Figuring out when to retire is among the hardest things for an average person to figure out. Some people base their retirement on a certain age, while others retire when they have achieved a financial goal. However, some signs and targets are universally acceptable as indictors for someone who is about to retire. Retirement is tough, so you have to be psychologically ready for this huge step in life.
Here are 5 indicators that show you are about to retire.
1. You have enough savings
At retirement, you will not have a regular salary as you used to while working full time, but your expenses will not go away. You need to look at your current disposable income, social security, pensions, investments, and other savings that generate income for your future use. If you can ascertain that these incomes meet your future need, then you know that you can proceed to your retirement. Without enough resources to enable you to maintain a comfortable lifestyle, your retirement will be cumbersome. If you feel that you have not hit the mark yet, the best thing for you will be to work a little longer.
2. You can deal with emergencies
After you have known how you will be paying your daily bills, you should also consider how you will manage emergency issues that may crop up during retirement. By putting in place the right plan, you will not occur when an emergency occurs. Remember that you may lose a loved one, catastrophes may strike, and more. Put in place the right mechanisms to help you deal with these emerging issues when they strike.
3. You have adequate health coverage
At old age, your body will be frail, so you should have adequate coverage for your health insurance. Do not let yourself pay for medical care out of pocket. Start putting in place the right measures and ensure that you have a solid cover that helps you deal with any emerging health issues.
4. You are debt-free
Outstanding debt can complicate your retirement because there are both past and future expenses that are associated with it. Eliminate high-interest debt and loans, and maybe you can clear your mortgage first before you start thinking about going on retirement. Prepare your game plan, be a little organized and pay off your mortgage before you think of retiring.
5. When you have a supportive network
For many years while working, your colleagues at work become your support pillar. After retirement, you will lose most of your network because you will already have cut the professional ties that you once enjoyed with many people. Start associating yourself with a new community, and understand that you are going out fully into a whole new world.
It can be incredibly helpful when you start practicing retirement early and start engaging in new activities that are of interest to you. Take your time and understand what you need, the type of community that you want for yourself, and also the charities that you would like to work with.
