What Is the Best Age to Retire?

Retirement releases you from your office duties, but at the same time, it also puts an end to your regular salary. There is a maximum age up to which you can continue your work. Still, you may need to retire early for mental or health issues or to get rid of the burden and enjoy a peaceful life.

Under such circumstances, you might wonder what the best retirement age is. Read on to get your answer.

Retirement is a crucial life decision, and one needs to ensure that he/she can manage their finances properly after the income flow suddenly stops. Nevertheless, there is no best age to retire. Early retirement can come before or after 50 years.

Before taking this life-changing decision, you need to look for some significant determining factors of retirement, as mentioned below:

Physical & Emotional Burnout

The stress of work may make you physically and mentally burnt out. It may drain out your vitality and energy at the same time. In such conditions, you can retire quite early to enjoy mental peace. Nevertheless, you also need to consider your decision's financial impact in the long run.

Financial Goals of Family

It is fine to retire before time if there are no large-ticket expenses like marriage or higher education for your sons and daughters, etc. Otherwise, if you retire early, you may need to deplete your life's savings to meet them. This is why you must consider the long-term consequences of your decision rather than just the best age to retire.

Career Goals

You may have professional goals in your life, especially in reaching the executive positions of your organisations.

If you have reached your desired position early in your career and served in that role for a long year, you may retire early. After retiring early, you can also explore other opportunities. For example, you can join as a mentor or consultant in your area of expertise or start a business.

Declining Health Condition

With ageing, health conditions deteriorate gradually. If you see that it is becoming stressful for you to continue your work anymore, you can go for retirement. You can recover your health by taking the required care after retirement.

This is why the best age to retire for health or longevity often comes earlier than the lawful age of superannuation. By retiring early, you will still have physical vigour and mental energy to meet your long-reserved goals in life. Nevertheless, after this decision, you should engage in mental and social activities to stay happy and avoid stress.

If you are deciding to retire early before the age of 50 years, the following factors should confirm your decision:

1. Savings Are High

You need to ensure that you have sufficient savings to deal with your post-retirement expenses. It is better if you have assets, like small businesses, rental properties, etc., that can help you earn money. As a result, you will not have to encounter financial difficulties.

2. No Outstanding Debt

Debts can put you under financial stress after retirement. Making a post-retirement budget with the burden of ongoing loans can be difficult and unwise. This is why you must ensure that you have closed all your loans while deciding whether it is the best age to retire.

3. No Dependent Children

If you do not have children dependent on you financially or if they are employed, it can be your best age to retire. This is because you do not have to worry about your children’s educational fees, medical costs, etc. Additionally, they can also take care of your financial obligations if necessary.

4. Health Insurance Coverage

Health insurance policies let you cover your medical expenses. With age, people become vulnerable to sickness and diseases. By staying covered under medical insurance plans, you can ensure that the treatment expenses do not outweigh your life savings. If you have a health cover, you are all set to hang up your boots.

Following are some aspects you need to prepare before retirement:

• Medical Coverage for You and Your Near Ones: Medical coverage is essential for you and your family members. A health insurance policy will give you coverage if any of your dependable family members need medical treatment. Resultantly, you do not need to deplete your savings.
• Presence of a Social Network: Generally, people’s social circle becomes limited to their office colleagues. The office itself becomes a part of your identity. However, when you retire, you should ideally have a group or community other than the close circle of your colleagues. You can get their assistance during emergencies.
• Financial Security: When people retire, they can face critical financial difficulties if they do not plan it properly. You should, therefore, be financially well-prepared. If there is any debt, you need to ensure that it will not be difficult for you to repay them with your life savings and current assets and lead a financially stress-free life.

Furthermore, during your retirement, you should also ensure sufficient savings to meet your post-retirement expenditures.

There is no best age to retire. Instead, you need to consider your physical and mental health, your ability to handle stress, etc., to ensure whether you need a permanent break from work. Further, you will also need to ensure that it will not be manageable to manage your expenses after retirement.