06 Apr 2021
It is important to know when you want to retire and what kind of retirement you want. You need to have a retirement goal in your mind so that you can set plans in motion to achieve it.
There are several questions that you need to ask yourself to determine when you want to retire.
Ultimately it depends on how your nest egg will cope with early retirement. *
I want to retire in my 50’s
People who retire in their fifties can afford to do so because:
If your savings are not great, you could consider a low-cost retirement lifestyle like living in a low-cost country, or start with a partial retirement that keeps you working, but allows more free time to relax or partake in your hobbies.
Most private pensions allow you to start withdrawing funds from 55.
Many in their fifties are at their peak in their professional careers and enjoy their work and can’t visualise themselves retiring anytime soon.
Remember that retiring early also means that you need to cover your medical expenses till you reach retirement age and qualify for state medical cover. If you live abroad, you might need to take out medical insurance for your entire retirement.
I want to retire in my 60’s
Those retiring in their 60’s have:
The realistic retirement age for most is 65. Hopefully by then you will have paid off all your debt and downsized your lifestyle. Most state pensions can be accessed in your 60’s but only full benefits are received at the correct age. For many countries it is 67 and rising every few years to keep up with longevity.
If you want to carry on working or have other income, you could defer your state pension and even private pension for a few years to increase their value.
Usually at retirement people enjoy their time off, but after the honeymoon phase is over, they get bored or frustrated. For those who have serious hobbies, they have settled into a routine and enjoy life. Many retirees do volunteer work or consult in their professional capacity or even go back to work on contract. This will help prolong retirement income.
Part time work or starting a small business could fill that void and provide supplementary income. Many retirees despite receiving a state pension and company or private pension can’t make ends meet and have to continue working.
Retiring in my 70’s
Those retiring in their 70’s, do so because:
Retiring at 70 gives your pensions more time to accumulate wealth for you so you can lead a comfortable retirement lifestyle.
You need to have a clear picture in your head about what kind of retirement you want and the reasons you want to retire early. Your financial adviser will help with this and only then can you get a plan of action in place to make it a reality. The earlier you want to retire, the more sacrifices you will have to make financially. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.