By Jeffrey J. Buonforte
It used to be that everybody retired at age 65, but a growing number of Americans are working well past that age. With increased life expectancies and an uncertain economy, how can you determine the right age to retire? The answer varies for everyone, but there are several strategies that can help you determine your ideal retirement age.
New York Times career coach Eilene Zimmerman recently wrote a great article
that explores the financial, emotional and health factors to consider when deciding the right time to begin your retirement. Here are some highlights and other tips from the article that Lakeland Bank clients have found helpful for retirement planning.
- Determine your sources of income at retirement age. These may include your savings account, 401k, pension, Social Security, and other assets. Calculate whether this is enough for your living expenses if you stop working. Plan for possible illness during your retirement and build out-of-pocket healthcare expenses into your budget.
- Determine how your retirement benefits may change depending on the age you retire. Social Security and your company’s Human Resource Department can provide you with an estimate of the benefits you will receive based on possible retirement age scenarios.
- Retirement can affect your psychological health. Without a job, you may lose social interaction and intellectual stimulation. Plan for how you will spend the years ahead of you productively. Consider and prepare to explore hobbies that you couldn’t pursue professionally.
Planning for retirement can be challenging, but the first step is to decide your retirement age. The second is to ensure you have enough financial resources to maintain the lifestyle you would like to enjoy in retirement. Take some time to do this, whether with a financial advisor or on your own, and you will have laid the foundation for your retirement plan.
Lakeland Financial Services consultants are available to offer one-on-one counseling for retirement. For more information or to set up an appointment, call 866-224-1379
or visit any of our office locations
*Securities are offered through Essex National Securities, Inc., member FINRA & SIPC. Insurance products are offered through Essex National Insurance Agency, Inc. Neither are affiliated with Lakeland Bank.
Products are not guaranteed by the bank, not FDIC insured, not a deposit, not insured by any federal government agency, and we may lose value including loss of principal.