Why do people struggle with the decision to retire?
Put simply, retirement is a huge milestone. For many people, it comes with significant emotional and financial considerations.
Every person has a different reason for struggling with deciding when to retire. Some may be hesitant to leave the workforce because they like their job or feel they do important work, while others fear they’ll be bored when they retire.
Finances are another significant concern for many. They may question whether they’ve planned well enough financially to retire securely.
Signs You May Be Ready for Retirement
It can be challenging to know when the time is right for you to retire, but there are often signs that may help guide your decision:
- You feel disconnected from work: After decades of working, you may start feeling bored, burnt out, or like you’ve done everything you need to do at your job.
- You’re debt-free and financially secure: You’ve paid off high-interest debt, such as student loans or credit cards, and feel confident that you have saved enough money to retire.
- You desire a change: You decide to spend more time with family and friends, travel, or pursue hobbies you didn’t have time for while working.
Setting Yourself Up Financially to Retire
It’s never too late to set retirement goals. The earlier you start, though, the better. A great first step is creating a post-retirement budget. Understanding what your expenses will look like once you make that choice can help you figure out how much income you will need.
Also, the less debt you have when retiring, the better. For example, you may have significantly more stability if you retire without mortgage debt. However, you will want to keep in mind you could still have taxes and insurance for your home.
Consider your healthcare options carefully, too. Medicare starts at 65, and Medicare Part B is not free. What about long-term care insurance? Is that a practical choice for you?
Finally, consider where your income will come from once you retire. Do you have a pension? At what age does applying for Social Security make the most sense? When can you start dipping into your retirement accounts? What is your retirement timeline?
Taking advantage of available tools and resources may help you feel more secure when crafting your retirement plan. American Fidelity Retirement Services (AFRS) has partnered with Boldin to offer a comprehensive, interactive online retirement planning platform. The Retirement Planning Tools & Personalized Guidance program is designed to provide the support and guidance you need to achieve retirement success and enjoy your golden years.
This blog is up to date as of February 2025 and has not been updated for changes in the law, administration or current events.
This information is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.
Source:
Top Emotional Signs You Need to Retire; March 2024, accessed 1/24/2025
