7 Signs you are ready to Retire
Do you have dreams of finally owning a boat and sailing into the sunset? Or, do you want to live by the beach and wake up to the sound of crashing waves? All of these are possible when you are retired with a sizeable amount in your savings account.
“Can I Retire Yet?” It is probably the most asked question by baby boomers and those who are seeking to unwind and enjoy the rest of their lives. To answer this, here are the signs that you are ready for retirement.
- You Have Zero Debt
Paying for past and future expenses is a painful cycle that prevents you from attaining your retirement goals. To successfully retire, make sure to pay credit card debt and any outstanding loans. If you have zero obligations before retirement, you may use your savings for current expenses and for ticking off items on your bucket list.
- You are Financially Stable
Before planning that retirement party, you must know the costs that will cover your new life. Identify all assets that can continuously generate an income. These include pensions, personal savings, and Social Security. Do not be satisfied with just hitting a certain amount. A consistent source of income is the key to a comfortable and secure retirement.
- You have an Emergency Plan
When you ask yourself, “Can I Retire Yet?”, the biggest fears you may have in your mind are emergencies. The unknown occurrences, like the death of a family member or natural disasters, can drain your savings. Prepare a separate fund that is accessible during these unexpected moments.
- You Have Medical Insurance
Enrolling in Medicare is a significant step to prepare for health needs. However, there are limitations to it. Consider the premium and coinsurance payments. A health insurance policy will assure you that your savings would not be touched to pay for hospital bills.
- You Have Something to Keep You Busy
Keeping busy can stimulate the mind and strengthen the body. Start by exploring new activities a few years before retiring. These include charity work, a new sport or an exciting hobby. You may want to pick up where you left off before having a job and kids. Rediscover a passion that you once had when you were young.
- You Have a Network of Friends
Retirement is more than being financially ready. It is also all about being mentally and emotionally prepared. Remember, you are leaving the comforts of longtime work acquaintances and venturing into another world.
Before saying goodbye to your office buddies, make sure that you are already building rapport with a community that shares a common interest with you. Take some classes, play a sport, or volunteer for a worthy cause. These are perfect venues where you could meet new friends.
- You Have Created your Nest
Being retired means that you would be spending a lot of time at home. Creating a safe and peaceful haven must be a part of your plan. Make sure that you have safety features installed in your home. And if possible, have spaces for a home office so you will have an area where you can be creative.
Retiring is a much-awaited event in any working person’s life. This culmination of hard work deserves nothing but the best experience possible. The excellent way to achieve a happy retirement is to prepare for it while you still can.