Q:

How do you know when you can retire?

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Quick Answer

An individual has a better idea of when he's ready to retire when he determines where he may live during retirement, when he should start Social Security, his strategy for long-term care expenses and his estimated living expenses, notes CBS News. Spouses should also be considered during the process.

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Full Answer

A person's retirement income should be greater than his expenses before he retires, according to CBS News. A personal financial advisor may be able to help a person determine which adjustments need to be made before a person can comfortably retire. Retirement income may come from sources such as Social Security benefits, 401(k) accounts, pensions, individual retirement accounts and self-employment earnings.

An online retirement calculator can also be used to help an individual determine if he is ready to retire, states CBS News. Individuals can consult professional retirement planners for personalized advice. Depending on where an individual retires, he may need to get a full- or part-time job to cover living expenses.

A retiring married couple should consider the fact that women usually live five to 10 years longer than their husbands, notes CBS News. The couple should plan so that the wife has enough money to cover expenses if the husband dies first.

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