A simple and straight answer is when you are prepared for it mentally and financially.

But if that is the answer, Why am I writing the blogpost on it? And the answer is not helping out anything. There is more to see than what you are watching with your eyes. So I am going to write it here in detail.

I googled it, and I found so many good views on it. So many writers are talking about selling houses at retirement, and some are talking about asset allocation on retirement days. At that time, I realize that this topic is vast. Why? Because when I thought that US citizens are aware and educated about complications in retirement, I found this…

Shocking? But more shocking is this.

There is something more to shock, and then the reality in India is based on one Twitter poll.

So, Why am I, Ashutosh Tilak, in my mid 20’s, Being Millennial, writing this?

The reason is Retirement planning is not the thing that you start planning in the ’40s.

Retirement is a concept that assumes that after a certain age, your body is not the same as it was some years before. So you need to stop working and take care of your health. At what age this will take place is a significant factor in answering where we started. Medical studies proved that at the age of 55 to 64, our bodies start showing signs of some chronic illness, as per a study conducted worldwide by the Center for Disease Control and Prevention with Medical Association. So that is the right age for retirement.

But that is not all. Many factors are affecting your decision. It’s not the right way to decide. In my generation, many want to retire early. So? I talked with many, and they told me they want to give time to their spouse and children, which is entirely acceptable. If you are a salaried person, it is a massive change for you as your finances will drastically change. Not only finance But what about the time which you are now free? That is also one point.

The first factor is, as usual, your finance. For retirement, you need to keep your investments reasonable. Because now you don’t have a salary, but still you need money. How are you going to earn it? If you were planning it from a young age, it is excellent. But is it good enough to take care of your expenses even after considering inflation? The rule of thumb is to withdraw 4% of your portfolio or 15 times your annual withdrawal amount. Also, think that you will survive more than the average expected life of the ordinary person in your country. Development in the medical area makes it difficult for people to calculate expected life. It is supposed to cover your monthly expenditure. How are you going to make it asset allocation? Up to you, and here you need help from a professional.

Second, answer the question like what I want to do after retirement? If your concept for retirement is only to escape Job, please forget about it.

Another point for thinking before retirement is DON’T RETIRE IN BEAR MARKET. This will harm your finance. If your health permits, please work a little more for the sake of God. I am talking about it as many of your retirement investments are in equity markets.

In short, retire with a plan about what you will do in time after retirement and retire only when your financial expectations are in order and your practice to live within the same budget. Why?

Now, what about other things like home?

Recently I was reading one article about selling your home on retirement. Why? I mean, I can’t understand why you are supposed to sell your house? Yes, you can rent a house but will that be possible for you to shift every time you are supposed to? after a certain age it will be difficult. So as per my view is no. So please do not sell your home. Buy one as early as possible, and here I am, ready for debate with one group that says buying a house is a waste of money. Renting has some advantages, but do you want to take this extra workload with health issues? I want to make one more item to the checklist: DO YOU HAVE YOUR OWN HOUSE?

I am Going to end this post by Highlighting that the quality of your expenditure before and after retirement are two different things. So many things will change in between that. Are you ready for all that changes? If your answer is YES, only then think about retirement.