Retirement signs

Three indications you are ready

Many people don’t have much choice about when they retire. But some people have the opposite problem: They do have a choice, and yet can’t quite bring themselves to quit working.

If you’re struggling, here are three signs you may be ready to retire.

1 You’ve faced your fears Retirement requires some potentially stressful “paradigm shifts,” or fundamental changes in people’s approach to life. Those who have been diligent savers often struggle with the idea of spending their money in retirement.

Other fears — such as being afraid of becoming irrelevant or simply being bored — can cause people to postpone retirement, according to some financial planners. Cathy Gearig, a certified financial planner in Rochester Hills, Michigan, says some of her most successful clients have prioritized work to the point where they can’t imagine life without it.

2 Your financial plan has been stress tested If your fears are financial, you can hire a fee-only financial planner to review your retirement plan. Choose a planner who is a fiduciary, which means they’re committed to putting your best interests first.

Getting an expert review is a good idea in any case. The planner can help you maximize Social Security benefits, navigate Medicare or other health insurance options, decide the best way to take a pension, plan for possible long-term care and figure out a sustainable withdrawal rate from your savings.

Using sophisticated planning software, the advisor also can stress test your plan to see how it works in the event of a major market downturn, a surge in inflation, higher tax rates or the premature death of you or your spouse, says CFP Shelly-Ann Eweka , senior director of financial planning strategy for finance company TIAA.

3 You know what you’re retiring to Many retirees struggle to find a sense of purpose and a structure for their days. Having a plan for how you’ll spend your time can help, says CFP Ian Weinberg of Woodbury, New York. That plan might include a bucket list of travel and experiences you can start checking off. Retirement also can be unexpectedly lonely. If your primary social interactions were with coworkers, you may need to find some new friends.