At some time or another, you’ve probably thought about what you’d like to do during your retirement years. You may have some idea in mind about your ideal retirement date, but, as that day approaches, you’ll need to ask yourself: “Can I afford to retire?”
During these days of corporate downsizing, this question is not rhetorical. If your employer offered you a severance package to take a voluntary early retirement, should you accept it?
Your answer depends on a variety of factors. Most important, is whether you still enjoy your job. If so, you’ll be inclined to turn down the offer and continue working. But if you’re eager to move on, you might be tempted to accept the buyout package — if you can afford to retire.
To make that determination, you’ll need to consider several factors:
Your family situation
If you have children, are they out of college? Whether they are or not, are you still helping support them? Do you need to provide elderly parents with financial support? You’ll need to know the answers to these questions to help evaluate your need to continue working.