How to Know When You Should Retire
If you’ve got retirement on the mind and are wondering when you should retire then you’ve got some serious thinking to do. As lovely as it would be to think that you can retire the moment you reach 55, things just aren’t quite always that easy and there are multiple factors that need to be considered before you make the move and kiss the working world goodbye.
Three Important Things to Consider
FINANCES
The first and most important thing to consider is money and more specifically how much of it you have. The amount of money that you have saved for retirement along with a good understanding of how much you will receive from other sources like old age pension and other benefits will affect when you can retire. Retirement is about relaxing after your many years in the workforce—not stressing everyday over how you will be able to pay your bills. You need to know for certain that you will be able to sustain yourself financially once retired or you could end up with some very serious financial problems. The best thing to do is calculate all of the money that you will receive each month and then subtract from that ALL of your monthly expenses right down to the penny. Is there enough left over at the end of each month for unexpected expenses as well as some to put away for a rainy day? If budgeting isn’t your forte then you might want to consider speaking to a retirement specialist or financial planner.
HEALTH Your health is another factor to consider if you’re wondering when you should retire. If your health hasn’t been the greatest or if you have medical problems that are making it difficult for you to work then you might want to do what you can to retire sooner rather than later. You should also look into medical or disability benefits that you may be entitled to through your work, insurance and also the government. You may be entitled to enough extra money to be able to afford an earlier retirement. You should also consider what you will do if your health worsens and leaves you unable to care for yourself. Do this by factoring in the cost of a retirement or nursing home or a home nurse, just in case.
WHAT WILL YOU DO ALL DAY?
On a bad workday you may dream of being able to wake up each morning with nothing to do but relax and lounge on the sofa, but when that becomes your reality you just may wish you had a job to go to. Not everyone is happy being without a job and many find it extremely difficult to say goodbye to their jobs or careers. Really think about whether or not you’re ready to leave your job for good. You may prefer a later retirement or want to consider working part time or volunteering once officially retired.
The first and most important thing to consider is money and more specifically how much of it you have. The amount of money that you have saved for retirement along with a good understanding of how much you will receive from other sources like old age pension and other benefits will affect when you can retire. Retirement is about relaxing after your many years in the workforce—not stressing everyday over how you will be able to pay your bills. You need to know for certain that you will be able to sustain yourself financially once retired or you could end up with some very serious financial problems. The best thing to do is calculate all of the money that you will receive each month and then subtract from that ALL of your monthly expenses right down to the penny. Is there enough left over at the end of each month for unexpected expenses as well as some to put away for a rainy day? If budgeting isn’t your forte then you might want to consider speaking to a retirement specialist or financial planner.
HEALTH Your health is another factor to consider if you’re wondering when you should retire. If your health hasn’t been the greatest or if you have medical problems that are making it difficult for you to work then you might want to do what you can to retire sooner rather than later. You should also look into medical or disability benefits that you may be entitled to through your work, insurance and also the government. You may be entitled to enough extra money to be able to afford an earlier retirement. You should also consider what you will do if your health worsens and leaves you unable to care for yourself. Do this by factoring in the cost of a retirement or nursing home or a home nurse, just in case.
WHAT WILL YOU DO ALL DAY?
On a bad workday you may dream of being able to wake up each morning with nothing to do but relax and lounge on the sofa, but when that becomes your reality you just may wish you had a job to go to. Not everyone is happy being without a job and many find it extremely difficult to say goodbye to their jobs or careers. Really think about whether or not you’re ready to leave your job for good. You may prefer a later retirement or want to consider working part time or volunteering once officially retired.