Retirement can be a wonderful part of your life. It’s your chance to unwind, pursue your interests and enjoy the rewards of your hard work. While most Americans expect to retire at 63, there’s no one-size-fits-all answer. This is a deeply personal decision, and there are many factors to consider in determining the right time to retire.
The following factors can help you determine your ideal retirement timing.
You’ll need to consider whether you’ve saved enough and how much you’ll need to live comfortably. Ask yourself:
These questions can help you understand whether you’re financially secure enough to retire or if working a little longer will give you a bigger safety net.
Everyone hopes for many healthy years, but it’s important to reflect on how your brain and body have changed over time.
If you have a physically strenuous job or have noticed that your health isn’t what it used to be, retiring sooner might help you make the most of your active years. For those who are still feeling good and loving work, sticking around a bit longer could be a fantastic choice for your financial and mental well-being.
Planning to retire while you’re healthy? Regular checkups and expert medical advice can help you stay on top of your health and prevent the onset of illness, helping you enjoy your retirement to the fullest.
You should always factor in the cost of healthcare when deciding when to retire. A typical 65-year-old can expect to budget up to $165,000 for medical expenses after taxes. While Medicare coverage begins at this age, you’ll want to bridge the gap with private insurance if you’re aiming for an earlier retirement.
When you retire, you’ll have a lot more free time — probably more than you’ve had in years! Some people can’t wait for retirement, with dreams of trading work for hobbies, travel and family time. However, others may not have given much thought to what he or she will do.
What does retirement look like to you? Giving back to help others? Seeing the world? Learning something new? Perhaps you’d be happiest keeping busy with a part-time job you enjoy. Visualizing your days can help you figure out when you should retire based on your goals.
Where you’ll spend your retirement is another essential component of your retirement plan. While aging in place is great for those who value their independence, the responsibilities of homeownership can become a burden.
A continuing care retirement community (CCRC) can provide the opportunity for you to live your best life without having to worry about tasks like maintenance or lawn work. You’ll have even more time to partake in activities that interest you, whether that’s joining a micro-community or making an impact with mission trips.
If you’re married or have a long-term partner, remember that retirement is a “we” thing — not just a “me” thing. Discuss whether you see yourselves retiring at the same time or whether one of you wants to continue working. You should also be aligned about your finances, living plans and lifestyle goals.
With grown-up children who are out of the house and self-sufficient, retirement becomes a lot more achievable. However, if you have kids and are still helping them out, you might want to reconsider your retirement timing. The same holds true for potential retirees supporting his or her parents.
Beyond adequate retirement planning and savings, you need to be emotionally ready to retire — your work is likely a big part of who you are as a person. In addition to paying the bills, it gives you a routine, a sense of purpose and a chance for social connection.
To know if you’re truly ready to hang up your hat, ask yourself:
Retiring can be an easy transition for some and a challenge for others. The key is to strike a balance between feeling emotionally fulfilled and financially secure. Retirement can be an exciting chapter as long as you embrace an active lifestyle to keep your body moving, your mind engaged and your social life buzzing as you get older.
If you’re feeling a little stuck, here are some signs that indicate retirement readiness:
Here are some common questions about retirement timing.
Financial benchmarks can help you determine whether you’re on track with your retirement savings. Depending on your ideal retirement age and lifestyle, aim to save:
Enjoying good health can mean you’re able to work longer and retire later. Experiencing health concerns can affect your ability to work, and you might need to retire sooner than planned.
It is possible to retire early and live comfortably, but doing so requires a bigger nest egg. If you hope to retire at 55, you’ll need to save significantly more compared to if you were planning to retire at 65.
If you’ve decided the time is right, living a purposeful and active life can help you make the most of your retirement. At Garden Spot Village, we believe this period should be one of growth and connection.
As a CCRC, we’re committed to providing the resources you need to make your retirement years truly special, whether that’s discovering a new hobby or fostering friendships with individuals who share your passion for making a difference. With our on-site healthcare, you’ll also have access to expert medical and wellness services if and when you need them.
To get started on this chapter of your life, attend a Look and Learn event and discover what it’s like to live at Garden Spot Village.
