Retirement, while scary for some, is more enticing for other individuals. After all, they’ve spent long hours working in a corporate environment and they may be itching to stop and strike out on their own.
You yourself may already be contemplating retirement, especially if you feel that you are ready for it. Of course, feeling ready and being actually ready can be two different things in many circumstances.
Now, how can you determine for yourself that you’re ready for retirement and that it’s not just your gut feeling? Well, here are four questions you can ask yourself when gauging your readiness for retirement.
1. Do I have Any Outstanding Debt?
When you retire, it’s usually because you want to take a rest from the grind of corporate life. However, that rest is almost entirely impossible if you have any outstanding debt. You’ll even have to worry more after retiring with any debts remaining unsettled.
So, look at your financial statements, and see just how far along are you from becoming debt free. If you still got a few years left on your outstanding obligations, better to postpone your retirement for a little while.
2. Will My Kids Be Doing Well On Their Own?
The one reason you’ve hung on tight to a job until retirement is because you’re trying to provide for the needs of your children. Now, if you’re contemplating retirement, take a look at the status of your children, or even your parents, and see if they’ll be doing well on their own after you retire.
If you have even one child remaining in college, obviously, it’s prudent to wait until they graduate from university before you retire. Of course, it’s an exception if you’ve got one or more brilliant kids who have learned to provide for their own keep in university.
3. Do I Have a Solid Idea of How Much I’ll Be Receiving as Monthly Income?
Do you have a solid idea how much exactly is your monthly stipend as a retiree? That’s a very important question to research, because it will affect how you’ll be carrying on your life after retirement. You might be planning some big things after retiring, without knowing that the returns on your investments are actually not that high.
Word of advice – keep checking in with your financial advisor and see how your investments are doing. Keep doing that up until you retire, so you can have an updated image of your financial status the moment that you step off the corporate world and go on your own path.
4. Will My Spouse Agree to the Decision?
Finally, is your spouse ready for your retirement? With a decision this important, the two of you should be on board.
Try to think about how your retirement will affect your spouse, both emotionally and financially. Does she have to work harder now to provide for your mutual needs? Does she have enough stashed away so that she could follow you a little bit later?
In married life, it’s best to talk things out. So, before making that big decision, make sure you’ve discussed it with the wife or husband.
Good luck, and here’s to a fruitful retirement when the time comes.
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