For some people, they’ve been looking forward to retirement since they started working. For others, it can be a hard step to take as the question “well, what now?” looms over their heads.
No matter what your feelings are about retirement, there is going to come a day where it’s time to hang it up.
There are abundant considerations to take into account before you finally decide on retiring. Many of them revolve around money and having strong financial planning and analysis is necessary.
Below, we have some of the most important things you should consider when it’s time to finally retire.
Know the Age Deadlines
Many people often think they can retire whenever they want, and while that is true, there are certain benefits to waiting to retire.
For example, if you wait until you’re 70 to retire, you’re going to be earning almost twice as much as you would if you retired at the age of 62. 65 is when you’re going to be eligible for Medicare. Depending on where you have your 401(K) or IRAs, you may not be able to withdraw until the age of 59 ½.
Just be aware of what you can and cannot do as you look forward to retirement.
Know What’s Next
This doesn’t mean you should have every morning planned out after your retirement, but you should know what your immediate plans are in order to make sure you’re financially stable to do so.
If you plan on retiring and traveling the country in your new RV, are you financially secure enough to do so? What about if you want to retire abroad in expat havens like Ecuador or Spain?
Having an idea in your mind of what’s next is going to help you plan and figure out the ideal next steps.
Have a Financial Planner You Trust
Based on the type of retirement fund you have set up, getting into the nitty-gritty of finances can often be tough and confusing. That’s why having a financial planner whom you can trust is key for your future.
Your financial planner should be someone that’s available, answers all your questions, and is keeping you updated on a regular basis. Solid financial planning and analysis is the key to any sort of retirement fund and forecast.
Go Through all the Worst-Case Scenarios
When looking forward to your retirement, you’re often thinking about all the great things you’re going to get to do. Hang out with your grandkids more, take a vacation, and enjoy life without having to get up every day and go work.
But, we all know that life isn’t always sunshine and rainbows.
You need to think about everything that can happen and plan for those events. Do you have enough if one of you has a serious health issue? What about out-living your retirement funds? What if a family member has a financial emergency?
No Income Can be Frightening
Most people have been working steadily since they were in their early 20s and many before that. After 40-50 years of working, suddenly not working can be scary.
You’re living off your own money and not having a paycheck can be a bit intimidating. But as long as you’ve gone through all the necessary planning and discussed everything with a financial planner, you should be good to go.