5 signs you’re ready to retire

Moving from an active member of the workforce to retiree is a major life change that not only involves decades of financial preparation but also emotional and logistical considerations.

How do you know when you’re ready to say goodbye to the daily grind? Here are some benchmarks and questions to consider.

Financial preparedness is the first and most important measure for determining whether you’re ready to retire.

You have the financial resources to retire

The plan should factor in current spending and how that will change in retirement, including estimated costs of things like travel and entertainment.

You have a comprehensive plan

Health care is one of the primary expenses and burdens as you age, said Ben Watson, certified public accountant and CFO of DollarSprout.com. It’s essential to do your research to make sure you’re covered.

Your health care is accounted for

Eliminating debt frees up your cash flow for current and future expenses. Credit cards and car payments will only hinder you in retirement, especially as you step away from a steady paycheck.

You are debt free

Have a game plan outlining what your life will look like once work is no longer occupying your days. This could include turning your side hobby into a part-time job.

You are mentally ready to stop working

If you’ve run through these scenarios and think your retirement plan would succeed, you may be ready to retire.

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