Deciding when to retire is a complicated prospect. You need to begin thinking about this when you are young so you can make plans to retire at your desired age. As you get older, the decision of when to retire becomes even more complex, as you will need to make certain you are in good financial shape before you take the leap.
Nirenstein, Horowitz & Associates can provide you with advice on when you should retire. We can help you throughout your career to work towards accomplishing your retirement goals by making smart saving and investment choices. If you are close to being ready to retire, we can also help you to look at the big picture and determine if retiring now is right for you or if waiting might be best.
Give us a call as early as possible in your career for help with your retirement planning. You should also be sure to reach out to an experienced attorney if you are getting older and nearer to retirement age when the proper legal advice becomes even more essential. Our Connecticut retirement planning lawyers can offer you the advice you need to make certain your retirement is a sound financial plan.
When Should you Retire?
You should retire when and if certain conditions are met. You may want to retire if:
- You are beginning to experience health issues that make working difficult or impossible.
- Your job is causing you substantial stress, you don’t enjoy it any more, you are nearing retirement age, and you don’t want to look for a new position.
- You are let go from your job because of bad economic news, recession, or for any other reason. You may have a hard time trying to find a new job if you are close to retirement age.
- You have a grandchild you want to take care of or other hobbies that you want to engage in and you don’t feel that you would be bored with retirement.
- You want to travel and see the word during your golden years.
These are just some of the many possible reasons why you may want to retire. As you think about when to retire, consider whether you will be happier at home or happier continuing to work. You may also consider the possibility of doing consulting work or cutting back from full time to part time.
Financial considerations, however, will also play a key role in determining when to retire. You need to make sure you have enough money saved to provide you with a comfortable investment income without touching the balance of the money.
You also need to consider what will happen as far as health insurance when you retire (especially if you are not yet old enough to be eligible for Medicare), as the costs of healthcare can come as a major shock to people during retirement.
Being financially secure is essential as you age , so you should try whenever possible to avoid retiring unless and until you have the money to do so without worries.
Preparing for Retirement
While the ideal goal is to be able to retire in peace and quiet and enjoy your golden years without worrying about money, this goal is out of reach for far too many people. According to Investopedia, Americans aged 55 to 64, have just $104,000 saved. A retirement savings of $104,000 would provide an income of around $310 monthly. Even when added to average Social Security benefits, which Motley Fool reported at $1,341, most people won’t have enough to live on without private savings.
While many people in their 30’s are often on track with around $45,000 in retirement savings (since you are supposed to have a year’s salary set aside by around age 30), the average American has fallen “dangerously behind” by age 40. At this point, it is recommended you have savings equal to three times your annual salary. Instead, most people have just $63,000 saved by the time they are in their 40’s.
You don’t want lack of savings to leave you unable to retire if you want to or need to due to health reasons. Your decision on when to retire should be based on what you want to do with your life as a senior. If you start investing early, you can make that happen.
Getting Help from A Connecticut Retirement Planning Lawyer
A Connecticut retirement planning lawyer at Nirenstein, Horowitz & Associates can provide you with invaluable assistance if you are considering retirement. Our legal team will help you to make smart choices on retirement planning. Give us a call at 860-548-1000 or contact us online to speak with a member of our legal team to learn more.