Factors To Consider Before Retirement- Part II

The purpose of life

For many of us our professional life is an integral part of our identity and existence. A simple manifestation of this is when we meet people for the first time we tell them what we do and where we work. Working gives a meaning to life and for some people even a reason to live. After retirement many people lose the purpose of living and they feel they are useless to the society. They lose the tempo to get up in the morning and do something effective. According to a recent Sun Life Financial and Interviewing Service of America survey on the reason to continue working after 67, 84% of the people surveyed feel that it is for money but a huge 81% also feel that it is for staying active mentally and 65% feel that they work because they enjoy working.

Your social life

Social life for many of us is at work be it attending office parties or having lunch with colleagues. After retirement one tends to miss this social life particularly if your social circle is just your office colleagues. Retirement is considered by many as a void in their life because their whole existence was defined by their job. To meet up or socialise with those people who till now were so close at office becomes very difficult.

Health insurance

For most of us health care is taken care by our offices. If you retire before 65 you have an additional worry of paying for expensive health care particularly if you are not covered due to a pre-existing condition. Health care is day by day becoming expensive. As per estimates by the Employee Benefit Research Institute one needs to have $210,000 to cover 50% of your and your spouse’s health expenses. This estimate is after the couple is eligible for Medicare Part B medical insurance, Part D prescription drug coverage, and a Medigap policy. Evaluate this against a zero cost of health borne by you when you are working.

Job perks and other benefits

In addition to money there are various other types of job perks that one gets while in employment. These perks include subsidized travel, free shopping coupons, discounts at certain stores, club membership and many more. After retirement paying for all these which till now you were getting for free is a big drain on your pocket.

Savings

The most important rule is to consider retiring only when you feel confident of your savings. If you haven’t saved enough then it is best to postpone the decision to retire. As per estimates what you will get from your retirement accounts will be enough to pay for only 20 to 30 years of your retired life given that you don’t have an additional source of income. By working for those few more years you would be able to save more and also decrease the number of retired years.

In conclusions like all other financial decisions deciding on the age to retire is one big decision which can not only impact the course of your future life but also that of your family members. Never ever take this decision emotionally. If your health permits then it is best to delay retirement as long as possible. Lastly if you have decided to retire then live these golden years of your life to the fullest.

Read more at: Factors To Consider Before Retirement- Part I