I am often asked, “When should I retire?” Without fail my answer is the same, “Not for a long time.” Retirement has drastically changed over the 26 years I’ve been a wealth advisor. As longevity trends and industry norms change, so too must retirees’ expectations of the golden years.
While the jury is still out on whether early retirement can be correlated to a short life, I recommend a long working life for a variety of reasons. Not only can working longer be good for your money, it can also be good for your health, long-term outlook and family relationships.
Here are my top three recommendations for retirees:
1) Wait as long as you can to retire. Remember it is time IN the market that is a cornerstone of accumulating wealth and higher pension and social security payments.
2) When planning for retirement income, consider preparing for 100% of your working income. Inflationary costs alone make this a mandate for successful retirement. Longevity and latter stage health care are also primary retiree combatants that require healthy income sources.
3) Layer income throughout your retirement years. Don’t use all investment, savings and income sources at once in the beginning of your retirement. Designate accounts and/or income sources for 5 and 10 years down the road. This allows you to have additional income sources throuhout retirement; thereby, combatting inflation and allowing certain accounts to grow and reinvest during retirement.
Let me also pass along top habits of successful retirees I have observed in my clients over the course of my career.
· Continue to learn and have new experiences
· Have interests of your own
· Help others
· Don’t retire on a shoestring budget
· Maintain good healthy habits
· Keep worry at bay
· Exercise, exercise, exercise
· Volunteer and serve on community and charitable boards
· Create fun experiences with family
· Engage family in estate decisions and financial meetings
So whether you decide to retire early or later, be sure to embrace the habits above. It’ll be good for you and your longevity!