5 Factors That Can Help You Decide if it is Time to Retire
It is important to take many different factors into consideration, seek out expert advice and do some pre-planning to decide whether it is a good time to retire. It is not a decision that should be taken lightly.
Finances and health are two of the biggest factors to consider but job stability, the option of turning a hobby into a business and the ability to do contract or part-time work can also influence your decision.
Health is a major consideration when thinking about retirement. People who are fit and healthy may feel it is best to continue working, even if they are eligible for retirement. They appreciate a few extra years to keep earning money.
On the other hand, those experiencing health issues may feel retirement is necessary to help them regain their health. Some people are forced to retire due to ill health.
Retirees benefit from having medical supplement plans. Medisupps was started by Russell Noga to help people clearly understand medical coverage. The company works for clients and not for the insurance carriers, which means it has access to all the top companies that you can choose from.
Noga regards Mutual of Omaha Medicare supplement plans as some of the best for older adults as they offer extensive coverage and reasonable premiums. Plan G is the most popular plan and after paying the annual Part B deductible, it pays 100% of the gaps in Medicare Part A and B.
Financial stability is probably the most important factor when planning to retire. People do not want to be forced to change their lifestyle completely because they are no longer earning a salary. Before retiring, they want to know that they will have enough money to support them comfortably.
They do not want to end up looking for another job that may not pay as well as their current position. As well as getting advice from private financial advisors, there are various online calculators that can help with making the right financial decision when it comes to retirement.
3. Job stability
Some companies follow the rather reprehensible strategy of letting individuals go close to retirement when the economy is tough. It may be better to retire and collect a pension rather than hold out and risk the chances of losing a job altogether.
It helps to keep an eye on what the company has done to other employees in the past. If it has a track record of letting people go close to retirement, it may be worthwhile retiring early.
4. Hobbies and interests
Some people know they will be able to make some income from their hobbies or interests when they retire so they choose to retire early.
Starting a woodworking or confectionary business, for example, may provide a great opportunity to move out of the workforce before being forced to do so and pursue a passion before it is too late. This works for some people but can be less successful for others if they do not have any idea about how to run a business.
5. Retire and work part-time
An option if someone is eligible for retirement but is not financially ready to retire is to retire and collect the pension but supplement it by working part-time.
Working part-time is usually far less stressful and enables the person to start enjoying some of the benefits of having more time. It can help to ease the transition towards full retirement. Knowing that an option of getting part-time work is available can help with making the decision to retire.