“When” to Retire: Five Factors to Consider

For previous generations, choosing when to retire seemed “easy”.

But what was once a straightforward decision tied to reaching a certain age, such as 65 for Social Security and Medicare eligibility, has now become much more nuanced with many considerations.

Now the age at which people retire varies widely and for good reason, whether it’s changes in work lifestyles, family dynamics, social security rules or life expectancy – or something else entirely.

But today, the choice of when to retire is a critical decision that needs to be considered financially, mentally, and socially.

So, how do you know when the time is right? Let’s explore five key factors together:

Defining Your Personal Desires & Goals

Having a sense of purpose is essential for an enjoyable retirement. You should reflect on how your retirement “timing” aligns with your aspirations. Some find joy and fulfillment in their work and choose to continue, while others eagerly want to spend time with grandkids or anticipate new adventures. You are wise to define your goals before making this important decision.

Considering Your Social Connections

As you transition away from the workplace, how will you maintain your social network? For many, a large portion of their friendships and important relationships are tied to their career or occupation. Building new connections and nurturing existing relationships is crucial for a fulfilling retirement, and certainly something to consider carefully.

Are You Simply Ready Financially?

Do you have a clear understanding of your retirement expenses and income sources? Do you have a plan as to how to replace your income from your assets? Ensuring your financial stability is essential, and this is where professional financial advice can really help. Although a ‘work-optional’ lifestyle is ideal, many consider exploring part-time work opportunities aligned with their interests to help the transition.

Managing Your Long-Term Security

Have you thought about healthcare? With potentially decades ahead, do you have a plan to cover unforeseen expenses and medical costs? Building a robust emergency fund is important for peace of mind in retirement, but you also want a long-term plan to handle care for yourself.

Identifying Purposeful Activities

Finally, think about how you’ll fill your newfound free time. Retirement offers opportunities to pursue passions and interests previously put on hold due to work responsibilities or other time constraints. Will you invest more time into a current hobby or create some new ones? What will you do each day that is fulfilling?

While these factors are all important, retirement timing is a delicate and complicated decision that is best made with the right guidance. Remember, the team at Coltiva Wealth is here to provide support and guidance every step of the way. We have helped hundreds of families retire successfully and we can help you get it right.

If you have questions or need assistance navigating your retirement questions, don’t hesitate to reach out at contactus@coltivawealth.com.