Perhaps you pictured yourself having an early retirement. However, things do not always go as planned. Even if it’s not an early retirement, some people who already reached their retirement age are even not prepared for it. How can you tell if you’re not ready for retirement? Let’s take a look at the signs to help you determine if it’s really time for you to retire or it’s best for you to continue working.
You Still Owe a Lot of Debts
Even if you think that you have enough money on your retirement plan to support your daily needs, if you still owe a lot of debts, it may not still be the best time for a retirement. Once you retired, you would still be paying for those debts and if you don’t have a regular source of income, you would be depending on your retirement benefits for everything and it could be very difficult on your part. The reason why you have your retirement plan is for you to live a comfortable life after retirement and you would probably not enjoy this if you are still paying for a lot of debts. This is why it’s important that you make it a point to add debt payment in your budget so you can clear your debts before you retire.
You’re Currently Struggling with Your Bills
If you’re having difficulties with your budget right now, retiring is obviously not a good decision as this means that you would lose your source of income, which is your job. Yes, you would be getting money from your retirement plan, but would it be enough to pay the bills? You are prepared to retire when you have your bills under control and you know that your retirement funds would be enough to provide for your needs and even wants.
You Don’t Have a Financial Plan Yet
A clear financial plan is needed upon retirement. You should know how to spend your money to make sure that you’ll be living the comfortable life that you deserve. Even if you feel that you have enough money from your retirement plan, if you don’t have a good plan or budget on how to use it, you may end up spending it incorrectly and you may not realize that you have run out of cash. It’s important to take time to plan on how to wisely spend, as well as invest your money so you can live a comfortable life.
You’re Not Sure What to Do After You Retire
After you retire, remember that everything would change. You wouldn’t go to work and do the things that you normally do for the past several years that you may have already been used to. It may sound exciting that you would free to do whatever you want, but if you’ve been used to the busyness of your life, having so much free time and not knowing what to do with it could become quickly boring. Aside from planning for your finances after retirement, it’s also important to plan on what you wish to do. Determine what you enjoy most so you can do them.
Consider these factors when determining if it’s really time for you to retire or not. Moreover, if you love your job and you still enjoy doing it, it’s also a sign that it’s not yet time to retire.
Featured and 1st image by Sigismund von Dobschütz (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons
2nd image by U.S. Navy photo by Mass Communication Specialist 2nd Class LaTunya Howard [Public domain], via Wikimedia Commons