Financial Planning, Retirement Issues


Surprise – you are About to Retire

About to RetireA surprising statistic of people  about to retire about when they expect to retire suggests that only 23% of people expect to retire before they turn 65, while fully 69% actually retired before they turned 65. This is a really huge change in plans for many people and we wonder if they were ready emotionally and financially to retire and really not take another job.

Surprise – you are About to Retire

For many people they end up retiring early due to health reasons. As long as you have your health there is a really good chance that you will continue working, but many are finding that their health gets in the way of working and they have the decision made for them. In addition, many companies regularly go through downsizing of some kind and the package offered to older workers is just to good not to take advantage of. For whatever reason, many of us end up retiring much earlier than planned. For those of you reading this post, the message is get your retirement savings in order so that you have the flexibility at least from a financial perspective to retire whenever it is right for you.

Emotionally you may not be ready for retirement. You feel too young and you feel that you have a lot to contribute to the company and to society. You may miss the social life at work and you have not develop the hobbies and the interests that will sustain you in retirement. Developing the emotional and social plans to be ready for retirement before you retire is something that many people may want to consider. Going cold turkey i.e. quitting work without a plan can be very difficult.

If you suddenly find yourself in retirement due to health issues or your company has downsized, it is time to take stock of your situation. Assess your financial readiness for retirement. Do you have enough money saved which combined with your pension will allow you to live in the manner you envisaged during retirement. If not you may have to take some steps towards either finding another job or downsizing your expenses.

Downsizing your expenses is best accomplished by first developing a budget. Figure out how much money you have in terms of income each month and then assess all of your expenses. If income minus expenses is a negative number, it may be time to cut back in some areas and reduce your expenses until the income – expense equation becomes positive.

Take the time to be realistic about your retirement. Investigate self help information available on this website and others. Figure out emotionally how you want to deal with retirement and decide if you need to downsize your home, your cars, your travel plans in order to fit your expense budget with your income budget.

The transition for some people will only take a few months, while for others it may take a year or more. Give it time and rely on others in similar situations for help and guidance. They may not be experiencing the same things as you are but they may have great ideas about retiring gracefully.

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