Are you considering early retirement? Many people consider retiring before they reach their 60’s. There are many positives and negatives when it comes to retiring early and it’s important to be completely sure before taking the leap. Below are 4 questions to ask yourself if you’re considering early retirement.
- Can you live on a retirement budget?
The most important question is whether you can live the life you want on your retirement budget. Many people suggest making a post-retirement budget and living on that budget for a 6-month period to see if retirement is realistic. If you’re considering a move to a great retirement city such as Scottsdale, Arizona, you should calculate in the cost of living in Scottsdale into the budget. The State of Arizona does not tax Social Security income, so be sure to factor that good news into your budget. Each state varies so be sure to check the tax rates for your retirement location.
- Do you have reliable health insurance?
Since Medicare does not kick in until the age of 65 and potential changes to the Affordable Care Act (ACA) means having reliable health insurance for your early retirement plans is a must. Questions to ask yourself about health insurance are:
- Does it have low deductibles and copays?
- Does it cover dental and vision?
- Will my expenses be as low as possible?
- How often will rates change and by how much?
There are a la carte options like Direct Primary Care or even faith-based health care ministries available as well. Consider whether dental insurance is important to you and factor that into your early retirement budget.
- Are your children financially independent?
If your kids are out on their own, then this is one less thing to consider. However, if you still have kids in high school or college, you must consider the costs of higher education, possibly in another state. Can you retire early and live the way you want to, while paying for college? If you do have grown children and maybe grandchildren, having them come for a visit when you’re retired can be very fun. Retiring early in Arizona, in a place like Scottsdale, there are many opportunities for relaxing and entertainment, such as playing golf, hiking, shopping and fabulous dining or taking in a spa day.
- Are your debts paid off?
If you have a mountain of debt, you’re probably not ready to retire. The point of retiring is to be able to relax and do what you have dreamed about doing, but weren’t able to do because you were busy with your career and/or raising a family.
If you answered ‘yes’ to most of the questions, you may be ready for early retirement. One of the best places to retire in Arizona is Scottsdale, which livability.com has ranked a Top 10 Place to Retire. Scottsdale boasts warm, dry weather, plenty of sunshine, and gorgeous desert views. To go with this wonderful weather, Scottsdale offers many outdoor activities, such as golfing, year round. Many attractions offer discounts to senior citizens as well. The city has an extremely low crime rate and top-notch healthcare facilities.
Contact us to find out more about our community and what Terravita has to offer, whether you are retired, considering retiring, or still working.