Did you know that more than 10,000 Americans turn 65 every day? Once you reach that age milestone, you become eligible for Medicare. The retirement decision becomes more feasible when Medicare kicks in. In the next few months, my husband and I will join the ranks of those 65 or older. So, we discuss this topic often.
Many factors can influence your decision about when to retire. A few of those factors include your current job satisfaction and savings decisions you made earlier in your career. It is never too early to plan for retirement. Many people are nervous about diving into this overwhelming subject. Keep reading for practical questions to ask yourself about this important yet often scary decision.
- How much money will you need to maintain your standard of living? The cost of
living varies significantly from state to state, community to community and person to person.
o If you are living well below your means, you can retire early.
o On the other hand, if you spend everything you make, you will likely have
to keep working well past full retirement age.
o Several years before you plan to retire, you need to take a hard look at
your budget and make changes to live on less. Most retirees find that their
expenses decline by 20 – 25% after retiring, and your income may
decrease by more than that. - Health insurance. Medical expenses can be high as we age, and individual
health insurance plans can be costly.
o If you retire before age 65, you will be responsible for your healthcare
expenses until you become Medicare-eligible.
o For my husband and I, the high cost of private health insurance was a
prime factor in delaying retirement until we were Medicare-eligible. - Job satisfaction and leisure activities. Those workers whose jobs provide a high
degree of satisfaction may find that working past full retirement age is a positive.
Ask yourself:
o Do you enjoy your work?
o Do you get enough time off to satisfy your needs?
o What will you do to fill your time in retirement?
o Can you retire from full-time employment but work part-time?
The question of when to retire is an individual decision. What is right for you will not be suitable for someone else. You should consider these questions and pray about your retirement decisions. God will direct you to make the decision that is right for you. Now is the time to act. You can take the suggestions above and learn the keys to successfully managing your retirement.
For more ideas about how to manage your money and live without financial stress, sign up for my quarterly newsletter. My book Honoring God with Your Money is another great resource.
Susan's Reflections 