Are you ready to retire? Six things to help you decide.

Are you still working? Wondering when you can retire? Deciding when to retire is a difficult decision. There are so many things to consider before taking the leap. How much do you have in savings, and will it last? Is social security enough to see you through? What about insurance, is Medicare enough? It’s all a bit overwhelming, especially if you are mentally ready, but not sure if you are financially ready to retire.

Let’s talk about the six things below to get you started on your quest to retire:

When to retire?

1. How much money will you need? The real answer is it depends on the lifestyle you want to live. If you are debt-free, the income you need will be much less than if you still owe money on things like cars or homes.
   
   Also, consider what you will be spending money on when you are retired. I travel with my granddaughters to volleyball tournaments, and I like to take trips to other states or countries; I’ll want to be able to continue doing that when I retire. When trying to determine how much income you will need, be sure to include all the fun things you want to do, too.
   
   
2. Do you want to work after retirement? Some folks just like to work. I’ve worked so much in my life that while I’d like to take a few weeks off to just veg out, I would probably get bored quickly.
   
   If your budget permits, take this time in your life to do whatever you want, perhaps something you’ve always wanted to do but didn’t have the time or money when you were younger to venture out on your own. You can always go back to school and learn something new too. Lots of possibilities. Choose to do something that makes you happy and enjoy this time of your life.

3. You must work for additional income to support yourself. If based on your budget, you need to continue working, you can always keep doing what you’ve been doing or branch out and try something new. Also, remember that the longer you delay taking Social Security, the more money you get from them. Social Security income will continue to increase up to age 70 if you don’t begin taking distributions. Check out the Social Security website for some great information about retiring. Maybe this is the time to start your own business, write a book, start a blog, teach a class, or just try something new.
   
4. How will you fill your days if you don’t work? This is the big question. While we all think about retirement as that wonderful time where we don’t have to do anything or have anything to worry about, you might find that you get bored. That doesn’t mean you have to work, though, there are still a lot of things you can do in your free time. Play golf, volunteer, garden, join a club, spend time with family and friends, get an RV and travel the country and so on. There are so many possibilities. Just don’t forget to build whatever you do into your budget. Nothing worse than running out of money too fast. Whatever you do, don’t let this wonderful time in your life just pass by. Have some fun.
   
5. Should you live near family? This is a tough one. I am a bit partial as my home is between my son and his family, and my brother and his family. I have truly enjoyed having my own space but still living close to family. We are all pretty good about respecting each other’s privacy. My grandsons drop by a few times a week to get apples and so on. I totally enjoy seeing them.
   
   One of the other reasons I like this arrangement so much is that we can all take care of each other if needed. My brother is battling lung cancer now and it is comforting to have him close by. Having said that, not everyone can do what we do. As I mentioned, I like my own space and am respectful of others so it works. Carefully weigh your options and the people involved to determine if you want to be near family.

6. Healthcare is a major consideration as you get close to retirement. No matter when you decide to retire, Medicare comes around at age 65. Please be sure to check out when to sign up; according to the Social Security website, you should sign up at least three months prior to turning 65. If not, you may end up paying some penalties.
   
   Also, remember to include some money for insurance in your budget. While you won’t have normal insurance costs anymore, you may still want to carry a supplement, which could cost a few hundred dollars each month. However, it is very exciting to think about not paying regular insurance any longer. I am self-employed and pay $900 per month with a very large deductible. I’m really looking forward to Medicare.

I hope this information will help you get started in your planning for retirement. The most important thing I can tell you is to do your homework. To help you get a picture of where you are now, put together an estimate of how much money you will need in retirement, whether or not you want to work, and what costs you will have, including fun things like travel. There is a ton of information on the internet to assist you, and on the Social Security website, you will find a Retirement Estimator to help you nail down what you will get at different ages. We are all living longer and need to plan carefully for the future. Whatever you decide to do, relax at home and enjoy this time in your life.