Retirement is a big step in your life. It means you can start a new chapter in your life, free from work, but many people can find it a struggle to adjust. You may be wondering what the best time is to retire, and there’s not one definitive answer to that. Here are some things to consider when you’re deciding what age would be best for you to retire.
Can you afford to retire?
The retirement age people choose is often to do with finances. Some things you’ll need to consider include:
- How much you have in your pension
- Your monthly outgoings
- The kind of lifestyle you want to enjoy
- Whether you still have a mortgage to pay
The younger you retire, the smaller a pension you’ll get for your annuity, as you’ll be receiving payments for longer. There are a number of calculators online that help you work out how much you’ll get.
What age will you need to retire?
In theory, if you work behind a desk or in a sedentary job, you could potentially work for as long as you want. Although you may find you feel more tired and find concentrating more difficult as you get older. When it comes to physical jobs, there’s usually an upper age limit. For example, firefighter retirement is quite early, depending on the department you work for. In some areas it can be as young as 50, and it can be quite difficult to adjust to retirement at that age. Have a think about how you’ll be able to do your job as you get older.
What will you do after retirement?
Once you retire, the world is your oyster, but not everyone finds it an easy transition. Retirement is usually easier on those who already have a rich, full life, with lots of friends and hobbies. As you get older, it’s worth thinking about taking on some new activities, so that when you retire, it’s not such a huge change.
The age you retire is up to you. While you can technically retire as young as you like, for most people, this isn’t practical for financial reasons. You will usually have a minimum age when you can take your pension, and even then, people still usually work for a while afterwards for financial reasons. Nowadays, people live longer, so you may want to work longer too. But if you want to retire early, now is the time to look into financial options to save enough.