Adapting your retirement strategy (and outlook) may be necessary.
Involuntary retirement can be emotionally and financially unsettling. Here are some questions to ask yourself if it happens.
Do you want to keep working? You may have to rely on your spouse or partner’s income—or your emergency fund—for many months if you look for another full-time job. Finding part-time work may be more realistic.
How much retirement income can you generate? Consider your investment accounts, your savings, and any passive income streams. If you’re significant other still works, factor in their pay. Determine whether to apply for Social Security at 62 or later. Claiming benefits at 62 results in smaller monthly lifetime income payments; claiming later results in larger monthly payments.1
Can you draw on employee benefits as you exit? See if you are eligible for severance pay or an early retirement package and/or COBRA or retiree health benefits.
Can you trim any expenses? In this situation, your spending should reflect your needs, not your wants. You can probably lower some household costs.
Can you reduce your taxes? You may soon derive income from investment and retirement accounts. You will need to make tax-efficient withdrawals from them, so both the timing and order of these withdrawals is critical.
Look for a silver lining. An early retirement may turn out to be a net positive, leading to a new chapter of your life.+
When you are about to make such a large leap in your life such as retirement it can be scary. Let us be a source of confidence and calm when planning and executing your retirement plan. Contact the CERTIFIED FINANCIAL PLANNERS at Wealthnest Planners today for a complimentary financial physical to see if you are ready for retirement.
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.