You might be at retirement age, eligible for Social Security, and eligible for a pension, but that doesn't always mean you're ready to retire. Retiring comfortably means different things to different people. The question is not whether it's possible to retire, but how much money you need to have saved to live the retirement you really want?
The only number that matters is the amount you need to reach your own personal desired retirement. That number is reached in a few ways:
First, calculate an estimate of your total annual spending. Include all of your incidental and periodic expenses like dental work or home repairs.
Next, add up all of your potential income sources in retirement. Find out how much more Social Security or Pension you can receive by waiting until a later age to collect.
Be realistic about personal savings and investment withdrawals. Don't rely solely on rules of thumb or academic models. If you take out too much, too, fast, you risk running entirely out of money far too soon.
Don't shy away from professional financial help. Retirement is a significant life decision, and many of the decisions surrounding retirement are permanent. Qualified retirement financial planning experts help you reach a logical projection based on realistic assumptions.
If you discover you can't retire based on your current financial projections, it's okay to wait. While continuing to work, explore ways to save more, or look for work that you enjoy so you don't feel stuck. Take a fresh look at revamping your career to allow you to work longer and accumulate funds that will let you comfortably retire without struggling.
West Financial Group can help you decide when to retire as well as put in place a retirement plan that is customized to you. Contact us to schedule a meeting or stop by and say hello.