Are You Ready to Retire?

Once you know when you’ll be eligible, and have an estimate of your monthly benefit, then you'll want to decide when to retire. Naturally there are health, leisure, and family considerations, in addition to financial obligations. Answering these questions may provide some insight into how well prepared you are to retire.

• Do you own your home free and clear? If not, will you have enough income to pay for it?
• Have you planned for the future of children or others financially dependent on you?
• Have you estimated how much retirement income you will receive from all sources? Is your estimate between 60-80 percent of your preretirement income?
• Have you included a realistic inflation factor in estimating the income you will need throughout retirement?
• Have you considered your future health care costs when projecting your income needs in retirement?
• Have you saved for or planned for major expenses such as home repairs or an automobile purchase you expect to make during retirement?
• Do you plan to maintain cash in reserve for a family emergency?
• Do you have a current estimate from the Social Security Administration of what your benefits will be?
• Have you considered that at a time of increasing life expectancies, greater demand is placed on your personal savings and investments since they must last for a longer period of time?
• Do you already have a fulfilling leisure time activity or hobby you plan to devote more time to in retirement?

The more “yes” answers you have, the more adequate your retirement preparation and the more likely you’ll be able to preserve your standard of living.

If you have more “no” than “yes” answers, should you delay your retirement date and continue to work? Only you can answer this.