For everyone who is about to leave university or for has just started their first job, there couldn’t be anything more exciting than building a profitable and brand new professional career. But for everyone who’ve been working in a company for a few years, it’s difficult not to think about retirement, especially as retiring means that you can finally enjoy your time and your money to do whatever you want to. Except that this is the best possible case scenario. Most people don’t plan for retirement. They simply work their way to it and then are faced with a difficult situation: They don’t know how to fill their days when they’re not working anymore. It’s time to take retiring seriously, from making a bucket list of what you want to do when you’re older to planning your financial strategy when you stop working. The earlier you plan, the more you’ll enjoy a smooth and easy pensioner’s life!
Know your rights
Did you know that there is no retirement age in the U.S.? Naturally, this doesn’t mean that you can stop working when you feel like it. In fact, there are some essential retirement milestones that you need to be aware of. For a start, you can’t claim Social Security retirement benefits before 62. Similarly, you can’t withdraw from your retirement savings — aka your 401(k) — without paying penalties before you’re 59 1/2. However, not everyone is lucky enough to retire because they’re reached old age. Some individuals are struggling with injuries or disabilities that stop them from working. If this is your case, you may need to consider early retirement by consulting an attorney to explore the possibility of replacing your income via disability benefits. You may be entitled a Social Security disability insurance, for instance.
Consider downsizing when you retire
While they are many options to take into account when it comes to housing during your retirement years, downsizing is one of the most profitable courses of action. Indeed, you need to ask yourself in all honesty why you should be paying for additional space that you don’t need. Most adults in the age of retiring still live in the same family house they children grew up in. You probably don’t need these extra bedrooms anymore. Additionally, as you cut down housing expenses, you create more retirement income. Now that’s something the plus side of a frugal lifestyle!
Create a new income
What if you’re ready to stop driving to the office every day, but you want to keep your mind sharp and active? Well, nobody said that you were forced to stop working altogether. You can embrace a freelancing career to offer your knowledge and experience as a business consultant, for example. All you need is to identify the market niche. Let’s say you’re a math teacher. You could merely offer math tutoring to local students. There’s always someone who needs a little hand to get the results they need to apply to their dream college. Make sure in the consulting sector to prepare a few templates and a pricing list before you start, though!
It’s time to rethink retirement. It doesn’t have to be synonymous with old age. You can retire from your current job at any age, assuming that you’ve planned to replace your current income source, either through Social Security supports, a frugal lifestyle, or even tackling a freelancing career.