Retiring before age 65 is a goal for many people, and this summer DRS accounting team member Tracie is doing just that. She shares the steps she took to prepare, including creating retirement estimates, paying off debt and using her DCP savings to purchase an annuity. Tracie also discusses health insurance options, coordinating retirement timing with her spouse and what she’s looking forward to most as she settles into a new retirement routine.

Episode transcript:

[music intro]

Jenny

Welcome back to Fund your Future with DRS. Well, we know that listeners get excited when we have podcast episodes about early retirement. So, we’re continuing our Retirement Mindset series with a conversation with Tracie, who works here at DRS on our accounting team and will be retiring this summer. Tracie is retiring before the age of 65, so we thought it would be a great idea to pick her brain on how she got here and what she’s planning to do in retirement. Welcome, Tracie.

Tracie

Thank you very much. It’s a pleasure to talk with you guys today.

Seth

Wonderful. Tracie, thank you for joining us. I know I already shared this with you, but when someone told me that you were retiring, I said, that’s not possible, or Tracie is not old enough to retire. And I’m excited that you’re going to retire, but could you just give our listeners a little background on anything that you’re willing to share?

About, like what helped set the stage for this conversation? How long you’ve worked as a public employee, what sort of work you’ve done. And approximately how early are you retiring?

Tracie

Sure. So, I began in 1987 working for Thurston County treasurer, a PERS 2 employer. I worked there for 13 years. I did various positions, and then I went to the state treasurer. I was there for about a year and a half, and then our daughter was born in 2001. So, I took off about three years with her, totally left employment, and she was about three.

And I started looking for some part time work and went to Department of Licensing. I got a part time permanent job there, another state employer, I was there for just over about a year and a half, and I don’t live far from DRS, I’m kind of in the neighborhood. And I’d take walks, stroller walks with my daughter, and I went by DRS building.

And I remember thinking, hey, I think I’d like to work here. You know, it was kind of kind of along the lines of my interests, you know? And then in November of 2006, I started working a part time permanent position in imaging for DRS. And from there I’ve been at the DRS now since 2006. And here I am. So currently, yes, I am. I’m 62. I’ll be turning 63 in October.

Seth

That’s great. Thank you for that background.

Jenny

When did you start to think about retirement and when did you get serious about this idea of retiring early?

Tracie

Well, I gave it some passing thought of retiring prior to 65, kind of as the years were ticking by and my service credit years were getting up there. And so May of 2023, I went on DRS online, my account and I got my first estimate. I was comparing, you know, what it looks like at 63 versus 65. So, you know, two years difference. I was looking at 11-1-26 or 11-1-28.

A couple months later I did an amortization schedule of our house. Okay, what if I wanted our house to be paid off July 1st, 2026? So, I started adding more toward the principal. So at least, you know, if I wanted to go out, you know, two years early, I would have our house paid off.

I got real serious then, April of ‘25, when I did another estimate and I then was comparing July ‘26 to November ’26, and I started looking at, okay, if I purchase an additional annuity, adding that to my income and my 35 years, it was looking like the real deal could really happen. And so I really made it official.

I told my supervisor the 1st of January of ‘26 that I was pinpointing July of ’26 as my retirement date because everything seemed to be coming together, financially, you know, went to pay off that house. I’d be able to get my net, my net money that I currently take home today with my annuity and my 35 years. So, I’m like, why not? I’m ready.

Jenny

That’s great. In terms of your mortgage payment, you knew you were within like five years of paying it off. It sounds like it was like maybe 3 or 4 years out?

Tracie

Yeah. We just needed to make some additional principal payments in order to make that July 1 cut off. It wasn’t mandatory. I’m just like, “okay, let’s get debt free of all things we can.” And we bought a new truck in 2020. Last payment is July of ‘26, you know, on a brand-new truck. So, I’m retiring. We don’t have any debt. What am I working for?

Seth

I love that idea, though of lining up both your expenses and your income to a certain date. And thinking of not just what does my income look like today? Or what does my expenses look like today? But what could they look like three years from now or five years from now? And what actions can I take today to influence what those outcomes are going to be three or 5 or 10 years down the road. That’s great.

Tracie

Yep. That was certainly part of the planning process to make us feel comfortable.

Seth

Yeah, I certainly feel like I hear from retirees that idea of being able to retire debt free, retire without any obligations can be really freeing. And oftentimes that is why people are working where we’re working to pay the bills. If my bills shrink significantly, then maybe I can think differently about what I need to do for work, whether that’s completely retiring or working part time.

Were there other actions that you took earlier on in your career? Obviously starting work relatively young and working for a real consistent, even though you did take some time off with your daughter, were there other things that you did along the way to help set yourself up for this, ability to retire early?

Tracie

Yeah, I’m going to, you know, push the DCP program. Even when I started part time, I started putting into DCP the minimum amount in 2007 when I was working part time and just increased that over the years as finances allowed. As I started getting toward the reality of retirement, you know, really upped it because I wanted to use the DCP funds to purchase an annuity in retirement.

And as a family, you know, we try to make money work for us, you know, no credit card debt. But we do use the Costco, Citibank visa, which I buy everything with that I pay it off every month and they give me — we got you know — they give me a chunk of money that goes right into to our bank account at the end of the year for using their card.

I don’t pay any interest, but again, we get a percent of what our purchases are. And sometimes that goes toward the beach house for the family outing or whatever and not acquiring any debt along the way. Keeping things debt free is the way we live. Pay it off as you get it. And another fortunate thing about me retiring early is okay health care.

Well, my husband’s going to carry me on his insurance for a year, he’s a teacher, so I have that advantage. I’m able to because my insurance will be covered for a year under him. He plans on retiring at 64 next year. And so, you know, we’ll have to pocket it and pay for our insurance, you know, through Cobra or whatever. But we’re not too concerned about it at this point.

Seth

That’s great. I really appreciate that. You brought up the health care question. I think that is frequently one of the things that makes people pause and think a little bit more about early retirement and what the healthcare options are going to look like. And I know we’ve done a couple of podcasts. We’re going to continue to do a few podcasts with the Health Care Authority about what options you might have for continuing your insurance as a retiree, or, I mean, it sounds like you’ve got a great situation with your spouse being on the SEBB program and having insurance options through there.

So that’s great. Tracie, I’m going to ask you a question that we didn’t prepare in advance for, but, tell me a little bit more about the conversation about you retiring a year before your spouse. I know that’s something my spouse and I have talked a little bit about, and my spouse also works in the school districts. And I know I’m oftentimes jealous in the summer when she’s at home and I’m going to work.

And so maybe you’ve already had some experience with that as you go into work and your spouse staying home. But like, what’s the first year of retirement going to look like for you when you retire? And they’re still working.

Tracie

Right. And yeah, he’s a teacher. So, he does have summers off. So, you know, we’re going to get a little feel for what it’s like both being off together this summer. But then he’s going to go back to work. Well you know it was my idea first. So, I’m going to say I’m giving myself the priority. But he again he’s going to go out early next year.

But I think it’s a good idea to get one of us — hey, me first — in the mode of retirement, you know, get me on my path, get me into my routine, let me figure it out, and I’ll probably be catering to him more in my retirement. You know, now that he’s still working. Hey, maybe I’ll make his lunch in the morning.

Who knows? But I just think it’s a good idea. It will be good for us to get me settled in first, and then have him retire, and then we’ll be together.

Seth

Yeah, it’s great too, that in his situation, you know, it’s a year to look forward to. It’s not ten years down the road where maybe some jealousy starts to build up. I really like the idea of thinking about what does that practice retirement look like for that summer when you’re together and thinking about it and then provide some motivation for retiring earlier. Is there anything you would have done differently, you know, looking back on your career that maybe would have helped prepare you even more for retirement?

You’ve already mentioned keeping out of debt. Is there other pieces of advice you might think people could benefit from hearing?

Tracie

Well, as far as doing anything differently, I have no regrets. I’m really thankful that I was able to stay home for a few years with my daughter. Thankful I came back part time, as she got a little older and then back to full time. I just was able to make family priorities along the way. I just encourage people, you’re going to do it anyway, but what feels right for you and your family?

I mean, I left employment at 100%. It’s like I’m going home. I totally walked off full time. Good job. But at the time I needed to be home. I wanted to be home and then just truly feel blessed to be able to come back and end my season here at DRS. It’s been great. You know, I’ve had opportunities and a couple different jobs within trust accounting to get me where I am and very grateful.

And people take advantage of whatever additional retirement supplemental option or, you know, the DCP program, a little goes a long way over time. Stay consistent in that, you’re not going to miss it. I mean, I know I’ve heard people say that, I listen to you guys’ podcast anyway. It is true. Stay consistent. A little goes a long way over time.

Jenny

That’s great. And so, you talked a little bit about your schedule and how you’re going to do this practice retirement this summer with your husband. More on the personal side, are there particular things that you’re looking forward to, maybe hobbies that you are hoping that you can spend more time on now? And are there things that you’re scared or worried about?

Tracie

Well, I do plan on taking it slow, you know? I like routine, been doing it for a lot of years. You know, my time has not been my own. It’s been my employer’s for the most part, you know, until five [pm], I’m out of there. But I do like routine. I’m going to allow myself some time to figure out what that really looks like for me.

I’m going to try to live life doing more of the little things I want to can. I used to crochet. I want to maybe learn to do needlepoint. Those things where you sit right now at work, I sit, I have a sit/stand station, you know. Yeah, go on walks, go on a break, but come back and I’m at my station.

When I come home from work. I don’t want to sit. So those things that I don’t do now that I’m looking forward to doing, I want to be more active as well. I got a bike. I want to be able to do simple things, run my errands with my bike. I live within the city, so not far from stores and stuff.

Vegetable garden. I started one this year. I know there’s going to be trial and error with that. I think I did things to close together. My carrots are just like in clumps, so learning that maybe if I can grow enough to actually can, that’d be great. I like to do landscaping and flowers, so just keep him busy doing that.

We have a travel trailer. Take that out more. I do want to be of service to the elderly community. You know, yeah, I’m going to be retired, but I’m not old retired. So, I have some good years in me, you know, to serve others and I’d like to do that. In addition, our family’s growing. I have grandchildren, another one coming in September and looking forward to spending some special dates with them.

I was listening to a retirement podcast and just on the radio, you know, one of the radio stations, I heard them saying that retirement is about reinventing yourself. It’s a whole new something, and that’s what I intend to do. I don’t have it all fine tuned, but I’ll be out there reinventing myself.

Jenny

Well, that sounds wonderful. That’s a good quote. It’s very aspirational. And this is a whole new chapter. That’s usually the phrase that I’ve been using lately. It’s like looking at my life with different chapters. I’m like, okay, I’m going to close this chapter and then start this new one.

Tracie

Yeah, I’m excited.

Jenny

Good. So, it sounds like all excitement, no apprehension or stress or anything.

Tracie

None at all.

Seth

Well, thank you for joining us, I appreciate it. We didn’t have to twist your arm too hard to do this. And I think you’ve shared a lot of good lessons and inspiration for folks. I really appreciate you talking about how you’ve changed paths a couple of different times and found something that works for you along the way, and I think that’s really encouraging for people to hear. I appreciate that you took the time to chat with us today.

Jenny

Thanks for coming on.

Tracie

Thank you.

[music outro]

Disclaimer

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References to any specific product or entity do not constitute an endorsement or recommendation. The views expressed by guests are their own, and their appearance on the program does not imply an endorsement of them or any entity they represent. Views and opinions expressed by DRS employees are those of the employees and do not necessarily reflect the view of DRS or any of its officials.