Signs that show you are ready to retire

Retirement is something that many people dream about for years. However, not everyone is ready to retire, even though they are under an impression that they are prepared. If you are currently short on savings, there is a high chance that you may run out of money in your retirement phase. So, following are some of the signs that show you are ready for retirement.

You have a retirement plan
Having a retirement plan in place is crucial as it not only shows the approximate amount you would require in retirement but also puts forward the withdrawal strategy that you should adopt. Retirement plan also shows how your probable cashflow would look like in retirement. Even it should have an action plan that consists of investment strategy that leads you to achieve the approximate required retirement corpus. Having a retirement plan in place or not, but if you are just taking actions as per the investment policy statement then this is a sign that you are prepared for your retirement.

You have provisioned for healthcare costs
While planning for retirement many people don’t consider healthcare costs. Healthcare costs in retirement can be huge and even if you think you can cover it with health insurance, then the premiums charged are higher enough to eat up your savings. So, it is always wise not to depend only on the health insurance, but you should also consider making a separate provision for the same which would help you in case of some medical emergencies in retirement. Making such a provision will also help you in not disturbing the cashflows in retirement. If you have a provision for this then it is a sign that you are prepared for the retirement.

You have decided how would be your retirement phase
Everyone has a dream that one would follow when they retire. It can be anything, your hobby, maybe you want to go for a vacation, you wish to take part in charitable contributions or wish to live in a farm house, etc. It can be anything. However, deciding on the same and making required provision for the same is really very important. This will help you not just to see but also to live your dream once you are in your retirement. Even you may wish to do a freelancing work just to keep yourself engaged, and then deciding on which field you would choose to work in is also important. So, if you have decided on such things, then surely, you are ready for retirement.