{"id":12163,"date":"2025-12-17T16:13:49","date_gmt":"2025-12-17T22:13:49","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=12163"},"modified":"2026-02-04T16:45:52","modified_gmt":"2026-02-04T22:45:52","slug":"when-to-retire","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/when-to-retire\/","title":{"rendered":"How to decide when to retire: 8 things to consider"},"content":{"rendered":"\n

Throughout our lives, we hear about retirement. It can feel like an abstract, far-away concept, so it\u2019s easy to forget that someday we\u2019ll actually get there.<\/p>\n\n\n\n

When to retire is your decision, and it\u2019s ideal to start preparing as soon as possible, says Sharon Marchisello, author of \u201cLive Well, Grow Wealth.\u201d \u201cIt\u2019s important to have a target\u2014sort of like a deadline,\u201d she says. \u201cIt will help you focus and evaluate your progress.\u201d<\/p>\n\n\n\n

Tiffany Lam-Balfour, a financial services professional, agrees. \u201cIf you don\u2019t think about when you want to retire, it makes it awfully hard to plan for and achieve a financially secure retirement,\u201d she says.<\/p>\n\n\n\n

Wondering, \u201cWhen should I retire?\u201d You\u2019re in luck.<\/p>\n\n\n\n

When you\u2019re determining when to retire, the experts say to first consider your life goals and circumstances.<\/p>\n\n\n\n

\u201cThis way you can determine where you\u2019re at and where you\u2019d like to go,\u201d Lam-Balfour says. \u201cIt may also be wise to consult a financial advisor for more customized planning to help flesh out the details and potentially explore various scenarios.\u201d<\/p>\n\n\n\n

Marchisello and Lam-Balfour recommend considering the following factors as you ponder the question: When should I retire?<\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

<\/p>\n\n\n\n

1. Your expected income over time<\/h2>\n\n\n\n

People tend to increase their earning potential<\/a> as they gain experience, develop valuable skills and advance in their careers. That\u2019s why most retirement calculators will assume a salary increase of 2-3% each year to help project how much one can expect to have saved for retirement over time.<\/p>\n\n\n\n

Of course, not everyone\u2019s income will follow such a predictable pattern. \u201cThink through how your income may adjust with experience and hopefully promotions,\u201d Lam-Balfour says.<\/p>\n\n\n\n

For example, if your career pays handsomely early on, you might be able to retire in your 40s or even your 30s. If you work in a field where your salary grows incrementally, then a more traditional retirement in your 60s might be more realistic.<\/p>\n\n\n\n

2. The nature of your work\u2014and how much you enjoy it<\/h2>\n\n\n\n

Marchisello points out that not all work is the same. \u201cSome occupations are more physically demanding than others, so you may have to retire earlier,\u201d she says, which would require more aggressive saving.<\/p>\n\n\n\n

On the other hand, you might love your job and be able to continue doing it into your golden years. If that\u2019s the case, Marchisello says, \u201cYou might be able to cut back hours or become a consultant after you reach retirement age.\u201d Most retirement calculators will allow you to factor in any additional income you expect to earn in retirement, and you can see how that extra money will strengthen your financial security in retirement. <\/p>\n\n\n\n

After all, money isn\u2019t the only reason some people continue working. \u201cIf your identity is connected closely to your work, beware of jumping ship too early,\u201d Marchisello warns. \u201cBe sure you know what you want to do in retirement, so you don’t give up a good career to be bored.\u201d<\/p>\n\n\n\n

3. The lifestyle you want in retirement<\/h2>\n\n\n\n

No two retirements are the same. Before you ask, \u201cWhen should I retire?\u201d you must ask yourself what kind of retirement you want and how much it will cost. \u201cIf you’re planning extensive luxury travel<\/a> or want to pursue expensive hobbies, you’ll need to save more than if you’ll be happy with a simplified lifestyle,\u201d Marchisello says.<\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

<\/p>\n\n\n\n

As you\u2019re estimating retirement expenses<\/a>, Lam-Balfour agrees that your lifestyle can influence your answer to the question, \u201cWhen should I retire?\u201d Where you want to live in retirement; how much you like to shop, dine out and travel; and whether or not you want to downsize your home are all lifestyle factors to consider, she says.<\/p>\n\n\n\n

A common rule of thumb is to expect to spend 70% of your pre-retirement income in retirement, but that might be too much or too little to accommodate the retirement lifestyle you\u2019re imagining for yourself. Retirement calculators will allow you to define how modest or extravagant of a lifestyle you will want in retirement. Make sure you\u2019re carefully considering how you\u2019d like to live in retirement as you decide when to retire.<\/p>\n\n\n\n

4. The debt you carry into retirement<\/h2>\n\n\n\n

If a carefree retirement is your goal, then don\u2019t let outstanding debt put a damper on it. Marchisello recommends paying off all your debt (including your mortgage, if you have one) before you retire.<\/p>\n\n\n\n

Lam-Balfour agrees, recommending that if you have any outstanding student loans, credit card debt or a mortgage, you should ask yourself how you can pay these down ahead of your target retirement date.<\/p>\n\n\n\n

Doing so, Marchisello says, can help you keep a lid on your retirement expenses and allow you to be more flexible with your lifestyle. \u201cYou don’t want to have to go back to work to pay the bills after giving up your career,\u201d she says.<\/p>\n\n\n\n

5. Your savings rate<\/h2>\n\n\n\n

Your savings rate is the percentage of your income (before taxes) that you\u2019re able to save each month. The higher your savings rate, the sooner you should be able to retire.<\/p>\n\n\n\n

Lam-Balfour points out that your savings rate includes the money that flows into all of your savings and investment accounts, which can include your 401(k), your IRA, any other investment accounts and your high interest rate savings account.<\/p>\n\n\n\n

Many retirement calculators will automatically peg your savings rate at 10% of your pre-tax monthly income, but you can typically adjust that number to more closely align with your actual savings rate.<\/p>\n\n\n<\/div>\n\n\n

\n
<\/div>\n
\n

\u201cIf your identity is connected closely to your work, beware of jumping ship too early. Be sure you know what you want to do in retirement, so you don’t give up a good career to be bored.\u201d<\/p>\n