Retirement is a highly personal decision and there is no one answer for when the time is right. You may be thriving in your career with no desire to slow down or looking forward to kicking off your shoes and digging your toes into the sand. However, retirement is one of the most significant life changes you’ll make and many people feel conflicted. How will you know when you’re financially and emotionally ready?
Ask yourself why you want to retire.
You want to make sure you retire at the right time and for the right reasons. If you are stressed out at work or simply don’t enjoy your job, the answer may be that you need make a career change.
Do your homework and make a plan.
Many people idealize retirement. Avoid disappointment by being realistic. Before you take the plunge, talk to friends, family and former colleagues and find out what their transition was like. Plan how you will spend your days, perhaps pursuing hobbies or doing volunteer work you never had the time for in the past.
Consider your health.
You may assume that retirement will be good for your health – and for many people this is the case (especially if you spend your day sitting at a desk). There is more time to exercise and focus on healthy eating habits. However, some argue that hard work is also good for your health. In fact, a landmark study on longevity showed that individuals who work the hardest and have the most meaningful career success live longest.*
Make sure you have enough money.
An important aspect of wealth planning is ensuring you have enough money for a secure and enjoyable retirement. The amount you’ll need depends on several factors, and everyone’s needs are unique. For example, healthcare is a significant expense for retirees, but costs vary based on the state of your health and the amount of coverage you have. Longevity and inflation are also critical factors, as your savings may need to last 40 years or longer. Your lifestyle requirements and legacy goals are other key considerations. You want to have sufficient funds to do what you’ve dreamed of doing, with enough left over to achieve your legacy goals.
Look to Luma Wealth for community.
Luma Wealth Advisors offers a wide array of social and educational resources for retirees. Have a question about determining when you are retirement ready? We’re here to help.
*Friedman, H.S. & Martin, L. (2012). The Longevity Project: Surprising Discoveries for Health and Long Life from the Landmark Eight-Decade Study.