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Should I Retire Now? Or Should I Wait?

Many times in life we have to ask ourselves tough questions. Sometimes we aren’t ready to answer them because we just don’t know. Sometimes we don’t want to answer them because we don’t care much for the answers. The timing of retirement can be one of those difficult questions you must ask. Should you stay or should you go? Today we are going to look at some of the reasons people are choosing to both stay and go. You may possibly find yourself in a similar situation.

There are some obvious reasons to stay or go in your current career; primarily, can you afford to make a change? We acknowledge that for most people this is the mitigating factor. Many people are choosing to work longer now for a variety of financial reasons. They range from simply needing the funds to make ends meet, or maybe you want to continue working so you will have some extras in your retirement. Health insurance benefits are also a financial reason many people give for why they continue working. These are all extremely important factors to consider when planning when you want to retire. Our financial advisors work with our clients closely to develop a plan that allows you to be the decision maker about your retirement timing, not just your bank account.

An April 2014 Gallop poll revealed some interesting statistics about retirement timing recently. First, people are working longer than they did a decade ago by an average of 3 years. Equally as interesting is the fact that while the average age of retirement is increasing, the average age that people expect to retire is also continuing to grow. For example, in 2014 non-retirees expected to work until age 66, but the actual average age of retirement of those polled was 62. So while people are staying in the workforce longer, it is not as long as they expect to. So, other than financial reasons, why stay?

According to a 2012 AARP survey of workers age 45-74, 91% of those polled responded that they are “proud to work at their company”. 87% responded that they “continue to grow in their work”. 83% “considered their work an important part of who they are”. Finally, 79% responded, “they still have a lot they plan to accomplish in their work”. For many in the later years of their career, they find a great deal of self worth in their work. They fear that if they were to retire, they may fade away. They may ask themselves, “what will I do to fill the time?” or “how will I challenge myself?” The personal fulfillment that one gets from their work can be a powerful force in the decision of when to retire. When you are trying to decide the right retirement time, you need to consider how you will continue to find the challenges and fulfillment you achieve in your current career. The quality of your retirement may depend on it!

At Sound Financial Strategies Group we work with our clients to try and achieve a 360-degree retirement plan. Of course the financial factors have a prominent priority, but we also work to help you plan for how you will fill the hours. What do you want to do with your time? Are you going to work with your church? Maybe you plan to travel? Some of our clients take on consulting work that helps them stay in the workforce, but allows them the freedom to set their own schedule. There is no set defined answer for everyone, but we want to help you identify what will work for you! Give us a call today and let us help you plan your retirement from all angles!

Investment Advisory Services offered through Sound Financial Strategies Group, Inc. (“SFSG”), a Registered Investment Adviser. Certain representatives of SFSG are also Registered Representatives offering securities through APW Capital, Inc., Member FINRA/SIPC, 100 Enterprise Drive, Suite 504, Rockaway, NJ 07866 (800)637-3211. SFSG and APW Capital are separate and unrelated companies. 

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

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