Retirement is something we look forward to but also dread at the same time. That’s because it gives you ample time to rest, follow your dreams, and live a stress-free life. At the same time, it also puts your financial standings in question, health insurance becomes a serious concern. And of course, there’s a dilemma on the way forward in life. Not to forget, retirement takes your social security benefits for a toss. In short, life will not be the same as you know it now. While that might be scary, it can also be a pleasurable one if you plan it right!
However, if you were to plan your retirement effectively, you will be free of these woes. You have to take the big leap at the right time. But, how would you know if you’re retiring at the right age? Well, experts say that it is possible to plan your retirement age and life post-retirement effectively. But you will have to consider a few important points. You could start by asking yourself a few simple questions and evaluating where you stand.
How Do You Visualize Your Retirement?
Do you plan on working part-time or as a freelance consultant post-retirement? Have you been considering getting gig-based employment? Do you plan on traveling around the world? Is a calm stay-at-home retirement that you want to have? Answering these simples questions is the first step. It will put a lot of things into perspective. Right from your health insurance cover to the income flow, the expenses, and at what age you plan on retiring.
If you are not someone who could visualize a sedentary life in retirement, you might want to consider other career options. You have to plan for your alternative career or funds if you wish to start something on your own.
Where Do You Stand Financially?
The second, but the most important question is your financial standing. How much do you already have in your retirement funds? How much do you plan on having by the time you retire?
And how much do you believe you would be able to withdraw in case of an emergency comfortably? Do you have a backup plan to keep the money flowing?
These questions will help you decide if you can retire when you want to, or if you’ve to push that plans further down by a few years. If you are not safe financially, now could be the right time to start planning. Consulting a financial advisor on investments and retirement plans could come handy. After all, it’s never too late to start!
How Much Money Would You Need Per Annum?
Your life after retirement will not be the same as now. With no steady inflow of cash, you might have to bring in major changes to your lifestyle. So, now is the time to ask questions about where you would live, your monthly and annual expenses, possible medical expenses, etc.
Chalking out the details will come handy while working on the retirement investments. That’s because you will have a clear picture of how much you would need and at what point in time.
If you plan on moving away from your current residence, talk to your partner, and hear their thoughts out too. Because this decision is not just yours to take if the two of you decide to move to a different place. You will have to determine if it would be a smaller home or retirement home. The expenses will vary vastly based on this decision.
Are You Planning on Retiring at the Right Age?
This is one point where your financial advisor and doctor have an equal say. You might have to evaluate various factors. This includes the health risks, life expectancy, any possible diseases, and their impact on your life. Besides that, you should also take into consideration the financial security you have to retire. However, if your doctor and financial advisor do not agree on the same age, you should prioritize what your doctor has to say and plan a retirement life accordingly.
Remember, after all these years of hard work, you deserve to retire in dignity. And of course a life of happiness. So, make sure you do the groundwork now so that you can relax and live peacefully once you hang up your boots!