Here’s a few things you’ll want to consider as you make your decision — we think number three is probably the most important of them all. And truth be told, if you are already asking if it is your time to retire, you’re probably ready or at the very least, you’re close!
1. You own mortgage-free property
Property, property, property. If you have paid-for property, chances are you can use your previous mortgage payments for whatever interests you at retirement. Perhaps a travel fund, further investing in low cost and diversified investments through your favourite robo advisor (hint, hint) to help create some extra income throughout your retirement years.
Having debt-free property also offers you many other advantages — like rental income if you have the space to free up or downsizing and living off of your profits. You have some flexibility to work with to maximize your earnings. But we totally understand, renting or moving from your home is a really big deal.
The good news is if you own mortgage-free property, you have some options to work with that bring you that much closer to your retirement.
2. You have a solid retirement fund
With today’s low interest rates, there’s no doubt there’s a lot of nerves around growing your savings and investments. Who wants to think about stretching their dollar for their future when your whole life you’ve been planning your retirement fund? How much do you seriously need to retire? Well, it depends on your lifestyle.
There are a lot of great tools for you to reference online to help you calculate what type of cash flow you’ll need to maintain the life you live today during your retirement and how you can plan for unexpected expenses. To get started, we recommend you have a look at this Government of Canada retirement income calculator. It takes about 30 minutes to complete as it prompts you to work through different questions and estimations in order to anticipate your retirement income sources, compared against your goals. It also captures the Old Age Security (OAS) pension and Canada Pension Plan (CPP) retirement benefits. You can thank us later.
3. You have a loved one that you can talk to
When planning your retirement, having the support and guidance from a financial planner can give you a lot of confidence in your financial future. But sometimes having certified, industry knowledge doesn’t always cut it. Consult with your spouse, parents or children! Let’s get serious here, moral support is everything. If you’re having a tough time deciding if this is the right time to make this big leap into your future, who better to talk you through it than your loved ones? After all, they will know you best and they can help you decide if this truly is something you’re ready for. And not just financially.
So, if you have pre-retirement jitters, we empathize with you. It’s hard not to feel that burning impulse to retire when all of your friends and relatives your age have jumped into it (and at least from the outside, it looks like they’re having the time of their life). It’s important to remember to stick to your plan. Having a well thought through retirement plan is half the battle. And don’t underestimate the power in using resources available to you, including talking someone.
Ultimately the time you choose to retire is completely up to you. And there’s comfort in that alone.