by Isabelle Esteves

Created on: June 24, 2010

The answer to the question of when you should retire is a complex one. There are many factors that will affect the answer to this question.

 Finances 

The most important factor in deciding when you should retire is the financial aspects. At age 62 you can if you are eligible collect Social Security. It will be at a reduced rate but you will be able to collect. The full amount will be available when you are either 66 or 67. If you want to wait to 70 the amount that you can collect will be much higher still. 

Everyone knows however that Social Security isn’t going to cut it financially. You need to additional savings, pension, IRA, investments, real estate or something to supplement the income you will get from Social Security. You may need to live on less when you are no longer working but you don’t want to find yourself living at the poverty level. 

Medical Insurance

A large factor in determining when you should retire is medical insurance. Today, if you are receiving your medical insurance through your employer, chances are it is at a greatly reduced rate. If you retire prior to age 65 you will not be eligible for Medicare. Not being covered by medical insurance is one factor that will strongly influence any decision to retire. Buying medical insurance on  your own can cost almost the entire amount that you would get from the early retirement Social Security benefit. It may be possible to get your medical insurance through Cobra, a state program or who knows the Obama healthcare plan may make it possible to retire early.

Great Offer

These days some employers are making cutbacks and one of the ways they are doing this is by offering early retirement packages to employees who have reached a certain age. Depending on what the offer is, it may be a benefit to you to take the offer, especially if it comes with medical insurance. Usually there is a cash payment and a certain number of weeks pay in the package. For some this is just the offer they have been waiting for.

Health

There comes a time in everyone’s life when they just know that they need to slow down and smell the roses. It may be a health scare that happens to you or to someone you love. If may be that you are just tired of the stress and the grind of working every day. It may be that this is the time to retire and enjoy the fruits of your many years of labor.

Retirement is the goal of every worker. All too often in today’s world people are forced to retire before they are ready. There is a lot to be said for being the one who makes that decision and not having it forced on you by your employer.

The best time to retire is when you are ready to and when you feel you can fully enjoy all that retirement has to offer.

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