Many retirement advisors will tell you the best way to save for retirement would be to begin young and consistently put aside a part of your wage into a retirement savings vehicle. And several individuals definitely do that. But if you are like most of us, you didn’t conserve as much as you could have, and today you’re looking for some 11th hour retirement options and you are asking yourself: When to retire?
On one side, you could conserve more savings by spending less. However that is not always a plausible retirement option if you are already having problems paying your living expenditures. More immediate objectives, such as paying for your mortgage and medical care expenses, or helping out your children and grand-kids, might be stretching your cash flow. Around 58% of People in America age fifty five and older have less than $100,000 in their retirement savings, based on the Employee Benefit Research Institutes latest Retirement Confidence Survey. Merely 19% have $250,000 or greater of retirement savings. Considering that it takes $1 million or more to retire comfortably in many areas of the US, you can see that mane people share your same situation, trying to figure out when to retire.
Which means you may have to adjust your retirement age or consider relocating to a less costly area.
Relocating? To many, that may appear radical. You love where you live. You’ve built a life there. You’re near to your kids and grandchildren. But depending on where you reside now, and where you move to, it might considerably influence your quality of life and allow a lower retirement age. This can be the answer for the question of when to retire.
Such a move may even include warm climate and palm trees, but even more importantly, relocating from a high-cost region to one with a significantly reduced living costs. Doing so could make the difference between an early retirement age and working for a number of more years – especially when you have substantial equity in your home that can bootstrap your move. Let us say you have $50,000 a yr to live on in retirement, and you currently live in Oakland, California. What’s going to occur in the event you move to Bradenton, Florida? According to Bankrate.com , you are able to tolerate a 33.21% decrease in your needed retirement income and still maintain your standard of living. Just evaluate some of the costs between the two areas.
Cost of living comparison
|Oakland, CA||Bradenton, FL|
Actually, there were only a few things that cost more in Bradenton than in Oakland, including power, which was $120.69 and $167.03, respectively. (Guess it’s all the air conditioning.)
The key, if you’re thinking about this strategy, would be to discover a community with a strong economy as well as opportunities for an enjoyable way of life. The latter will rely on what you enjoy, but might consist of warm climate, permission to access cultural events, or other retired people with whom you can interact socially. So perhaps there’s a place that you will like with reduced housing and residing costs and will permit you to have the early retirement age you dreamed of and the answer yo your dilemma of when to retire.