65 and bridge income until Social Security begins at age 70. Their financial position is strong and offers several practical approaches.ml+2
Year-by-Year Financial Analysis
Age 63–64: Pre-Medicare, Pre-Social Security
-
Jess’ pension covers $6,500/month ($78,000/year).
-
Withdrawals from IRAs and brokerage accounts can supplement living expenses and travel.
-
Home is owned outright—no mortgage payment.
-
Health insurance for James must be purchased, averaging $500–$900/month per person via ACA Marketplace (actual cost determined by MAGI; subsidies may be available).empower+1
-
Estimated safe withdrawal rate: Up to 4% annually from investments—in their case, about $30,000/year ($750,000 x 0.04), but they could adjust lower for safety.earlyretirementadvice
-
Estimated available income (before taxes): $78,000 (pension) + $30,000 (withdrawals) = $108,000/year.
Age 65–69: Medicare, Still Pre-Social Security
-
James enrolls in Medicare at 65 (should apply three months before birthday).ssa+1
-
Health care costs decrease with Medicare, but budget for supplemental plans and out-of-pocket expenses, roughly $250–$400/month.ml
-
Continue IRA/brokerage withdrawals if needed, and adjust for inflation and market performance.
-
Jess’ pension continues; portfolio should maintain a balance between income needs and growth.
Age 70+: Social Security Starts
-
James begins collecting $5,546/month in Social Security ($66,552/year).ssa+1
-
Jess’ pension ($6,500/month) continues.
-
Additional IRA/brokerage withdrawals may not be needed unless for major expenses, allowing their portfolio to last longer.
| Age | Major Income Sources | Health Insurance | Withdrawal Need | Notes |
|---|---|---|---|---|
| 63–64 | Pension + withdrawals | ACA Marketplace | $20k–$30k/year | No mortgage, travel possible |
| 65–69 | Pension + withdrawals | Medicare+Supplement | $10k–$25k/year | Health costs decline |
| 70+ | Pension + Social Sec. | Medicare+Supplement | Minimal | Portfolio withdrawal optional |
Bridging the Gaps
-
Savings are sufficient to cover the ACA insurance gap and living costs before Social Security and Medicare.
-
Regular review and adjusting withdrawal rates, especially in downturn years, preserves wealth.bulmanwealth+1
-
Roth conversions may optimize taxes, but professional advice recommended.bulmanwealth
-
Including travel and lifestyle costs, estimate annual spending and reevaluate every year.
Final Considerations
James can confidently contemplate retirement now—with careful planning around health insurance until 65, managing withdrawals, and aligning Social Security at 70, their financial future remains secure.corporate.vanguard+3
- https://www.ml.com/articles/staying-covered-until-medicare-kicks-in.html
- https://www.empower.com/the-currency/life/health-insurance-early-retirees
- https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/early-retirement-bridging-gap-until-medicare.html
- https://www.healthcare.gov/retirees/
- https://earlyretirementadvice.com/2024/07/05/early-retirement-case-study-50s-couple-12k-monthly/
- https://www.ssa.gov/pubs/EN-05-10377.pdf
- https://www.ssa.gov/pubs/EN-05-10035.pdf
- https://www.ssa.gov/policy/docs/rsnotes/rsn2017-01.html
- https://bulmanwealth.com/retirement-income-planning/4-keys-to-a-successful-retirement-for-california-couples/
- https://www.reddit.com/r/retirement/comments/1gy5ra2/best_options_for_medical_coverage_if_you_retire/
- https://www.schwab.com/learn/story/working-retirement-how-does-it-affect-social-security-and-medicare
- https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/dol-top-10-ways-to-prepare-for-retirement-booklet-2023.pdf
- https://www.usa.gov/retirement-planning-tools
- https://cravitzfinancial.com/can-this-couple-afford-to-retire-now-early-60s/
- https://www.ssa.gov/benefits/retirement/planner/agereduction.html
- https://www.anthem.com/individual-and-family/insurance-basics/health-insurance/early-retirement-health-insurance
- https://pacificinvestmentresearch.com/who-we-serve/case-study-1/
- https://www.ssa.gov/benefits/retirement/planner/otherthings.html
- https://www.verywellhealth.com/health-insurance-options-if-you-retire-before-age-65-5184983
- https://abc7ny.com/post/heres-how-a-couple-saved-enough-money-to-retire-at-age-40/5664253/
- https://www.fidelity.com/viewpoints/retirement/transition-to-medicare
Important Disclosures: Retirement “R” Us, a registered retirement planning advisor, provides this information for educational purposes only. It is not intended to offer personalized investment advice or suggest that any discussed securities or services are suitable for any specific investor. Readers should not rely solely on the information provided here when making investment decisions.
- Investing carries risks, including the potential loss of principal. No investment strategy can ensure a profit or protect against loss during market downturns.
- Past performance is not indicative of future results.
- The opinions shared are not meant to serve as investment advice or to predict future performance.
- While we believe the information provided is reliable, we do not guarantee its accuracy or completeness.
- This content is for educational purposes only and is not intended as personalized advice or a guarantee of achieving specific results. Consult your tax and financial advisors before implementing any discussed strategies.
- Retirement “R” Us does not provide tax or legal advice. Please consult your tax advisor or attorney for advice tailored to your situation.
- Retirement “R” Us offers Investment Advisory and Financial Planning Services.
Legal Disclaimer: The information provided on this website is for general informational purposes only and is not intended to be legal advice. While we strive to ensure the accuracy and completeness of the information, we make no guarantees regarding its accuracy, completeness, or timeliness. The content is provided “as is” without any warranties of any kind, either express or implied.
Use of this website does not create an attorney-client relationship between the user and the website owner or any of its contributors. Users should not act upon the information provided without seeking professional legal counsel. Any reliance on the information provided is solely at the user’s own risk.
We are not responsible for any errors or omissions, or for any actions taken based on the information provided on this website. Links to third-party websites are provided for convenience only and do not constitute an endorsement or approval of their content. We are not liable for any damages arising from the use of or reliance on the information provided on this website or any linked third-party websites.
By using this website, you agree to the terms of this legal disclaimer. If you do not agree with these terms, please do not use this website.
Leave a Reply