Most people aim for 60-65 years of age for retirement. But age is not the only factor to consider when deciding that you’re really ready to retire. So how do you know it’s time to retire? Well, there’s not a set criterion for determining that it’s time to retire. But there are some signs that can indicate that it’s time to embark on this new chapter of your life.
Here are 5 signs to determine that you’re ready to retire:
1. You’ve Paid Off All Your Debts
If you’re debt free, you are already one step closer to your retirement. You shouldn’t pursue retirement if you are still paying monthly car payments or house mortgage as you’d have to use your retirement funds. Therefore, before you make up your mind about retiring, make sure you are completely free from debt.
2. You’ve Reached Your Saving Goals
Your should have an idea of your expenses after retirement and enough savings to meet them. When making your retirement plan, you shouldn’t be calculating how much money to save. You should be determining a permanent source of income to meet your retirement needs. Get in touch with a company that offers wealth management services to see how you can generate income from your assets and savings.
3. You Don’t Support Your Family Anymore
If you still support your parents or kids, it’s definitely not easy for you to retire. One should only retire when they don’t have a big family to support. Financially supporting children and elderly is quite expensive as you have to bear all the expenses including housing, education, healthcare, etc. Therefore, until your kids have grown up, you should put your retirement plans on hold.
4. You’re Unable to Continue Working
If you have passed a certain age and your job has become physically and mentally exhausting for you, it’s time to consider retirement. Some jobs are quite difficult and can only be performed by mentally and physically fit individuals. After passing a certain age, it gets impossible to work with the same energy you had a few years ago. So, if you’ve been feeling exhausted on your job, it’s time to plan for your retirement and watch out your expenses.
5. You Have a Solid Healthcare Plan
Healthcare costs are the most expensive costs to cover when you retire. According to an analysis, by the time you’re 65 years old, the average healthcare costs per person in the United States are $11.3k per year. Add in it the healthcare expenses of your spouse and you might want to put your retirement plans on hold.
But having a private insurance, savings, or Medicare Supplement Insurance policy can cover your healthcare expenses.
Before you find yourself asking “can I retire early?”, you should consult with a financial advisor to discuss your finances and come up with a retirement plan. They’ll help you manage your savings wisely and handle your investments. Hagemann Wealth Management services offers financial advisory services in Illinois to help guide you to a more confident and carefree future.
Content and opinions in this material are for general information only and not intended to provide specific advice or recommendations for any individual.