Some people can’t wait to retire, while others are so happy with their careers that they can’t imagine doing anything else. Yet, at some point we all retire, whether due to choice or circumstance. You know that you will face the leap into retirement someday, but when? Have you imagined the ideal retirement age for you?
Picture your retirement. Before you can decide upon the ideal retirement age, ask yourself about your ideal scenario. Do you want to relocate, or stay put? What about travel and hobbies? You probably want to stay busy with social outings, special interests, volunteer work, or even starting a side business. Before you can decide when to retire, ask yourself what that retirement looks like.
Put a price tag on it. Now that you have pictured your ideal retirement lifestyle, decide how much it will cost. One figure that is commonly touted is that you need 80 percent of your current income in order to maintain your current lifestyle. That’s a good estimate, but your number might vary significantly depending upon how much you expect your life to change. So, estimate your needed retirement income based on your specific dreams.
Consider your health. Occasionally, people need to retire early due to health issues. But for most of us, it usually makes sense to wait until at least age 65. At this point you will qualify for Medicare, which will save you a lot of money on the cost of healthcare. If you retire before you’re eligible for Medicare, you might have to make a plan to cover 100 percent of your own expenses.
Perhaps the “trick” to planning your retirement age is to retire soon enough that you can enjoy the lifestyle you have planned, but of course not so soon that you can’t fund it! This issue certainly requires a delicate balance, doesn’t it? Now that you have a few things to think about, give us a call and we can discuss this issue in more detail. We can help you estimate your necessary retirement income, and set an approximate date for you to transition into your new life.
Note: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.