Do you know when you will retire? Will you have a choice regarding when to retire? Most people think that they have the freedom to choose when to retire and that they will retire when their finances are in shape to provide them with the level of income to give them the quality of life they would like to enjoy. For many people this is true, however for many others retirement is quite different from what they planned or expected. The reasons for this change can be many, however it is usually things that occur in a person’s life that are outside their control.
For some people they are let go earlier than they thought they would be from a company and must find other work. Sometimes it is at less money and this means they have to work longer than expected, past the retirement age they anticipated. For others, health gets in the way, either for themselves or for someone who is close to them that they need to look after. We never know what curve balls life will throw at us and that is just one of the reasons why early sound financial planning is important and can make a huge difference in their quality of life.
Will You Have a Choice Regarding When to Retire
The following are some of the items to consider about this particular issue of Will You Have a Choice Regarding When to Retire:
What are Some of the Reasons People are Forced to Retire Earlier Than Planned
The reasons can be many, however we have tried to summarize them in the following list:
- Company downsizing
- Company bankruptcy
- Poor health
- Health related issues of a family member
- Other events in your life
We all know people who have said they will work until they are 65 and then retire. Suddenly life throws a curve ball at them in their early 50’s and they are no longer working for any of the reasons above. Their plans are in disarray and if they did not have a plan in place for the finances, they could be in significant financial difficulty. Surveys have shown that the majority feel they are in control of when they will retire, when in actual fact only a small percentage actually make their own decision about retirement.
Another interesting fact of this survey is that they only have less than a month’s time in terms of warning that they are going to retire. This is usually a downsizing situation or an incentive plan that is offered. In many cases as well companies simply decide they are going bankrupt and / or closing plants. One month’s time is not a lot of time to adjust to the fact that you are no longer going into work and earning a paycheck.
Financial Retirement Plans Make the Transition Much Easier
With strong financial plan that has been growing for some time, will ease the transition to retirement life. Your life can be much easier from a financial perspective. Wondering where your money is coming from in retirement worries many people. Whether you have enough income to live the quality of life you are looking is another concern. Many people retiring today are going to live 20 or 30 years in retirement and it takes a large sum of money to generate the level of income that is needed to support the life style you need. If you have sufficient funds, you can focus on the other aspects of retirement, which can be equally important.
Retiring healthy and having the money needed to enjoy your retirement are among the top priorities for most people. Without your health, retirement can be difficult and money really becomes a secondary issue. Good health and maintaining your health is the top priority for most people.
Planning For Retirement Early
There are a number of steps that many people can take to prepare themselves financially and health wise for retirement. Will You Have a Choice Regarding When to Retire. By planning for retirement you will have a much better chance of having enough money to enjoy retirement. We have listed them in the following list in no particular order:
- Implement your financial plan
- Start saving early
- Maintain your health through exercise, diet etc
- Have an early retirement goal in mind for your retirement, with the option to work longer if desired
- Avoid debt as much as possible to reduce interest cost
- Take control of your financial life
These are just a few broad steps that consumers can consider. It will help them to prepare for retirement that comes earlier than expected. A financial plan will help you deal with any issue that comes your way in early retirement. Plan now and have peace of mind.
We have many other posts on this site dealing with financial planning and retirement. Take the time to review Will You Have a Choice Regarding When to Retire.