Many people spend their working years dreaming of (and hopefully planning for) the day they can retire. And we all hear stories about those elusive unicorns who were able to retire early and now all live on some island together in the Bahamas. But how do you know when you’re actually ready for retirement, and not just tired of working? Here are some important things to consider before you decide to cut the cord and head to the Bahamas too. If any of the following sounds true for you, you’re not ready to retire yet.

You don’t have a solid financial plan

The people who retire early are the ones who made good financial decisions from a very young age. They were thoughtful and careful with their money, and they don’t spend recklessly or make large impulsive purchases.

Some people learn good financial habits a little later in life after a few missteps, and that’s ok. It doesn’t mean you can’t retire early, or achieve incredible financial success. It’s just a matter of establishing good credit habits and sticking with them. However, if you don’t have a solid financial plan for how to support yourself on a monthly basis when you retire, better get some rest for work tomorrow.

You think you can just rejoin the workforce

After retirement, most folks don’t end up rejoining the workforce, either because they physically cannot, or they are unable to find work after a gap in their employment (and possibly due to an outdated skill set). So if your plan is to just wing it until you run out of money, you may want to reconsider retirement at this time. A solid retirement plan will carry you through all of your golden years, and may even allow you to leave some money to your loved ones.

You don’t have a strong grasp of your finances

If you don’t check your accounts very often, you’re not sure how much is in your 401K, and you don’t have an idea of when your significant debts will be paid off, then you may not have a very solid idea of where you stand financially. Without really digging into your finances, and calculating what you need to live for the remainder of your life, it may not be the best time for retirement.

You have a lot of debt

By the time you reach retirement, you should have paid off the bulk of your debt, including your mortgage. Retirees have to live on a fixed income, and for many, that income isn’t enough to cover the cost of a mortgage and a couple of car payments, as well as any other costs it takes to keep a house or car in good working condition. If you find yourself with a lot of debt, you may want to hold off on retiring until the bulk of your debt is repaid.

You haven’t considered inflation

You may already know that 50 years ago, the median price of a home was only $26,000, while today, a home costs roughly 1,000 percent more. While your retirement is unlikely to last for 50 years, inflation is something to keep in mind, especially if you have to buy something large in retirement, such as a home or car. Make sure to retire with enough money to increase your income year over year to allow for rising costs of living.

So if you’ve read this list and realized that you’re not ready to retire, don’t worry. It’s still possible set yourself up for retirement, though maybe not as early as you had hoped. For help with sprucing up your credit so you can begin the road to retirement, contact a credit repair company.

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