Retirement is a time that nearly all workers look toward with anticipation. Deciding when the time has come to take that step isn’t easy; it isn’t a clear cut date on the calendar. Rather, retirement should come after an assessment of your personal situation. So, how do you know it’s the right time to retire?
You Have a Clearly Defined Budget
Take the time to track all of your fixed and estimated expenses, then add in the costs for things you are planning to do in retirement. Compare that to your projected income to see if you can fund your activities. if not, research how to set up retirement savings goals and get yourself on track for success.
You Are Relatively Debt Free
Following that budget will be easier if you aren’t struggling to meet debt payments. Make an effort to pay off the mortgage, car payments, and any credit cards or personal loans before you retire. Remember, you will be on a fixed income, so rising payments could be a serious problem down the road.
Your Dependents Are Grown
Raising kids is expensive. If you still have children or grandchildren that depend on you for support, it might be best to wait before leaving the workforce.
When to retire is a decision that you must make based on your personal situation. Develop a plan and work toward it to maintain finacial stability after retirement.