Contrary to popular belief, you can’t just call it quits and retire at any point in your life. If it were as simple as that, many people would have given up their 9-5 jobs long ago and the average retirement age would be 30. However, planning to retire focuses on so much more than that, and there is far more to consider than most people realize.
By the time you’re ready to retire, you should have figured out your budget, an investment plan, a savings plan, debt, and how you’re going to spend your days in retirement. If you feel like you’re ready to retire, you should make sure you’re okay to do so financially. If you’re not sure, keep reading to learn about these 3 signs that you’re not financially ready to retire.
- You’re behind on bills/payments
This is perhaps the most tell-tale sign that you are not yet ready to retire. It is crucial that your financial situation is in good shape before you choose to settle down and enjoy the rest of your life. If you are struggling to make ends meet with a job now, there is no doubt that it will be even harder when you’re in retirement.
You need to ensure that you will have enough money to afford all of your necessities, and if not, then retirement just isn’t possible for you right now. If you want to avoid this, start planning your retirement now and get ahead so that you can have a financially stable retirement.
- Debt
Once you retire, you don’t want to have any debt. Debt can completely eat up your retirement savings and cause you even more financial strain later on. If you are unable to pay off your car loan and other forms of debt, you should probably hold out a little longer. It may be manageable at first to go into your retirement with debt, but realistically, do you want all of your retirement money to go towards paying debt?
While paying debt off before you retire may seem strenuous and put your retirement plans on hold, it does make for a far better retirement. It is a small loss now for a huge gain in the future.
- You still like work
Retirement is great; however, some people were born to work hard. If you feel like you’re in a good place mentally and physically and would like to continue working, then that is completely fine. On top of that, if you continue to work, you can enjoy your shorter retirement in a far better financial position.
There is no law, rule, or expectation that says you must retire at a certain age. In fact, there are some people nowadays who are in their 90’s and still working hard! If you genuinely get excited about all of the aspects of going to work, then you’re not ready to let it go just yet. It is also a great way to keep your busy mind ticking over and it gives you a sense of accomplishment.
All in all, if some of the signs presented in this article are present in your life, then most likely you are not financially ready to retire. And guess what? That is absolutely okay! Just because you are not financially ready to retire now does not mean that something is wrong. If anything, this gives you even more time to continue growing your retirement fund so that you can have a fulfilling, stable retirement.
Disclaimer: This content does not necessarily represent the views of IWB.