3 signs it’s time for the first step of retirement planning
February 16, 2021at11:00 PM
If you’re approaching retirement, you may have a case of senioritis in more ways than just one. The closer you get, the more ready you may be to finally relax. However, it’s important to understand retirement is also about timing and planning. Finding the perfect moment to take your first step in retirement planning is essential to optimize your golden years!
And, at Help You Retire, we’ve been providing premier advice to readers about retirement planning for years. Our experience, expertise and insider knowledge are truly unparalleled, and we supply it free of charge because we believe everyone has a right to make the most of their golden years.
So, without further ado, here are 3 signs it’s time for the first step of retirement planning.
If you’re in exceptional health and have longevity in your family history, working a little longer may have no major implications. However, if you or your spouse are in poor health, deferring retirement could mean your windows of opportunity to do certain things could be closed for good. This is especially true if you aspire to an active retirement life. It’s important to honestly assess your health and life expectancy and factor it into your decision.
Conversely, if you have poor health, you need to consider some things. Especially if you work in a physically demanding job like construction, performing past a certain age, even if you want to, is simply unfeasible. And if you experience cognitive difficulties and have a family history of such ailments, early retirement is probably the best option.
Your best bet is to talk to your doctor for a professional opinion and projected timeline for how much longer you can reasonably expect to work. Then you can start with the first step in retirement planning.
Life after retirement
Before retiring, it’s essential to know three things:
What will you do?
Who will you do it with?
Where will you do it?
These are important questions to answer because they’ll provide purpose and a plan for life after work. It’s advised to wait until you have a plan in place for meaningful endeavors before retiring, even if you’re itching to quit your job.
Basically, you want to ensure you have something to occupy your time with so you avoid retirement regret. A lack of direction and boredom can have major consequences on your mental and physical health, so life satisfaction is essential to consider.
Even if it’s working a side-job, it’s important to have a plan. And, once you do, you’ll know you’re ready for the first step in retirement planning.
When you retire, your portfolio and bank account are what you live off of, so it’s important to ensure your bank account is capable of providing a monthly check to support you and your accustomed lifestyle. A general rule of thumb is a sustainable withdrawal rate is about 4 percent. Basically, your savings should be 25 times bigger than your expected annual withdrawal.
So if you don’t have the funds yet, consider working a little longer. This means factoring in expenses you anticipate post-retirement. While you won’t be spending as much on commuting, for example, you might spend more money on traveling, entertainment, and eating out.
Contact OWLFI now to start your retirement planning!
If you think you’re ready for retirement, and even if you’re not quite there, there’s no better time for the first step of retirement planning than right now! Contact OWLFI now to start your retirement planning. We personally recommend them and their proven track record of success speaks for itself. You’re only retired once, and they’re sure to make it count.