Ready to Retire8 Signs You Are Not Ready to Retire

Turning 65 does not automatically mean that you can quit your job and golf all day, a lot of planning goes into retirement, and you may not be ready to retire. Many people quit their jobs and then find out they were not ready to retire. Don’t find yourself in that situation. Check out the following 8 signs to see if you are on the right track to retirement.

  1. You Struggle to Pay Bills

If you can barely make it now, how will you make it when your income is reduced? It is estimated that most retirees live off of 75% of what they did before they retired. Now is the time to start having a budget and keeping your spending on track.

  1. You Have Large Debts

If you have a lot of debt it can greatly affect your retirement plan. Creditor payments can take up a lot of your retirement income. The best practice is to pay off as much debt as possible before you retire. Whether that is paying off your credit cards, paying off loans, or reducing your mortgage, you will benefit in the long run. This is especially true when you take interest rates into account, the longer you take to pay off your debt, the more you will end up having to spend.

  1. You Haven’t Taken Major Expenses Into Account

Something that is easily overlooked is failing to take into account major expenses that you may encounter. If you need a new roof, to fix your driveway, or to purchase a new car it could greatly upset your retirement budget. If possible try to complete such tasks while you are still working. It may seem painful to part with the money now, but it will be a lot easier than having to part with it when you have a limited income. Home improvement projects like installing a new roof can also add a considerable amount of extra value to your property. With this in mind, if your roof is in need of an upgrade, you can find some helpful information on roofing websites like

  1. You Haven’t Calculated Your Social Security

Even if you are not planning to rely heavily on social security to help you through retirement, it is still important to take into account how much you will receive. There are several factors that go into calculating your payment amount, including when you file for benefits. If you are not sure what to do, meet with a qualified financial professional who can help you to find the best time to file for maximum payout, and ensure you are ready to retire!

  1. You Don’t Have a Monthly Financial Plan

It is important that you understand your monthly spending before you retire. Your bills will still keep coming, even though your paycheck will not. To prevent any issues in your retirement transition have a solid grasp on your monthly expenses. When you know how much you spend, then you can anticipate what you will need to save, and whether or not you are ready to retire.

  1. You Don’t Have a Long-Term Financial Plan

Once you understand how much money you spend each month, you will need to understand how much money you can expect to need for the rest of your lifetime. You will need to plan for your retirement money to last you at least 30 years, if not longer. A financial professional can draw up an in-depth plan that will help you to see if your savings are on track to maintain the type of lifestyle you desire. They can also factor in future goals, such as purchasing a vacation home, and how you need to work your retirement savings around that. The better prepared you are, the more successful your retirement will be.

  1. You Haven’t Taken Inflation Into Account.

With the rate that inflation is going now, in 25 years your expenses will double. If you save with the view that prices will remain the same, you may find your retirement accounts are empty long before you expected them to be. If you have a respectable financial professional preparing a financial plan for you, they should take inflation into account for you, adjusting your savings needs as necessary.

  1. You Have an Unbalanced Portfolio

As you get older, you cannot afford to take the investing risks that you may once have. It is important that you have a balanced portfolio that spreads your savings into several different accounts and several different types of investments. This will ensure that no matter what happens in one financial sector, you will have money that is safe and available for you in another sector.

If you have found that any of these 8 signs applies to you, you may need to reevaluate your retirement plan. Do not leave such an important time of your life to chance, work with a qualified and trusted financial professional that can help you create and plan for a successful retirement.