Having Adequate Financial Resources

You might estimate a 4% inflation rate, yet it could remain as low as 1–2% for extended periods before spiking to 8–10%—as we’ve witnessed in recent years. Similarly, while you might hope for a 5% return on your investments, actual returns could be as low as 1–2% or, in some fortunate cases, reach 7–8%. Financial advisors typically suggest that retirees will need about 75–80% of their pre-retirement income to live comfortably.

Another unpredictable factor is the potential for chronic health issues. A debilitating illness, such as multiple sclerosis or dementia, could affect you or your partner, leading to substantial care costs that neither Medicare nor most insurance plans cover. It’s wise to consider long-term care insurance unless you have a minimum of $1 million saved.

A friend of mine, a house painter, has less than $50,000 in savings and knows retirement isn't an option for him. He often spends what little he has and rarely sets money aside.

Having Sufficient Hobbies

I've observed many professionals, including doctors, retire without a clear plan for their daily activities. A former financial advisor would pose this question to clients contemplating retirement: "What do you plan to do next Monday?" While it sounds appealing to think, "I’ll play golf or pickleball," there’s a chance you might not enjoy it. If traveling is a priority, ensure your partner shares that desire and is also retired.

My attorney has few pastimes outside of his law practice and continues to work well into his eighties. Similarly, many physicians follow this path. The idea of retirement can evoke anxiety, as it signifies the final phase of life. This can lead to the irrational belief: "If I keep working, I’ll avoid death."

Some individuals may not have the liberty to choose when they retire due to company policies that enforce a specific retirement age. Finding new employment in your fifties or sixties can often be challenging.

My Personal Journey

Towards the end of my medical career, I realized I could retire at 65. However, I postponed my retirement due to staffing shortages in my medical group. My frustrations with the corporatization of private practice and the declining quality of patient care compounded my desire to leave. The increasing interference of government regulations in medical decision-making only fueled my discontent.

My close friend, an interventional radiologist, enjoyed tennis and sailing until shortly after retiring when he was diagnosed with Parkinson's Disease. He subsequently developed pancreatic cancer and passed away within a month.

His passing prompted me to take action. I cherish activities like fishing, traveling, cooking, gardening, and writing. I refused to let the unpredictability of serious illness shorten my retirement, making my decision to retire feel right.

Adjusting to Retirement

Like many professionals, especially in medicine, adjusting to retirement can take time—often one to two years. The title of "doctor" fades, and your ability to give orders is no longer acknowledged (a fact my wife has humorously reminded me of). Many doctors attempt to hold onto their licenses, volunteer, or continue their education, but I finally relinquished my license four years post-retirement.

New retirees may over-schedule themselves with activities to stay occupied; I admit I’ve been guilty of this too. However, I believe it's crucial to allocate time for relaxation. Engaging in leisurely activities like reading or solving puzzles can be rejuvenating. I enjoy tending to my garden and fishing, a practice I refer to as entering a "Zen Zone."

I maintain a routine of exercising two to three times a week and practicing Tai Chi for balance and strength. My hobbies include fishing, reading, cooking, and gardening, while my wife and I travel to discover new places and spend time with our grandchildren and children multiple times a year. The possibilities are endless, provided you are in good health and can afford it.

Key Takeaways

There is no single best time to retire; it is a highly personal decision. Timing hinges on having enough savings to support 75% of your working income and engaging in interests beyond your career.

Ensure your financial plan considers the possibility of long-term illness and care needs for you or your spouse. Understand that adjusting to retirement may involve ups and downs, along with moments of uncertainty regarding your choice.

If you decide to retire, proceed thoughtfully. Discuss your decision with your spouse. Ultimately, the right time to retire is subjective and can only be determined by you.

I am a retired physician with a keen interest in culture, health, sports, and food. You can trust that I will never misuse your contact information.

This first video discusses alarming retirement statistics and poses questions about being content with one's retirement choices.

The second video challenges conventional wisdom, arguing that one can achieve retirement with less than commonly believed.