Should you retire?

There are many reasons to stay at work. Maybe you’re emotionally attached to your office chair, or maybe you think your job is too important to leave behind.

The truth is that there are many reasons to leave a job and just as many not to. For most people, a 30-year career is enough. But is early retirement realistic for you? Let’s take a look at a few things.

When you’re 50, the government says you’ll live about 33 more years (that’s from the Social Security Actuarial tables). That 33-year retirement may be longer than your entire working career.

Life expectancy is increasing by leaps and bounds with advances in medicine and technology, and you may want to think in terms of a 40-year retirement. Maybe you should ask another question. Should you retire first?

Rising costs and political uncertainty are causing many people to have questions about the future. This alone makes it extremely important to figure out how to finance a successful retirement and how to make the most of what we have.

How much will retirement cost?

Apart from trips, golf, fishing and macramé classes, what else would you like to have on the agenda? How much will your retirement cost? Will you have enough income to do it all? If you’re still saving for retirement, how much more do you have to get out of each paycheck to raise that much money? Good question! Let’s get the answer!

One thing I didn’t think about was inflation and how much things will cost in 15 or 20 years. After all, if you look 20 years into the future, you can bet that the $50,000 that seems like a good annual income now will have to be more to buy the same things as now. Inflation can have an impact on where your money goes.

But what will inflation be through the years? Any number you can think of is probably good enough to get you through the first year of retirement. Can we guess what inflation will be and estimate what impact it will have over the next 40 years?

Where to retire?

Where will you live? Hopefully, the mortgage will be paid off, so all you have to worry about with the home are property taxes and maintenance. Maybe you can sell and downsize to a smaller location in a warmer climate. It sure beats having to shovel snow when you’re 70, even if it’s further away from family and friends. Also, you don’t see the kids much anymore and they can always come to visit.

You should probably also think about insurance. You’re probably insured under group policies through work disability, life, and health coverage right now. In fact, your employer probably pays some or even all of the premium for that wonderful insurance.

If you withdraw, you could lose that insurance coverage. So what happens to your spouse and his family if he is inconsiderate enough to die at a young age? How will he pay for a serious illness or hospitalization and all of the treating doctor’s bills if (God forbid) he becomes permanently disabled?

You can probably forget about getting help from the government. You are too young to apply for Social Security or Medicare. And even if you qualify, government assistance may not be enough for a survivor and all the medical bills? If that’s the case, what are your alternatives? What about long-term care costs if you need it?

You’re probably now thinking, “Hmmm, maybe I should have a few more kids to help support me in my old age.” Don’t worry, you don’t need more children. But you may not be able to leave your job. I’m just kidding about it. I’m sure you can retire at any age without increasing population or being chained to a desk.