Convinced You're Ready to Retire? 3 Signs You're Better Off Waiting at Least Another Year
Key Points
You shouldn't retire yet if you'll have a healthcare gap you don't know how to bridge.
It's best to have a solid Social Security strategy ahead of retirement.
Figuring out how you'll spend your days is crucial.
- The $23,760 Social Security bonus most retirees completely overlook ›
If you've been working for many years, you may reach a point when you don't want to put off retirement any longer. And that's understandable.
But retirement is a period of life you must prepare for carefully. And if these signs apply to you, you may want to wait at least one more year before retiring -- even if you're convinced you're ready now.
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1. You're not eligible for Medicare yet
Medicare eligibility typically begins at 65. If you're thinking of retiring younger than that, you'll need a plan to secure health coverage. And if you don't have one, you may want to wait to end your career.
Health insurance can be shockingly expensive when you're forced to buy your own plan. And you don't want to eat into your savings early on just to pay for premiums. Working a bit longer could make it possible to retire in conjunction with getting onto Medicare, or at least shrink that gap period in which you're buying coverage yourself.
2. You're confused about Social Security
Ideally, you'll be entering retirement with a chunk of savings. Even so, Social Security might end up playing a big role in your finances. So it's important to understand how the program works and when to take benefits.
If you're still confused, you may want to work a bit longer while you explore your options. Your filing age plays a direct role in determining what monthly Social Security benefit you get. Filing at the wrong time could derail your finances, so it may be best to wait until you've figured things out.
3. You don't know what you'll actually do with your time once you stop working
Planning for the financial end of retirement is important. But it's also crucial to know what you'll do with your newfound free time. If you don't have a plan, you could end up bored and miserable.
This doesn't mean you need to have every waking hour of every week mapped out before you end your career. But if you don't have any sort of plan at all, you may want to work longer while you think about how to fill your days in a way that's meaningful.
You may have your heart set on a specific retirement date. But it could pay to be flexible. Working a little bit longer could help you figure out a health insurance plan, get a handle on Social Security, and come up with ways to make the most of your post-career years.
The $23,760 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
View the "Social Security secrets" »
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