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When Is It the Right Time for Me to Retire?

After a certain age, you start asking yourself, “When is the right time for me to retire?

At The TGQ Law Firm, we cannot answer this for you, but we can help you gain clarity on your current situation and the available options. Our attorneys can also assist in planning for your later years by creating a personalized estate plan.

We are based in Ann Arbor but serve all of Michigan. Contact us at (734) 707-3232 or click here to schedule a free 15-minute consultation to start planning your retirement

What Is the Really Retired?

Have you ever heard the phrase “really retired?” You may be “really retired” if you:

  • Aren’t fully retired, but have enough money saved to become retired soon
  • Are experiencing symptoms of retirement, such as having a lot of free time

If you are considering retirement, you should consult a Michigan estate planning attorney, especially if you own high-value assets or out-of-state property. Estate planning is the process of planning for after your death and situations when you are incapacitated and unable to care for your affairs.

Estate planning services include preparing wills, trusts, and powers of attorney. Some estate lawyers like us at the TGQ Law Firm also specialize in elder law, which is tailored to the needs of seniors.

Evaluate Your Current Financial Situation

The first question to ask after “Is this the right time for me to retire?” is, “Do I have enough savings to maintain my lifestyle?” Generally, you want to have six to 12 months’ worth of expenses in an emergency fund.

Beyond that, your financial professional can help take stock of your assets — cash, bank accounts, real estate, insurance policies, retirement, educational accounts, and more — and subtract any debts and liabilities.

Your financial advisor will also compare estimated future expenses — housing, groceries, transportation, taxes, insurance, health care, debt payments, lifestyle costs, etc. — to your future income, including:

  • Social Security
  • Pensions
  • Part-time work
  • Home equity loans
  • Reverse mortgages

If you need assistance with a recommendation for a financial professional, The TGQ Firm can help.

Assess Your Family Situation

Even with a solid retirement plan, you might still need support from your loved ones — financial, physical, and emotional — after you retire. This can be complicated if you have special needs with a family member, blended families, are a single parent, or expect conflicts over the inheritance.

It’s important to think about where your assets should go and who they’re going to when planning for an estate. Leaving money directly to grandchildren is something that should be planned for – this will ensure there are no disputes over inheritance issues in the future.

At The TGQ Law Firm, we understand the challenges of planning for retirement in a difficult or unusual family situation. We have decades of combined experience designing multigenerational estate plans that can account for the special needs of disabled family members and protect your interests in contested inheritance matters.

Consider Your Health and Lifestyle Preferences

A critical thing to consider is whether your retirement income and savings can fund all your medical expenses and long-term care needs.

Medicare provides very limited coverage for nursing homes and other custodial care, so you should consider alternatives such as:

  • Buying long-term care insurance
  • Tapping into your home equity
  • Setting aside savings or investments for long-term care costs

You also want to plan for the lifestyle you want. If you hope to travel internationally or buy a bigger house, you need to save more than if you plan to downsize. The general rule is to spend 70% of your pre-retirement income, but that may be too high or too little, depending on your lifestyle.

Finding Purpose After Retirement

Finally, you should think about how you are going to fill your time when you retire. Having a rich social life and engaging in meaningful activities is essential to ensuring a good quality of life in your later years.

You could travel, spend time with loved ones, or start new or pick up old hobbies. If you love your job though, consider cutting back hours or becoming a consultant instead of leaving work altogether.

Request a Consultation | Michigan Estate Planning Attorney | The TGQ Law Firm

“Is this the right time for me to retire?” At the TGQ Law Firm, we hear this question all the time. Despite the many unknowns, you want the best planning for when you retire and after you are gone.

Our team is here to help you find meaning, purpose, and peace of mind in your golden years. Contact us at (734) 707-3232 or click here to schedule a free 15-minute consultation with an Ann Arbor estate planning attorney.