One of the biggest questions that all of us will have to answer at some point is when to retire. There may be a stage when you reach state or national pension age and are able by law to retire and claim any available pensions, but for many, this is simply a marker and they prefer to now choose this date for themselves, based on individual needs and life circumstances.
The risk is high and should you get the planning wrong, you may retire too early and run out of money. On the other hand, retire too late and you will have no time (nor good health) to be able to enjoy your retirement funds or time.
For a very few, there is the option to retire early, to stop working, and either lives off the equity built up in property or interest on savings or a small business that you have shares in. This is a choice that is not really available to many as it will require huge savings or lifetime earnings that will sustain your extra lengthy retirement.
As soon as you reach the recognized state or national retirement age, begin to access your state or private pension (or both) and simply live your best life. This is generally what most will do who reach retirement age. As long as you have done the requisite planning, then it’s anticipated that you will have enough money for the remainder of your life.
You may find that your financial advisor notes that you have a shortfall and will have to continue to work into retirement. Look to continue the career that you have or find work to simply meet the financial needs you have.
Know how to read the signs that show you are ready to retire as making the wrong decision may see you having to go back to the labor market to look for work. If you are unsure, keep a part-time job going or monetize a hobby to provide additional and ongoing income.
Do the math and know which calculations to make, so that you are able to decide quite early on when you will be able to retire.
You will also need to be realistic as to your health, your historical family health, and what you are doing to improve longevity and well-being as all these aspects will affect the projections as to how long you will live and thus how long you should work for, or alternatively how much you will need in the bank or in assets and investments.When you retire will generally not be a simple choice definitely won’t simply depend on when you have had enough of working life. You will need to have planned it and if you have done so with the right advice and in a timely fashion then you may very well be able to retire earlier than most.