It can feel like saving money for retirement will take forever, especially when you consider the rising cost of living as well as everything else that comes up throughout your life. However, every little helps. If you’re diligent with your savings, you will get there eventually. But even when you’ve saved enough, how do you know you’re ready to retire? Another year wouldn’t hurt, would it? If you take this attitude, you’ll never retire, so here is some advice to prove it’s time.

You Have Enough Money Saved

Since you won’t be earning money from your career during your retirement, you need assurances that you have enough saved to work alongside your pension and any other investment options. This savings calculator can give you a good idea about how much you should have stored to ensure retirement will be straightforward and comfortable, especially if you want to maintain the same lifestyle and quality of life. If you’re not quite there yet, consider downsizing your property and living a little less luxurious to ensure stability. 

Your Investments Are Paying Off

Everyone can benefit from investing during their life, especially if you select evergreen investments that will always be in demand, such as real estate. You should expect these investments to have paid off, or at least in the process of paying off currently. Using a self directed IRA custodian provides several benefits and even provides tax relief compared to other options, which could put you in a stronger position to secure your financial future in retirement. 

Your Mortgage Is Clear

By now, you should have paid off the mortgage on your main property and might have paid off the mortgage on a vacation property or second home. This second option is not always crucial because you can rent the space out to visitors to generate funds to pay it off. It’s more important to focus on your main home because mortgage payments can be damaging if you are only relying on your pension and other retirement funds. 

Clearing your mortgage is crucial for feeling financially ready to retire. If you have not paid it off yet, you should wait longer. If you have eliminated your mortgage, congratulations! You’re ready to retire and maybe sell the property to move somewhere you’ve always wanted to live. 

Your Healthcare Plan Is Clear

Even if you manage to retire earlier than most, you still need to consider how you will cope with health issues and manage healthcare costs when you get older. You will lose the health insurance associated with your job when you retire, meaning you’ll need to find other insurance options or pay directly out of your pocket, depending on where you live. 

Before finalizing your retirement plan, decide what to do about healthcare. There are various retirement insurance options available, although these may not be available to everyone due to existing conditions or age. Hopefully, you never need to deal with severe healthcare needs, but it’s always better to have support just in case. 

Your Kids Don’t Depend On You Anymore

By now, your kids should have flown the nest and no longer need your financial assistance. While you still want to provide for them when they are in need–as all parents do–you shouldn’t let this get in the way of your retirement plans. If you don’t get phone calls asking for a little assistance every few months, you should consider yourself free from their dependence. 

There could still be some factors, such as contributing to weddings or helping them buy their first home, but generally, you can assume that they are capable of taking care of themselves and should have a nest egg of their own to support them in case of emergencies. 

You Have Cleared Your Bad Debt

On the surface, it feels like all debt is bad. Owing money seems inherently awful, no matter what this money might be for. However, there is a difference between good bed and bad debt. Good debt involves things you benefit from, like a mortgage or car payment (even if they aren’t ideal). On the other hand, credit card debt goes into the bad debt column. It can be easy to let your credit card debt get away from you, especially any accounts with high interest rates, so clear that before you even think about retiring. 

Ready

It’s natural to feel nervous about whether you’re financially ready to retire, but you cannot—and should not—work forever. When you reach retirement age, consider these signs and determine whether it’s time. The chances are it is and you have the rest of your life ahead of you.