The age you can retire depends on several factors.
It sounds so pleasant.
Creating your own schedule.
You want to start enjoying all of this sooner rather than later, yes?
But can you?
According to a recent MarketWatch article titled “Why early retirees should prepare for austerity,” most people retire after age 55.
Chances are, if you do not, then you will need to make some calculations.
First, you will need to evaluate your own spending to determine the amount you will need in retirement.
Once you have this base number, then you will need to include estimates for travel, insurance, health care, and inflation.
For example, a couple retiring at age 65 in 2017 would require about $275,000 just to cover out-of-pocket medical expenses until they both die.
Does this include nursing home or long-term care expenses?
When it comes to retirement, you will generally need to have at least 75 to 80 percent of your pre-retirement income to remain financially stable.
If you need a little more money, you could get a part-time job as you await Social Security to get a higher payout.
Learning to live frugally now will help you manage your money in retirement and have a more accurate assessment of what you will need later on.
If you currently do not know how to live on a limited budget, try it for a half year and see if you can manage.
This will help you determine what you will need to be financially secure in retirement.
Knowing this, you will be able to better determine when you can retire.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: MarketWatch (December 6, 2017) “Why early retirees should prepare for austerity”