I have filed for retirement from the State of Illinois on May 31, 2012. I know that is 2 1/2 years away. But if you retire at the last minute, you miss out on certain benefits.

I could not sleep last night as I started to second guess myself on this whole retirement thing. But it is a little too late to do that since the Vice President and Dean have already set things in motion. The only way I can get the benefit of teaching for the two next summers and increasing my average salary by a significant amount was by declaring a firm retirement date. They calculate your salary based on the average of your last four years. Plus, I will get reimbursed for about 25% of my accumulated (about four months) sick days. The longer I teach the greater the possibility I might need to use them and then miss this advantage.

I meet with a retirement counselor on Tuesday. I am taking a penalty for retiring before I am 60, but I seriously do not think I could make it until then. The penalty is a bit higher than I had anticipated, but if my calculations are right I will still make about 50% of my salary. Plus there is a 3% cost of living raise each year. In addition, will also get a payment due to the fact I do not have a survivor that I can add to my monthly pension, put into an annuity, or take as a cash payment. I will only have to pay federal income tax and medicare.

At this point the state does not require us to pay for health care once you have retired and have 20 years. (Of course Illinois is 7 months in paying its insurance premiums right now.) I should be okay as I will have a decent savings account (cd's) and a few other small annuities, etc, plus no debt, but this is still scary. If I had taught until I was 60, I would have received about 72% of my final salary. And once you reach 30 years, you receive 80% which is the maximum. Since this is only my 21st year, I don't see how I could possibly do that. I am not even sure I will make it through he next 2 1/2 years. Am I making a huge mistake? Disability benefits and disability retirement are less.

If you manged to read this entire post, thank you! Sorry for the long ramble. I am just trying to think this through. It is scary not knowing what the future holds. I guess I should have met with the retirement counselor before I submitted my letter, but I could not get an appointment prior to the deadline for guaranteed summer teaching.

Any advice would be appreciated.

You have traditionally known what the future holds??

You'll be fine, Barb. When I quit working, I was surprised by how much less life costs without the financial demands of a job.

It's a given that at some point, we all stop working by choice or fate. Choosing to reward yourself with a little freedom before you keel over for good is the best gift you can give yourself.

It's like gambling it seems. Walk away now with a sure thing or risk losing it all for more. I think you made a good choice. If you still can, use this free time to do the things you want. In Zen they say an inch of time is worth a foot of gold. It is. It takes a new mind set and acceptance. if you were on Deal or No Deal, I'd be yelling "Take the Deal!". IMHO

you are doing the right thing. its amazing how much lower your expenses go when you stop working. Less gas, no dry cleaner, no packed lunches, no morning coffee out, no supplies, less make up, less clothing budgets, and so forth. you will be just fine, and before you know it the two plus years will zip by, and you will be saying "oh thank goodness!"

its scary to start or stop something. You have done your homework, you have planned well, and prepared well. Now, sit back and enjoy the fact that its all planned and waiting for you!

Good for you, Barb. I wish you well!

PERS? public employee retirement system? any benefits due to you under Social Security?

I do not have to pay into social security, and do not have enough credits. This is a retirement system for state university employees.

I'm a freak but I've been worried about my retirement since I was in my 20's, lol. It sounds like you are doing the smart thing.

Is there any way you could teach or tutor part-time etc. to add a few extra dollars if you become bored or in need?

This is exciting. Congratulations!!!

Six months after retiring, I can teach one class if I miss it.

I started planning my own retirement when I was 25. opened all the right accounts, and made the 401k dance happen, and filed all the right paperwork. As a state employee, at 20 years you get a full retirement with full benefits, so I knew I could get out at 45 and be ok. Woo! it pays to think ahead. I was able to walk away, even tho I was just a couple years shy of my 20, I had all the right contacts, and all the right accounts, and since I had been planning for it anyway, my budget survived well.