When Should I Retire?

One of the most common questions we hear is "When should I retire?"

Most people expect the answer to be a specific age like 62, 65, 67, or maybe whenever they hit a certain dollar amount.

But after helping hundreds of people plan for retirement, we've found that the better question is: "When can I retire comfortably without worrying about money?"

Retirement isn't about reaching a certain birthday. It's about making sure your income, taxes, healthcare, investments, and lifestyle all work together.

That's why retirement planning isn't about picking a date. It's about building a plan.

Here are the conversations we think every future retiree should have before deciding it's time to leave work.

Will Your Retirement Income Cover Your Lifestyle?

The first question isn't whether you've saved enough. It's whether your savings can reliably create the income you'll need every month.

Many articles say retirees spend around 80% of what they earned while working. Sometimes that's true. Sometimes it's not.

We've seen retirees spend less because the mortgage is gone and the kids are grown. We've also seen retirees spend more because they're traveling, helping family, or dealing with healthcare expenses. The important part is understanding your numbers.

You'll also want to think about where your income is coming from:

• Social Security
• Pensions
• IRAs or 401(k)s
• Investment accounts
• Part-time work
• Rental income

Just because you have a high net worth doesn't mean your money is easy to access. If most of your assets are tied up in real estate or retirement accounts, you need a strategy for turning those assets into income while keeping taxes under control.

A good retirement plan doesn't just work when everything goes perfectly. It should also hold up when life throws you a curveball, like a new roof, unexpected medical bills, or a rough year in the market.

Are You Ready to Retire... or Just Ready to Leave Your Job?

There's a big difference. Many people don't completely stop working after they retire. Some consult. Others work part-time or turn hobbies into income.

There's nothing wrong with that. But that extra income can affect other parts of your retirement plan.

For example, it could:

• Increase how much of your Social Security is taxable.
• Increase your Medicare premiums through IRMAA.
• Change your overall tax picture.

On the other hand, continuing to work may allow you to keep contributing to your retirement accounts and, in some situations, delay required minimum distributions (RMDs) from your current employer's 401k.

The point isn't whether you should keep working. It's making sure your retirement plan accounts for it.

Have You Planned for Health Insurance Before Medicare?

If you're retiring before age 65, this is one of the biggest expenses people overlook.

Until Medicare begins, you'll generally need to get health coverage through one of three options:

• A spouse's employer plan
• COBRA from your current employer
• An individual Marketplace health insurance plan

Before choosing your retirement date, make sure you know what those options will actually cost.

And while you're thinking about healthcare, don't forget long-term care. Medicare doesn't pay for most long-term care services, and many retirees eventually need some type of assistance later in life.

Whether you choose traditional long-term care insurance, a hybrid policy, or decide to self-fund those costs, it's much easier to make those decisions before a health issue limits your options.

Is Your Home Still the Right Fit for Retirement?

Housing is often the largest expense in retirement.

Maybe you want to stay exactly where you are. Maybe you're thinking about downsizing. Or maybe you've considered moving closer to family.

Whatever your plans, don't focus only on the purchase price.

Think about:

• Property taxes
• Maintenance
• Cost of living
• Accessibility as you age
• Distance from family and healthcare

A move that looks cheaper on paper doesn't always save money once you add everything together.

Likewise, if you plan to stay in your current home, think ahead. Simple updates today may allow you to comfortably stay there for years longer.

Have You Talked About Retirement With Your Family?

This is one of the most overlooked parts of retirement planning. Many couples discover they have completely different visions of retirement.

One person wants to travel. The other wants to stay home.

One plans to keep working. The other assumes they're both done.

Adult children may also have expectations about how much they'll see you or how much help they'll need from you.

Having those conversations before retirement can prevent a lot of surprises later.

The Best Retirement Age Is Different for Everyone

There isn't one perfect retirement age.

The right time to retire depends on much more than your birthday.

Your retirement income, Social Security strategy, taxes, healthcare costs, investments, housing, and family goals all work together.

That's exactly why we created our Retirement Architecture Review.

If you're wondering whether you're ready to retire, or whether your target retirement date actually makes sense, we'd love to help you find out.

Because the goal isn't simply to retire.

It's to retire with confidence.

Schedule Your Retirement Architecture Review