The transition into retirement is when you are changing from your full-time working years to your retirement years. If retirement is approaching, you may have to make numerous decisions. Questions you might be asking yourself:
- Can you afford to retire?
- What about early retirement—is it a possibility?
- If you want to continue working, are there other considerations?
Your first step is to review your sources of retirement income and estimate your retirement needs. The closer you are to retirement, the more accurate a picture you should be able to get. Even more, you should consider the timing of your retirement.
Early Retirement
Your company is offering an early retirement package, and you’re considering taking it. Maybe you’ve always dreamed of retiring early and enjoying yourself while you’re still young, and now you want to make that dream a reality. Whatever your situation, you need to understand the consequences of retiring early. If you’re evaluating an early retirement offer from your employer, you should understand the basic components of early retirement offers and how they affect you. Even if there isn’t a special offer on the table, you’ve got to understand the downside of early retirement, specifically with respect to Social Security benefits.
Delayed Retirement
Delaying retirement is usually considered for one of two reasons. Either you can’t afford to retire or you enjoy working too much to stop. Regardless of why you’re considering the delay, the consequences are the same. Aside from the obvious benefits of delaying retirement (you can save more, you don’t have to start consuming retirement funds, etc.), you should also consider the effect that your decision will have on the Social Security benefits that will be available to you and how the timing of your retirement could affect your IRAs and employer-sponsored retirement plans.
If you are approaching retirement and need some guidance, please contact the experts at Henssler Financial:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166
Disclosures: The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
