This is a question that I get from prospects who are late 50s and early 60s as they start contemplating what the next chapter will look like.
Of course, there is not usually a very simple answer to this question as there are many factors that will play into the timing of when one can retire.
Here are some things to consider, if you have been asking the same question:
- Do you know how much assets (things you own), how much liabilities (things you owe), and what your current expenses are?
- If you have large debt, consider ways to pay them off/down prior to retirement, so that you have one less thing to worry about. Consider if this means working an extra year or two.
- If you are younger than the traditional retirement age of 65, where Medicare kicks in, what will you do for health care expenses until you get to that age?
- If you are younger than 62, where social security starts (you are able to start, but you will collect at the lowest amount), do you have assets to cover your expenses until then? Have you looked at your full financial picture to understand what your financial needs are – so you don’t end up needing to go back to work – if you don’t want to?
- What will you do with the time when you retire? If you don’t have a plan ahead of time, it can be a very frustrating season as you no longer have a structure to your day. I would suggest, if possible, to dream and plan for how you want to spend your time – so that you are enjoying and living a fulfilling life that may be separate from the work you previously did.
- Do you want to retire from one thing (traditional work) and retire to a new found passion?
- Do you want to do more traveling than you did before retiring? How much should you allocate to new hobbies, now that you have time to explore?
- Are there any tax planning strategies that could help in the long run?
These are just some examples of things you should think about as you are considering the next chapter.
And, if you need someone to guide you through the process, please do not hesitate to reach out. The longer you have to plan, the better the outcome can be as we navigate some of these big decisions together.
And…
I’ve written a new faith book: Walking in Love: Learning to Love Better Each Day – keep scrolling to find out more. It’s also on Amazon.