Is this the right time for me? The answer to this question will depend not only on your age and your health but also on your financial status and your happiness at work. Putting off retirement for an extra year or two can make a huge difference in your nest egg—you’ll continue putting money into your retirement accounts during that time and reduce the number of years you’ll have to draw them down.
Are my spouse and I on the same page? If you’re married, it’s important that you and your spouse talk through your retirement plans before you stop working, to make sure you’re both envisioning a similar lifestyle and timeline. If you don’t want to or are unable to stop working at the same time, talk about what life will look like when one of you is retired and the other is not.
Where will I live? If you’re still living in the home where you raised your family, it might make sense to consider downsizing before you retire. Moving into a smaller home, or one in a less expensive area, can be a great way to make your retirement funds last a little bit longer. Since you won’t be tied to your office, retirement is also a chance to relocate to a region where the weather is better or that’s closer to your grandchildren. Look for a home that offers universal design elements, which will allow you to remain there even as you age.
Have I saved enough money? The amount of money you need varies widely, depending on the retirement you’re envisioning. If you haven’t run the numbers to make sure that your nest egg will last through retirement, it’s important to do so before you officially quit working. A Certified Financial Planner® professional can give you a realistic sense about whether you’re adequately prepared and provide you with some options on how to tweak your plan if it appears that you’re going to fall short.
How will I get health insurance? If you’re not old enough to qualify for Medicare, you’ll need a plan for securing health insurance until you turn 65. This year, that might have meant purchasing an individual plan through the Affordable Care Act exchanges. Those exchanges might or might not exist after regulatory changes in the next few years, but you’ll still need to plan on buying private insurance to cover health care costs.
What will I do every day? While the idea of golfing or gardening year-round sounds appealing, you’ll likely tire of even your favorite hobby after a few years. Consider whether it makes sense (financially or otherwise) to continue working part-time, or if there are other interests you might like to pursue with all your new free time.ll products and services featured are based solely on editorial selection. TIME may receive compensation for some links to products and services on this website.
