Does this sound like you?
– 50-60 ish,
– have been working for 30-40 years,
– salaried employee,
– your boss is a pain,
– co-workers are all 20-30 years younger than you,
– some days are better than others,
– someone asks: when do you want to retire? and you say “tomorrow.”
If you answered yes, you aren’t alone. One of the most common reasons mid-life women seek financial help is to figure out if they can quit their jobs.
And, if you don’t have a clue whether this is possible or not, unless you dig in, look at the numbers, and project into the future, you won’t get the clarity you need to make such a big life-changing decision.
So, where do you start?
Things You Need To Know
– How much do you have saved?
– Are you getting the return you need on your investments?
– How much do you spend?
– When you retire and start withdrawing from your savings, what will your withdrawal rate be? Is it sustainable?
– Will your spending habits change once you quit your job?
– If you continue to work, what do you project your income to be?
– What do you want to do differently in this next phase of life? How much will it cost?
– What are your assumptions for inflation rates in the future?
– How much will health insurance cost if you are retiring before reaching Medicare eligibility?
– Will you be able to afford healthcare costs not covered by insurance in your older years (long term care)?
The decision to semi-retire or retire is a big one not to be taken lightly. You can assess the viability of reaching your goal by taking a hard look at the facts and numbers and doing some analysis.
Best, Worst and Most Likely Outcomes
Best case outcome: You find out that you can retire or semi-retire when you want to. Worst case outcome: You have to work until you can’t any longer. Most likely case: You find out that you need to work and save for a few more years before reaching your goal.
And surprisingly, once you have clarity and a solid goal, you might find that work and your boss aren’t so bad after all.