In this article, we provide our professional insights into when to consider retiring and how much you should save each month for retirement. So, let’s dive right in, shall we?

When to Consider Retiring

Retirement is not just about being emotionally ready to retire. It’s about being FINANCIALLY ready to embark on this journey. Below are some insights by our financial advisors to help you determine when you should consider retiring:

1. You Have a Stable Retirement Income

First, you’ll need to track all your basic and discretionary living expenses post-retirement. After listing down all the expenses, you should determine whether your retirement income would be enough to cover these expenses. Retirement income can be generated from pensions, social security, and withdrawals from your retirement savings.

Calculate the amount of retirement income you can generate at a certain age and whether it would meet your expenses. If the estimated income does not seem to cover your living expenses, it’s time to hold off your retirement plans for a couple of years.


2. You Have No Financial Responsibilities

Having kids or other family members to look after is a huge financial responsibility. When planning your retirement, make sure you have no financial responsibilities because you won’t be able to support a big family with your retirement savings. In addition to your own expenses, you will have to bear their costs of living, education, and healthcare, which can put a serious strain on your retirement savings.

3. You Have a Diverse Portfolio of Incomes

If you have a diverse portfolio with multiple sources of income, you are already on your way to achieving early retirement. An aspiring retiree should diversify their portfolio, preserve their capital, and take less risky steps. Consider passive sources of income like stocks and bonds and invest in diverse fields or index funds so you can survive a market setback in a certain field.

In addition to having a diverse portfolio, you should preserve your capital by making non-volatile investments to avoid risk. When investing in stocks, opt for companies that have a continuous track record of good performance.

If you meet the above-mentioned conditions, you’re well on your way to early retirement, according to our experts.

How Much Should You Save for Retirement Each Month?

According to Hagemann Wealth insights, you should save a pre-tax salary of 15% for your retirement plans. This figure is backed by various financial advisors and studies on retirement planning. However, if you’re planning an early retirement, you’ll need to have a diverse portfolio of passive incomes in addition to this 15% figure.


Content and opinions in this material are for general information only and not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Past performance is no guarantee of future results. There can be no guarantee that strategies promoted will be successful and no guarantee of positive results.