Financial planning tools and services to put you on the path to the future you want
Your guide to financial planning and retirement
Connect with peers and experts
Get to know the people behind the company and the mission behind the work
Offer financial wellness to the people at the heart of your business
July 4, 2020
While financial and health concerns are a major part of every person’s retirement decision, it’s important to ask yourself questions that go beyond financial preparedness to help determine at what age retirement is right for you.
Americans are living longer than ever. This means that many individuals will actually spend more years in retirement than they did in school.
This also means that retirement isn’t something to take lightly, says El Dorado Hills, Calif.-based Scott Draper, a certified financial planner with Thrive Financial Planning.
Here are three questions to ask yourself when determining when it’s the right time for you to retire.
“Even if you’re financially set to retire, you’re now going to have many years ahead, especially if you’re in your 50s or 60s,” Draper says. “What is this next stage in your life going to be about?”
Retirement is a great time to revisit old hobbies and dreams, says Kate Holmes, founder and principal at Las Vegas, Nevada-based Belmore Financial, LLC.
And some of those passions could even prove to become income-generating activities in retirement, she says, noting that a growing number of people pursue new careers in retirement, or dedicate their time to volunteering.
“Retirement is often about moving on to something new,” Holmes says.
Some soon-to-be retirees say they are looking forward to crossing off items on their bucket list – and assume doing so will occupy a great deal of time – but that’s not always the case, Draper says.
“Often people think they have a long list of what they want to accomplish in retirement, but then they find they’ve done it all in just two or three years,” he says, noting that some older Americans may benefit from delaying retirement.
“Regardless of your age, if you love what you do, keep at it,” Holmes says about deciding to delay retirement.
While taking a holistic approach – that includes your emotional well-being – is an important part of determining whether now is the right time for you to retire, there are important financial considerations to make before moving forward.
Financial planning will ensure you’re able to maximize your revenue streams in retirement to best support your expected lifestyle, Draper says.
“Do you have the monthly or annual cash flow that will support your lifestyle and that is going to be there the rest of your life?” he says. “In the initial stage of retirement, spending can increase because you’re getting rid of work-related expenses and going out more. Later your expenses might moderate and taper out as you become less active, but you might have increased health expenses.”
In addition, retirement might also signal other changes, such as a move, that one needs to be financially prepared for, Holmes says.
“Will you need a new car or are you likely to move in the next few years?” she says.
Ultimately, seeking the input of expert when beginning to plan for retirement can help you make the most of your golden years, experts agree.
“There is a lot to consider,” Holmes says. “I recommend meeting with a certified financial planner to create a plan that works for you.”
Do it yourself retirement planning: easy, comprehensive, reliable
Take financial wellness into your own hands and do it yourself retirement planning: easy,
Share this post:
Our weekly newsletter full of inspiration, podcasts, trends and news.
© 2023 NewRetirement, Inc. All rights reserved.
Disclaimer: The content, calculators, and tools on NewRetirement.com are for informational and educational purposes
only and are not investment advice. They apply financial concepts in a general manner and include
hypotheticals based on information you provide. For retirement planning, you should consider other
assets, income, and investments such as equity in a home or savings accounts in addition to your
retirement savings in an IRA or qualified plan such as a 401(k). Among other things, NewRetirement
provides you with a way to estimate your future retirement income needs and assess the impact of
different scenarios on retirement income. NewRetirement Planner and PlannerPlus are tools that
individuals can use on their own behalf to help think through their future plans, but should not be
acted upon as a complete financial plan. We strongly recommend that you seek the advice of a financial
services professional who has a fiduciary relationship with you before making any type of investment or
significant financial decision. NewRetirement strives to keep its information and tools accurate and up
to date. The information presented is based on objective analysis, but it may not be the same that you
find on a particular financial institution, service provider or specific product's site. All content,
tools, financial products, calculations, estimates, forecasts, comparison shopping products and services
are presented without warranty.