Uncertainty persists about when and if the economy and job market will return to normal—it’s left many people pondering (or being forced into) retiring sooner than they may have planned.
Whether it’s a deeply personal decision or a suddenly imposed one, if you’ve found yourself wondering (or worrying) about retiring earlier, here are four general factors to consider:
- Get a Handle on Your Expenses. The big concern on your mind is likely, “Will my current savings be enough to meet my goals over the rest of my life?” Our financial planning team is here to help you answer that question. But, a key first step is understanding how much you need to spend on those goals. Our Budget Worksheet can help you get started—it allows you to compare, side by side, your current expenses and income to what you expect to be spending and earning following a lifestyle change.
- Remember Health Care. This often goes overlooked when considering retiring before Medicare eligibility at age 65. It’s important to know how you will bridge the gap between retirement and blowing out the candles on your 65th birthday cake—COBRA eligibility through your former employer is often the first line of defense. From there, explore the private marketplace for health plans.
- Evaluate Your Social Security Benefits. If you’ve retired ahead of schedule, it may be tempting to file for Social Security benefits early. However, that might not be the best option for your situation. We have a host of content on social security—including a series of three podcasts and a special report—to help you think through the decision. And, of course, we are happy to perform a full Social Security analysis for you.
- Explore New Employment Opportunities. Retirement may not mean a full stop. Consulting on a part-time basis has become an ideal career transitional phase for many of our clients. With expertise from your former position and an inclination to work on your own schedule, don’t rule this one out—you may have more options than you think, and we can help you work through them.
With more than 25 years of helping clients find peace of mind in retirement, we know that everyone’s situation is different. Give us a call if you’d like our advice or just to bend someone’s ear about your career time-horizon or anything else that’s on your mind. We’re here for you, and always appreciate hearing how you’re doing and what you’re thinking.