Retirement is life beyond the four walls of the office. It’s when people finally have the freedom to live their lives to the fullest. Most employees look forward to retiring once their careers peak. However, deciding when to retire can be challenging for many. Many factors come into play, including global economic conditions, and if their savings are enough to support them as the twilight of their lives approaches.
Setting an age for retirement is difficult, but planning for it should be done now. Here are some pointers on how to prepare for life after your career:
Retirement Options
There is no exact age for retirement, and the rules are different for each retiree. Some workers prefer to leave the workforce at age 50. They opt for early retirement because they want to enjoy their time with family or friends. For them, working for almost three decades (30 years) is already enough. However, early retirees might need to find alternative sources of income to augment their retirement savings. Expenses for medical and daily needs are costly as they age.
Another retirement option would be on-time retirement or “traditional retirement.” Most employees choose this options because they know they’ve saved enough for their elderly years. This also allows them to give a last hurrah to a job they served and loved half their lives.
For career-driven retirees, they chose late retirement among the three options. These are people who want to do more in their respective industries. Retiring later than age 65, they have more funds for retirement but have less time to enjoy the more beautiful things in life. Another take away is that they are automatically qualified for elderly care.
Checking an insurance agency website also helps future retirees choose the right options for them.
Securing Retirement Funds
The first question any retiree should ask themselves is if they have enough funds for retirement. For workers to live comfortably through their retirement years, they need at least seventy percent (70%) of their career’s salaries to pull it off. The money they saved must fund their lives until the age of 80 or 90. The key to securing a decent amount of retirement funds is through financial planning. Asking advice from a financial expert will surely help.
A Retirement Home Is Also Important
Living arrangements are also an important consideration. With aging comes physical limitations and diseases connected with it. If a retiree plans to stay at his or her current residence, does it have enough space for assistive equipment? If he or she plans to move to a new living space, can the retiree afford it? Is the area big enough to accept visitors or have an extra room for a future caregiver? Will he or she be okay with a retirement home if the need arises?
Retirees need to remember that a home is a considerable expense, whether they renovate it for their future needs, purchase a new home, or live in a retirement facility. However, choosing the right home for retirement is also crucial. They have to review their available finances to make sound decisions.
Financial security is the best way to prepare for retirement. Proper planning is the key to a comfortable and secure life beyond corporate life. Celebrate this milestone and retire happy.