How do you decide when to retire?

Visiting far-away destinations, spending valuable time with the grandkids, or even learning something brand-new, we all that dream retirement in our minds but one thing that often gets overlooked is a date of when this will be.

It can be a different answer for everyone, as it can depend on a range of factors which are unique to you.

To help, there are several questions you can ask yourself to better understand whether to make the leap into retirement…

Can I afford to retire?

The most important question is, “do I have enough to retire and live a happy, fulfilling and secure lifestyle, which I always imagined”?

An important first step is to work out how much income you will receive in retirement. Make a record of the following to better understand your financial position:

• Private pensions
• Investment income
• State and workplace pensions
• Cash savings
• State benefits
• Other assets, such as property

It’s also important to calculate your existing debts too, as this will have a direct impact on your income.

What do you want from retirement?

Once you feel you have enough income to retire, it’s important to take a step back and try to take an objective view on whether this is enough to cover the lifestyle you want to lead.

There is a difference between having enough to retire, and having enough to retire and live the life you want.

That’s why it’s crucial to really understand what you want out of your retirement. Some may dream of a quiet life, staying at home and pottering around the garden. Others, meanwhile, might see it as their opportunity to be more adventurous, travel the world, go to festivals and indulge in their hobbies and passions.

By asking yourself what you want from retirement, you can then work out what your chosen lifestyle is likely to cost you, and when you’ll be in a financial position to fulfil this goal.

Are you ready for the change?

Whilst it’s something that everyone dreams of, when the time comes, it can actually be a harder decision than people expect it to be.

Retiring is one of the biggest life decisions you’ll ever make. It’s important to consider the practical and emotional impact that it can have on you.

Ask yourself the difficult questions, such as:

• How will I fill my days?
• Do I have hobbies and interests to keep myself physically and mentally engaged?
• Do I have friends and family around me, so I can stay socially connected?
• Am I disciplined enough to structure my days without work?
• Is my job a key to my identity, and if so, what will I be without it?

Of course, you might have been counting the days to retirement for many years! But, if you’re someone who thrives in the workplace and has struggled to achieve a good work-life balance in the past, adjusting to retirement can be difficult.

Are you in good health?

Retirement should be a time when you have the freedom to enjoy days out, holidays, family time and activities, so you don’t want to be held back by health issues.

You should therefore do all you can to increase the chances of enjoying good health in later life, such as maintaining an active lifestyle, managing existing conditions and not neglecting your mental and emotional wellbeing.

Investing in your health in the present is an investment in your future and could put you in a position where you’re able to truly enjoy your retirement years.

Speak to your partner, family or trusted friends

Who knows us better than our friends and family? If you’re unsure about retirement, then speak to those you trust most. You might have colleagues that have retired before you who could give advice, family members who know if you’ll be restless during retirement, or your partner who you’ll hopefully be enjoying your newly found free time with.

Seek financial advice

Retirement is something many of us dream of, so carefully considering your finances, health and lifestyle ambitions straight away can set you up nicely for the future you want and deserve.

Speaking to a specialist financial adviser, like Wealth Experts, can help you get to grips with every aspect of your finances and creating a personalized retirement plan.

We can look at everything from your various sources of income to your existing debts and guide you on what tax strategies can help you maximise your retirement income.

If you have any questions about saving for retirement, our team of Wealth Experts can offer you their insights and specialist advice. Get in touch with one of our team to discuss further how we can help.