Have you ever thought about how long it would take to actually feel ready to retire? Many assume it’s just a matter of reaching a certain age or saving enough money. But the reality is more complicated. Simply waiting to plan until you’re at retirement’s doorstep is not the most effective approach—and could actually delay your ability to retire. Why is that?
A while back, I shared some thoughts in this article by Nicole Spector at GoBankingRates, discussing the top signs you may not be ready to retire within the next year, and what you can do to turn that around.
If you don’t actively prepare for retirement, your options could be limited, and you may find yourself locked into a lifestyle that doesn’t align with your true vision of retirement. The key?
Planning for both the financial and lifestyle changes well ahead of time, giving you more control over your future.
The 3 Big Signs You’re Not Ready to Retire:
1. You Don’t Have a Financial Plan or Haven’t Updated It.
A comprehensive financial plan is essential. Retirement marks a significant shift in both income sources and spending habits, so it’s crucial to regularly update your financial plan. If you haven’t revisited yours recently—or if you don’t have one in place—this could be a sign you’re not financially ready to step away from work just yet.
2. You Expect Your Living Expenses to Plummet—But They Rarely Do.
Many assume that retirement will bring lower expenses, but for most people, that’s a misconception. By the time people retire, children are often independent, but expenses often remain steady or even increase, especially with more frequent travel to see family and fulfill bucket-list goals.
Not planning for these costs could leave your finances stretched. The key here is to accomplish things that matter to you during the earlier, more active years of retirement, without causing unsolvable financial problems later on.
3. You’re Thinking of Retirement as the Absence of Work, Rather than the Presence of Purpose.
Simply leaving work behind isn’t enough for a fulfilling retirement. Retirees who thrive are those who have a clear vision for how they’ll spend their time, whether it’s with family, hobbies, or volunteer work.
Think of it like starting a new career, except this time it’s focused on recreation, and you get to call the shots. If you don’t know what will replace the structure and purpose work provided, that’s a sign you may not be ready to retire.
In cases where people have no plans for how to spend their time, "retirement" for some may feel more like being unemployed, even if they don't need any more money. Don't let that happen.
Architecting Your New Lifestyle
Preparing for retirement goes beyond saving—it’s about shaping the life you want to live. The absence of work may be part of it, but the real satisfaction in retirement comes from filling your days with purpose. If you’re considering retirement in the next few years, let’s talk about your plan to ensure it aligns with your goals and lifestyle.