24 February 2026
general
You may be dreaming of the day you retire. Perhaps you’re excited to travel more (and without the threat of urgent work emails), or maybe you’re looking forward to taking up a new hobby.
But how do you know when it’s finally time to retire?
For many people, it isn’t as simple as reaching State Pension Age and handing in your notice. In fact, a survey by Just Group found that 62% of retirees over 55 retired before the State Pension Age, while 19% retired after they had started claiming the payments.
There are a few key factors to consider before deciding to retire, ranging from financial stability to emotional readiness.
Here are four signs that you might be ready to retire soon and what you could do now to prepare for the next chapter.
1. You have enough savings to last comfortably throughout retirement
Depending on when you retire and how long you live, your funds could need to stretch over a three- or even four-decade retirement.
As such, it’s important to ensure you have sufficient savings and income to sustain your desired lifestyle.
To establish whether you’re financially ready to retire, it’s often worth considering the following:
Additionally, it’s generally wise to factor in inflation’s impact on costs throughout retirement, as well as any taxes due on your earnings.
Getting your finances ready for retirement can be complex, with multiple factors to consider when determining whether or not you can afford to stop working. So, it may help to consult with a financial planner to check you have enough to fund the lifestyle you’re hoping for.
2. You have paid off all your debts – including your mortgage
It’s often wise to ensure any significant debts are repaid – or very close to being so – before leaving work permanently.
In particular, you might wish to wait until you’re mortgage-free before retiring. Otherwise, your mortgage payments could add a significant amount to your monthly expenses, meaning your retirement savings will need to stretch even further.
Likewise, you may also consider paying off any credit card debts or loans to improve your financial security in retirement.
That said, having outstanding debts doesn’t necessarily mean you can’t retire yet. With careful planning, you may be able to finish paying them off in retirement, such as by using your tax-free lump sum, regular pension withdrawals, or other income.
A financial planner can help you determine whether it’s feasible for you to retire while continuing to repay debts and create a plan to help you achieve your goals.
3. You’re satisfied with your career accomplishments
As you approach retirement, you may look back on your career with a sense of achievement.
If you’re content with what you’ve accomplished, you may also find yourself losing your passion and motivation for work as you effectively “dial down” before retirement. This can be an indication that you’re ready for your career to end and your retirement to start.
That said, it’s worth noting that this feeling might not come to everyone. In some cases, you might never lose your drive to keep achieving, and your career might not ever feel “finished”. If this sounds like you, it could be helpful to find alternative passion projects to focus your energy on and give you a sense of purpose in retirement.
4. You feel excited about retirement and ready for the next chapter
Even if you have all your financial ducks in a row, you still might not feel ready to leave the workforce. If the thought of retiring fills you with dread or anxiety, you may need a little more time to prepare yourself for the transition.
Rest assured, if this is you, you’re not alone. The Actuarial Post reports that 42% of pre-retirees surveyed are worried they’ll feel bored in retirement, while the same proportion said they were concerned about being lonely.
If you’re on the fence, here are a couple of steps you might consider:
However, if you’re yearning for more freedom and excited to get stuck into the next chapter, that could be a good sign you’re ready to retire.
You might be looking forward to seeing the world or finally having time to start a DIY project you’ve been meaning to get around to. Or maybe you’re excited to spend more time with your loved ones. You may even just feel ready for a whole new routine, free from early morning alarms and long commutes.
Whatever it is you’re looking forward to, that feeling of excitement could be telling you it’s time to retire.
Get in touch
As you approach retirement, a financial planner can help you devise an effective strategy for building your savings, repaying any debts, and drawing an income in retirement. Taking time to understand your needs, preferences, and goals, we can help create a plan tailored to you.
Email enquiries@jesellars.co.uk or call 01934 875 919 to find out more about how we can help you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate cashflow planning or tax planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
