Gregg Trunell, 43, began planning for an early retirement even before he began his career. Over the years, he and his wife put the maximum amount into their 401(k) plans, thousands more into IRAs and set 2011 as a target date for retiring. But now all bets are off. Trunell's union pension fund took a hit when the stock market plunged.
ROBERT SIEGEL, host: From NPR News, this is ALL THINGS CONSIDERED. I'm Robert Siegel.</s>MELISSA BLOCK, host: And I'm Melissa Block.</s>MELISSA BLOCK, host: This week, we're focusing on Rethinking Retirement and meeting people whose plans have been altered by the economic downturn. We'll visit rural Nebraska just ahead, but first to Seattle and the story of one worker, 43-year-old Gregg Trunell.</s>MELISSA BLOCK, host: Here's NPR's Wendy Kaufman.</s>WENDY KAUFMAN: Gregg Trunell began planning for an early retirement even before he began his career. His parents divorced when he was a baby. His hard-working mother wasn't around much; his father, not at all. He didn't want that for his family and vowed to have enough financial security to retire while he was still in his 40s.</s>Mr. GREGG TRUNELL (Director, Pacific Maritime Institute): I had it figured out, boy, I'm going to graduate from college at 22 or 23. I'm going to work 20 years. I'm going to be home with my kids at 43.</s>WENDY KAUFMAN: It was more than a pipe dream. Back in the 1980s, many unions were offering early retirement plans.</s>WENDY KAUFMAN: When Trunell was 15, he discovered his love of the sea. He was on an aborted sailing trip with his estranged father when he radioed the mate on a passing ship, asking, how did you get your job?</s>Mr. GREGG TRUNELL (Director, Pacific Maritime Institute): And he said, well, what I did is I went to a four-year maritime academy. And when I graduated, I joined the Masters, Mates & Pilots Union and I started sailing. And so with that, I kind of had my game plan.</s>WENDY KAUFMAN: After college, he had lots of job offers but chose one that would allow him to be a card-carrying member of the Masters, Mates & Pilots.</s>Mr. GREGG TRUNELL (Director, Pacific Maritime Institute): Masters, Mates & Pilots was one of the, you know, was still, today, is one of the best unions out there. And they had a fabulous pension plan. It was just fabulous. And I had known many, many people that were enjoying their retirement after 20 years.</s>WENDY KAUFMAN: He was going to be one of them and started socking away as much money as he could; first, as an officer on an oil tanker and later, as the director of the Pacific Maritime Institute, a training academy.</s>Mr. GREGG TRUNELL (Director, Pacific Maritime Institute): Well, we're on the 800-foot container ship in bound to San Francisco. And Alcatraz is on our starboard side there - about three points to starboard. And, of course...</s>WENDY KAUFMAN: That's Trunell demonstrating how they use a high tech simulator to teach piloting skills. Aside from the cool technology, his job offers a six-figure income, medical benefits and a union pension.</s>WENDY KAUFMAN: Over the years, Trunell and his wife put the maximum amount into their 401(k) plans, thousands more into IRAs. And today, their net worth is well over a million dollars, far more than most people their age.</s>WENDY KAUFMAN: The couple figured that their nest egg, together with a union pension of about $40,000 a year, would be enough to live very comfortably in a moderately-priced city. And Trunell set a target date for retiring, 2011.</s>Mr. GREGG TRUNELL (Director, Pacific Maritime Institute): It's not a large pension that I'm expecting, I was expecting. However, it was enough that if I was able to relocate, I could live and survive and again meet that end goal.</s>WENDY KAUFMAN: And staying home with the kids who are 7 and 11. But now, all bets are off. His union pension fund, like so many others, took a huge hit when the stock market plunged.</s>Mr. GREGG TRUNELL (Director, Pacific Maritime Institute): Well, it's really interesting.</s>Mr. GREGG TRUNELL (Director, Pacific Maritime Institute): You know, I don't have the ability to retire anymore.</s>WENDY KAUFMAN: Or at least not anytime soon. Just last month, union officials warned him that the early retirement option will likely be eliminated beginning next year. The retirement age would be raised to 58.</s>Mr. GREGG TRUNELL (Director, Pacific Maritime Institute): It's a real hardship, not because, you know - I love my job. And, you know, compared to so many people who are losing a pension, I am not complaining. However, it has completely changed the game plan.</s>WENDY KAUFMAN: Trunell is quick to say he's a very lucky man. Still, he feels cheated. The early pension he'd been promised, one he worked so hard for, won't be there for him. Trunell and his wife are now rethinking everything. Even though it would mean a huge drop in pay, he might quit his full-time job in a couple of years to work on projects he could do from home. To make up for some of the lost income, his wife might go back to work.</s>WENDY KAUFMAN: But whatever they decide, they are planning to spend lots of time with their family.</s>WENDY KAUFMAN: Wendy Kaufman, NPR News, Seattle.