If you find yourself stuck in the day-to-day grind of making a living, thoughts of retirement can be sweet. Imagine leaving behind the stress of the job and pursuing whatever interests you. You could start each day only when you are good and ready to. Picture the ability to set a pace that fits your mood and state of mind for that particular day. One day you may awake feeling like going at a mellow pace while the next you are energized and ready to check things off your to-do list. When you retire, you make the rules.
The move to retirement is a big decision, and it’s difficult to know when you are truly ready to begin your second act. You obviously need to have your financial affairs in order. Unless you plan to work in some capacity, you need to have enough saved to support the lifestyle you hope for over the next 20 or more years. True financial security is difficult to achieve given the volatility of the stock market and the unpredictable nature of our health.
And even if you do have a sufficient nest egg saved, that doesn’t necessarily mean it’s the right time to retire. It is just as important to prepare for the non-financial aspects of your future. Here are some signs it may be time to consider retirement.
Your job takes more than it gives. Some people are fortunate to find themselves engaged in a career they enjoy. Each new day is filled with promise and challenge. There’s no reason to leave simply because you reach a certain age. But other people find themselves exhausted from a long and demanding career and tired of the routine they must drag themselves through every day. When a job is just about the paycheck the days can seem without end. Add in a few health problems and every day can feel like an uphill battle. In these situations you need to weigh the costs against the benefits of staying. The additional dollars earned are not always worth it. Staying at a demanding career beyond what makes sense could adversely impact your ability to enjoy retirement.
You cannot wait to explore new horizons. While some people find it challenging to stay busy in retired life, others cannot wait to pursue a myriad of interests. Freed from the endless hours spent at the office, they are ready to do what they enjoy most. Retired days offer the opportunity to revisit old hobbies and explore new interests. To-do lists can be filled with interesting and meaningful activities. Retirement can be a time to give yourself free reign to do as you please and pursue whatever interest sparks your curiosity.
You want to explore a different career path. Some people are happiest when they are on the job. They enjoy being part of a team, making a contribution and facing new challenges. For them, staying part of the working world is how they choose to live their second act. If you want to continue working beyond retirement age, this stage in life may allow you to explore a different career that is more in line with what you care about most or find most satisfying. If you could be doing whatever job you wanted, what would it be? Retirement could be your chance to fill in the blank.
You want to live an active retirement. You will never be younger than you are today. Now is the time to take advantage of your relative youthfulness. In later years, activities like travelling can become more challenging. If you want to live an active retirement, it’s a good idea to tackle the most difficult activities while you are still able to. Take advantage of being as young as you will ever be.
From my weekly blog for US News & World