Are You Ready for Retirement?
Retirement: the stage in life when you’re ready to trade in your 9-to-5 for 24/7 freedom. For most people, spending more time with the people we love – and the things that we love to do – sounds like a pretty good deal. But how do you know when you’re truly ready? Of course, your finances are your biggest factor in dictating your readiness to call it a career. But there are other practical considerations to keep in mind as well. Read on for 5 factors that can help you recognize when you’re truly ready to retire.
Your Retirement Vision
- If you’re ready to retire, you and your partner should have a unified view of retirement. How do you envision your retired life together? Essentially, what will your retirement look like, and what will guide your decisions? Ensuring that you are on the same page with your partner is an important step to make sure you’re ready for all that retirement entails.
Interests & Social Life
- If you work 40 hours per week for 48 weeks a year, that’s almost 2000 hours per year that you’re working. Now that you’re done working, what are your plans for filling that time? Some people might be just fine with their new life as a permanent vacation, but others may find themselves bored rather quickly. Having a healthy curiosity for hobbies, interests, pursuits and relationships can really help to fill that void.
- A good retirement plan takes not only your current financial considerations into account, but also, those that are likely to arise down the line. You should understand and account for how your future health status might affect your financial needs. Unpredictable and high healthcare costs could financially cripple your retirement plans so having savings, healthcare benefits, etc. in place is essential. Aside from your financial health, take care of your physical and mental health – a healthy and active lifestyle should be a priority in retirement!
Your Home and Accommodation
- In preparing for retirement, you should ensure that your home will be appropriate for your golden years. This can come down to a number of considerations. Even if all the kids are long gone, will you need space for family gatherings (or a place for them to stay if they’ve moved out of town)? Or maybe you’re planning on doing a lot of travelling and just need a little home base when you’re not. You should also consider the physical layout of your accommodations – for example, if there are a lot of stairs in your home that might be difficult to deal with as you get older.
- Finally, it’s important to have a plan in place for your family and loved ones after you’re gone. That includes updating your life insurance, having a will, making sure your executor/power of attorney is in place, and not sticking your family with unexpected tax bills or burdens relating to the transfer of assets. Sit down with your trusted financial advisor and insurance broker sooner rather than later to make sure all these issues are sorted out.