No. 5: Your debts are paid off or nearly paid off
One big sign that you are not ready to retire early: You still owe money to creditors.
Paying debt from a retirement budget cuts into what you can spend in retirement on doing the fun things that you've waited years to do, not to mention paying for necessary items such as utilities, taxes, food and home maintenance.
"My guidelines for early retirement include asking clients first whether their home is paid off," says Curtis Chambers, a financial adviser with Chambers Financial Group in Clearwater, Fla. "If it is not, then retirement is not on the radar screen. Second, do they have debt? If they have debt, they are probably not ready to retire."