We all know we should be saving for retirement, but many of us have never stopped to consider what retirement will actually look like. While the term “retirement” refers to the time in our lives where we can withdraw from the workforce and leave our wage-earning years behind, there’s more to it than that. It’s the closing of one chapter and opening of another and it’s important to think ahead about how that new chapter will be written.
There is not a fixed age or magic number that automatically deems you retired. You reach retirement when you have financial independence from sources of income that you don’t have to earn by working. For some, that will come sooner and for others it will be later, depending on their savings, investment income, pension, Social Security income, and other resources.
You’ve achieved retirement when you have what you need to cover your living expenses without having to work.