Retirement is a milestone that many of us look forward to eagerly. After years or decades of hard work, it’s a chance to live life at your own pace and enjoy what you’ve worked so hard for. Here are some signs that you’re ready for this next chapter.
You’re around retirement age
The most obvious sign that you’re ready for retirement is that you’ve reached the traditional age for it—typically your mid-sixties if you live in the US. If you’re approaching this age, it may be time to start seriously considering retirement and planning how you want to spend your days.
You don’t have any dependents
As you get closer to retirement, it’s generally best to have fewer financial obligations—debt and dependents can impact your finances significantly. If all your children are adults living independently, that’s a good sign that you don’t need to worry about them financially, giving you more flexibility in retirement. However, if you still have dependents you’re supporting, it’s important to take stock of how this can impact your retirement finances.
Your finances are ready
Before you can retire, it’s important to make sure your finances are in order. Do you have enough savings and investments to cover all the costs associated with retirement? Think about things like healthcare, hobbies, travel, and any housing changes you want to make—do you want to downsize? Move to a retirement community?
Consider all your sources of funding, including pensions, 401(k)s, IRAs, and cash reserves. Make sure you take stock of any other sources of funding, like potential passive income from a rental property or the cash value of a universal life insurance or whole life insurance policy. If you’re unsure about your finances, consider consulting a financial professional.
You have a plan for how to spend your time
Being ready to retire isn’t just about financial security—it’s also about finding ways to enjoy yourself every day. If you already have hobbies or activities that keep you engaged and fulfilled, this is a great sign that you’re ready for retirement. If you have a plan for how to spend your time after you retire—such as traveling or volunteering—this is another sign that you’re ready.
Work isn’t at the center of your life anymore
This one might be a little hard to pinpoint, but if you’re feeling like work isn’t a big source of identity and fulfillment, that can be a sign that you’re emotionally ready to stop working. After all, retirement is an opportunity to find new sources of joy in life, like spending time with family and friends or exploring hobbies that you never had time for before.
You’re looking forward to retirement
One easy way to know you’re ready to retire is if you’re actually looking forward to it. If the thought of retiring fills you with excitement and anticipation, then it might be time to make the jump.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value to supplement retirement income will reduce the death benefit and may affect other aspects of the policy.