Research has shown that most pre-retirees start asking this question 5 years prior to official retirement time. To answer this question, you need to look at your financial obligations, don't forget healthcare coverage too.
You need to jog down a detailed list of expenses, both monthly and annual expenses, for your pre-retirement time and post-retirement time. Don't forget to build a cushion to it.
You could have a diverse source of income in your retirement time - pension, personal saving, social security payment, annuity, etc. Don't forget the timing of the availability of those incomes.
The different sources of income have different caveats when it's time to start withdrawing money from it. For example, there is early withdraw penalty for social security payment, there is minimum withdraw requirement for some annuities, there is tax implications for investment accounts, etc.
You need to consider all the possible risks for your retirement plan - they include longevity risk, health risk, inflation risk, market volativity risk, do not let these risks compromise your financial security.
Thanks for the list of questions everyone needs to ask before retirement. H5!
select one here...