It can be slightly difficult to figure out when to retire. Some people set a particular age, 62, 65 years, etc., while others consider achieving a set financial benchmark to say goodbye to their working years. But just these simple signals of age or finances are not sufficient to understand if you are ready to retire. You need to adopt a more comprehensive approach and look out for monetary, as well as emotional benchmarks that signal that you are ready for your second innings in life.
Here are ten signs that specify if you are ready to retire:
1.You have ample retirement savings: You can consider yourself ready to retire when you achieve or exceed the retirement financial benchmark, in terms of savings. Experts recommend having at least 25 times the annual expenses as savings for retirement. You can consider investing in Kotak Premier Pension Planto accumulate a significant retirement corpus with assured benefits on death and vesting.
2.You have a regular source of retirement income: Apart from savings, you must have a regular income source to sustain retirement. Reliable plans like Kotak Lifetime Income Plan offer a comfortable and financially independent life post-retirement by assuring you of income throughout your life.
3.All your debts are paid: If you have been successful in paying off all your credit lines, credit card balances, mortgages, loan instalments, or any other debt, you can think of retiring since you would not be burdened with large payments in the non-working years of your life.
4.You have a plan for an emergency: It is necessary to plan for coping with emergencies before you think of retirement. Emergencies such as health issues, financial crisis, loss of assets, etc., should be taken care of. The objective is when you have a plan, you would not need to panic.
5.You have health insurance: As you grow old, your health will likely deteriorate, while your medical costs would rise. It is best to retire with a comprehensive health cover. Trust a reliable health insurance plan from Kotak Life to support your retirement years.
6.You can live on a budget: Retirement means a constrained budget comprising your pensions, retirement plans, annuity income, etc. Since you would not be working, you will need to make sure you live on a pre-defined budget to ensure your retirement savings do not fall short.
7.Your children are financially stable: As a parent, you worry about your child. However, if you wish to retire peacefully, it is best to take retirement only after being sure that your children are financially secure. If you are still monetarily supporting your kids, it is best to delay retirement.
8.You have a retirement plan: Retirement can be dull and boring if not planned well. It is good to take retirement only after you have a good plan for the non-working years. You could think of freelancing, picking up a hobby, working part-time, travelling, etc.
9.You have a social network: It is advisable to retire when you have a new social community or a social network apart from your work colleagues to help you spend your retired time more happily.
10.You are mentally prepared: In large, retirement is about numbers, but it is also about mental and emotional readiness. Leaving your job is a big decision, and you should make it only when you are mentally prepared to face the new world.
Retiring is a huge decision and one which you should make after careful consideration and a holistic plan. In all, it is best to retire when you are financially, emotionally and mentally ready.
