14. Examine whether your situation will require caregiving for a loved one
In other cases, it's not you who's in bad health but a spouse or loved one for whom you have to provide care. The authors note that 20% of those who leave the workforce earlier than planned did so to care for a loved one.
And even if you don't leave the workforce, this still might cost you. You might have to hire a caregiver, for instance.
Yes, you might be able to take advantage of the Family and Medical Leave Act, but that's not a long-term solution. Also, if you don't have it, consider buying long-term-care insurance to cover this kind of expense or commitment. Having a policy in place could help you identify your optimal retirement age.
15. Are you concerned that future health limitations will interfere with personal retirement goals?
Plenty of folks think they should retire while they are still healthy and can enjoy retirement. But don't let fears of later health problems dictate an earlier retirement, the Tacchinos write. "Some (people) choose a retirement age based on their perception that they only have so many good years left and they want to enjoy some time with good health in retirement."
Remember, research has shown that your perception of your health will typically have a stronger effect on your retirement-age decision than the actual, medically determined status of your health, the authors write.
16. Evaluate whether you will need to retire to raise grandchildren
About 6.3% of children under age 18 are living with grandparents. Is this in your future? If so, consider how you might have to keep working to afford to raise grandchildren, the Tacchinos write. Or consider how you might have to retire to care for the grandkids.
17. Appraise the likelihood of your job ending suddenly and prematurely
What are the odds that you'll be laid off or become unemployed for other reasons? Consider whether you are at risk of losing your job. Older workers may have their position or shift abolished, AARP's Public Policy Institute points out. In other cases, there's not enough work, or a plant or company closed down or moved.
18. Assess job satisfaction and potential changes in job satisfaction
Being unhappy with your work is not the best way to determine your ideal retirement age, but it's certainly a factor. Try to get a handle on whether you really want to quit the job or whether your employer is trying to get you to leave.
19. Understand how to determine an appropriate retirement date and broaden your expectation
"Perhaps the trickiest and most subjective set of considerations to analyze centers around (your) own personal psyche," the authors write. "In essence, (your) mindset is ultimately responsible for driving the desired retirement age."
For instance, you might plan to retire after you turn 65. Instead, you might want to set your retirement age in other ways: years until death (your remaining life expectancy) or your work/retirement ratio (75% work/25% retirement), the authors write.
"Why should chronological age be the deciding factor?" the authors ask.
20. Evaluate your ability to adapt to retirement
What's your self-efficacy? Do you think you will be able to cope with the changes that come with retirement? If you can predict your level of comfort and you think you will be able to adapt, that's a good thing, because it's a major factor in determining your retirement age, the Tacchinos write.
"One researcher theorized that some who view themselves as unable to adjust to retirement either recognize their own need to work to feel good about themselves or (subscribe) to the belief that retirement is a time of dissatisfaction, isolation, and decline," the authors write.
21. Assess the identity, fellowship and status you receive from working
It's quite possible your work defines who you are, you derive a sense of self-worth from working, and you might find it hard to retire. In other cases, you might want to keep working because you enjoy the job and want to keep busy.
"Consider that while most (people) value the retirement lifestyle, they may not realize what they are losing by ending the work lifestyle," the authors write. "It is important for (people) to discern exactly what the loss of their main job will do to their sense of self. Unfortunately we often do not realize what we have until we no longer have it."
22. Determine your willingness to work
If you're unsatisfied with the day-to-day grind of working, that's going to drive your decision to retire, whether it's the optimal time or not.
23. Determine your desire for leisure
If what you want is a life of leisure, this too might drive your decision to retire early. Just remember, "It is important for (you) to imagine the daily routine brought about by a lifestyle of leisure," the authors wrote. "Filling up free time with meaningful activity requires thought and planning."
24. Weigh the balance between work satisfaction and retirement satisfaction
According to the Tacchinos, the difference between your current satisfaction with your work and your anticipated satisfaction in retirement can predict your anticipated retirement age.
25. Examine the potential for joint retirement
Lastly, you are probably not making the decision to retire by yourself. The choice between work and retirement may be related to your ability to retire with your spouse, the authors write.
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VIDEO ON MSN MONEY
1. Save starting early - check
2. Save a material and ever increasing amount of my income - check
3. Save an emergency fund - check
4. Save an additional already taxed amount - check
5. Maintain life, health and property insurance - check
6. Carry no revolving debt - check
7. Pay off mortgage - this year (update..check - now paid off!)
8. Save monthly what would have been the house payment - start next year
...let it all simmer and tenderize for 9-12 years
9. Breathe deep, work my last day - and let the stress and tension melt away
10. Enjoy a hot steaming cup of coffee while watching birds going about their busy sunrise activities. Listen to the echo of a small boat puttering across the lake. Get some night crawlers, drop anchor, and give the owner of that puttering boat a run for his money...the lawn, my new boss these days, can wait.
Looking forward to it..
Never saw a luggage rack on a hearse, nor a pocket in a shroud!
The answer of when is, "as soon as possible!" You don't know how many more years you have left on Earth and money can't buy you time!
No debt, realistic expectations, and modest lifestyle will get you through it OK. AND remember, SMILE- millions in this world have it worse than you do- Don't worry, Be Happy!
It is simply sad that so many people in this country are in SOS mode (Stuck On Stupid). Please run to Canada or where ever you think you can escape the rest of the world and bury your head in the sand. By the way that place does not exist (duh). But for the love of God and country, GO! I for one am sick of people who are so full of hate that they pollute the air that I breathe.
Why are you so afraid? Have you no God...no faith in anything or anyone who does not look just like you?
I pray that whoever is running this country will wake up and smell the coffee. Many people are tired of politics as usual. I don't give a flip nickle if a politician is Democrat or Republican; Black, White or other; straight or gay. I need to see the people that we elected to run this country do just that. Not a lot of talking, fighting, proselytizing. We pay a whole lot of people a whole lot of money to run this government and I for one am holding them ALL accountable.
I plan to retire in 7 years and I plan to do it well because I have saved my money while there were Republicans and Democrats in the White House. I am the master of my universe and I believe in a God that will sustain me no matter who is running the country. We have taught our son to do the same. The sky is NOT falling. Quit all the whining and do something positive.
God bless the USA (that's for those of you who are so blessed that you never need public assistance as well as those who do).
Now that the Dems have sewn up the Whitehouse for the next four years I think I will retire now and let the Gubmint take care of me. I will get the best healthcare YOUR money can buy. In fact, now that weed is legal in Colorado, I think I will move there and let all y'all pay for me to get baked whenever I want. I'll use food stamps to cover my munchies. Retirement, here I come, baby!
I'm considering becoming an expat and live here illegally. I can get all the freebies like healthcare paid by the taxpayer that I could never get now.
GOOD news we can now retire any time we want social security will be gone but welfare will be thriving i can retire at any age now
I plan to retire early by moving to another country. Living dirt cheap with a crazy exchange rate and maybe free healthcare (mexico, asia), then letting my savings do the work while abroad. Come back to my paid off house, and finish my years with the grandkids. Hopefully my savings will be bloated by that time and I can leave some to the kids.
It's so expensive here, it's almost impossible as self employed with no pension. Only my own personal investments are what I am relying on. That being said, I still am glad I had the choice to move my own money around based on my personal decisions. Not the government doing it for me (social security), or some crooked company that goes bankrupt (enron).
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