By Evan Vitale
We all look forward to retirement (some day), but retirement planning isn’t always about how much you’ve saved in your retirement account. Instead, a decision on when to retire can also be determined by your state of mind and your abilities.
Here are some things to consider when you begin to think about setting a retirement date:
How do you feel about your job? In other words, do you reluctantly go to work every day? Do you still enjoy your job? Are you able to contribute to your employer and continue to build your retirement savings?
Do you know what you want to do when you retire? Have you made retirement plans? Where will you live? Will you be moving? If you don’t know the answers to these questions, then you should spend some time to consider all the possibilities before you retire.
On the financial side, will your retirement lifestyle and interests require additional income? Have you saved up enough money so you can afford the planned extras? If not, then you’ll probably need to work a little longer and save some more money so you can afford the retirement lifestyle you desire.
With retirement, do you plan to work in a part-time position at your current job or seek something less demanding? Does part-time employment and its salary play a role in your retirement lifestyle?
Will you be starting a new business when you retire? If so, do you have the needed capital investment in order to start?
How about your children? Are they self-sufficient? Have they graduated from school and in the workforce?
How will you be spending your retirement time?
Will your spouse continue to work during your retirement?
Is your mortgage paid off? Will you be moving into a smaller house or condo during retirement?
Are you over the age of 62 and qualify for social security benefits?
Are you over 59 ½ with a sizeable IRA or 401(k) account?
Have you saved enough money?
Tough questions, but you need to honestly answer each one of them before you jump the ship and head to retirement land. Be ready!