Summary

The author's retirement plans were derailed by a series of personal health issues, the COVID-19 pandemic, and economic downturns, leading to increased living costs and a significant reduction in income.

Abstract

The author, a self-employed individual without an employer-contributed retirement fund, had devised a plan to retire by age 70. This plan involved working reduced hours and making extra mortgage payments to refinance and lower living costs. However, the onset of the COVID-19 pandemic in 2020 led to a loss of clients and a decrease in work hours, disrupting the author's financial strategy. In 2021, a personal illness and hospitalization further reduced the author's income. Subsequent increases in living costs, HOA dues, and homeowner's insurance premiums, along with rising interest rates, have made refinancing unfeasible and retirement financially unattainable.

Opinions

The author expresses a sense of resignation about the possibility of retirement due to unforeseen circumstances affecting their financial stability.
There is a sentiment of gratitude for having work and being healthy enough to continue working, despite the challenges.
The author feels the impact of external economic factors, such as increased living costs and insurance rates, which are beyond their control.
There is a sense of disappointment and frustration as the author's careful planning and sacrifices have not led to the anticipated outcome of retirement.
The author acknowledges the shared struggle of others facing similar or worse economic challenges during these times.
The author prioritizes their spouse's health needs over their own aspirations for retirement, indicating a sense of duty and commitment to family.

How My Retirement Vanished

CROW’S FEET PROMPT #30 / Decisions

I spent most of my adult life helping family members, often to my financial detriment. Being self-employed, I didn’t have the luxury of an employer contributing to a retirement fund for me, and I didn’t have the money to do so myself. I figured retirement would never be an option for me.

Until 2017 . . .

That’s when we bought our townhome.

As a university city, rental rates are astronomical here. We were fortunate to rent a single-family home in a good neighborhood for eleven years. Our rent didn’t skyrocket like many around us, but it was still high. Our home was the same age as me — in other words, old — and had been a rental house since the late 60s. Our landlord was a cheap SOB, and the house needed much work but was mostly livable and comfortable.

My daughter and grandchildren lived with us for six of those eleven years. After they moved to an apartment in early 2017, we downsized and purchased a townhome.

We love our home and neighborhood, and our monthly mortgage payment is less than our rent had been, and because our townhome is in better shape, our utilities are lower.

With our reduced living costs, I began to believe I could retire by the age of 70 when I’d receive the maximum amount of social security available to me.

I had a plan. I’d continue working 40 to 50 hours a week until I turned 68. Then, I’d begin dropping clients and decreasing my hours so I’d work 20 hours a week before fully retiring at 70.

As often as possible, I made an additional principal-only payment on our mortgage to have the loan greatly reduced by the time I reached 68. Then, I’d refinance and lower our monthly payment. I also started saving for house improvements and to replace aging appliances.

Until 2020 . . .

That’s when Covid upended my plans.

To stay afloat, a few clients dropped my services. My income went down, but not enough to be terribly alarming.

As the pandemic worsened, I worried about bringing the virus home to Ben, who has serious underlying health issues. My largest client is a law firm with 12 employees and partners and dozens of clients in and out each day. Although, at the time, our county had social distancing and masking ordinances, that office ignored them. I didn’t feel safe there and gave my resignation.

In an effort to keep me, the managing partner offered to allow me to work off hours when others weren’t around. I accepted, but the change affected the number of hours I worked. I went from 35 or more hours a week to 20, greatly decreasing my income. Still, we were okay. My extra mortgage payments were less frequent, but I felt my plan to refinance in 2022 was still on track. I wasn’t able to save as much as planned, but I wasn’t too far from my goals.

Until 2021 . . .

That’s when I got sick and was hospitalized.

I don’t get paid when I don’t work. My income dropped again.

Meanwhile, the continuing pandemic inflated living costs. Groceries, gas, and utilities became steadily more expensive. Our HOA dues increased every year.

Then, interest rates went up and up and up. I turned 68 in 2022, but due to the increased rates, refinancing would cost me more money, not save money. Refinancing was put on permanent hold.

Still, we were okay. Not great but okay.

Until 2023 — April 2023, to be exact . . .

That’s when my insurance agent informed me that our homeowner’s policy cost was doubling. Since it’s paid through our mortgage, the monthly mortgage payment will increase by more than $300. A week later, I read that our state legislature approved an across-the-board homeowners insurance assessment that will increase my and everyone’s rates in October. My mortgage payment will go up again before the end of the year.

Meanwhile, groceries, utilities, and HOA dues keep climbing.

My retirement —

Gone. Vanished. Disappeared.

I know others are experiencing as bad, if not worse, economic challenges.

At least I have work.

At least I’m healthy enough to work — for now.

Still, I hoped to retire before my husband faced kidney dialysis. Unfortunately, dialysis is a reality, while retirement is a fading dream.

Although I made decisions to move toward retirement, my goal is now unattainable.

Poof! I’m back where I was in 2016, knowing I can never retire.