The decision of when to retire is personal, and there is no right or wrong answer. However, more and more millennials are planning to retire early. There are various reasons for this. One of the main reasons why is that millennials want to enjoy their retirement years. They don’t want to wait until they are 65 or older to retire. Another reason is that many millennials want to do something else with their lives aside from work. They may want to travel or start their own business.
Because of these reasons, many millennials and Gen Z workers want to retire before 60. But is that a wise choice? Here are some things you should consider before you retire.
Your Health
One factor to consider when deciding when to retire is your health. If you are in good health and expect to remain, you may want to consider working longer. Working longer can provide valuable social interaction and keep your mind sharp. On the other hand, if you are not in good health or do not expect to be in good health in the future, you may want to consider retiring sooner rather than later.
Your Financial Situation
Another factor to consider when deciding when to retire is your financial situation. Do you have enough saved up so you can comfortably live on retirement? Remember that you may not have the same income during retirement as you did during your working years. You will also likely have additional expenses, such as healthcare costs. Therefore, it is vital to make sure that you have a solid financial plan in place before you decide to retire. The average retirement savings is around $140,000.
Your Plans for Retirement
Finally, another factor to consider when deciding when to retire is your retirement plans. Are you looking forward to travelling and being more active? Or do you plan on being more low-key and spending more time at home? Knowing how you want to spend your retirement can help inform your decision of when the best time for you to retire would be.
There is no right or wrong answer when deciding when to retire – it is a personal decision that depends on many factors. However, consider these options if you want to retire earlier, like many current generations.
Living Below Your Means
One key to being able to retire sooner is living below your means. This may mean making some sacrifices now to have a better retirement later. It’s about changing some parts of your life, including something as small as your cell phone plan. Here are some great options for living below your means:
Change Your Cell phone Plan
As stated earlier, one way to change your lifestyle is by making small changes like your cell phone plan. It’s estimated that Americans spend a staggering $1,100 on cell phone plans. That’s about 4.5% of the average person’s budget! So, if you’re looking to save money, one place to start is your cell phone bill.
Start looking for other options or putting a cap on your data to save about $200 yearly on your plan. That’s equal to an extra $20,000 throughout a 20-year retirement! Additionally, once you’ve retired, you should look for the best cell phone plans for seniors. These plans often have great discounts and deals for those that are 55+. This will help you save more money for your retirement funds.
Learn How to Cook
Meal delivery services are all the rage these days. While having your meals delivered to your doorstep may be convenient, it’s not very cost-effective. The average meal delivery service costs about $11 per meal. So if you’re eating three meals daily, that’s over $100 per week on just food!
One way to save money is by cooking your meals at home. It may take some time to get used to cooking, but it’s a great way to save money. Once you get the hang of it, cooking can even be fun! Many resources are available to help you learn how to cook, including cookbooks and online recipes.
Eliminate Debt
Another way to live below your means is by eliminating debt. This will free up more money in your budget that can be put towards savings and retirement. One way to eliminate debt is by creating a budget and sticking to it. Once you know where your money is going, you can make changes to spend less than you earn. Another way to eliminate debt is by consolidating your debts into one monthly payment. This can help you save money on interest and make it easier to keep track of your debt.
Retiring is an option you should consider when you have a solid financial plan. Review your retirement savings and ensure you have enough to cover your expenses. Additionally, by following these tips, you can be on your way to retiring sooner than you think!
