For past generations, planning for retirement was a relatively simple process. When someone reached retirement age, they threw a party, turned the job over to someone else and went home to live on their company pension. Retirement planning nowadays is a radically different proposition that involves asset allocation, retirement plan rollovers, transfers and distributions and a series of life choices. There are several tough decisions that most people must make when they stop working. The most difficult of these choices includes:
1. When to Retire
Those who are willing to work a few more years can usually enjoy a considerably better standard of living than those who retire early. But deciding when to retire can also be complicated by the possibility of layoff, early retirement incentive packages, personal health and other factors.
2. When to Begin Drawing Social Security
Like retirement itself, knowing when to begin collecting Social Security can befuddle even financially sophisticated retirees. There are pros and cons to early, normal and late payouts, and the right choice for a given person is dependent upon many things, such as whether the person intends to retire, whether the benefits will be invested for a period of time or spent immediately and the level of retirement savings that has been accumulated.
This is a great article on the importance of planning for retirement well before your last day. For many this will be ab extremely traumatic and stressful time. Please consider how your next stage of life will change for you and your family.
Please comment or call to discuss how this affects you and your employees.
- Retirement Planning Tough in a Weak Economy (theroot.com)
- Eight tough retirement decisions (theglobeandmail.com)
- Tax Penalties for Early Retirement Withdrawals (wisebread.com)