Are You Ready to Retire? Emotional Readiness vs. Financial Readiness
For some, just the idea of leaving work and retiring can cause great distress and anxiety.
The worry that accompanies the decision to retire. Created by author with Bing Image Creator
Do you count yourself amongst those who are financially ready to retire? Statistics point to just 30% feeling confident of their ability to retire. That’s a tiny fraction of folks who regard themselves as financially ready. On the other side of the coin, 32% are not confident about covering basic monthly expenses.
Financial readiness is one thing. However, being emotionally ready is a horse of a different color. Millions who feel financially ready find themselves emotionally unready.
The loss of a steady paycheck scares the bejesus out of them. Why is that?
It basically boils down to that one big bugaboo, the uncertainty that is at the heart of this dilemma; “how much longer will I live?” “Will I outlive my savings?”
This unsolvable unknown must be grappled with, using as much reasoned thinking as one can muster.
Family Longevity
Though nothing is a certainty, how long your parents and grandparents lived can give you some guidance in this regard. Along with current age and current state of health, the length of your blood relatives’ lives is the only factor that is closely correlated to how many years you yourself will live.
With these factors in mind, if you are generally healthy and have already outlived your parents, you can reasonably expect to live another 10 or twenty years.
On the other hand, if you’re twenty years younger than your parents’ age at death and your general health is not so good, you can probably expect to live to a lesser age than them.
Using this general information, take stock of your current equity, bank, CD, IRA, 401K and bond investments and the income they provide.
Add this income to any pension and Social Security Income you currently have or expect to have in the future.
Your Takeaway
If these assets provide sufficient, reliable income to cover your monthly expenses, you can rest easy and get to the state of emotional readiness that you seek to determine if you’re ready to retire.
If your income doesn’t cover expenses, but you have assets you can sell off (stocks, bonds, CDs, savings accounts and real estate), view them as your off ramp that will provide you the necessary income as you slowly and steadily sell off assets to fund your retirement.
Again, if this method affords you the pathway to a comfortable retirement, your emotional readiness should now come into balance with you financial readiness. Once this occurs, you’ll know you’re ready.
Good luck. Now go enjoy your well-deserved retirement!
Subscribers to the Retirement: One Dividend At A Time investment newsletter who mirror the RODAT Portfolio have annual income in excess of $138,000.00 from dividends alone.
I don’t have investors or work for a large corporation. My work is fueled by people like you. If you enjoyed this article, would you consider supporting me?
Learn more about me here.
Other articles of mine with over 90,000 views each that readers found worthwhile reading:
Turn $20,000 in Savings into $1000 a Month in Passive Income
It’s easier than you might think to generate $1,000 a month from just $20,000.medium.com
Here’s What Warren Buffett is Doing as the US Stock Market Plunges
Buffett’s actions may seem counter-intuitive to new investors: More experienced investors get itmedium.com
The Coming Bear Market/Recession Can Save Your Retirement
All it takes is a life-changing shift of perspective to understand: A bear market and a recession could save your…medium.com
Stocks Threatened with Administration’s Demolition
A demolition derby may be approaching; sell, sell, sell!medium.com
Get Rich as Your Portfolio Collapses
Losing money is the quickest way to earn riches.medium.com
Eroxon Beats Viagra Hands Down
Beating off and intimate sex has just gotten way easier and faster.medium.com
Best,
George Schneider, M.A.
Founder and publisher
Retirement: One Dividend At A Time
Disclaimer: This article is intended to provide information to interested parties. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing any stocks mentioned or recommended.
Disclosure: I am long all RODAT Portfolio names. The Portfolio continues to build dividend income with reliable, dependable equities which have long histories of increasing the dividend.
Copyright ©2025, George Schneider