Retirement is one of life’s biggest transitions. This transition is a financial, emotional and legal one and deciding when to do it isn’t just about reaching a certain age. You have to be truly prepared on multiple levels.
If you’re wondering whether you are ready to take that big leap, let’s take a look at 5 signs to help guide that decision. Along the way, don’t underestimate the value of sound legal advice to ensure that your retirement plan is secure and your interests are protected.
Your finances are in order.
This is the most obvious and important sign that you are ready to retire. If you’ve paid off most or all of your major debts, have a solid emergency fund, and your retirement income streams like pensions, Social Security, investments, etc, are comfortably covering your living expenses, then you’re likely in good shape financially. A certified financial planner can help you to run projections and confirm that your money will last, but don’t forget about that legal side. Estate planning documents like a will, power of attorney and health care directives should be reviewed with professional legal advice before retirement.
You’ve planned for your healthcare costs.
One of the most underestimated expenses in retirement is healthcare. Medicare doesn’t cover everything, and unexpected medical bills can derail even the best financial plans. If you’ve accounted for premiums, copays, long term care and supplemental insurances, you’re ahead of the curve. Consider consulting both a financial adviser and an elder law attorney to make sure that you are fully protected. This is especially important if you’re retiring before you’re eligible for Medicare.
Your estate plan is ready.
If your estate plan is complete, current, and reflects your wishes, that’s a strong indicator that you’re retirement ready. This includes your will, living trust, power of attorney and healthcare proxy. Retirement is a good time to revisit all of these documents, especially if you’ve had changes in your family assets or health. Quality legal advice ensures that these documents are legally valid and tailored to your state’s laws, giving you and your loved ones Peace of Mind.
Clear post retirement plan.
Retirement isn’t just a financial decision, but a lifestyle change. Many people struggle with a loss of purpose once they stop working. If you have clear goals, hobbies, volunteer plans, travel aspirations, or even a part time work option lined up, it suggests that you’ve thought seriously about how to fill your time in meaningful ways. Financial freedom without personal fulfillment can lead to dissatisfaction, so having a well-rounded retirement plan is important.
You’re mentally and emotionally ready.
Finally, you’re ready to retire if the thought brings more excitement than anxiety, if you’re not second guessing your decision every day and feel confident in your preparations, that Peace of Mind is a sign in itself. However, before you make it official, consult a financial planner.
Only a hair’s breadth away and all you have to be, all you have to do is be willing to reach out and grab it.
