You might be thinking about retiring, but how do you know when you are really ready for it, mentally and financially?
For decades, the normal retirement age was 65. This was when you became eligible for Social Security and Medicare. Things are different today. Baby boomers get full Social Security at 66, for instance, and younger generations will have to wait longer.
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 at 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 think about work in retirement, probably a part-time job that matches your interest.