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It’s easy to assume you’re ready to leap into retirement the day you hit your "magic number.” After all, why would anyone continue working if they can passively generate enough money to live on?
Retirement is a little more nuanced, though. You may have enough cash to support yourself, but there could be other reasons to consider delaying retirement just a little bit longer.
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If you’re closing in on your goal, here are the five warning signs you may want to consider before making the life-altering decision of retirement.
Work is engaging
If you’re young, struggling and underpaid, this may be hard to imagine. But some people enjoy their work. Job satisfaction tends to increase with age, wage and experience, according to a 2024 study by Pew Research (1). A whopping 67% of workers over the age of 65 said they were extremely or very satisfied with their work, far more than younger groups.
If your work is creative, social or mentally challenging enough for you to genuinely enjoy it, stepping away too soon may feel more like punishment than freedom. Many retirees report feeling bored or lonely after leaving the workforce.
If that resonates with you, consider scaling back instead of stepping away entirely. Delegate routine tasks in your business or ask your employer to let you focus on the parts of your job you enjoy most, even if it means a pay cut.
Part-time work or freelance consulting can also keep you engaged. There is no rule that says retirement has to be all or nothing.
You’re not excited about anything specific in retirement
Being able to quit work is not a reason to retire on its own. Without something meaningful to move toward, you could be setting yourself up for an aimless sunset.
Take time to consider what you value most and build your retirement around that.
If you love being engaged with your community, seek out volunteering opportunities before you quit your day job. Similarly, if you want to spend more time with your adult children, if you have them, take time to plan a move before retiring.
There’s no reason to rush into retirement until you have a clear picture of what that life will look like.
Your budget is unclear
One of the biggest mistakes is retiring based on napkin math. Nearly 31% of retirees said they were regularly spending more than they can afford in 2024, according to a survey by the Employee Benefit Research Institute (EBRI) (2).
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If you’ve underestimated the costs of your hobbies, travel or leisure activities, you risk falling into the overspender category.
It makes sense to delay retirement until you have a clear handle on your monthly, annual and long-term expenses, along with a margin of safety for surprises.
You haven’t planned for long-term care
Nearly one in five retirees say they haven’t considered healthcare costs, according to Fidelity (3).
That can be an expensive mistake. Fidelity estimates that a 65-year-old retiring in 2025 would need about $172,500 for health care throughout retirement.
If that number surprises you, there’s a good chance you’re underestimating long-term care costs.
Consider speaking with a financial planner about insurance premiums, health savings accounts and emergency funds before you retire.
You’re still carrying debt
Senior debt has tripled in the past three decades, according to Federal Reserve data analyzed by MarketWatch (4).
Many adults in their 50s, 60s and even 70s are carrying a significant debt burden beyond their mortgages. Adults 65 to 74 hold an average credit card balance of $7,720 and average unpaid medical bills of $13,800.
You may have already considered the interest payments for all your debts while planning retirement. But the risk with non-housing debt is that interest rates and payments can change over time and put your whole budget at risk.
Consider delaying retirement until you reduce non-mortgage debt to manageable levels.
Ultimately, retirement is not just a destination for those looking to escape their careers. Hitting your magic number may open the door, but walking through it too soon could create unexpected challenges.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Pew Research (1); EBRI (2); Fidelity (3); Marketwatch (4).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
