You’ve spent decades in the working world, and now the question must be asked: When is the right time for you to retire?
As important and potentially life-altering as choosing a date for retirement can be, it’s a decision that requires careful consideration and a thorough, honest look at the big picture. Where do you stand financially? What about your mindset? Are you emotionally ready to transition to a phase of life that isn’t focused so much on work? To what extent does health factor into the decision? And what about the myriad other personal considerations involving family, lifestyle and your vision of the future?
As personal as any retirement decision is, and as many variables that tend to be involved, there’s a simple lens through which to view what could be among the handful of weightiest calls a person will make in their lifetime. “The best time to retire,” says CERTIFIED FINANCIAL PLANNER™ (CFP®) professional Marguerita M. Cheng, who heads Blue Ocean Global Wealth in Gaithersburg, MD, “is when you have a reasonable amount of wealth, time to enjoy that wealth, and you’re in good health.”
The retirement decision is “a balancing act,” she adds, and, because it typically entails a methodical shifting of assets and of mindset over time, it’s a decision that requires plenty of forethought and advance planning. Use the guidelines and steps below — along with input from a trusted CFP® professional who focuses on retirement planning; find one in your area via the Financial Planning Association’s searchable database at www.PlannerSearch.org — to help inform your decision.