Career Advice

How to Decide When to Retire

Hire Local 15 March, 2021

Sometimes, knowing when to retire from work can be difficult. Generally, the age of retirement is 66. That's the age when workers can collect their full retirement benefits. However, you may want to retire earlier or later. Here's how you can decide what time is right for you:

Think About Your Mental and Physical Health

The first thing to consider when thinking about retirement is your mental health. You may want to retire a bit earlier if the work you currently do puts a strain on either of those parts of you. You can collect your retirement benefits at 62 years of age if you so desire. However, you will only be eligible for 75 percent of those benefits. Therefore, you will only be able to receive $750 a month if your full retirement benefits are $1,000 a month. The good news is that you can start saving money for your retirement today. It's never too late to start saving.

Think About Your Nest Egg

You'll also need to consider the amount of your nest egg before you retire. If you intend to retire early, then you'll need a larger nest egg if you want to take care of yourself. You may need a good $500,000 or more saved up if you want to retire early. Think about how much you have in your savings account and base your decisions on those amounts.

Consider Going Down to Part-Time Work

Retiring doesn't necessarily mean that you have to stop working altogether. You can work a part-time job and still collect Social Security benefits. You can consider doing so if you think you'll need to have other income streams when you stop working.

Considering these factors will help you decide when the time is right to retire. Make a decision you feel comfortable with, and you'll be happier in the end.