Retirement is a milestone event that can change your life in many beneficial ways, and many workers eagerly look forward to the day when they no longer must muddle through the daily grind. After retirement, you can enjoy life on your terms and spend your days enjoying your favorite activities. However, it requires a considerable amount of hard work and ample planning to reach this milestone. This is because you will still have regular bills to pay in retirement, but you will no longer have your regular paycheck to support yourself. If you are wondering when you can or should retire, consider these important points.
What is the Retirement Age?
Many people consider retirement age as the date when they can start receiving Social Security benefits. The age changes periodically. Currently, those who are born after 1959 will need to wait until they are at least 67 to draw full benefits. If you are very young, you may consider planning for an even older retirement age. Partial benefits may be available before this age is reached. However, the earlier you begin drawing Social Security benefits, the less money you can receive each month until the end of your life. Therefore, it may be best to retire later if you will be dependent on these benefits. Keep in mind that Social Security benefits are generally not enough to live off of. They can provide you with a modest amount of money to pay for some of your bills, but you generally need to have a significant amount of money saved as well.
Do You Have Enough Money?
To determine how you can retire and when you may retire, you must do a considerable amount of financial planning. Generally, you will need to generate enough income without working to pay your bills. You must also take into account changes in your budget in the decades to come, such as an increase in medical expenses, property taxes and more. Adjust your budget for inflation using an inflation calculator online. Analyze the amount of money you will receive from Social Security benefits if you retire at a desired date. In addition, review your assets to determine how much income they can generate for you. For example, you may consider living off of real estate rental income or dividends from stocks. This can help you to avoid eating into your accumulated assets.
What Can You Do If You Are Not Ready to Retire?
Some people will unfortunately discover that they are not prepared to retire at a certain date as they had planned. You may consider applying for an online loan to consolidate debts and to pay them off more quickly. You may also consider working at a part-time job. This can provide you with some of the benefits of retirement while also giving you additional income needed. You may be able to draw partial Social Security benefits as well. Some will even move in with their kids or take on a roommate to help save money while they prepare to retire.
The earlier you can begin planning for retirement, the better. This is because time is often on your side through compounded interest, dividend reinvestment and more. Now is a great time to start planning for retirement, and you can begin by using online retirement and inflation calculators and by reviewing your financial situation more closely.