Years ago, knowing when to retire was easy. Back then, you probably would have taken it for granted that you would retire when you turned 65. Or, if you worked for the same employer your entire career (which was much more common in decades past) you would retire when you had worked enough years to qualify for a full pension.
Today it’s different. The decision of when to retire is no longer clear-cut.
It’s much less likely that you’ll stay at the same employer long enough to qualify for a meaningful pension. Many companies don’t even offer pensions any more, offering only tax-sheltered savings plans (such as a 401(K)) instead. And the window in which you can begin to collect Social Security has widened to age 62 to 70.
In fact, the average age at which American workers retire is now 62. Americans also retire an average of three years earlier than they had planned. This may be come about due to health issues or needing to care for a loved one with health issues, being laid off and unable to find a new job, or being offered an attractive early retirement package.
You may find yourself facing the decision of whether or not to retire sooner than you expect. How can you decide if it’s the right time to retire?
It’s a complicated decision, and there are many factors to consider. This article will help you navigate some of these issues and answer some of the many questions you are facing.