Ask Aunt B

Dear Aunt B,

How do I know if it is time to retire? My friends are all retiring and I am not sure what I feel about retiring. I do like the idea of more free time but I’m not sure I need that much time. How do you decide when is the best time?

Retirement?

Dear Retirement?,

Great question. This is a topic that my husband and I discuss frequently. Neither of us are anywhere ready to retire, however more freedom does sound very fun.

To start, can you financially afford to retire? Do you know how much money you will need to remain in your desired lifestyle? I believe you need a professional to help you with this calculation. We are living much longer and our money will need to last much longer than in days past. From what I have been told, many investments are not paying the returns that they once were, so more complicated calculations are needed.

Do you want to retire? If you love your work, you will miss it. If you would do your work even if not being paid, then don’t stop. There may be options to slow down some, possibly fewer days at your current work. Consulting is one way people continue to do the work they love with more flexibility. Is retirement interesting just because everyone you know is doing it?

Do you have a great social network? Oftentimes individuals’ social life circles around their work. Not that you can’t still socialize with your co workers, it just will take more planning and possibly be more difficult. Socialization is so very important to aging well and enjoying your life.

Do you have plans on what you want to spend your time enjoying? I can remember a time when my husband thought that he could retire and spend his time playing a sport he loves. I believe that would have lasted a month or two and then he would be crazy (and drive me crazy).

Many people get their significance from the work they do. Have you considered how you might meet this need? Nothing engages me more than being a contributing member of a team. I know I would miss that if I didn’t plan for another avenue in which to get that validation.

Have you investigated your social security benefits? There are dates that are very important in figuring your payment. Check these out. The differences can be huge.

What about health insurance? This is huge. Health insurance costs are at an all time high. If you do not qualify for Medicare, check out your options and their costs.

Big question, with lots of moving parts. Give it a great deal of thought.

Love,

Aunt B

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