6 Signs You Are Ready for Retirement
Do you have the financial and emotional readiness for retirement? Choosing to leave the workforce is a significant life milestone, so it’s essential to take some time to consider your current situation and evaluate your preparedness. This guide reviews how to tell if it’s time.
Am I Ready for Retirement?
Knowing how to get ready for retirement can help you prepare for the road ahead and ensure you can sustain yourself for the lifestyle you want to lead. Here are some signs that you may be ready to retire.
1. Your Debts Are Paid Off
While paying off your debts before you retire is not mandatory, doing so can make life that much easier. Paying off your house, credit cards and other loans allows you to reduce your monthly expenses and use more of your income for the things you enjoy. Once you’re free of debt, you also have less financial uncertainty.
2. You Can Live Comfortably On Your Reduced Income
You’re likely ready for retirement if you can live life without sacrificing anything. This means you should be able to continue living the same quality of life you know right now without making many adjustments to retire. Many retirees discover that they need to give up the comforts they enjoy to live on a limited income, so if you have the financial capacity, you’re well on your way to retiring with promising possibilities.
3. You Have a Budget
How do you define living comfortably? It’s important to know what your current quality of life costs and whether you have enough income to support it. You should calculate your projected monthly and yearly expenses and compare this to your income streams, whether you have personal savings, RRSPs, pensions, or other benefits.
4. You Have a Plan
Your plan should be all-encompassing of your financials, hopes and desires. First, consider all the activities you’d like to enjoy in your free time. Then, you can sit down with your financials to work out a way to make it happen. Seeking financial advice before retirement can also help you determine just what needs to be done to ensure you’re able to retire happy when you decide it’s the right time.
5. You’ve Talked to Others
Is your spouse ready for you to retire? How would your family feel about your retirement? While the final choice is always up to you, other people’s opinions can help guide you. For example, if a spouse or child relies heavily on your income for support, consider whether or not you’d still be able to provide this crutch once you enter retirement with limited income streams.
6. You’re Emotionally Prepared
Emotional readiness for retirement can take many forms. For some people, it can be that they don’t want to go to the office anymore or are beginning to dream of all the activities they’d like to do with their time. You could have hobbies you’d like to dedicate more effort to, or you may want to take up travelling. Regardless, being prepared mentally is important because some people may have trouble transitioning to a life that differs from their regular routines — especially if these have been the same routines you’ve known for most of your life.
Time to Retire?
Keep in mind that it’s always a good idea to seek financial advice before retirement. If it’s time for you to quit work, you can lean on people who have years of experience helping others during this exciting life transition. At the Seniors’ Lending Centre, we can help you with your retirement plans, whether you want to gain new income streams or use the equity in your home to help fulfill your dreams. Contact us today to get started.
