As much as we all like our jobs, let’s face it, we’d rather be on a sandy beach with a drink in our hand enjoying retirement. How soon can that happen?
That’s a tough question for most people. There are so many uncertainties around healthcare, family concerns or paying the bills without a steady income. As Millennials we may think we have years before we even need to start thinking about retirement, but beginning the planning now can go a long way.
Let’s look at three questions that should be answered before considering retirement:
- Do you have enough saved? Take the time to outline what your expenses will consist of in retirement and whether you have enough to do what you want to do. Do you want to travel? Detail the cost of the trip and research how much you will need to live your retirement years like you always imagined.
- Do you want to quit working altogether? Maybe you want to start with a part-time gig and slowly dial back your hours before completely quitting cold turkey. That part-time income may help you with day to day expenses.
- Where will you live? Do you want to downsize or move to a more affordable location? Will you sell your home to do it? You’ll want to consider the cost of living, access to healthcare, weather and proximity to family.
It may seem like a fantasy right now to take the leap and quit your job forever, but this is a helpful mental exercise to get you thinking long-term and understand what it will take to get where you want to be. Begin saving now and remember; it’s never too late to start planning for the future– the more time on your side, the better.
When do you see yourself retiring? Let me know in the comments below.