Are You Financially Ready for Retirement?
One of the biggest financial decisions you will make in your entire life is retirement . How do you know when the time is right to retire and when you should continue to work for a few more years? Your credit union can be tremendously helpful as you plan and make this major life step. If you are weighing up your retirement situation, here are some signs that you could be ready.
You’ve tested your retirement budget.
What is your monthly budget when you no longer have a paycheck coming in? If you haven’t figured out that number, take a step back and work with a representative at your credit union to determine a realistic budget. If you have a number in mind, try to live on that amount for six months before you actually leave your job. Can you pay your bills and cover all of your expenses without reaching into your savings account or replying on credit cards? If you can, you’re likely to be ready. If you can’t, you need to wait for longer. Keep in mind that inflation will impact your budget, so adjust it accordingly.
You’re not retiring because of the calendar.
Reaching the age at which Social Security kicks in is definitely not a reason to immediately retire. Don’t let a specific age be your guideline for retirement. Pay attention to your interests, your health, and of course your finances when you are making a decision about retirement, rather than focusing on the date on the calendar.
Your children are not dependent.
If you are still supporting any of your children financially, their needs can take a serious bite out of your retirement budget. Consider delaying retirement if you still have children in college or who are just starting out in their own careers. If you have children with special needs, be sure to factor the expense of their care into your retirement plan as you consider the financial viability of giving up your income.
Retirement is a major decision, and GCS Credit Union in O’Fallon is here to support you every step of the way. We offer traditional and Roth IRAs coupled with the financial advice you need to make the right decisions. To join our credit union or talk to one of our representatives, please call (618) 797-7993.