Considerations When Deciding Whether to Retire

By the GWAAR Legal Services Team

Deciding when or whether to retire can be daunting. Many people immediately think of financial considerations when evaluating the prospect of retirement, which makes sense. But there are additional things to think about as well when faced with such a big decision. Here are some tips

to consider.

What will your financial picture look like if you retire?

Think about any savings accounts, retirement savings accounts like 401ks or pensions, and any nonemployment income you will have, such as Social Security. Consider consulting with a financial advisor or using an online tool such as a pension calculator to get an idea of your financial situation. If you need assistance accessing benefits from employer-sponsored retirement plans, contact the Upper Midwest Pension Project at Trellis Pension and Retirement Rights. To learn more, please see: https:// trellisconnects.org/programs/trellis-pension-and-retirement-rights/ 

Consider big expenses and how you will pay for them

Health care can be a huge expense, especially as we get older. Will you qualify for Medicare and/or Medicaid, or some other form of subsidized health insurance? Will you have retiree health insurance offered to employees by your employer? If you plan to use the Marketplace for private insurance, have you looked at estimated costs for someone in your situation? Make sure to keep potential prescription drugs in mind, as that can add to the cost. See the fact sheet: Medicare decisions for those over 65 and planning to retire in the next 6 months https:// www.cms.gov/Outreach-and-Education/Find-Your-Provider-Type/Employers-and-Unions/FS4-Medicare-for-people-over-65-nearing-retirment.pdf

What will your living situation be like in the near future?

If you own a home, do you anticipate wanting or being able to continue living there for the foreseeable future? Think about what you would do if you were unable to continue living in your current home, whether for health, financial, or other reasons. If you are renting, make sure you take that expense into account when estimating your monthly retirement budget.

Do you have others who have depended on, or will depend on, support from you?

It can be easy to forget about family members or friends who ask for assistance, but giving or lending someone money can quickly add up. You may need to consider setting boundaries with loved ones if you pursue retirement and expect to have lower income.