Find out if early retirement is possible
Having the free time to travel, explore hobbies and see your loved ones are among the top reasons people dream of early retirement. But how realistic is early retirement for you?
Answering the following questions could help you determine if retiring early is right for you.
Retirement Goals
- What do you want out of retirement? Do you plan to leave the working world entirely? Will you work part time? Having a clear picture of what retirement will look like for you can help you to create a feasible financial plan.
Financial Preparedness
- How long will your savings and investments support your lifestyle? With the possibility of decades ahead, it is important to understand how long your retirement savings and investment income will be able to support the lifestyle you want.
- Have you considered all of your expenses, expected and unexpected? You can plan for many expenses but not all. Will your retirement funds be able to cover unexpected debts? What about education and wedding expenses for your children?
- How will your expenses change over time? Your expenses are unlikely to remain the same as the years pass. Will your retirement savings and investments be able to keep up as your expenses grow?
Make sure to include travel and other related expenses for desired lifestyle. These could include:
- Car payments
- Mortgages
- Property taxes
- Groceries and other everyday expenses
- Insurance premiums
- Tithing or charitable giving
- Travel
- Eating out
- Club memberships, recreation fees, or hobby-related expenses
Healthcare Needs
- How will you manage your needs before Medicare eligibility? Consider the out-of-pocket cost of health insurance in the years between retiring and qualifying for Medicare, most likely when you turn 65.
- Does it make sense to purchase additional coverage? With healthcare costs being a considerable line item in the post-retirement budget, it may make sense to explore additional coverage. For example, long-term care insurance could help you cover the cost of care required following an illness or in old age.
Physician Retirement Resources
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