Choosing exactly when to retire is an intensely personal decision that requires many parts of your life to align. Considerations need to be made for finances, health, mental fortitude and how much passion you still have for what you do. Because many benefits have historically begun to pay out around age 65, some still view this as “the magic age” when you should call it quits. But the truth is, you probably have more options than you know.
Connecting with a financial advisor who can help you put together a retirement plan is the first step to getting your ducks in a row. Making a financial plan years - or even decades - in advance of retirement is the very best strategy. This gives you time to change course and make strategic decisions to ensure you are financially ready to reduce or entirely stop earning an income. It is through this process that you can see the benefit of adjusting savings, and the impact of taking social benefits early (at a reduced rate), or later (at an accelerated rate). But most importantly, a clear financial plan will give you a stronger sense of confidence in the decisions you make.
The second part of the retirement preparation process is to decide what retirement looks like to you. Does it mean completely quitting your career, or does it mean working part-time and just incorporating a lot of flexibility into your schedule? Most business professionals have a tremendous amount of knowledge, skill, and experience to offer younger generations and it would be a tremendous waste to just bottle this up forever. So volunteering, or mentoring, or working part-time are all options to keep sharp and still contribute in your later years.
In the end, it’s important to know that with a little bit of planning, most people have options. They can survey the variables in their lives as they age and, with some forethought, make strategic decisions to accommodate circumstances as they arise.
Maria Dawes, Portfolio Manager
Capstone Private Wealth