Aspiring retirees often daydream about leaving the workforce to travel the world, volunteer for their favorite charity, go fishing, or spend more time with their grandchildren. However, according to the 23rd Annual Transamerica Retirement Survey of 2023, outliving savings and investments is one of the most frequently cited retirement fears among American workers. Here are six signs that might push worker🦹s to consider leaving their jobs.

1. Full Retirement Age

If you were born between 1943 and 1954, your full retirement age for Social Security purposes is 66. If you're born after 1959, you’ll have to wait until you’re 67. If you start early retirement benefits at 62, your monthly payment is reduced by 25% to 30%.

Those who wait longer to claim Social Security—the maximum age is 70—will receive as much as 132% of the monthly benefit they would have collected at full retirement age. Those who decide to collect may receive an annual 澳洲幸运5官方开奖结果体彩网:cost of living adjustment (COLA) based on inflation if enacted by the Social Security Administration. For 2025, the COLA is a 2.5% boost to a recipient's benefits.

2. Debt-Free

Those without debt are well-positioned for retirement. Credit card debt, a mortgage, or car loans mean monthly payments that will affect a coꦡmfortable retirement. It also makes it more difficult to deal with unexpected expense♔s.

3. Empty Nest

Are your kids all grown up, out of the house, and earning income? That makes it easier for you to retire. However, if you're still 澳洲幸运5官方开奖结果体彩网:supporting children or helping them out regularly, yo🧸u may wan𒅌t to put your retirement plans on hold.

Additionally, many potential retirees help support elderly parents. According to the National Institute of Health, nearly 30% of older adults share a residence with their adult children at some point.

4. Solid Retirement Budget

A retirement budget helps workers decide whether they can 澳洲幸运5官方开奖结果体彩网:live comf༒ortably on th🦂eir post-retirement income. Once you’ve calculated your estimated 澳洲幸运5官方开奖结果体彩网:monthly expenses, it's time to figure out whether you'll have enough income to cover them. Add estimated Social Security benefits, retirement account distributions, pension payments, and additional income sources. You will owe income taxes on all distributions except Roth IRAs, Roth 401(k)s, and a portion of Social Security.

A common rule of thumb is to replace 70% to 80% of your pre-retirement income. It's also important to factor in inflation when budgeting, which can be measured by changes in the 澳洲幸运5官方开奖结果体彩网:Consumer Price Index (CPi). The CPI increased 3.5% for the year in March 2024. Social Security offers cost-of-livin🎐g adjustments (COLA)ꦦ, but many pension plans do not.

5. Updated Portfolio

It may be useful to consult a financial advisor as you carefully reassess your portfolio and decide whether to make adjustments. The value of savings, the growth rate of a portfolio, and the annual withdrawal during retirement will influence a retiree's ability to live off savings. As they near retirement, many shift to a more 澳洲幸运5官方开奖结果体彩网:conservative investment strategy to protect their retirement wealth.

6. Partners Agree

Retirement is a decision for you and your partner to make together. If you and your spouse are financially and emotionally ready for it, you’ll be more likely to enjoy a fulfilling retirement together. If your spouse intends to continue working for many years, your retirement may be much lonelier than expected. Work out the be⛎st timing for each of you and both of you.

The Bottom Line

Retiring too early without considering all of the financial and emotional consequences may force you to re-enter the workforce. Take the time to plan carefully so that you make the right decision on 澳洲幸运5官方开奖结果体彩网:when to retire.