By the time you turn 65, it’s common to feel pressure to decide on your retirement plan. But according to Timothy Wyman, managing partner for the Center for Financial Planning in Southfield, Michigan, that age is just a number.
“Some people feel almost like society tells them they need to retire at a certain age. But really, there’s no magical age,” he says.
Deciding when to retire is a personal decision that will require you to really assess your life – from finances to work to lifestyle –to make the best decision. Here are five questions to help you.
1. How do you feel about work?
2. What does your financial situation look like?
According to Wyman, if you have outstanding debt or not much in savings, you might not be ready to retire. While your best bet is talking with a financial advisor about your unique situation, as a general rule of thumb, your nest egg savings should be about 10 to 12 times your current income.
If you live into your 90s or beyond, you’ll need a lot more savings to live comfortably. “The bottom line is that it takes a significant amount of money to fund a 30-year retirement,” Wyman says.