"When can I retire?" and other pressing questions

12 Jul 2016
You might find yourself suddenly starting to wonder: ‘when can I retire?’. Retirement comes at different stages for all of us. It’s not like when you hit 60 you are automatically entered into this thing called ‘retirement’ – some people are able to retire before they get to 60, where others hit a certain age and their company’s policy dictates that they retire at a certain age.


So there is no real one size fits all perfect time to retire. That, unfortunately, is something you will have to figure out yourself, and we can help you do just that, by asking you to find answers to these questions:


  1. When can I retire?

While retirement is an exciting new chapter in someone’s life, the decision to ‘take the leap’ is undoubtedly a big one. When you start feeling like it’s time to consider retirement it’s not just a matter of being the right age (or heading towards what you think is the right age), or just feeling like you are tired of working, you actually need to make sure that you are fully prepared for it, on different levels which take a bit of time. Once you have answered the following questions, you will have a better idea of when you will be able to retire.


  1. How much debt do I have?

One of the most important things you need to figure out when you start asking yourself ‘when can i retire?’ is how much debt you still have. Are you still paying off a car or a house? Do you have any other outstanding debts and if so, how long until those debts are settled? Do you think you will be financially able to pay those debts comfortably if you were to retire now? And are your children financially independent? If your children are financially independent and you have paid off all your debts, you are one step closer to retirement. If not, then you may need to do some calculations to see what can be done about them and how much longer you may need to work.



  1. What type of lifestyle will I want in retirement?

This is a really difficult thing to figure out. The reality is that when you are not earning a constant income, it can be quite difficult to still live the lifestyle that you had before retirement. It doesn’t mean you can’t have it, it just means you may need to work a little longer (or harder) or even cut certain costs to ensure that you still have the lifestyle without the massive price tag. Maybe you can cancel that gym contract you never use, downsize your house, or find ways to still generate income in retirement – at the end of the day, it’s about choosing your lifestyle priorities and making it work.


  1. Do I have enough in savings?

After answering the first three questions you will have a slightly better idea of what kind of money you will need every month to pay any debts off and live the life you want. Remember that ‘savings’ here also refers to investments of all kinds and any retirement funds you may have. You basically want to get the full picture of the money that you will  have at your disposal in retirement. Keep in mind that the normal spend is approximately 70%-80% of your current income. With all the money that you will have in retirement, using the abovementioned figures, how many years will you be able to live comfortably? Once you have worked this out, you will have a clearer answer to the question: ‘when can I retire?’.


  1. Have I discussed it with my partner?

Retirement is a big adjustment – both for you and your partner, whether they are still working or not. Before you decide to take the leap, and while you are still asking yourself the question of ‘when can I retire?’, you need to have a discussion about it with your partner so that you both can plan accordingly together, so that no one is taken by surprise by the decision, and also so that they can support you during this time.



  1. Am I emotionally ready for retirement?

Being ready for retirement actually means being in the right space not just financially but mentally and emotionally too. It is a big change, so you really want to check in with yourself to see if you are ready for it. Figure out ways that you will remain social, what you will do that will bring you joy and keep you passionate, and how you will make use of this newfound freedom. Once you know those, and you genuinely feel ready to retire, then you are certainly one step closer.


  1. How can I still generate income in retirement?

Some people still want to work once they are retired and others still need to work a little longer. And there is actually so much one can do: from freelancing to starting your own company, the possibilities are limited only by your imagination. One of the very best ways to generate decent extra income in retirement, however, is to invest in a buy-to-let property in an incredible area. And the best thing about it is that it can become your retirement residence in the future. Retirement is a time of new beginnings and possibilities and as C.S Lewis said, “you are never too old to set another goal or to dream a new dream.”

If you are looking for an incredible location for an investment property, then look no further than Calpe in Spain, which would allow you to retire in the sun! Contact us for a look at our incredible portfolio of apartments and villas in Calpe where you are bound to find the right property for you.

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