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Choosing when to retire can be tricky. Simply going by your age isn’t enough to fully gauge the right time to stop working. There are many other factors to consider before making that big decision. Here are a few issues to weigh that might help you nail down a realistic retirement age. 

Your Savings 

With no paychecks coming your way upon retirement, you will need to rely on your investment portfolio and your bank accounts. The earlier you retire, the more you will have to rely on your portfolio and bank accounts to support you through your retirement years. 

Estimate your retirement income and how much your expenses will be. Make the assumption that the cost of healthcare will rise as you get older. Don’t forget about inflation; in the United States, a 3% inflation rate is a moderate projection. Using a retirement calculator can help you determine if you are currently on track for retirement.  

Social Security 

The idea of retiring early is a dream for many, but there are consequences. If you choose to retire at 62 and apply for Social Security benefits, you will see a 30% reduction in those benefits compared to if you choose to retire at full retirement age. Currently full retirement age is 66 or 67, depending on your birth year.  

Post-retirement Plans 

Financial issues are not the only things to consider when deciding when to retire. Having a game plan for how you will be spending your days is important as well. Some people retire only to find themselves bored and wishing they were still going to work each day. If you think you might feel this way, you may want to push off retirement until you are mentally ready to do so. 

Your Health 

Your health is something to consider. And if you are in a relationship, your partner’s health is important, too. If you and/or your partner are in poor health, you may want to retire sooner rather than later, especially if you want to have an active retirement. Take an honest look at your health to determine if you will physically be able to do what you want to do in retirement if you retire later in life.  

There is no “one-size-fits-all” age when it comes to retirement and these issues are just the tip of the iceberg when it comes to deciding when to retire. By talking to one of our financial consultants, you can get a better understanding of what it will take to retire and if you are truly ready. Learn more today!