The downward spiral of our economy, coupled with the threat of dried-up Social Security funds is pushing us to think of retirement, both on a deeper level and at an earlier age. What sorts of things should you keep in mind as you ponder the thought?
Money- If you ever come to a point in life where you don’t have to put money into the equation, you’re probably already dead. Forbes describes your three income sources as the “three-legged stool.” They include your regular savings, your pension or 401K and your social security. Make sure you have enough, as retirees are spending 120% of their savings nowadays.
Lifestyle- Factor in what you like to do with your retirement time. You may want to save some more for a country club membership or season tickets to a favored sporting event. Perhaps you want to secure a part-time job to help with the boredom and pick up some extra monies. All of these things are going to shape where you want to live, as well as how much you’ll need to live there.
Healthcare- First, you want to be sure you’ll have access to the necessary health facilities, like hospitals. Next, do you have a condition that will require extra assistance as you get older? You might want to look into assisted care facilities, or hiring private in-home help. Again, you’ll need to budget for your current maintenance of health and also for emergencies.
Location- Do you want to be near your family? Or, if you’re like me, do you want to be as far away from them as possible? What kind of climate do you like? You’ll need to figure in where you want to live in with your budget, as well. Beachfront cottages normally don’t run the same as a loft in the city.
Age- Figuring at what age you want to retire should be factored in, as well. Early retirement age is 62 and the normal retirement age is 65, when you can start to collect Social Security benefits. You should know that the age of eligibility for FULL Social Security benefits is expected to increase, over the next 25 years, from 65 to 67.
Forbes recommends you follow these three easy steps to eliminate that pesky gap between income and expenses: Retire later, save more and get professional help in managing the path to retirement and investments.