There comes a time when most workers begin to consider retirement. Today’s economy may make it impossible to consider reducing your regular income. But, as you age, health and family obligations may cause you to feel as though retirement is inevitable. Here are some signs it may be the right time for you to stop working:
1. When You No Longer Love Your Job
Your job may be your means of support, but it should also be something you love. When you’ve been in the same field for several decades, you may feel it’s lost its luster. According to Gartner, a motivational employee recognition plan can inspire an increase of over 11% in employee performance. If such an enticement no longer holds any lure for you, it might be time for you to stop working.
2. When You Have Enough Money to Stop Working
Not everyone can say they’ve made enough money to stop working, but if you have, it may confirm your idea that it’s time to retire. According to CNBC, you should, ideally, have saved 10 times your annual salary by age 67. The same source provides an alternative of having enough to live on 4% of your savings for each year of your retirement. Look ahead to the future, predict how much you need to live on, and then decide if your funds are enough to allow you to retire.
3. When Your Health Prevents You From Working
When your body grows older, you can develop chronic health conditions. These conditions can also make you more prone to injury. According to the U.S. Bureau of Labor Statistics, the year 2021 resulted in over 2 million injuries being sustained at work. If those chronic conditions or the results of your injuries make it more difficult for you to do your job, retirement can be the obvious next step.
4. When You’re Ready for the Next Chapter of Your Life
As you look at your coworkers, and see them effortlessly master technology while you struggle to keep up, it may seem like your role at your company may soon be obsolete. Other employees your age may have already retired, and you may be envious of their new freedom. You may also have new grandchildren you’d like to spend more time with. Your “second chapter” may be beckoning, so it may be time for your first chapter to close.
5. When You Qualify for Social Security or SSI
If you were born after 1960, 67 is the age for full retirement. If you were born before then, the retirement age is younger. If you are 65 years old with a low income, you may be entitled to SSI benefits – just as you would if you were blind or disabled. If either or both of those income sources are available for you, this may confirm your feeling about the need to retire.
6. When the Majority of Your Debts are Paid Off
One reason many people near retirement age continue working may be to pay off debts. Trying to pay debts with the reduced income of a retiree might be too difficult to handle. If necessary, consider a debt consolidation loan while you’re still working and can pay it off. By the time you reach retirement age, you have probably also paid off your mortgage – making it possible to survive living on your social security income.
Keep in mind that when you finally close the door on your working life, it will be an adjustment for you. Some retirees may not realize – until retirement – the extent to which their jobs have become their identity until they retire. The sharp drop in income may also impact you to a greater extent than what you’d expected. If you have a financial advisor, you might ask them to help you determine your readiness for retirement.
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