Thinking How and When to Retire

Your decision when to retire should not just be based around your age. The majority of people however do decide to retire on, or around the age of 65 however. There are a couple of reasons for this. 65 is the age at when you can start receiving full social security benefits. This is fine for many people who can successfully combine this money with their savings in order to live the life they want.


Reasons to Not Retire

There are however perfectly good reasons to not retire at 65. Some people find they enjoy their jobs very much, and actually like the mental stimulation and social activity they provide. In such cases, the decision when to retire becomes a matter of what you think you may like more, working, or the retirement lifestyle.

If you are unsure if how much money you have saved is enough, it may be wiser to keep working for a few years until you are more comfortable with your financial situation.

Keep in mind that every year you keep working will add into the social security benefits you eventually receive.


When You Should Retire is Based on Health and Financial Criteria

Other people find when to retire based somewhat on health issues. If you have a chronic illness that makes working full time difficult or painful, retirement may be your best option. Sometimes working part time may be a viable compromise between the two solutions. If health concerns are an issue for you, life insurance may be a good option for you to make sure that your loved ones are provided for.

For the majority of people, the choice of when you should retire is based mainly on financial issues. If you are not working, you will need a significant amount of money in order to support yourself in your later years. How the economy is doing should be largely irrelevant to your decision, as your investments and savings should all be mainly in secure holdings by the time you are considering retirement.

When to retire may be based on how soon you can receive social security benefits. You can start getting social security as early as the age of 62, instead of the standard age of 65, but if you do, the benefits will be about 25% less. That extra income for three years though may be just enough for some people to feel comfortable with.

When to retire is not just an age, or even a set financial figure. It is a matter of health, lifestyle choice, and money for most people. If you enjoy working, feel free to continue to do so. If you feel you have sufficient income, retiring earlier so you can enjoy the retirement lifestyle may be the best choice you ever made. No person is the same, and when to retire is often different for everybody.

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