Is It Time to Retire? Signs You’re Ready for Your Next Chapter

Deciding when it’s the right time to retire is deeply personal. You have worked hard, built up financial security, and are ready to live life on your terms. Making this decision can feel uncertain but exciting at the same time. Let’s get into some key indicators that it might be time to retire and start the next chapter.

Financial Stability: You’ve Got the Resources in Place

Financial security is one of the biggest indications of retirement readiness. If you’ve hit these milestones, it might be time to consider moving forward:

• Your Savings Goals Are on Target: For most, retirement means relying on your savings rather than a paycheck. A general rule is to have enough saved to cover 70-90% of your pre-retirement income annually. If your numbers align with this, you’re off to a great start.
• Low to No Debt: Being debt-free can bring tremendous peace of mind in retirement. If you’re mortgage-free and have cleared out any high-interest debt, you will find it much easier to live comfortably.
• Solid Healthcare Coverage: Healthcare costs are one of the biggest expenses in retirement. If you have researched your options and secured a reliable plan—whether through Medicare, a supplemental plan, or a private insurer—you are well-positioned for this transition.

Reviewing or creating your financial plan with your advisor is crucial as a double-check before stepping out.

Lifestyle Goals: You Have a Plan for How You Will Spend Your Days

Retirement is not just about financial freedom; it’s about time freedom. Knowing what you want to do and how you want to spend your time is just as crucial as having money in the bank.

• You Can Picture Your Daily Routine: Can you envision what your “typical” day might look like? Whether it’s travel, volunteering, spending time with family, or enjoying hobbies, it’s essential to know what activities will make your days fulfilling.
• A Support Network Is in Place: Work is not just about the paycheck; it’s often a big part of our social lives. If you have strong connections and a support system outside of work, you will be in a better place to retire without feeling isolated.

Career Fatigue: Burnout Has You Feeling Ready

Feeling tired of work or disinterested in what you used to enjoy can be a sign it’s time to think about what’s next. If your passion has dimmed, it might be time to explore a new path.

• You’re Feeling Burnt Out: If even the little things about work feel exhausting or you’re daydreaming about anything but the office, that might be a signal you’re ready to transition out.
• Health Is Becoming a Concern: Chronic stress can take a toll on us. Retirement can open up time for self-care, focusing on physical and mental health, and reducing stress.

Testing the Waters: You’ve Played with Retirement-Like Life

Trying out retirement on a smaller scale can be a valuable way to know if it’s right for you. Here’s how you might test the waters:

• Working Part-Time or Consulting: Scaling back your hours or consulting allows you to experience more leisure without fully stepping away. If the extra time feels right, it could mean retirement is a good fit.
• Living on a Retirement Budget: Try a “retirement dry run” by living on your retirement budget for several months to a year. If you find it comfortable, you may feel confident taking the next step.

Partner Readiness: You and Your Family Are on the Same Page

If you’re not single, being in sync with your partner about timing and expectations is important. Disagreements around retirement can impact both of your experiences, so talk through the big questions:

• Lifestyle and Financial Goals Align: Have those conversations—where you will live, what retirement looks like to each of you, and how finances will work. Being on the same page can help ensure a smoother transition.  Talk about your goals but also your concerns.

Positive Outlook on Change: You’re Excited for What’s Ahead

More than anything, retirement is about freedom, flexibility, and following your passions. If you’re feeling excited, rather than uncertain, you may be ready to transition.

• Eager for Something New: If you feel excited when you think about travel, family time, or new hobbies it’s a good sign you’re emotionally prepared.
• You’re Comfortable with Financial Trade-Offs: A fixed income is part of retirement for most and adjusting to a budget that feels slightly different than pre-retirement is common. If you feel ready to embrace this and focus on what really matters to you, then you’re likely in a great place to retire.

The decision to retire is about more than a financial benchmark—it’s a lifestyle choice. If you’re hitting these markers and feel secure in your plans, this could be the perfect time to start the next chapter. Retirement is about creating a life that feels intentional, fulfilling, and uniquely yours. If you’re feeling ready, it may just be time to take that exciting leap.

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