COVID-19 brought about significant hardships to many people. There is no doubt about that. However, in trying to take a glass half full approach, a recent study pointed out that there are some potentially positive outcomes from the pandemic, such as:
- 76% of Americans polled that it caused them to “refocus on what’s most important in life.
- 61% of retirees polled saying it gave them “more appreciation for what makes life meaningful.
- Older generations polled that they want to prioritize “spending more time with family and friends.
Along those lines, for those who were fortunate enough to not be financially impacted by COVID-19, the pandemic not only changed their perspective on how they think about retirement but also when they want to retire. According to recent data, “about 2.7 million Americans age 55 or older are contemplating retirement years earlier than they’d imagined because of the pandemic.”
Perhaps you’re one of those few million re-thinking your retirement timeline. If that’s the case, you’re probably asking yourself a multitude of questions. Namely, you’re probably wondering can I afford to do this? The answer to this question, of course, is – It depends. To get you started though, here are 7 key financial factors you’ll need to consider before moving up your retirement date:
- How much do you spend each year?
- What other financial goals do you have? When will they occur? And how much will they cost?
- How much will the cost of these goods and services inflate over time?
- How much have you saved so far?
- How are your investable assets currently invested?
- What other future income or assets (Social Security, Pension, Rental Income, Inheritance, etc.) can you depend on in retirement?
- How long do you expect to live?
So, if the past year has changed your perspective about life and work (like it has for so many other Americans), don’t wait. You could be living the retirement and life that you want today, and you deserve that. These are seven complicated questions. However, by working with a financial professional like the members here at Thrive, we can help you find the answers and figure out whether you’re in a financial position to take the leap into retirement now (versus later).