If you think you are ready and plan to retire early, it is essential to plan and work towards the goal honestly. Everyone would like to retire early, but what implementations have you put in place to live this dream?

To many, early retirement means more time to visit friends and family, travel the world, or pursue hobbies that you had put on hold while you were still working.


However, if you are still undecided about when to retire, these signs will show you whether it’s the right time or not.

Signs You Are Ready to Retire Early

You Are Debt-Free

Have you already cleared off debts from your mortgage, student loans, credit cards, or car loans? Retiring before you pay your debts is the worst decision, as every penny you get will be paying these debts. This also means not having enough to travel and live the kind of life you want. However, if you have no debts, you are then ready to retire.


You Have Budgeted for Your Retirement Needs

It is essential to budget for all your retirement needs and try to stick to that budget. Do you know how much you will spend on food, housing, transportation, plus healthcare? Have you also factored in extra expenses such as traveling or buying a new car?

If you have calculated the estimated expenses and feel like you can comfortably cater for all these, then you can go ahead and retire. The last thing you want is to retire without a plan in place.

You Have Covered Your Insurance

As age catches up with you, healthcare becomes one of the most immense expenses you incur. Whereas Medicare helps with some costs, it doesn’t cover pricey long-term expenditures. If still in doubt, ask yourself whether you can take care of your health bills comfortably. Also, note that paying out of pocket can be costly compared to getting coverage from your employer.


Are you financially stable enough to pay out of pocket? Don’t forget that it can be expensive, especially in the case of a severe injury or illness. If you can check these boxes, then you are ready to retire.

Your Children Do Not Depend on You Financially

You probably know how expensive it is when you have kids around. From tuition to living expenses, fees, books, plus other costs related to their education, the costs can really add up. Keep in mind that even after graduation, they will still need financial help from you as they settle into the job market. Having a child with special needs will also drain you further.

However, if your kids are financially independent and even take care of their own kids, you are on the right track to head towards your retirement. After all, no one will be depending on you financially other than you and probably your spouse.

You Are in a Retirement Mood

Apart from working on the numbers, retirement also has a lot to do with your emotional and mental wellbeing. You need to have gone through a severe mental adjustment to quit your job and stay home. As yourself, are you ready for the significant change? Some people are used to working all their lives that the thought of staying at home and becoming idle puts them off.

So, what are your plans even after retirement? The clearer your mindset is, the easier it will become for you to decide when to retire.


Think about it; if you are reading this, you probably are ready for retirement. However, do not just jump on the bandwagon before you have these plans implemented. Plan, budget, and even seek financial advice, and you will be good to go.