Your Retirement: Has the Time Finally Arrived?

If you find yourself dreaming of retirement more than usual lately, you might just be having a bad week at work. On the other hand, you may be feeling emotionally ready or retirement. But are you financially ready? Ask yourself these five questions to see if retirement may be just around the corner.

Are you counting on growth in your retirement fund? As we’ve learned this past year, the stock market can be volatile and unpredictable. It’s not a good idea to retire if you’re hoping for dramatic future growth in your retirement savings. Only retire when a modest return on the money would still be sufficient to cover your living expenses.

How is your debt load? Retirement won’t be nearly as fun if you’re constantly worried about your debt burden. Generally speaking, it’s best to postpone retirement until high-interest debts like credit cards have been paid. This will give you more room in your monthly budget in case of unexpected expenses.

Is your health care covered? The average couple retiring this year will spend approximately $220,000 on medical expenses over the course of their retirement. If you quit work now, will you be covered by an employer-sponsored health care plan for retirees, or will you be eligible for Medicaid? (Medicaid eligibility begins at age 65) Consider, also, your out-of-pocket expenses after insurance or Medicaid pays their share, and make sure you have a plan to cover prescriptions drug co-pays and long-term nursing care.

Are you counting on Social Security? Most retirees wouldn’t be able to live on their Social Security checks alone, so it should be considered more as a supplement to your other retirement income. But if you retire before full retirement age (65 to 67, depending on your birth date), your benefits will be reduced from the amount you would have earned by waiting just a few more years. On the other hand, waiting beyond full retirement age to claim benefits can net you a larger monthly check. Talk to your Social Security representative.

Are you prepared for emergencies? Life enjoys throwing us curve balls, and you may be surprised to discover that doesn’t stop when you retire! Make sure you have some cash set aside in an account that you can easily access in an emergency.

If you feel satisfied with your answers to these questions, you may indeed be ready to retire. Talk to your financial advisor to be sure you’re ready for the next stage in your life.

This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

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