By : Tricia Borren
When approaching retirement, an individual should know his or her current financial situation. Not only that, one must also understand their future wants and needs. Without a doubt, when knowing this and approaching the situation with care, one can retire comfortably. With this in mind, here are four ways for a person to know if they are ready for retirement.
An aging person will probably want to pay off his or her mortgage. If not, one will have to continue spending a large portion of their monthly income making a payment. Of course, some people will want to live in a Campbell Stone Retirement Community where they will not have to pay a mortgage. Either way, when approaching retirement, it is wise for an individual to know his or her future housing situation.
Now, it is not cheap to stay healthy. A retired person who is under the age of 65 will have to spend a lot of money on health insurance. While some pensions or unions will provide one, most do not. This is an expensive proposition, and an aging individual should, ideally, run the numbers before he or she stops working. Remember, thousand dollar premiums are not unheard of and a wise person should plan and understand future costs and liabilities for medical costs.
How long to live
In the past, a person would retire and then die in five or 10 years. This is not the case most of the time and many people live over 30 years while retired. To prepare and live comfortably, one must have adequate money for a couple of decades. This is something that an individual must understand to the fullest. Remember, gone are the days of dying at 65 after being retired for 7 years.
A person, whether they are in their first years of working or just about to retire, should have an emergency fund. Some people, as they age, forego this as a way to put more money in the stock market or pay down a mortgage. While this is a good idea, it is still wise to have an emergency savings account to prepare for the unthinkable.
When prepared for retirement, an individual will have more fun and will live a healthier and happier life. Without a doubt, when understand the true costs, one can retire without fear of running out of money in the future.