The normal retirement age used to be 65, but things are different today.
You might be thinking about retiring, but how do you know when you are mentally and financially ready for it? For decades, the normal retirement age was 65. This was when you became eligible for Social Security and Medicare. But things are different today.
Answer these five questions to find out how, when and if you should retire:
How do you replace the relationships you have at work?
When you retire, those you hang out with while working may disappear from your life. This isn’t a good or bad thing; it just is. When you’re off the radar screen of others, they often forget to call. Before long, that forgetfulness becomes an embarrassment.
When that happens, it’s just easier to let you fall away. Will you make the effort to try new activities where you can meet others, and plan activities to maintain your existing relationships?
Can you afford it?
Do you know how much you need for living expenses when you retire? Where does your monthly retirement income come from? Is it enough? If you’re concerned about whether you can afford to retire, you might also want to consider working during retirement, probably a part-time job matching your interest.
What do you depend on?
There’s a very good chance you have 25 or 30 years of life ahead of you. You might not be able to work when you are older and less healthy. That means you need savings to help you get through those years. Do you have an emergency fund? Do you have the money to pay for huge medical bills and health-care expenses if they are needed?
Do you even want to retire?
Before taking the leap, make sure you don’t have seller’s remorse – when you get rid of something, you want it again. Spend some time thinking about whether retirement is right for you. If you love what you do and have fun while doing your job you may have no interest in leaving your job
What to do with all that free time?
Many people retire only to find that they’re bored. You might want to think about what you always wanted to do but either couldn’t afford it or didn’t have the time.
When we reach our adult years, we have at least three careers in us. The first is a learning career. The second is when you get to apply what you learned. The third career is something that you want to do just for fun. Do you have your just-for-fun ideas lined up?
Make sure you plan with a financial professional.
Talk to a financial professional and make sure your retirement planning is not left to chance.
At Popular, we are here to guide you in preparing for retirement. If you want to start or review your retirement strategy, contact Popular’s Retirement Center at email@example.com.
Source: Financial Media Exchange
The information and general descriptions found in this article are designed to help you understand some of the factors you should generally consider when evaluating the appropriateness of any retirement decision, strategy or investment within your retirement plan. Any description included is only for informational and educational purposes and for your independent consideration; it is not to be regarded or viewed as advice or as a recommendation to take (or refrain from taking) any particular action. By providing this information, we assume that you can evaluate this information and the general descriptions found here to exercise your independent judgment. Banco Popular de Puerto Rico, its subsidiaries and/or affiliates are not engaged in rendering legal, accounting or tax advice services. If legal, accounting, or tax advice services are required, you should seek the services of a competent professional. Some Retirement Center services entail a cost which may vary according to the service.