We’ve all been told the same thing: retirement happens at 65. Maybe 62 if you’re lucky.

But for many people, that “traditional” timeline doesn’t tell the whole story.

After years of helping families plan for retirement, we’ve noticed a trend. Many people overestimate how much they’ll need and underestimate how ready they already are.

Retirement readiness isn’t about hitting a magic number. It’s about balance between your savings, your lifestyle, and how you want to spend your time.

Here are seven real-world signs that you may be closer to retirement than you think.

1. You know where your money goes

You don’t need a perfect budget to feel confident about retirement. You just need awareness.

People who track their spending tend to make better decisions and feel less anxious about money. Why? Because they actually know where it’s going.

It’s not about cutting every expense. It’s about spending with purpose. When you understand your monthly cash flow, you can plan withdrawals, taxes, and savings with more accuracy. That confidence helps you shift from accumulation to distribution, which is the key mindset change that defines retirement.

If you can clearly answer “what does it cost to live my life each month?” you’re ahead of most.

2. Your savings are accessible

Many people believe you can’t touch retirement accounts before 59½, but that’s not the full story.

With the right strategy, you may be able to tap into your nest egg earlier without penalties. For example:

• Rule of 55: Lets you take money from your 401(k) if you separate from your employer at age 55 or older.
• Rule 72(t): Allows structured withdrawals from IRAs before 59½ when set up correctly.
• Roth contributions: Can be withdrawn anytime, penalty-free.

​These strategies need to be coordinated carefully and fit into a broader tax plan, but they show that flexibility often exists where people least expect it.

If your accounts are properly structured, you may already have access to the freedom you thought was years away.

3. Your portfolio is built to weather change

Retirement readiness isn’t just about having “enough.” It’s about having a plan that lasts.

Diversification isn’t just a buzzword. It’s a form of protection. A strong portfolio spreads risk across different investments, accounts, and income sources.

Maybe you have Social Security, a pension, and investment income. Or maybe you’ve built flexibility through part-time consulting or rental income. The more lines of defense you have, the more resilient your plan becomes.

The goal isn’t to predict the market. It’s to prepare for it. If your portfolio can handle volatility without forcing you to change your lifestyle, you’re on solid ground.

4. You’re healthy and want to enjoy it

Health doesn’t compound like money. You can always earn another dollar, but you can’t buy back another decade of energy and freedom.

If you’re in good health and have goals that get you excited, like travel, family time, or new hobbies, that’s a major sign you’re ready to start using your money for what it was meant for: living.

The truth is, the best retirement years are usually your healthiest ones. Waiting “just a few more years” might mean missing out on the time when you can fully enjoy the life you’ve worked so hard for.

5. Work takes more than it gives

For many people, the decision to retire isn’t financial. It’s emotional.

If your job leaves you drained more often than fulfilled, it may be time to ask what you’re working toward. There’s a difference between being challenged and being exhausted.

If you’ve already built financial stability, staying in a job that no longer aligns with your values can actually cost more than it pays. Retirement isn’t about escaping work. It’s about reclaiming your time and energy for something that matters more.

6. You can picture what comes next

Financial readiness only matters if you have something meaningful to retire to.

The happiest retirees we work with have a plan for their next chapter, whether that’s traveling, volunteering, spending time with family, or pursuing hobbies that bring them joy.

If you can picture your ideal day in retirement, you’re already thinking like someone who’s ready. The clearer your vision, the smoother the transition.

7. You’re asking the right questions

Just reading this shows you’re already ahead.

You’re not leaving your future to chance. You’re learning, thinking, and asking questions about what retirement could look like. That curiosity is one of the strongest indicators that you’re mentally and emotionally ready to take the next step.

And here’s the good news: retirement doesn’t have to be all or nothing. Many people today choose a phased retirement, working part-time or consulting while enjoying more freedom and flexibility. It’s a great way to test-drive retirement before fully committing.

A quick note on health insurance

Health coverage before age 65 can be a concern, but it doesn’t have to be a roadblock. Options like COBRA, private insurance, the healthcare marketplace, or a spouse’s plan can bridge the gap. With smart planning, it’s manageable.

The bottom line

You might be closer to retirement than you realize.

It’s not just about reaching a number. It’s about reaching a point where your money and your life align.

If you’re wondering how close you are, our Free Retirement Evaluation can help. We’ll review your income, investments, and tax strategy to show where you stand and how to make the most of your next chapter.

Have any questions, comments, or feedback? Just hit reply! We personally go through and answer each message.
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Thanks for reading!
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​Keeping wealth in focus,

The MY Wealth Management Team