8 Signs You Are Close to Retirement

There is a rapidly aging demographic in the workforce, and city clerks are no exception. In fact, when we surveyed the 700 City Clerk Café members in 2013 to find out more about them, a staggering 80 percent were over the age of 40.

With retirement looming for many city clerks, and retirement planning for the future on the minds of the remaining city clerks, it seems relevant and timely to discuss what being “ready” for retirement actually means. So, we’ve put together a list of eight signs that could mean your days basking in the sun under a palm tree are nearing.

 

8 Signs You Are Nearing Retirement

  1. Your home is paid-for (and debts are nearly paid off).

While having your home 100 percent paid off is not necessarily a must, it’s certainly a sign that you’ve taken your finances seriously and you are ready to move towards the splendor of retirement. If your debt to income ratio is high, it may be a sign that your debts need to be better attended to before taking that leap into retirement.

  1. You’re eligible for Social Security.

Though not enough to sustain most people, being at an age to withdraw from your social security helps curb the monthly expenses your savings does not cover.

  1. You have enough between savings/PERS/investments.

Working with your financial advisor to make sure you have enough saved gives you a concrete number to aim for but it may not be as big as you are thinking. We’ve all heard the “million dollar rule” to retire, but in actuality, many middle-class couples find $625,000 is comfortable enough to retire. The actual number depends on your location, lifestyle, income and spending habits, so it is important to seek the advice of a financial advisor to determine how close you are to your goal.

  1. You have post-retirement health insurance figured out.

Having reliable and affordable health insurance is a big consideration for Americans interested in retirement. Health insurance costs are rising faster than inflation and Medicare doesn’t kick in until age 65, so having a plan that covers much needed medical care should be a major consideration.

  1. Your children are financially stable and independent.

Someone once said, “taking care of yourself IS providing for your children.” It’s so tempting to help the children out when they are newly graduated or struggling through the entry-level days of their career, but at some point, they need to take the financial bull by the horns and learn how to plan for their own futures. So stop dolling out the gas money.

  1. You’ve drawn up and successfully tested a retirement budget.

Sure, it sounds like enough money to live on. But, have you truly test drove your monthly retirement budget to see if you really can live on it? A good six month test drive will help account for the unforeseen and tell you whether you have enough money stashed away, or if you need to work a little longer to increase your monthly allotments.

  1. Your income is safe and varied.

The ability to weather a financial storm with money that comes from multiple resources can de-stress the retirement process should the market take an unexpected turn for the worst.

  1. You aren’t as good as you once were.

If you find it hard to keep up with the pace of your job, are frequently calling in sick or fear your job is affecting your health, it may be time to think about retirement.

If you are part of the demographic nearing retirement, then you have probably already begun the process to secure your future by paying off your debts, saving your money, figuring out health insurance, drawing up a budget, testing your income and diversifying your investments. If you’ve met all these criteria, the only question left to ask is, “am I ready, and do I want or need to stop working?” When that day comes, you’ll be prepared for that transition.

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