The decision to retire is one that most people will have to take, sooner or later. On the face of it, deciding when to retire seems pretty easy and straightforward. However, in reality, it involves quite a bit of complexity, especially when you think about the various considerations you will have to factor- in. In this blog, Bill Schantz of Mid Atlantic Financial LLC will cover some of the most important considerations for anyone looking to make a decision regarding their retirement.
Factors to Consider when Retiring by Bill Schantz:
Factor 1 by Bill Schantz – The When and How of Retirement:
One can retire whenever one wants to – as long as one has the funds to support one’s post-retirement life.
A large number of people, however, will rely upon their 401(k), which they cannot access until they reach the preservation age.
If you want to access your 401(k) without enduring an early-withdrawal penalty, you need to be at least 59 ½ years old at the time of retirement.
As for the ‘how’ of retirement, you can choose to gradually cut back on your working hours. The benefit of doing this is that you continue to earn an income and supplement your 401(k) amount while you transition towards retirement. A lot of people, however, just decide to call it a day and stop working altogether. Regardless of how you plan to retire, Bill Schantz says that you must ensure that you will have the income or funds that you need to support the kind of lifestyle that you want after your retirement.
Factor 2 by Bill Schantz – Your Physical Health:
Even with all the money in the world, you are unlikely to be able to fix a degenerative disc disease or knee osteoarthritis. Aging, and the physical realities that come with it, push us out of the workforce – whether we like it or not.
Factor 3 by Bill Schantz – The Way You Will Spend Your Time after Retirement:
Bill Schantz says that, often, a lot of retirees do not feel mentally prepared for life after retirement. This is quite understandable, especially if you have worked your entire life, and your job or business has been the purpose that got you out of bed each morning.
For many people, working is associated with a sense of identity and purpose – not to mention the social needs that it fulfills. Unsurprisingly, the loss of this social interaction and ‘sense of self’ pushes a lot of retirees into depression and other mental health issues. To avoid such a situation from manifesting, you should be ready for retirement and have a solid plan as to how you will spend your time once you hang your boots. Will you spend more time with the grandkids? Find a sport or hobby? Or will you take up volunteering?
Deciding when to retire can often be perplexing and overwhelming, especially when you are torn between opting to retire and continuing to work. We hope that the above tips by Bill Schantz will help you make the right decision.