Retirement: Is It Time?

When you think about retirement, what is foremost in your mind? Freedom from work? The chance to spend your time the way you want? The amount of money you will need to save to live comfortably?

Your Work Environment

Your attitude about your current job and workplace may influence your feelings about retirement. Are you ready to stop working, or do you simply want a change? Lack of satisfaction with your work life may mean you’re ready for a new challenge. It also could be a sign that you’re ready to leave the working world behind.

Baby Steps

If you’re not ready to fully retire, consider asking if your company will allow you to work part-time. Cutting back on your hours can give you more leisure time without severing your connection to colleagues and the workplace.

Consider whether or not you’ll lose benefits you need, including health insurance and contributing to a retirement account. Don’t forget about matching contributions.

Your Finances

Where will your money come from when you retire? Will income from Social Security, retirement accounts, and pensions be enough to maintain your lifestyle? Before you make a decision, you and your financial professional should review your current and anticipated expenses and create a realistic projection for your future. Discuss what you hope you retirement will look like, such as travel, hobbies, or even a move to another state or country.

Health Concerns

You’ll want to spend as many years as possible enjoying retirement. Personal health problems or a family history of medical or cognitive issues could influence your decision to retire.

Social Security Decisions

The retirement age (FRA) for receiving full Social Security benefits is currently 67, but you can receive reduced benefits starting at age 62. Social Security benefits increase for each month past FRA that you delay taking them, up to age 70.

A Business Plan

Starting your own business or working as a contract worker in your field of expertise can give you more freedom while still providing an income. Consult your tax advisor regarding the rules that apply to self-employed individuals.