For most professionals, there comes a time when they decide that it is time to go on retirement and enjoy their golden years. Some are fortunate enough to retire at an earlier age than others. But for most of us, we need to wait till the mandatory retirement age to give our nest eggs a chance to grow to its max. 

Before you take the plunge and start your retirement, you need to determine if you can retire. 

You might need to postpone your retirement for a few years if

•    You are short on savings – Social pensions only replace about 40% of your income on average. A pensioner needs about 70-80% of their former salary to enjoy life. Your retirement savings needs to make up the rest. If you don’t have enough retirement savings to cover this or you want to maintain your current lifestyle, then you might have to work longer and save more before you can retire.
•    You still have sizeable debt – You are already downscaling your expenses at retirement. Having debt that consumes a fair portion of your retirement income will leave you battling to make ends meet or allow very little for luxuries. Try to get your debt settled before you retire. You might have to work for another year or two to be able to accomplish this.
•    You don’t know what you will do at retirement – Have you decided how you will spend your days during retirement? Pensioners are 40% more likely to suffer from depression. They lose their sense of purpose and belonging because they feel that they no longer make a significant contribution to society. 

If you love your job or are not sure what you want to do in retirement, then consider working a few more years till you figure it out. Many pensioners keep working but just scale down their hours to allow for more free time. 

If you know what you would like to do e.g. travel extensively, or start a small business etc. but still can’t afford to do it, then perhaps working and saving for another year or two will make it a reality. - www.fool.com

It is ideal to meet with your deVere Acuma adviser to discuss the 5 years before retirement and work out a ready-to-retire plan that will see you enjoying your golden years debt free and with a purpose. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.