Retirement is much more complicated and diverse than it used to be. People encounter problems with retirement because they underestimate the nature of their future spending. A lot of people look forward to retirement until the future becomes the very near present; then they realize that successful retirement may not be possible if they continue on their current path or method. Here are five indications that you are not prepared to retire.
1. No Financial Plan
Without an organized and thorough plan, you are wandering aimlessly into retirement. Your retirement plan needs to include your monthly expenses and the total cost required for you to live each month comfortably. These factors will help you determine the amount of money required to retire. Other instances that need to be taken into account in your retirement plan include pensions, social security, and any other source of income you have.
2. Your Current Struggle
If you are experiencing trouble paying your bills or had trouble paying household expenses within the past 12 months, you may not be ready to retire yet. If you decide to retire now, making up the money to live comfortably will be difficult. If you are considering getting a reverse mortgage or selling your home to retire, you may want to reconsider your plan for retirement.
3. The Debt Factor
Being debt free in retirement is a dream come true. Although it seems far-fetched, it’s not impossible. Ask yourself how you will continue to pay off your debts once you stop working. Some people have no idea how much they owe. If you have a lot of debt to pay off, you should continue to work until you have repaid more than half of your debts. Debt is not something you want to bring into retirement.
4. Finding a Job
After retirement, some people decide to get a full-time job while others seek part-time employment. People choose to get a part-time job because they get bored at home and need something to do. The surprise hits some people when it takes them longer to land a job than they expected. Don’t assume that your stellar resume and impressive references will be your walk in the park for being hired. The unemployment rate for individuals over 55 years of age are steadily increasing.
5. Give Your Portfolio a Second Look
When you’re ready to retire, your portfolio becomes necessary. Take the time to readjust our portfolio the way you need to reduce unnecessary risk during retirement. Your portfolio will help you avoid rough times before and during retirement.
Retirement requires a lot of planning and organization. You will be eligible for retirement before you know it, and you want to be as prepared as possible. Take these five tips into consideration to put yourself on the right track. Contact us today! We are ready to help.