Weekend Reading: When Should You Retire?
Every Friday, Casey Weade highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Catch a preview of this week’s Weekend Reading for Retirees with one of Casey’s featured articles here.
Weekend Reading
The decisions you make surrounding when and how to retire can affect the rest of your life. It can feel overwhelming to address all the necessary factors, but for tips on how to handle the timing of this new phase of life, check out the article from Forbes below.
READ THE ARTICLEHere’s a question we receive almost daily, and you might be surprised to find the answer involves more than just being sure you’re financially ready.
Having the proper funds is necessary, but there are also lifestyle considerations you should take into account. You only get one retirement, so make sure you view it ahead of time from every possible angle.
Go/no-go financial factors: Have you secured a consistent, reliable retirement income? You will need to determine if your combination of income sources can cover living expenses. If not, some options might include working longer, finding ways to reduce living expenses, deploying home equity or maybe a combination of these things.
Push vs. pull: Another crucial, if not the most important, aspect to consider is your reason for wanting to retire. Are you being “pushed” to retire due to poor health or a stressful work environment – or – are you being “pulled” into retirement to pursue your purpose and passion? On the flip side, you might also be “pushed” to continue working because you financially need to, or “pulled” to keep your job because you find it fulfilling. Consider all of these factors and what holds the highest priority to you.
Triggers and overrider events: Be mindful of triggers that can arise and make you completely rethink your planned exit out of the workforce, possibly even accelerating it. These might include reaching a milestone age, such as eligibility for Social Security, the retirement of a spouse or a life-changing event. In these instances, it’s important not to make a hasty decision. At the same time, we also know that “life happens,” and sometimes, unexpected events can override your plans. Be prepared to “pivot,” and always have a plan B.
At the core: There are a lot of factors that impact your retirement decision, and they aren’t all financial. It pays to have a comprehensive checklist or process to follow, thus ensuring you have all bases covered.