For most people their main goal while working is to save enough money for retirement. It can be tough to know when it’s time to leave the work force. More importantly, are you really ready? Here are 8 signs that suggest it may be time to leave the working world behind for good.
1. You Can Afford It
One of the first questions you have to ask yourself is, “Can I afford it?” If you have done a good job planning for retirement and have little to no debt you are off to a good start. Many financial institutions offer retirement calculators to help you put into perspective how much you need to retire comfortably. Most advisors suggest that you will require at least 50% of your working income to retire and maintain your current level of living.
2. You Have a New Plan
Once you retire you’ll still want to keep yourself busy. Whether it is a hobby or volunteer work you will want to make sure you have something to fill your time. If you find yourself wanting to spend more time in volunteer activities or hobbies it may be a good signal that you are ready to leave the workforce.
3. The Pros Have Outnumbered the Cons
Travel is often impossible when working a busy schedule, raising a family or paying bills. If you have reached a point in your life where the kids are all grown up and the mortgage is paid off you might want to book your next trip or cruise.
4. You Are Ready to Relax
When your to-do list becomes more filled with things you’ve always wanted to do such as read a book, go fishing, or start a vegetable garden than it may be time to move on to the next chapter in life.
5. Most of Your Friends Have Retired
With all the free time retirement brings you are going to want companionship to enjoy it. It is better to retire with a social network of friends and family that you can enjoy it with. If your friends and family are all still busy in their corporate rolls you might find living the life of leisure to be difficult.
6. Your Budget Is Ready
It is wise to put together a budget prior to retirement. Although many expenses will drop you will still need to stick to a post-retirement budget. Many experts recommend sticking to your retirement budget for 6 months before you retire to see how realistic it is.
7. Your Health Care Is Covered
There are rules and regulations around health coverage. For example, you are not eligible for Medicare until you are 65. Make sure you have the coverage that you need and insurance in place before you retire
8. You Are Just Ready
The bottom line is it can be a tough decision to leave the workforce. There isn’t a magical moment or age that signals the time to depart is now and for some it may never be an option. But if you finances and your heart drives you in that direction than you are probably ready for the Big R!