The question is more a factor of your financial status than anything else. Although retirement comes with many spending checks and “living within means”, if you play your cards right it could be the best years of your life. At the offset let me say, waiting for 60 -65 years to retire (legal jurisdictions differ) is a complete no-no. A few people continue working well into their seventies – E.g. Doctors, Actors etc. but that is more a function of your passion rather than a necessity. So, to back to the original question, when should we retire?
There are several factors in play when we answer this question:
1. Where is the money: In our 20s and early 30s there are hardly any responsibilities on us so this is the right time to start saving and start building a retirement fund (over and above the gratuity or social security). We should start a savings deposit account and each month put in some money – could be fixed amount, could vary only thing important is we remind ourselves to add to this fund every month and never withdraw. This works like a piggy bank, you will be surprised how much you would have saved in 20 years. This money can be a major cushion should you decide to retire early. Many of us postpone retirement as we don’t have enough funds to sustain, this fund would let you retire on a time of your choosing.
2. Psychological issues: Several people cannot cope with retirement blues. Some cannot imagine they have nothing to do anymore while the rest simply miss the routine. Mostly, it’s a case of withdrawal syndrome where your mind cannot accept a decision that was made by someone else on your behalf. The best way could be to initiate the decision on your own terms.
3. Hobbies: We must develop a hobby during our younger days. This would be most useful should we plan to retire early and enjoy life. Nobody can bear an entire idle day and this is where your hobbies will keep you engaged while enjoying your free time resting and travelling. Hobbies could be anything like teaching (unless you are a teacher), writing, reading or sports (depending on your health condition) etc. Can’t hurt to have a hobby or two.
4. Social circle: Retiring will set you free from a fixed routine but it’s always best to employ your mind in alternative routines by developing a social circle with whom you could have a good time. It’s better if you have a social group of same age and interests.
5. Switch jobs: One way to retire from your job is to switch careers. Take up an alternative job in a diametrically opposite field ideally which does not add pressure of coping up. Something like book keeping, tossing burgers at local restaurants or librarian. Something that keeps a cash flow but gives your mind the space to enjoy retirement benefits and does not force you to dig into your retirement savings until 60-65 years.
According to me the idea age to retire from your job would be 45 years:
1. If you have not grown in your organization by then, there is little chance you are going to make sudden headway by sticking on.
2. You have put in enough years of work to have a decent enough retirement fund plus social security benefits.
3. In most cases your health is still with you and problems associated with ageing have not yet set in.
4. You can think of picking an alternate career and do a decent job as you still have the zest to work but you are only retiring to enjoy and experience life.
5. For the people with a risk taking appetite, it would be a right time to start your own venture with your savings or by taking a loan as you have enough working years left to pay off the loan.
6. It would also be a right time to take that mortgage for your dream house and allow you to pay it off over the next 15 years.
So in conclusion, there is no right answer to the primary question. You could use the factors listed above to find your own ideal retirement age.
So long…
There are several factors in play when we answer this question:
1. Where is the money: In our 20s and early 30s there are hardly any responsibilities on us so this is the right time to start saving and start building a retirement fund (over and above the gratuity or social security). We should start a savings deposit account and each month put in some money – could be fixed amount, could vary only thing important is we remind ourselves to add to this fund every month and never withdraw. This works like a piggy bank, you will be surprised how much you would have saved in 20 years. This money can be a major cushion should you decide to retire early. Many of us postpone retirement as we don’t have enough funds to sustain, this fund would let you retire on a time of your choosing.
2. Psychological issues: Several people cannot cope with retirement blues. Some cannot imagine they have nothing to do anymore while the rest simply miss the routine. Mostly, it’s a case of withdrawal syndrome where your mind cannot accept a decision that was made by someone else on your behalf. The best way could be to initiate the decision on your own terms.
3. Hobbies: We must develop a hobby during our younger days. This would be most useful should we plan to retire early and enjoy life. Nobody can bear an entire idle day and this is where your hobbies will keep you engaged while enjoying your free time resting and travelling. Hobbies could be anything like teaching (unless you are a teacher), writing, reading or sports (depending on your health condition) etc. Can’t hurt to have a hobby or two.
4. Social circle: Retiring will set you free from a fixed routine but it’s always best to employ your mind in alternative routines by developing a social circle with whom you could have a good time. It’s better if you have a social group of same age and interests.
5. Switch jobs: One way to retire from your job is to switch careers. Take up an alternative job in a diametrically opposite field ideally which does not add pressure of coping up. Something like book keeping, tossing burgers at local restaurants or librarian. Something that keeps a cash flow but gives your mind the space to enjoy retirement benefits and does not force you to dig into your retirement savings until 60-65 years.
According to me the idea age to retire from your job would be 45 years:
1. If you have not grown in your organization by then, there is little chance you are going to make sudden headway by sticking on.
2. You have put in enough years of work to have a decent enough retirement fund plus social security benefits.
3. In most cases your health is still with you and problems associated with ageing have not yet set in.
4. You can think of picking an alternate career and do a decent job as you still have the zest to work but you are only retiring to enjoy and experience life.
5. For the people with a risk taking appetite, it would be a right time to start your own venture with your savings or by taking a loan as you have enough working years left to pay off the loan.
6. It would also be a right time to take that mortgage for your dream house and allow you to pay it off over the next 15 years.
So in conclusion, there is no right answer to the primary question. You could use the factors listed above to find your own ideal retirement age.
So long…
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