What’s the Right Retirement Age For You?

Mapping out a route to retirement is a huge part of your long-term financial strategy. But every route has to lead somewhere. That’s why selecting a retirement date is almost as important as crafting your retirement strategy. Once you decide on the right time to retire, you will have a better idea of how much money you need to save. Plus, you can begin planning your future budget.

As with all things regarding retirement planning, there is no perfect retirement age that suits everyone. The following factors will help to determine the “expiration date” for your career.

What does your ideal retirement look like? Maybe you picture yourself traveling through Europe, or relaxing on a tropical beach. Other people might prefer to stay put in their own hometowns. You might be eyeing an expensive hobby, or maybe you would rather spend time with friends and family. As you can see, your ideal retirement scenario could cost a little, or a lot. You want to retire early enough to enjoy your dream, but late enough that you can save the money to fund it.

How much will it cost? Speaking of funding your retirement dream, have you put a price tag on it? Generally speaking, retirees who want to maintain their current standard of living need to generate about 80 percent of their current income. But that number varies considerably when you start to factor in your plans. Depending upon how you plan to live in retirement, you might need considerably more or less income than that.

What about your health? Occasionally, people are forced to retire earlier than they had planned, due to health issues or other complications. Then, the high cost of healthcare often puts a damper on retirement plans. But if you’re generally healthy, it’s a good idea to continue working until at least age 65. Now you’re eligible for Medicare, and you won’t have to worry nearly as much about the cost of healthcare.

These are just some of the factors that will influence your target retirement date. Depending upon your situation, you might have other things to consider. So, call us to schedule an appointment, and together we can work on establishing your retirement goals and timeline.