After decades of hard work, busy professionals have earned the right to hang their hat and relax into retirement. From thinking about traveling the globe to leaning into hobbies to just enjoying peace and quiet at home, retirement is a well-earned achievement that everyone looks forward to. But how do you know when you’re ready to retire?
When is the Right Time to Retire?
Retirement Planning is an essential and crucial part of every professional’s life, especially if they want to be able to not only do what they want in retirement, but do it all without worrying about staying afloat financially for the rest of their lives. Using a realistic retirement calculator to help determine when the best time to retire can help anyone be as prepared as possible to ensure they live a comfortable life as a retiree.
Here are some other ways to know when the best time to retire is.
If someone has paid off all of their debts, they are well-positioned to step into retirement. On the other hand, if there are some debts still left over, such as credit cards or car payments, it may be best to hold off until those debts are paid off in full.
Retirement means you’re living on a fixed income, and this can present a challenge when still paying off a mortgage or a car or being swamped with credit card payments. Before retirement comes into view, it’s best to whittle down most, if not all outstanding debts.
No More Dependents
There’s a saying: Once a parent, always a parent. And while this is true when it comes to supporting children and grandchildren emotionally, it doesn’t have to mean soon-to-be retirees have to still provide financially for their family.
When someone wants to retire, but they have dependents who they still providing for, either through giving them money every month or paying their bills for them, it puts a damper on their retirement plans. In the U.S., nearly half of all parents with adult children still supply some sort of financial help to one or more of them. If this is the case, then making sure everyone is financially stable on their own is best before retirement.
While crafting a budget and a financial plan may seem like surefire ways to plan for the future, not everyone is on board with these tasks. Before someone chooses to end their professional career and step into retirement full-time, they should make sure they can live comfortably in the future.
Professionals can start by adding up their must-have monthly costs, such as mortgage, groceries, gas, electricity, Wi-Fi, and so on. Then, add wants to that list, such as traveling, entertainment, shopping, and dining out. Once everything is calculated, it’s time to figure out whether there’s enough income to cover them through Social Security benefits, pension payments, 401k retirement plans, and any other sources of income.
Being ready to retire means more than being ready to stop working. If it were that simple, most people would step into retirement decades prior to reaching the average age of leaving the job market. Making sure your future is calculated and planned out, paying off debts, and ensuring you can live comfortably will set you up for a livable and enjoyable retirement.
About The Hilb Group
Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.