Picking the right Time to Retire
The average American worker retires at age 62, according to a 2014 Gallup poll.
The average American worker retires at age 62 , according to a 2014 Gallup poll. Meanwhile, those still working were also polled and stated they expected to retire by the time they turn 66. Both of those ages were among the highest in the history of the poll. And that's just the start - research shows the retirement age is expected to continue to rise.
If you are at or nearing that age, there's no doubt the thoughts of retirement have crept into your mind. Maybe you are thinking that you'll step away from your job in the coming months, while for others, the process may be a few years away.
No matter the time frame, it is necessary to plan ahead so that when you do retire, your finances are in perfect order. Selecting the right time to complete your professional career should be a well thought-out process, not a judgment that you have rushed. Talk over your decision with loved ones, workplace associates and banking professionals so that you know the decision you're making is the right one for everyone involved.
Knowing when the time is right
There are several signs that indicate the time is approaching to wind down a lifetime of work and start considering retirement. Some of those indicators are more immediate than others – such as health. As The Financial Planning Association explained, people who are in terrific shape with no ailments or setbacks can take their time figuring out when the right time to retire is. But if you or a loved one are facing health setbacks, it may accelerate the process quite a bit. Speak with a medical professional about how your body is holding up and where you are in terms of life expectancy so that you can make a more informed decision about the right time to retire.
The other main factor that serves as a sign retirement is coming quickly is finances. If you have enough saved up in various accounts and investments that you no longer will need a regular paycheck, then retirement may be the right move for you. But that's not for everyone.
Some may be relying on Social Security as a way to support themselves following retirement, but that payment is not designed to be the only source of income for a retiree. According to SmartAsset, the average monthly benefit for retirees on Social Security is $1,294. This can be a nice addition to the savings you have built up over the past decades of work. But if that will be your main source of living, retirement may not be the best decision quite yet.
If you are delaying retirement because of a worry that you won't have anything to do once you stop working, don't be alarmed. This is a common issue many people face, but there are ways around it. Before your final day at the office, start imagining how your schedule will look without 40 hours a week of meetings, conference calls and other job obligations. Start picking up new hobbies, volunteering at charities or taking adult education classes.
There are several ways to stay busy and keep your mind sharp during retirement. Don't let a fear of having nothing to do stop you from retiring if you are otherwise ready to be done.
As U.S. News and World Report stated, many people do not appreciate how nice it is to do nothing at all. For so long, your life has been occupied by work tasks and various assignments. Sitting back and letting your mind roam free, with no responsibility, can be a great stress reliever. Having nothing to do may wind up being more of a blessing than a curse for your retirement.
If you are considering retirement in the near future, and want help making a plan for deciding when the time is right, visit with a financial professional at Vectra Bank.