5 signs it’s time to retire

A growing number of people in their late twenties and early thirties want to retire early, if not as soon as possible. While the current full benefit age to collect Social Security is 70, early retirement benefits are available beginning at age 62.

If you’re wise with your money and have a certain amount of discipline, it’s possible to live off your savings and other forms of income for the rest of your life — even if you are, say, barely 40. 

If early retirement is your goal, the hard part may be knowing when to do it. If it’s a realistic option for you, consider yourself lucky: According to research, one in three Americans has delayed retirement due to pandemic-induced lockdowns. 

There are many factors that go into a successful early retirement in addition to wealth. If the following five criteria apply to you, it may be time to take the plunge.

You don’t want to work anymore and can afford to do so

A job change doesn’t interest you. Changing your line of work doesn’t interest you, either. Instead, you want to get out of the rat race forever. What’s more, you have sufficient savings, little to no debt and are ready to live a simple life. Who says you can’t retire if you meet these requirements?

Lyle Solomon, a principal attorney at Oak View Law Group, is the author of “Think Different! Save More!” 

“As someone close to retirement age, I speak from experience,” he said “Most financial experts and retirement planners will recommend completing three primary retirement goals. First, start saving for retirement early and get Social Security benefits for as long as possible. Second, follow strategies to save enough for your retirement years so that you can live without financial stress and have a regular income. And finally, build an emergency fund that will help you meet unexpected costs.”

Beyond those basics, he had three tips for knowing when it’s a good time to retire: You’ve invested in good health insurance, you’ve gotten your partner’s approval for retiring early, and you don’t have any dependents. To Solomon, these are the three best indicators you can retire early once you’ve covered the basics. 

You are ready to move on to the next chapter in your life

When someone asks you what you will do after retirement, you shouldn’t look like a deer caught in headlights. Neither should you stutter or go into a daze. What you should do is tell them all the things you have planned for this new and exciting phase of your life. 

Contrary to popular opinion, retirement isn’t about killing time and being bored. According to a recent study, retirees enjoy having a lot of unstructured time to spend however they wish. Regardless of income, early retirees tend to value this freedom because it allows them to have flexible, spontaneous lifestyles. If you have a long list of hobbies and interests you ache to dive into, you might be ready for the retiree way of life. 

Your job is no longer a part of your identity

Most of us are so attached to our jobs, our careers tend to become an integral part of our identities. That’s why we feel so comfortable introducing ourselves by our job titles in social situations. It’s also why we don’t hesitate to ask strangers what they do for work. To a certain extent, almost everyone identifies themselves by their jobs.

Gregory Rozdeba, co-founder of Dundas Life, a digital life-insurance brokerage company, believes one can use this phenomenon to their advantage. 

“One subtle sign that it is time to retire is if you no longer identify yourself by your job,” he said. “I actually saw this happen with my father before he retired. For many years, whenever I heard him introduce himself at parties, family gatherings and even to my friends, he would start by saying his name and then quickly add that he was the director (and later on, VP) of sales at his firm. I had even memorized his whole routine at some point. However, four years ago, he just stopped doing that. From then on, he was just George. A year later, he announced he was retiring.”

Work is no longer on your mind, adventure is

If your job has lost its meaning and you constantly find yourself questioning why you aren’t doing something enjoyable instead, it’s a clear sign you need to stop working if you can afford to. 

Wes Moss, chief investment strategist at Capital Investment Advisors, recommends paying attention to your sense of adventure if it feels unfulfilled. 

“Molly is in her early 60s and is the head of tech support for a multi-state accounting firm,” he said. “Due to the nature of her job, her employer required her to be in the office full-time. This was hard on her as five days a week, her commute to and fro was two hours. She was getting to the point where she could financially retire – but was nervous to pull the trigger. 

“When working from home in the pandemic eliminated her commute, she realized that life was tremendously better. This summer, when her employer wanted her to come back to the office for at least three days a week, she realized it was time to go. She couldn’t bear the thought of commuting. And she also realized that she wanted to head to the National Parks, see her sister’s family in Boulder and visit her brother in Los Angeles. She quit her job as she didn’t want work to get in the way. Now she has a bunch of travel plans and is more excited than she’s been in years.”

Your mental and physical health demand rest

The daily grind is challenging. Over the years, it can negatively affect your mental and physical health. If you find that your quality of life is deteriorating because of your job or coworkers and you are in a position to retire, you should consider retiring early for your health. Your reason doesn’t have to be dramatic or exciting. At the end of the day, good health is vital for a good life, so if it takes retirement to achieve it, so be it. 

“Some mental health problems, such as losing touch with who you are and what you do, may signify that it’s time to step away from your job,” Solomon said. “Physical health problems such as diabetes can seriously prevent you from doing a good job, as well. When you reach such a phase in your life, it’s a sign that you should start planning for retirement.”

Just remember, if retired life doesn’t suit you, you can always get a job again.