You need to evaluate your financial situation and needs before your retire.
Retirement should not be spontaneous.
It should not result from being tired of working.
You should not retire merely because you reached a certain age.
According to a recent Motley Fool article titled “Don't Even Think About Retiring Until You Can Answer These 3 Questions,” a successful retirement takes planning.
Unfortunately, fewer than 38 percent of Americans have created a long-term financial plan.
How do you know if you are ready to retire?
Although you can claim Social Security starting at age 62, this can reduce your overall distributions in retirement.
Your benefit will be reduced up to 30 percent of what it could be.
At age 65, you can take Social Security without any penalty.
If you can wait longer, you could actually increase your amount.
Claiming at age 70 would allow you to maximize your benefit.
Waiting for Social Security may not be the best choice for your circumstances, but for many it will be advantageous.
How long will your retirement savings last?
Start by calculating how much you will spend each year in retirement.
You should multiply this by the number of years you will likely live.
For most, you should calculate several decades.
Your savings should last you the rest of your life.
Can you pay for healthcare costs?
Your healthcare needs will only increase as you age.
On average, a retiree will spend about $4,300 on out-of-pocket expenses.
About two-thirds of this number are on premiums.
Medicare will not cover everything.
You will need to pay some bills on your own and/or get supplemental insurance.
Budget for this.
No one can predict the future.
You can prepare for it.
This is true for retirement.
Reference: Motley Fool (October 9, 2018) “Don't Even Think About Retiring Until You Can Answer These 3 Questions”